- Bitcoin market capitalization could surge to $1.1 trillion supported by only three use cases.
- The report says that Bitcoin is a better replacement for gold because it is scarce, auditable and portable.
A report released by Ark Investment Management, ad adviser based in New York reckons that Bitcoin has the potential to rise to over $1 trillion in market capitalization. The report titled, Big Ideas 2020 identifies three use cases that will massively drive Bitcoin price. The medium of exchange, store of value and protection against asset seizure are the three uses cases examined.
The report outlined that Bitcoin rise to $1.1 trillion will replace a fraction of the $40 trillion money supply. Moreover, the digital asset is set to function as a catalyst for currency demonetization.
As a store of value, Bitcoin does better than gold according to the report because digital assets are portable. Bitcoin is also scarce and auditable. As BTC positions itself as a possible replacement for gold, investors can expect a surge in the market cap to the tunes of $800 billion. This is possible as long as Bitcoin takes up at least 15% of gold’s $9 trillion market capitalization.
Moreover, in the event high-net-worth individuals put only 5% of total $46 trillion wealth into Bitcoin, the market would surge to $1.3 trillion. The report explains:
Today, a global battle among monetary systems, both sovereign and non-sovereign, is underway. In the long run, ARK expects that the winning monetary systems will ensure:
1. Money will be transferred and stored seamlessly.
2. Money will not be diluted arbitrarily.
3. Money will not be frozen or seized.
4. Money supply will be auditable, and transactions will not be censored.
5. Record of transactions will be secure and immutable.”