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It’s been a great week for cryptocurrency investors. The prices for many major cryptocurrencies have soared in recent days, and many experts are calling for more upside. In fact, Cathie Wood — an iconic investor known for her aggressive investment style — believes one legendary cryptocurrency still has more than 5,300% in upside to go.
When it comes to crypto markets, no asset has more name recognition than Bitcoin (CRYPTO: BTC). There are plenty of great reasons for this. Bitcoin started the cryptocurrency when it launched in 2009, right around the peak of the financial crisis. Since then, hundreds of additional cryptocurrencies have popped up, with hundreds or even thousands of additional crypto start-ups seeking to contribute to the growing decentralized ecosystem.
The space is clearly still in its infancy, similar to where the internet was in the early 2000s. But innovation continues to mount at an impressive rate, and billions of dollars have been invested in growing crypto’s capabilities and value.
Despite the massive proliferation of the crypto ecosystem, one cryptocurrency remains supreme: The original Bitcoin. With a market cap of $1.4 trillion, Bitcoin remains the undisputed leader in the space, with the most name recognition, adoption, and ownership. It’s no wonder that tech investors like Cathie Wood — the CEO of Ark Invest — are still bullish on this classic cryptocurrency.
Earlier this year, Wood revealed that her company’s’s long-term price target for Bitcoin is roughly $1.5 million — significantly higher than today’s $65,000 trading range. But there could be even more upside should institutional capital get involved in a bigger way than it is presently. “If institutional investors were to allocate a little more than 5% of their portfolios to bitcoin,” Wood explained, “that alone would add $2.3 million to the projection” and bring her long-term price target to $3.8 million — a price target with more than 5,000% in implied upside potential.
Like many of her predictions, Wood’s Bitcoin price target is extremely optimistic. It should also be stressed that Bitcoin’s price is unlikely to reach the $1.5 million mark — never mind the $3.8 million mark — anytime soon. But there are plenty of reasons to believe in Bitcoin’s long-term price potential, even if the exact magnitude is yet to be seen.
One of the biggest reasons to stick with Bitcoin versus other trendy cryptocurrencies is that it has an advantage that no other cryptocurrency can even match: A history of success. While there have been plenty of bumps along the way, the thesis behind Bitcoin’s 2009 launch remains sound. The underlying mechanisms that allow it to function without centralization are, by now, beyond criticism. And Bitcoin’s wide ownership across both retail and institutional investors remains unparalleled. At the end of the day, even if other projects like Ethereum are able to layer additional complexity and functionality onto the crypto ecosystem, Bitcoin’s place as the original cryptocurrency with the longest track record can never be beaten.
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