Bitcoin (BTC), the largest cryptocurrency, might become the dominant medium of exchange and store of value for economies across the globe. Due to a whopping increase in foreign trade and other cross-border remittances, Bitcoin (BTC) is expected to skyrocket to the seven-digit zone, VanEck experts say.

Bitcoin (BTC) price might reach $2.9 million by 2050, VanEck says

By the year 2050, the Bitcoin (BTC) price might reach $2.9 million per coin once the "base" scenario plays out. While the "bear" scenario sees BTC at $130,000, the unbelievable "bullish" scenario puts the crypto king at the $52 million per coin valuation.

We outline the scenarios and assumptions for 7-figure #Bitcoin driven by its role as a global medium of exchange and reserve currency supported by Bitcoin Layer-2 solutions. @Matthew_Sigel @Patrick_Bush_VEhttps://t.co/BJfuo1iHlj

— VanEck (@vaneck_us) July 24, 2024

Such estimations were shared in VanEck's Bitcoin 2050 Valuation Scenarios: Global Medium of Exchange and Reserve Asset report authored by Matthew Sigel, Head of Digital Assets Research, and Patrick Bush, Senior Investment Analyst.

The thesis focuses on alarming monetary trends in the fiat world, the surging national debts of the largest economies and increased usage of foreign sanctions as political instruments. All of these factors will damage the role of USD, EUR, JPY and other global reserve currencies for individuals and firms.

As such, Bitcoin (BTC) has all the chances to replace them as global ("useful") reserve currencies for a variety of financial systems across the world. 

Bitcoin (BTC), therefore, will meet increased demand from both institutions and retail. In the "bear" scenario, it will be responsible for 1% of global domestic GDP, while the "base" scenario sees this metric twice as high.

Bitcoin (BTC) layer-2 solutions are essential for scenario

The "bullish" scenario, with $52 million per Bitcoin (BTC), looks quite eccentric as BTC needs to lose almost 94% of its circulating supply by 2050. In this case, it should also be responsible for 10% of global GDP and replace 30% of all financial assets in existence.

However, all optimistic scenarios badly need an infrastructural basis to occur. As such, Bitcoin (BTC) layer 2 solutions are essential mechanisms for its future, VanEck says.

Should they go mainstream, the largest cryptocurrency will be able to evolve into a new-gen reserve and foreign trade asset, the report concludes.