We recently highlighted ARK Invest’s recent big crypto acquisitions as part of its “Big Ideas 2022” report. The big ideas we cover are one of ARK’s loudest points in the entire report, Modeling of Bitcoin’s potential path By 2030, the price of each token will reach $1 million.
However, there’s more to digest in the Big Ideas report – the five-year running summary of innovations from the ARK Invest team. So let’s take a look at some of the other crypto- and blockchain-related insights the ARK team presented in this recent paper.
Bring big ideas…
The Big Ideas report covers a variety of blockchain and crypto-related buckets, so while we won’t give you content and perspectives on electric vehicles, artificial intelligence, and 3D printing, we’ll certainly dive into ARK’s perspectives Ethereum, Web3, digital wallet, etc.
ARK believes that blockchain technology will develop at a compound annual growth rate (CAGR) of 43% over the next 8 years, expanding from a current market value of about 1.4 tons to a market value of about 49 tons in 2030. This is a more aggressive CAGR than any other major category listed by ARK except robotics.
Additionally, the company sees blockchain technology as a whole as a container to a world where “everything can become like money: fungible, liquid, quantifiable” and digital wallets have enormous disruptive power, adding that wallets Consumers can be “in power” with a bank branch in their pocket and demand wholesale pricing for many financial transactions. “
Related reading | “Bitcoin Boom:” Small Solo Miners Mining Gold with Full BTC Blocks
When in doubt, zoom it out. The 5-year BTC chart is a stark reminder that big price forecasting for BTC isn't necessarily unreasonable. | Source: BTC-USD on TradingView.com
More about digital wallets
Centralized and not necessarily cryptocurrency-centric digital wallets have sprouted up to become important players in the financial world. Cash App, Venmo and rivals are taking personal finance by storm, with ARK forecasting annual growth of nearly 70%. Last year, digital wallets surpassed cash in point-of-sale transactions, and blockchain and cryptocurrencies can certainly absorb some of the growth. Additionally, ARK aptly points out that digital wallets can also serve as touchpoints for Web 3.0 assets such as NFTs.
Let’s talk about the broader blockchain
ARK remains focused on the origins of BTC as cryptocurrencies continue to grow, saying the company “believes that Bitcoin is the deepest application of public blockchains,” but added that it spurred the DeFi and Web 3.0 revolutions. ARK Invest emphasizes and celebrates the decentralized and permissionless nature of public blockchain infrastructure, open source networks, and broad user engagement and engagement. Additionally, the report cites the vision of public blockchains impacting a multitude of asset classes (cryptocurrency, crypto stocks, NFTs, DAOs, etc.) just as the internet revolutionized various asset classes (e.g. online radio, TV, news) and e-commerce).
The idea was fleshed out further and broken down into three revolutionary buckets: money, finance, and the internet. The image below, taken directly from the Big Ideas report, paints the picture in an interesting way:
In the report, there is also a section dedicated to Ethereum and DeFi and Web3. In these sections, ARK highlights DeFi and NFTs driving demand for Ethereum, sparking expectations for Ethereum 2.0, and spurring demand for layer 2 solutions. At the same time, ARK Invest predicts that the market capitalization of Ethereum may increase by more than 50 times in the next ten years. Additionally, ARK calls the DAO’s permissionless, frictionless, transparent, and public nature particularly unique, citing digital ownership as an accelerator for society’s continued transition to a more online world.
Finally, while today’s NFTs are more “isolated”, ARK Invest envisions blurring the lines between consumption and investment and provides a more holistic experience around the world of NFTs and Play-to-Earn.
More “Big Ideas:” Follow Bitcoin
As the ARK team has done before, they dedicate an entire section of the Big Ideas report to Bitcoin and Bitcoin. ARK believes that network players are maturing with a particular focus on the long term, while still showing impressive year-over-year growth in almost any metric – including average transaction value, average daily transfer volume, and cumulative annual transfer volume. How will this continue? The report highlights Lightning Network’s growth, increased adoption, and growing institutional holders, among others.
In fact, according to the report and data collected as of November 2021, “Exchange-traded products, countries, and companies hold 8% of the Bitcoin supply.” The deck continues to address environmental, social, and environmental issues often cited by critics and governance (ESG) issues, and stressed that crypto mining is a “digital currency energy network” — saying mining has a potential “revolutionary energy production” green energy incentive.
Of course, we’d be remiss if we didn’t come up with the boldest ideas – and what got us here – $1 million BTC token price. Pinch me in 2030.
Related reading | How the Fed’s Move Could Affect the Crypto Market
Featured image from ark-invest.com, Charts from TradingView.com The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.