MJP –
An Asset Manager now makes a 2050 Bitcoin prediction of a whopping $2.9m per coin, with lows still looking rather promising.
VanEck has forecasted that by 2050, Bitcoin could potentially become a global reserve currency with a price reaching $2.9 million.
This transition is expected to stem from a decreasing trust in traditional reserve assets and a growing demand for alternatives like Bitcoin.
The firm believes issues related to Bitcoin’s scalability will be addressed through Layer-2 (L2) solutions, enhancing its efficiency.
VanEck predicts that by 2050, Bitcoin could facilitate 10% of international trade and 5% of domestic transactions, with central banks possibly holding 2.5% of their assets in Bitcoin.
Overall, VanEck envisions a significant role for Bitcoin in both international and domestic trade by that year.
According to their estimates, if Bitcoin achieves this scenario, it could drive its price to $2.9 million, elevating its market capitalization to around $61 trillion.
Additionally, VanEck anticipates that the value of Bitcoin’s Layer-2 solutions could reach $7.6 trillion, representing about 12% of Bitcoin’s total value.
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It’s important to note that VanEck’s $2.9 million estimate is considered a “base case.”
In a best-case scenario, Bitcoin could soar to $52,386,207, while in a worst-case scenario, the price could drop to $130,314.
A key factor behind VanEck’s optimistic view is Bitcoin’s potential as a reserve asset.
They suggest that shifting trends in the International Monetary System (IMS) could facilitate this transition.
With major economies like the US, EU, UK, and Japan seeing a declining share of global GDP, there may be a growing move toward alternative reserve assets.
This shift is further fueled by diminishing confidence in traditional reserve currencies due to concerns over deficit spending and geopolitical instability.
Consequently, businesses and consumers might increasingly see Bitcoin as a stable and neutral medium of exchange, appreciated for its predictable monetary policy and secure property rights.
VanEck argues that these economic changes could accelerate Bitcoin’s adoption as a global reserve currency, addressing the shortcomings of conventional fiat currencies.
However, not everyone agrees with VanEck’s bullish outlook.
Crypto commentator Kal Benz has labeled the $2.9 million forecast as “bearish.”
Given that Bitcoin currently trades around $59,000, a price of $2.9 million implies an extraordinary growth of 4,815%.
Adjusted for 5% inflation, this projection would be equivalent to $856,000 today, representing a 10.7% return on investment (ROI).
When considering 5% annual monetary debasement, the value shrinks to $267,000, or a 6% ROI.
Furthermore, some market participants are expressing caution, highlighting potential risks.
A notable crypto trader has even predicted that Bitcoin’s value could plummet to as low as $16,000 if Vice President Kamala Harris wins the presidency in November, citing worries about the current administration’s regulatory approach to cryptocurrencies.
Bitcoin is currently trading at $58,339.83 at the time of this publication.
Juniper Calloway is a dedicated journalist with 3 years of experience in covering hard-hitting stories. Known for her commitment to delivering timely and accurate updates, she currently works with MikeandJon Podcast, where she focuses on reporting critical topics such as crime, local news, and national developments across the United States. Her ability to break down complex issues and keep audiences informed has established her as a trusted voice in journalism.
