It has been a crazy year for bitcoin. The asset – which began 2020 at around $7,000 per coin – has fallen to as low as $3,800 in mid-March, but eventually rose as high as $12,000 per unit in August.
Could Bitcoin Head for the Trillions?
Earlier today, Live Bitcoin News reported that bitcoin could potentially experience a solid final three months of the year, and that the fourth quarter of 2020 would be particularly kind to the world’s number one cryptocurrency by market cap. In fact, one source was even claiming that this could lead BTC to reach $150K by the end of next year. However, this is small beans compared to what a former Tesla investor is saying.
Thus far, while bitcoin has managed to remain in the five-figure territory now for 60+ days, the currency has had its fair share of struggle over the past few weeks. For one thing, the asset rose to $12,400 in late August, but later fell by more than $2,000, where it has hovered ever since. Still, according to Yassine Elmandjra – who now heads Ark Invest – the currency is likely to experience a solid surge in less than ten years, and the currency could potentially reach a market cap that will exceed one trillion dollars.
In a recent interview, he stated:
Bitcoin offers one of the most compelling risk-reward profiles among assets, as our analysis suggests. It should scale from roughly $200 billion today to $1-5 trillion network capitalization during the next five to ten years.
Ark Invest has made a real name for itself in recent years considering how well it’s done predicting where the price of Tesla stock will go. During a time when most businesses this year crashed and burned, Tesla is one of the few that have done quite well, with stock shares increasing their prices tenfold throughout the coronavirus pandemic.
In addition, it is now being said that bitcoin and Tesla stock share a strong correlation, which could be why bitcoin has managed to jump roughly $7,000 in the past seven months. So long as Tesla continues to do well, we’ll likely witness bitcoin follow suit.
Some Issues to Work Out
Elmandjra explained further:
Our analysis suggests bitcoin is early on its path to monetization, with substantial appreciation potential. In our view, bitcoin’s billion market capitalization – or network value – will scale more than an order of magnitude to the trillions during the next decade.
While all this sounds good, Elmandjra has also cautioned about a certain amount of risk that’s likely to show its face in the coming years. This risk stems from the lack of regulation that continues to mar the space. Furthermore, there are several tricky issues that come with holding large amounts of BTC in one’s portfolio. He also warned against institutions potentially taking over the space by buying too much.