VanEck Predicts Bitcoin To Hit $2.9 Million By 2050
Key Points:
- VanEck forecasts Bitcoin could reach $2.9 million by 2050.
- Central banks might hold 2.5% of their assets in BTC.
- Layer-2 solutions will resolve Bitcoin’s scalability issues.
VanEck Predicts Bitcoin will reach $2.9 million by 2050, driven by its role as a global medium of exchange and reserve currency, with central banks holding 2.5% of assets in BTC.
Investment firm VanEck forecasts Bitcoin (BTC) could achieve a price of $2.9 million by 2050. The firm anticipates Bitcoin will solidify its role as a key international medium of exchange and one of the world’s reserve currencies.
VanEck Predicts Bitcoin for 2050
The prediction is based on the expected decline in trust in current reserve assets and the resolution of Bitcoin’s scalability issues through emerging Layer-2 (L2) solutions. According to their statement, these advancements could enable Bitcoin to more effectively meet the financial needs of the developing world.
According to VanEck, by 2050, Bitcoin will settle 10% of international trade globally and 5% domestically, while central banks will hold 2.5% of their assets in BTC.
Running this through a velocity of money equation, VanEck said Bitcoin’s price could be as high as $2.9 million, translating to a total market cap of $61 trillion. L2s collectively could be worth $7.6 trillion, or around 12% of Bitcoin’s total value.
Readmore: Beware Sorta Finance Scam: $25M Heist And Counting
Future Market Value and Adoption of Bitcoin
The model incorporates the following three elements:
- GDP from local and international trade settled in Bitcoin
- The supply of actively circulating BTC
- The velocity of BTC
One assumption in this scheme is that Bitcoin will be an essential part of the International Monetary System, gaining a share from the Principal Four Currencies. Additionally, It will capture 10% of cross-border payments and 5% of domestic trade.
VanEck assumes that 2.5% of central bank assets will be stored in BTC and that its store-of-value characteristics will remove 85% of BTC from the circulating supply. Considering a velocity for BTC of 1.5 would put the value per Bitcoin at $2.9 million, 1.66% of all financial assets globally.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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VanEck Predicts Bitcoin To Hit $2.9 Million By 2050
Key Points:
- VanEck forecasts Bitcoin could reach $2.9 million by 2050.
- Central banks might hold 2.5% of their assets in BTC.
- Layer-2 solutions will resolve Bitcoin’s scalability issues.
VanEck Predicts Bitcoin will reach $2.9 million by 2050, driven by its role as a global medium of exchange and reserve currency, with central banks holding 2.5% of assets in BTC.
Investment firm VanEck forecasts Bitcoin (BTC) could achieve a price of $2.9 million by 2050. The firm anticipates Bitcoin will solidify its role as a key international medium of exchange and one of the world’s reserve currencies.
VanEck Predicts Bitcoin for 2050
The prediction is based on the expected decline in trust in current reserve assets and the resolution of Bitcoin’s scalability issues through emerging Layer-2 (L2) solutions. According to their statement, these advancements could enable Bitcoin to more effectively meet the financial needs of the developing world.
According to VanEck, by 2050, Bitcoin will settle 10% of international trade globally and 5% domestically, while central banks will hold 2.5% of their assets in BTC.
Running this through a velocity of money equation, VanEck said Bitcoin’s price could be as high as $2.9 million, translating to a total market cap of $61 trillion. L2s collectively could be worth $7.6 trillion, or around 12% of Bitcoin’s total value.
Readmore: Beware Sorta Finance Scam: $25M Heist And Counting
Future Market Value and Adoption of Bitcoin
The model incorporates the following three elements:
- GDP from local and international trade settled in Bitcoin
- The supply of actively circulating BTC
- The velocity of BTC
One assumption in this scheme is that Bitcoin will be an essential part of the International Monetary System, gaining a share from the Principal Four Currencies. Additionally, It will capture 10% of cross-border payments and 5% of domestic trade.
VanEck assumes that 2.5% of central bank assets will be stored in BTC and that its store-of-value characteristics will remove 85% of BTC from the circulating supply. Considering a velocity for BTC of 1.5 would put the value per Bitcoin at $2.9 million, 1.66% of all financial assets globally.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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