jakiro
Recently, Cathie Wood, a star fund manager on Wall Street and CEO of Ark Investment Management, led her ARK research team to release a report called “Big Ideas 2024” as scheduled.
Disruptive innovative technologies
In this 163-page report, “Mistress Mu” continued to focus on the field of “disruptive innovative technologies” and mentioned the field of blockchain many times.
The article will screen, summarize and deeply interpret the core views in its report.
In the future, with the massive adoption of blockchain technology, all funds and contracts may be transferred to public blockchains to verify digital scarcity and proof of ownership.
The financial ecosystem is likely to be reset to accommodate the rise of cryptocurrencies and smart contracts.
These technologies increase transparency, reduce the impact of capital and regulatory controls, and reduce contract execution costs.
In such a world, digital wallets will become increasingly necessary as more assets become like money, and businesses and consumers adapt to new financial infrastructure, and the company structure itself may also be subject toquestion.
She also mentioned the Bitcoin inscription, which is a disruptive innovation by introducing a unique numbering system for each Bitcoin Sats, which is identifiable and immutable, allowing users to record their data, image or text.
Unlike other blockchains, Bitcoin inscriptions are located at the base of the Bitcoin blockchain.
“In our opinion, this is a product of the free market and represents a healthy innovation in Bitcoin.”
In-depth interpretation
This image is about the comparison and analysis of Bitcoin’s fundamentals and network statistics between 2022 and 2023.
It highlights the significant growth of Bitcoin in all aspects, including price, market cost base, hash rate, Bitcoin supply moved a year ago, non-zero balanced Bitcoin addresses, long-term holder supply and transaction volume.
The title is “Bitcoin’s fundamentals didn’t skip a beat during the 2022 crisis and continue to accelerate in 2023.”
On the right side of the picture is a chart showing Bitcoin’s hash rate steady growth over time, reaching its all-time highest level in October 2023.Hash rate is a proxy metric for network security.
This image is about the comparison of Bitcoin futures open contract volumes between CME, Binance and FTX.
It shows that CME will surpass Binance in the future due to more regulatory and security needs and will become the world’s largest Bitcoin futures exchange.
The picture title is “CME will surpass Binance to become the world’s largest Bitcoin futures exchange.”
The subtitle explains the background: “As demand for more regulatory and security infrastructure increases after the 2022 crisis, Bitcoin market dynamics have shifted more to the United States.” And the chart shows “Bitcoin futures on CME are not upsetThe volume of the contract reached a record of US$4.5 billion.”
This picture is about how Bitcoin evolved into a reliable safe-haven asset amid macroeconomic uncertainty and a decline in trust in traditional “safe-haven assets”.It evaluates the value of Bitcoin as a safe haven asset from the following aspects:
Security and capital preservation:Bitcoin runs on a decentralized network without being affected by any single entity, government or central bank.Its open source nature protects it from arbitrary asset forfeiture and counterparty risks.
Diversification:Bitcoin’s low correlation with traditional asset classes enhances its role in portfolio diversification.Adding an unrelated asset to the portfolio may increase the return on unit risk and provide a buffer when the market falls.
Long-term investment perspective:Despite the short-term volatility of Bitcoin, it has significant potential for long-term price growth due to its design and scarcity.
Liquidity and accessibility:Investors around the world can access and trade Bitcoin 24/7, highlighting its importance in a time of hedging uncertainty.
Inflation hedging:The supply limit for Bitcoin is 21 million.Its scarcity characteristics align it with gold’s role as an inflation hedge..
About Smart Contracts
Smart contracts are deployed on public blockchains, providing a global, automated and auditable alternative to rent-seeking intermediaries and traditional financial infrastructure.
After the 2022 “cryptocurrency crisis”, some digital asset solutions have been supported, including stablecoins, tokenized fiscal funds and scale technologies.
According to ARK’s research, as the value of on-chain financial assets increases, the annual growth rate of market value associated with decentralized applications can reach 32%, from $775 billion in 2023 to $5.2 trillion in 2030.
The table shows different smart contract networks including Ethereum, Binance Chain, Solana, Avalanche, Tron and Polygon PoS.
The table also shows their expected market cap and price performance in 2023.Ethereum leads with a market capitalization of $274 billion and a price of +90%.
On the right side of the picture is a pie chart marked with “The Top 6 Smart Contract Networks in 2023”.It intuitively shows that the total transaction fees for these networks are $3.7 billion.
This image is a comparison and analysis of the value propositions of stablecoins in traditional financial systems.
Demand soared as a way to provide digital dollar access due to high inflation in emerging markets and increased global instability.
It also shows two charts, one is the number of daily active addresses of stablecoins for different blockchain networks, with a significant increase from January to October 2021; the other is the total transfer volume in 2023, with a trillion US dollarsIn units, PayPal, Mastercard, Stablecoin and Visa were compared.It shows that stablecoins are expected to surpass Mastercard in 2023, but are still below Visa’s total transfers.
Written at the end
As we all know, Sister Mutou, her investment philosophy is to choose companies that can change the world, rather than companies that will not be changed as the world changes.
It can be said that she is a loyal fan of Bitcoin and has repeatedly believed that Bitcoin is expected to reach its price target of $1 million per coin.
As mentioned in the ARK research team’s report released by the Big Ideas 2024,In the future, all funds may be transferred to the public blockchain Layer1, and the financial ecosystem is likely to be reset, and the companies and social systems themselves will be affected.
