Bitcoin started off the year 2021 valued at just over $40,000 and soared to more than $75,000 in a matter of a few months. With many factors affecting the value of this cryptocurrency, it has become difficult for investors to time the market and decide whether to invest. While it’s essential to do your own research and avoid relying on the advice of others, it can be helpful to get a second opinion. So, here is what some of Bitcoin’s most famous investors have to say about its future.
“Bitcoin’s market capitalization still represents a fraction of global assets and is likely to scale as nation-states adopt as legal tender. According to our estimates, the price of one bitcoin could exceed $1 million by 2030.”
ARK Invests’ CEO predicts a promising future for Bitcoin, estimating that the value of a single Bitcoin will surpass $1M within the decade. To support this projection, ARK Analyst, Yassine Elmandjra, emphasized that Bitcoin hit an all-time high by reaching a trillion-dollar market capitalization in 2021 during the ARK Invest Big Ideas Summit in January. She believes that this new record suggests favourable long-term prospects for the cryptocurrency that will benefit Bitcoin hodlers.
Woods has also been a strong advocate for the institutional adoption of Bitcoin, claiming in December that if institutional investors started to move into bitcoin and allocate 5% of their portfolios, the value could increase to more than $500,000 by 2026. The approval of Bitcoin ETFs in the U.S. and Canada over the past year and the impact of Tesla adding Bitcoin to their balance sheet has led ARK to believe there may be an increase in the institutional adoption of the cryptocurrency in the coming years. Their analysis also foresees the potential of other nations incorporating Bitcoin within their economies as a legal tender, following in the footsteps of El Salvador in September 2021.
“If the price of Bitcoin goes down, I lose money. I might pump, but I don’t dump. I definitely do not believe in getting the price high and selling or anything like that. I would like to see Bitcoin succeed”
Elon Musk, determined the richest person in the world as of this month, is a long-term holder of Bitcoin with hopes for its future success. Despite having some concerns over the environmental impact of mining this cryptocurrency, his company Tesla reported to the SEC earlier this month that it was holding almost $2 billion of Bitcoin at the end of 2021 and had invested an aggregate of $1.5 billion USD in Bitcoin in the first quarter of that year. Tesla also noted that they “believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash.” Further, Elon Musk admitted over the summer that they hope to resume accepting Bitcoin as payment for their electric cars once a more sustainable option for mining it is developed.
“Yes, Bitcoin will”
In response to a tweet by Cardi B asking if crypto is going to replace the dollar, the billionaire CEO of Block Inc., formerly known as Square, replied with a prediction that Bitcoin will. Jack Dorsey appears to be bullish on Bitcoin as he left his CEO position at Twitter to pursue projects relating to the cryptocurrency, including a hardware wallet for Bitcoin and a Bitcoin DeFi open developer platform. His perspective on bitcoin is that it will help unite a divided world by compensating for some gaps in current financial systems. His excitement for the future of this cryptocurrency lies in the impact of it operating on a decentralized network, meaning that it is not controlled or influenced by a single person or entity. He explained at the Bitcoin 2021 conference in Miami that he believes in the “ethos” of Bitcoin and what is represents for the future. His company is reported to be holding 8,027 BTC, worth more than $440 million CAD.
“It’s almost a younger generation’s alternative to gold, and it has no intrinsic value, but it has imputed value and therefore has some merit”
American investor, Ray Dalio, who was once very skeptical of cryptocurrency, has admitted to owning an undisclosed amount of Bitcoin which he views as an “alternative to gold-like asset.” Although he is not entirely sure about what the future holds for Bitcoin, he sees value in holding an amount of it to diversify his portfolio. He notes that he finds it impressive that Bitcoin has been able to sustain itself for around 10 years, hasn’t been hacked, and has gained popularity as a currency as well as a store of value. Although the price of Bitcoin has faced a significant dip in the past few weeks, it is reported that Ray Dalio is still holding on to his share.
“The one thing that BTC has as a HUGE advantage is that is has ZERO competition as a SOV. All the Smart Contract chains, and really ALL the blockchains, are in a DEATH war to win those applications. Many will lose.”
In a recent tweet, Mark Cuban explained that he views Bitcoin as having an advantage over other cryptocurrencies, as it doesn’t have any competition as a store of value. The billionaire investor has proven to be a big believer in cryptocurrency, disclosing in a podcast last month that 80% of his investments that are not in Shark Tank are in crypto. He is very optimistic about his investments in the crypto space, as he plans to invest in more DAOs and is a proud owner of NFTs. In terms of the technology, Mark Cuban appears more interested in other cryptocurrencies such as Ethereum and Polygon because of their utility. Nonetheless, he still sees a lot of value in owning Bitcoin, as he explains that it is “a better gold than gold.”