According to a prominent investor of Tesla an American Car Electric company, the market capitalization of Bitcoin (BTC) will hit $1 trillion within the duration of the next five to ten years. Currently, the market cap of BTC stands at around $200 billion and if the claim made by the major Tesla investor comes true and the coin’s value reaches $1 trillion in market cap then it will be a massive achievement for the top-ranked digital currency.
From $200 Billion to $1-5 Trillion
Various financial institutions and professional institutional investors believe that a strong hedge is going to come against inflation because they think that governments from across the whole world are printing more and more money. And because of this, a lot of professional investors have directed themselves towards the leading digital asset Bitcoin so far this year and as a result, the institutional interest increased in the coin. The inflow of investors into Bitcoin is still continuing.
With this, the popular Tesla investor Ark Invest said that it thinks the market capitalization of Bitcoin will skyrocket to achieve $1 trillion to $5 trillion over the course of the next five to ten years. Yassine Elmandjra, the Director of Research at Ark Invest said that investors cannot neglect the top-ranked digital currency as an asset class saying that they are seeing Bitcoin’s market cap climbing from $200 billion to $1-5 trillion within the time period of the next ten years.
However, there were some risks highlighted by Elmandjra that may hinder this bull-run of Bitcoin. One of them mentioned by Elmandjra is the regulatory uncertainty of Bitcoin (BTC) that has not been made clear so far. Another hurdle in the way of Bitcoin is “over-institutionalization”. Elmandjra said that these obstacles should be thrashed out.
Since the beginning of this year, Bitcoin has included 40% into its price value and because of this the market cap of BTC surged to $200 billion. Throughout this year, Bitcoin price has done fairly well so far despite facing a severe price crash in the month of March which sent the price value of Bitcoin as low as to $4,000. However, after that, Bitcoin has recovered well and it is currently standing at around $10,600. This is an impressive growth since the mid-March price crash.