VanEck Predicts Bitcoin Rallying to $2.9 Million by 2050 If Several Events Occur
Asset management firm VanEck believes Bitcoin may rally to $2.9 million by 2050 if some critical events occur.
VanEck offers users exposure to BTCr and Ethereum through Spot ETFs. In a report, the firm stated that Bitcoin must become vital to the international monetary system in the following decades.
Political tension and growing debt servicing are straining the economic scene. However, Bitcoin could be the asset that helps solve the ongoing financial crisis.
VanEck Analysts Believe BTC Could Trade at $2.9 Million, How?Matthew Sigel, head of Digital Research at Van Eck, stated that there is rising distrust in existing institutions.
VanEck Head of Digital Assets Research Matthew Sigel tells @KellyCNBC on @CNBCTheExchange Bitcoin could hit $2.9 million per coin by 2050. pic.twitter.com/sCksMKVST7
- The Exchange (@CNBCTheExchange) July 24, 2024
Sigel shared his views in an interview with CNBC on Wednesday. According to Sigel, many financial problems come from misappropriation of capital. He noted that some governments have spent borrowed money on impossible goals.
However, Sigel believes Bitcoin is the ultimate solution to this global financial recklessness. Based on the report, Bitcoin must become the main currency for local and international trade.
VanEck foresees a 44x increase in BTC's value if Bitcoin is accepted globally for payments. VanEck also projects BTC's market cap to hit $61 trillion.
VanEck identified potential issues that could hinder Bitcoin's expansion. According to the ETF provider, the rising energy demand by BTC miners requires innovation to overcome.
Secondly, revenue from transactions processed on the Bitcoin blockchain must increase. This revenue increase will help replace the reduced mining rewards slashed in half every four years. Higher revenue will encourage miners to keep mining Bitcoin despite the decreasing rewards.
Additionally, efforts from some government agencies worldwide to outlaw Bitcoin threaten its expansion. VanEck included competition from other cryptocurrencies and large financial institutions' restrictive control as threats to Bitcoin.
Meanwhile, VanEck pointed out that Bitcoin scaling issues that limit its use as an exchange medium can be tackled by growing layer-2 networks.
Bitcoin Properties Ideal for A Reserve CurrencyVanEck analysts believe that Bitcoin's neutrality, transparency, and decentralized nature make it ideal as a reserve currency. BTC design can replace the old fiat money system with blockchain technology and ensure transparency.
Bitcoin'sframework allows different types of users, such as governments and individuals, to hold and transact BTC directly.So, there is no need to rely on intermediaries such as banks and payment portals to process financial transactions.
Bitcoin's supply, which is capped at 21 million BTC, makes it difficult to manipulate or inflate it, unlike fiat currencies. VanEck stated that a currency's value in the International Monetary System is measured by cross-border payments and payment reserves.
If more government agencies and individuals adopt Bitcoin, it could rally to $2.9 million each by 2050. However, VanEck's predictions are speculative since the financial markets are volatile and highly unpredictable.
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