Summary of ARK Invest .’s “Big Ideas” Report


We recently highlighted ARK Invest’s big crypto take, released as part of their “Big Ideas 2022” report. The big idea we covered was one of ARK’s loudest takes in the entire report, modeling bitcoin’s potential path to a price of $1 million per token by 2030.

However, there is more to the Big Ideas report: an annual summary of innovation, five years in the running, from the team at ARK Invest. So let’s take a look at some other crypto and blockchain related insights from the ARK team that came to light in this recent article.

Bringing the big ideas…

There are a variety of blockchain and crypto-related buckets that the Big Ideas report covers, so while we spare you the content and perspective around electric vehicles, AI and 3D printing, we will of course dive into the sentiment of ARK on Ethereum, Web3, digital wallets and more.

ARK sees blockchain technology advancing over the next 8 years at a 43% compound annual growth rate (CAGR) from a current market cap of approximately $1.4T to a 2030 market cap of approximately $49T. This is a more aggressive CAGR than any of the other main categories that ARK outlines, with the exception of robotics.

Furthermore, the company sees blockchain technology in general as a ship to a world where “everything could become money-like: fungible, liquid, quantifiable” and that digital wallets have enormous disruptive power, adding that wallets can enable consumers to “use the retain the power of a bank branch in their pocket and demand wholesale prices for many financial transactions.”

Related literature | ‘Bitcoin Rush:’ Small Solo Miners Win Gold With Full BTC Blocks

When in doubt, zoom out. The 5-year BTC chart is a stark reminder that big price predictions for BTC are not necessarily unreasonable. | Source: BTC-USD on TradingView.com

More about digital wallets

Centralized and not necessarily cryptocentric digital wallets have already become huge players in the financial world. Cash App, Venmo and competitors are taking personal finance by storm and ARK expects annual growth of nearly 70%. Digital wallets surpassed cash in point-of-sale transactions last year, and blockchain and crypto can certainly accommodate some of that growth, too. In addition, ARK aptly notes that digital wallets can also serve as a point of contact for onboard Web3.0 assets, such as NFTs.

Let’s talk about a broader blockchain

As crypto continues to evolve, ARK is still focused on the genesis that is BTC, stating that the company “believes(s) bitcoin is the most pervasive application of public blockchains,” but adds that the DeFi- and has spurred Web3.0 revolutions. ARK Invest highlights and celebrates public blockchain infrastructure in general for their decentralized and permissionless nature, their open source networks, and wide user participation and involvement. Furthermore, the report cites a view of public blockchains influencing massive asset classes (cryptocurrencies, crypto-stocks, NFTs, DAOs, etc.) in the same way the Internet revolutionized a variety of asset classes (such as online radio, TV, news, and e-mail). commerce).

This idea is further elaborated and broken down into three buckets of revolution: money, financial and internet. The image below, taken directly from the Big Ideas report, paints this picture in an interesting way:

Further on in the report, there is also a dedicated section for Ethereum and DeFi, as well as Web3. In these sections, ARK highlights DeFi and NFTs driving demand for Ethereum, leading to anticipation of Ethereum 2.0 and driving demand for Layer 2 solutions. Meanwhile, ARK Invest predicts that Ethereum may grow more than 50x in market capitalization over the next decade. In addition, ARK cites the permissionless, frictionless, transparent and public nature of DAOs as particularly unique, citing digital ownership as an accelerator for society’s ongoing shift towards a more online world.

Finally, while NFTs are a bit more ‘locked in’ these days, ARK Invest envisions a blurring of the line between consumption and investment, and a more holistic experience around NFT and Play-to-Earn worlds.

More ‘Big Ideas:’ A Focus on Bitcoin

As the ARK team has done before, they devoted an entire section of the Big Ideas report to Bitcoin and Bitcoin alone. ARK views network participants as mature and with a particular long-term focus, while still demonstrating exceptional year-over-year growth by nearly every measure – including average transaction values, average daily transfer volumes, and cumulative annual transfer volumes. How does this continue? Among other things, the report highlights Lightning Network’s growth, increased adoption and growing number of institutional holders.

In fact, according to the report and as of the numbers collected in November 2021, “exchange-traded products, countries and companies owned 8% of bitcoin’s supply.” The deck goes on to address environmental, social and governance (ESG) concerns often cited by critics, highlighting cryptomining as “a digital-monetary energy network” – stating that mining has the potential to “increase energy production.” revolutionize”. of green energy.

Of course, we would be remiss not to mention the most daring of them all – and what brought us to this point today – the $1 million BTC token price. Pinch me in 2030.

Related literature | How the Fed’s Move Could Affect the Crypto Market?

Featured image from ark-invest.com, charts from TradingView.com The author of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.

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