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.

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.