Recently, Cathie Wood, CEO of Wall Street's star fund management company and Ark Investment Management, led her ARK research team to release a report called "Big Ideas 2024" as scheduled.
Disruptive innovative technology
In this 163-page report, "Sister Mumu" continues to focus on the "disruptive innovative technology" industry and mentions the blockchain industry many times.
Source: ARK invest
This article will screen, summarize, and deeply interpret the core ideas in his report.
In the future, with the large-scale adoption of blockchain technology, all funds and contracts may be transferred to the public blockchain to verify digital scarcity and proof of ownership.
The financial ecosystem will likely 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, as more assets become like money and businesses and consumers adapt to new financial infrastructures, digital wallets will become increasingly necessary, and corporate structures themselves may be affected. question.
She also mentioned Bitcoin Inscription, a disruptive innovation that allows users to record their Bitcoin Sats by introducing a unique numbering system that makes each Sats identifiable and immutable. data, images or text.
Source: ARK invest
Unlike other blockchains, Bitcoin Inscription sits at the base layer of the Bitcoin blockchain.
"In our view, this is a product of the free market and represents healthy innovation for Bitcoin."
In-depth interpretation
Source: ARK invest
This image is a comparison and analysis of Bitcoin fundamentals and network statistics between 2022 and 2023.
It highlights Bitcoin’s remarkable growth across various dimensions, including price, market cost basis, hash rate, supply of Bitcoin moved a year ago, Bitcoin addresses with non-zero balances, long-term holder supply, and number of transactions.
The headline is “Bitcoin fundamentals haven’t skipped a beat in 2022 crisis and continue to accelerate in 2023.”
To the right of the image is a chart showing the steady growth of Bitcoin’s hash rate over time, reaching its all-time high in October 2023. Hash rate is a proxy indicator of network security.
Source: ARK invest
This image is about Bitcoin futures open interest versus CME, Binance, and FTX.
It shows that in the future CME will become the largest Bitcoin futures exchange in the world, surpassing Binance due to more regulatory and security needs.
The title of the picture is "CME will surpass Binance and become the world's largest Bitcoin futures exchange."
The subtitle explains the background: “Bitcoin’s market dynamics are shifting more to the U.S. as demand for more regulation and security infrastructure increases after the 2022 crisis.” And the chart shows “Bitcoin futures on CME not flat Open interest volume reached a record of $4.5 billion."
Source: ARK invest
This picture is about how Bitcoin has evolved into a reliable safe-haven asset amid general economic uncertainty and declining trust in traditional “safe-haven assets.” It assesses Bitcoin’s value as a safe-haven asset based on the following aspects:
Security and Capital Preservation: Bitcoin runs on a decentralized network and is not influenced by any single entity, government or central bank. Its open source nature protects it from arbitrary asset seizure and counterparty risk.
Diversification: Bitcoin has a low correlation to traditional asset classes, enhancing its role in portfolio diversification. Adding an uncorrelated asset to a portfolio may increase returns per unit of risk and provide a cushion when markets decline.
Long-term investment perspective: Despite Bitcoin’s short-term volatility, it has the potential for significant long-term price growth due to its design and scarcity.
Liquidity and Accessibility: Investors around the world can access and trade Bitcoin 24x7, highlighting its importance in times of safe-haven uncertainty.
Inflation Hedge: Bitcoin’s supply is capped at 21 million coins. Its scarcity characteristics make it consistent 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.
In the wake of the “crypto crisis” of 2022, a number of digital asset solutions have gained support, including stablecoins, tokenized treasury funds, and scaling technologies.
According to ARK’s research, as the value of on-chain financial assets increases, the market value related to decentralized applications can grow at an annual rate of 32%, from $775 billion in 2023 to $5.2 trillion in 2030.
Source: ARK invest
The table shows different smart contract networks, including Ethereum, BNB Chain, Solana, Avalanche, Tron, and Polygon PoS.
The table also shows their projected market cap and price performance in 2023. Ethereum leads the way with a market cap of $274 billion and a price performance of +90%.
On the right side of the picture is a pie chart labeled "Top 6 Smart Contract Networks in 2023". It visually represents the total transaction fees of these networks at $3.7 billion.
Source: ARK invest
This image is a comparison and analysis of the value proposition of stablecoins in traditional financial systems.
Due to high inflation in emerging markets and increasing global instability, demand for stablecoins has surged as a way to provide digital access to the U.S. dollar.
It also shows two charts, one is the number of daily active addresses for stablecoins on different blockchain networks, which has grown significantly from January to October 2021; the other is the total transfer volume in 2023, in trillions of dollars For units, PayPal, MasterCard, stablecoins and Visa were compared. shows that the stablecoin is expected to surpass MasterCard in 2023, but still fall short of Visa’s total transfer volume.
write at the end
As we all know, Sister Mu, 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’s safe to say that she is a huge fan of Bitcoin, having repeatedly believed that it was on track to hit its $1 million price target.
As mentioned in the "Big Ideas 2024" report released by the ARK research team, in the future, all funds may be transferred to the public blockchain Layer 1, the financial ecosystem is likely to be reset, and the company and social system itself will also be affected.
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This article is reprinted with permission from: "MarsBit"
Original author: Ark Invest
Compiled by: W3C DAO
