Major asset manager VanEck has predicted Bitcoin could reach $2.9 million by 2050. This forecast was outlined in a report titled “Bitcoin 2050 Valuation Scenarios: Global Medium of Exchange and Reserve Asset,” authored by Head of Digital Assets Research Matthew Sigel and Senior Investment Analyst Patrick Bush.
VanEck, a major Bitcoin Exchange Traded Fund (ETF) issuer, is known for its long-term bullish stance on the premier digital currency. However, according to Van Eck executives, the prediction will only hold if Bitcoin clears several major hurdles.
Bitcoin’s Journey to 2050
It is hard to imagine what BTC’s price index will be in 26 years. For Bitcoin maximalists, the digital currency is expected to become a major part of the global reserve economy by that time. However, VanEck takes a slightly less bullish approach.
According to Sigel:
“As we look at the world right now, we see enormous economic imbalances, rising distrust in existing institutions and continued deglobalization…, We think many of these distortions stem from … a massive misallocation of capital since the global financial crisis as G7 governments have abused the printing press, spending borrowed money on impossible goals,”
According to VanEck, the top cryptocurrency by market capitalization is expected to represent 10% of global trade, 5% of the nominal GDP, and 2.5% of the international currency reserves by 2050.
However, Van Eck is concerned about the energy costs associated with BTC mining, and a significant level of innovation will be required to overcome this challenge. VanEck also believes that a concerted international effort to ban BTC might result in a less appealing scenario for crypto users.
Can Bitcoin Reach $2.9 Million by 2050
In 26 years, Bitcoin will undergo seven more halvings, reducing the block reward to a fraction of the current 3.125 BTC share. This will likely increase miners’ reliance on transaction fees for revenue.
However, the exponential increase in reckless government spending and poor fiscal sustainability will likely propel BTC into a dominant position in the coming years. While an exact figure is difficult to predict, crypto users anticipate BTC’s value reaching millions by that time, if not tens of millions, of dollars. So, a $2.9 million valuation is quite realistic, but only if VanEck’s concerns are addressed as genuine challenges are ahead for the major digital asset.
