VanEck allows for a price increase from $2.9 million to $42 million by 2050.
The management company VanEck in a new report on the crypto market estimates that by 2050 the price of bitcoin could reach $2.9 million per coin if it becomes an important global financial instrument.
The forecast is based on the application of the money velocity equation, which considers how many bitcoins will be needed to service 10% of international trade, 5% of domestic trade, and 2.5% of central bank reserves.
These figures are related to the projected volume of the global economy and imply that bitcoin will partially replace the dollar as a means of payment and will become a reserve asset.
In VanEck's calculations, the total capitalization of bitcoin is estimated, which is then divided by a limited number of coins (a maximum of 21 million, considering those deemed lost) to determine the average value of one coin.
Analysts conclude that the limited supply of bitcoin and its potential role in international settlements and reserves form the basis for a valuation of $2.9 million per bitcoin. Such a price is only possible if bitcoin is widely adopted in the global economy and its use in settlements and reserves significantly increases.
The second, more ambitious scenario from VanEck considers bitcoin as a strategic reserve asset for the United States.
It is assumed that under the proposed BITCOIN Act by Senator Cynthia Lummis, the country will acquire 1 million bitcoins by 2029.
If we assume that the value of bitcoin will grow by 25% annually, starting from $200,000 in 2025, then by 2049 the price of bitcoin could reach $42.3 million. In this case, the volume of bitcoins in U.S. reserves could offset up to 35% of the national debt, which is projected to rise to $119.3 trillion.
Were there any doubts?
