Bitcoin Could Hit $2.9 Million by 2050 – VanEck

Analysts at VanEck, a leading investment management firm and issuer of crypto ETFs, predict that the price of Bitcoin (BTC) could rise to $2.9 million by 2050.

This prediction, made by Matthew Siegel, VanEck’s head of digital asset research, and Patrick Bush, senior investment analyst, hinges on Bitcoin becoming a central component of the international monetary system.

Siegel and Bush foresee Bitcoin becoming widely used in international trade, becoming a significant medium of exchange and a valuable store of wealth.

This anticipated change would create a feedback loop similar to Gresham’s law, where “bad money drives out good money.” As BTC gains functionality and value, central banks and long-term investors will seek to own more of it, reducing the supply in circulation.

Analysts believe it is possible that by 2050, Bitcoin will be responsible for 10% of global international trade payments and 5% of domestic trade. In this scenario, central banks would hold approximately 2.5% of their assets in Bitcoin.

Applying the velocity of money equation – which measures how often money is used to purchase goods and services – they suggest that these conditions could bring the price of Bitcoin to $2.9 million, which equates to a total market capitalization of $61 trillion.

This analysis includes assumptions about global economic growth, investor demand for Bitcoin, and Bitcoin transaction turnover, painting a picture of Bitcoin’s potential future role in the global economy.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.