Asset management firm Vaneck projected that Bitcoin could hit $2.9 million per coin by 2050, potentially becoming a global medium of exchange and a reserve currency.
Some says it’s delusional, but some says it’s bearish.
What will be the Bitcoin price by 2050?
In a report titled ’Bitcoin 2050 Valuation Scenarios: Global Medium of Exchange and Reserve Asset’, Vaneck’s digital assets research team, led by Matthew Sigel and Patrick Bush, explores the future valuation of Bitcoin.
Based on the available data, and the course of the changes, they suggest that by 2050, Bitcoin could become a major international medium of exchange and one of the world’s reserve currencies.
The report tells that Bitcoin could settle 10% of global international trade and 5% of domestic trade, with central banks holding 2.5% of their assets in BTC.
Using assumptions about global growth and investor demand, they apply a velocity of money equation to predict a possible price of $2.9 million per Bitcoin, resulting in a market cap of $61 trillion. That would be a helluva ride in the next two decades!
Bitcoin as global reserve asset, and global money, instead of dollar, euro?
This prediction is impressive because it reflects the potential for Bitcoin to fundamentally alter the global financial landscape.
Many argues it was developed for exactly this goal, to reshape the global economy. Vaneck’s team thinks that declining confidence in current reserve currencies, such as the U.S. dollar and the euro, could also drive the adoption of Bitcoin.
They believe Bitcoin’s trustless, neutral, and immutable monetary policy makes it a strong alternative.
The firm also notes that while scalability is still a challenge, Layer-2 solutions and software upgrades could improve Bitcoin’s use in international trade and as a reserve asset, in the same time.
Bitcoin is the ultimate property right, can’t manipulate by politicians
Vaneck explains that Bitcoin’s role in the financial system could grow due to shifting global GDP and rising concerns over property rights.
They also estimate that Bitcoin Layer-2 solutions could collectively be worth $7.6 trillion, about 12% of Bitcoin’s total value.
This view suggests that chances are high as more people adopt Bitcoin and its infrastructure improves, its role in the financial world could increase too, dramatically, leading to higher valuations and broader acceptance as a global reserve currency.
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