- Ark Invest predicted that Bitcoin’s market capitalization would surpass that of gold.
- An analyst at the company responded to uncertainties in BTC regulation as a complete lack of education.
Analysts at Cathie Wood’s New York-based investment management company, Ark Invest, said Monday that Bitcoin market capitalization would eventually surpass that of gold, a precious metal with about $10 trillion market cap. Prominent Bitcoin investors and supporters are optimistic that the cryptocurrency will actually surpass gold’s valuation, although this may not happen anytime soon.
Bitcoin market cap will rise tenfold – Ark Invest
As the London Times reported, the analysts predicted the market valuation of cryptocurrency would “comfortably” increase tenfold to surpass that of gold.
“If you look at gold as a $10 trillion market cap, bitcoin is about 10 percent of that,” said Yassine Elmandjra, an analyst at Ark Invest. “if we believe bitcoin is a 100 times better version than that, then it’s fairly safe to say that there’s a stark chance that bitcoin captures a lot of gold and market share, and more.”
During press time, Bitcoin had a market capitalization of $1.09 trillion, with a price at $58,308 on Coinmarketcap. From a circulating supply of $18.6 million BTC, a Bitcoin should be trading well above $500,000 to surpass $10 trillion market capitalization.
Recently, Bitcoin was named the best-performing institutional-grade asset in Q1 2021. The price has more than doubled since the beginning of the year. However, gold declined by ten percent in value. This is probably causing many institutional investors in gold to reconsider holding the cryptocurrency.
Bitcoin regulation in the US
Janet Yellen, the United States Secretary of the Treasury, recently claimed that Bitcoin was inefficient, unstable, and also used by criminals. In response to this, and the effect of regulation on Bitcoin, Elmandjra said:
“I really think that it’s just outdated arguments as a function of their complete lack of education, which is a function of just their lack of interest in learning about this.”