As the digital economy continues to gain prominence, the value of Bitcoin could potentially exceed $1 million in the next decade, according to Ark Invest analyst Yassine Elmandjra.
In an interview with TD Ameritrade Network, Elmandjra highlighted Bitcoin's impressive performance over the last decade, making it an attractive addition to investment portfolios.
He estimates that a reasonable allocation for institutions can range between 2.5% to 6.5% depending on their risk-adjusted returns or minimizing volatility preferences, which could translate to a value above $1 million per Bitcoin in the next ten years.
Elmandjra further emphasized that those who thought they had missed the boat on Bitcoin should take note of its resilience in uncertain and chaotic times. The cryptocurrency has survived market fluctuations and continues to hold investor interest, demonstrating its potential to maintain value in the future.
Regarding the million-dollar prediction, Elmandjra acknowledged that a 20-fold increase in value might sound far-fetched, but it is not unreasonable when considering Bitcoin's origins and the evolution of the digital economy.
He explained, "If you look at where Bitcoin started (a digital collectible with no market price), I don't think it's unreasonable to think that over the next decade the digital economy starts to become the focal point of the entire economy."