Major Tesla Investor Brands Bitcoin A ‘Contender For The First Global Digital Money’

Bitcoin has caught the attention of some of the world's largest investors this year.

The bitcoin price, which rose almost 30% this year despite a corona virus crash in March, has been around $ 10,000 per bitcoin since its supply shortage in early May.

Now a big Tesla
TSLA
The investor, seeing the electric car manufacturer's share price rise seven-fold by 2024, said Bitcoin is a "contender for the first global digital money" –echo Comments from Tesla's CEO Elon Musk.

"While scarce and long-lived, bitcoin is also divisible, verifiable, portable, and transferable. This is a set of monetary features that give superior benefits, potentially boost demand, and make it suitable for the role of global digital money if not consider even superior, "said Ark Invest analyst Yassine Elmandjra wrote.

Ark, a bullish Tesla investor known for his massive $ 7,000 price target for Tesla stocks, sees that Bitcoin may reach 10% of gold's market cap in just five years, from around 1% currently.

ark originally bought into Bitcoin in 2015 when it was trading for just $ 230 a token and buying shares of the Grayscale Bitcoin Investment Trust. Ark paid off his grayscale share in 2018 and told CNBC It was a "complicated decision" driven more by regulatory and tax concerns than by the "merits" of Bitcoin itself.

However, Ark continues to hold Bitcoin in its "undisclosed, separately managed accounts," Elmandjra said via email.

"We believe that Bitcoin, as a suitable candidate for the first global digital money, should attract a demand that is at least equal to that of gold," said Elmandjra in response to Wall Street giant Goldman Sachs. recently Bitcoin dismissal and warning "The complexity of Bitcoin should not prevent financial institutions from analyzing it in depth."

"Contrary to the claim that it is in a massive bubble, Bitcoin's network value – or market cap – is less than 2% of the gold value," said Elmandjra, adding that while Bitcoin is often referred to as digital gold, we do Bitcoin but not believing only shares many of the properties of gold, but also improves them. "

Ark's analysis agrees with recent research published by Bloomberg that bitcoin is increasingly acting as "digital gold".

"Among the few assets in this turbulent year, we believe gold and bitcoin are the basis for further price increases," said Bloomberg researchers wrote in a raw material report from June 2020.

Bitcoin's performance this year, given the market turmoil triggered by the coronavirus pandemic, has led investors like Paul Tudor Jones, Dan Tapiero and Raoul Pal to name the cryptocurrency as a potential hedge against inflation that brings unprecedented stimulus from the central bank could.

"As the Bitcoin network continues to mature, we believe it will consolidate Bitcoin's role as an emerging monetary asset and that financial institutions will do well to take it seriously," said Elmandjra.



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