What Could Push the Bitcoin Price Above $130,000 According to VanEck

VanEck has shared its ambitious forecast that Bitcoin (BTC) could reach $2.9 million in the next 26 years.

The company’s experts base their views on Bitcoin’s potential acceptance as a global medium of exchange and reserve asset that could potentially change the global financial landscape.

Under this scenario, VanEck envisions that by 2050, Bitcoin will drive 10% of global international trade and 5% of domestic trade, and central banks will hold 2.5% of their assets in BTC.

This could drive the price of the cryptocurrency to $2.9 million, which would send the asset’s total market capitalization to $61 trillion.

In a more bearish scenario, Bitcoin is projected to reach at least $130,314, while a more bullish scenario would see it reach $52.4 million.

According to VanEck, Bitcoin’s scalability issues, which have hindered its adoption in the past, could be mitigated by emerging second-layer solutions. These are expected to allow BTC to support a global financial system that can serve the evolving world more efficiently.

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Obstacles to realising the forecast

Despite this optimistic outlook, the company’s experts acknowledge several risks that could hinder Bitcoin’s growth.

A major concern is the growing energy needs of future Bitcoin mining, which could necessitate advancements in chip design and energy production. Additionally, as BTC inflation declines, transaction fees must become a major source of revenue for miners to remain sustainable.

The report also notes that other cryptocurrencies and technological innovations could pose a competitive threat to Bitcoin. In addition, coordinated efforts by global governments to ban or regulate Bitcoin could also have a significant impact on its acceptance and value.

Kosta Gushterov