Ark Invest Chief Executive Officer Cathie Wood says she expects the price of Bitcoin to reach $500,000 U.S. within five years.
Wood said her forecast depends on whether companies continue to diversify their balance sheets into the biggest cryptocurrency by market value and institutional investors begin to allocate 5% of their funds to it.
If that happens, “we believe that the price will be ten-fold of where it is today,” she said at an investor conference. “So instead of $45,000, over $500,000.”
Wood said her price targets are made with a five-year time horizon in mind.
When asked if she could own just one cryptocurrency, she said she would default to Bitcoin “because countries are now deeming it legal tender.”
El Salvador has officially made Bitcoin legal currency, while Panama and Ukraine are in the process of doing the same.
Wood also said she remains bullish on Ethereum, which is up 350% so far this year, and laid out a preference for a 60:40 Bitcoin-to-Ethereum cryptocurrency portfolio.
Ethereum's much anticipated upgrade to 2.0 saw an overhaul of the network's entire infrastructure to a proof-of-stake system, under which users put forward Ethereum to gain the right to verify transactions and earn digital coins.
