VanEck believes Bitcoin will reach $2.9 million in 2050, but many things must happen first
Bitcoin is benefiting from massive economic imbalances, growing distrust in institutions, fiscal recklessness and growing debt loads, VanEck's Matthew Sigel said in an interview.
Asset manager VanEck, issuer of bitcoin and ethereum spot ETFs, says the price of BTC can reach $2.9 million by 2050, assuming some pretty high hurdles are cleared.
Based on VanEck's assumptions in a Wednesday report, bitcoin would become an essential part of the international monetary system in the coming decades as rising geopolitical tensions and rising debt-servicing costs erode the current system.
âIf we look at the world right now, we see huge economic imbalances, growing distrust in existing institutions, and continued deglobalization,â Matthew Sigel, head of digital asset research at Van Eck and one of the report's authors, said in a interview Wednesday on CNBC.
"We believe that many of these distortions are due to... a massive misallocation of capital since the global financial crisis, when G7 governments have abused the printing press, spending borrowed money on impossible goals," Sigel explained.
âBitcoin⊠is the ultimate hedge against this growing fiscal recklessness,â Sigel said.
In the report's base scenario, BTC would become a key medium of exchange in local and global trade, accounting for 10% of international trade settlement and 5% of GDP.
Meanwhile, it would also gain as a global reserve asset at the expense of the four largest foreign reserve currencies, the US dollar, the euro, the pound sterling and the Japanese yen, reaching a weight of 2.5% in international currency reserves. .
If things develop as VanEck predicts, the price of bitcoin will increase 44-fold, representing a 16% annual increase from its current price, which is just under $65,000. Its market capitalization would skyrocket to $61 trillion.
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