Although Bitcoin is still far from full acceptance, the director of Ark Investment believes it has considerable potential as an institutional store of value. Michael Saylor considers that the adoption of the Lightning Network is critical as it favors instant and low-fee micropayments in Bitcoin.
Cathie Woods, managing director of Ark Investment, believes in the great potential of Bitcoin (BTC) as an institutional store of value. However, her analysis occurs when the adoption of the cryptocurrency is still far from full acceptance.
The businesswoman predicted that there would be an allocation of about 2.5% of institutional assets to Bitcoin in the coming eight years. She said that real estate and emerging markets were the trends in the 1980s and 1990s, while Bitcoin is the current investment.
Woods revealed that the company she directs has a target price of over USD 1 million per Bitcoin for 2034.
Michael Saylor, CEO of MicroStrategy, also made predictions about the pioneering cryptocurrency. It is relevant to remember that his company has accumulated 129,218 BTC, equivalent to around USD 5.6 billion, in its treasury.
Saylor expressed his optimism about Bitcoin at a technological level and concerning its price behavior in the medium and long term. He explained that the public opinion and many politicians had made a 180ยบ turn in their thoughts on BTC over the last year.
Concerning that change of position, Saylor raised the executive order of US president Joe Biden in early March. The legal document does not seek to prohibit activities with digital assets, which the billionaire executive finds favorable.
Biden gave the go-ahead to Bitcoin by directing government agencies to learn about Bitcoin and how to incorporate it into the economy. Michael Saylor noted that no other US president had ever required the adoption of a new asset class.
Saylor Considers that Exchanges Should Support the Bitcoin Lightning Network
Woods and Saylor also agreed that the Lightning Network is a second-layer protocol that favors instant and low-fee micropayments in Bitcoin.
The former thinks the Lightning Network is a missing link as it allows using the cryptocurrency as a store of value and a payment means. She predicted that there might be an explosion of Lightning network-centric developments in the coming years.
Saylor said this technology fascinated him and that every cryptocurrency exchange should support the Lightning Network. He explained that Bitcoin strengthens the economy while the Lightning Network helps the Internet grow.
Recent developments will allow issuing, sending, and transferring tokens through this second-layer protocol.
Bitcoin is trading at around USD 42,469 and has accumulated a 1.8% loss over the last 24 hours. Its daily trading volume is above USD 20.07 billion, and its market capitalization is about USD 807.22 billion, according to CoinGecko.
The relevance of Bitcoin in the economy has become increasingly evident, which institutional investors have not overlooked. MicroStartegies and Tesla are two examples of the growing interest in the pioneering cryptocurrency. Michael Saylor and Elon Musk have accumulated Bitcoin in their treasuries as a store of value.
By Alexander Salazar
