VanEck's Shocking $52.4 Million Bitcoin Price Projection by 2050đł
American investment firm VanEck has made headlines with a bold projection: BTC could hit $52.4 million by 2050. This staggering forecast, which far exceeds most market expectations, has captivated the crypto world. Hereâs how VanEck justifies this seemingly astronomical target.
In a July 24 report, VanEck outlined three scenarios for Bitcoinâs future: base, bear, and bull markets. Their most optimistic scenario sees BTC reaching $52.4 million by 2050. Even their base scenario states Bitcoin could surge to $2.9 million.
VanEckâs team believes Bitcoin could settle 10% of global international trade and 5% of domestic trade by 2050. They also project central banks might hold 2.5% of their assets in Bitcoin. These assumptions hinge on global growth, rising investor demand, and Bitcoinâs increasing transaction volume.
VanEck used a velocity of money equation incorporating GDP of trade settled in Bitcoin, circulating Bitcoin supply, and Bitcoinâs market velocity. In their bull scenario, Bitcoin is envisioned as a major player in the international monetary system, capturing significant market share from traditional currencies.
VanEck suggests that Bitcoin could become a primary medium of exchange and a key store of value, even acting as a reserve currency for various countries. They argue that Bitcoinâs design could replace fiat money, offering a reliable alternative to current monetary systems dominated by "corruptible human authorities."
While their bullish target is ambitious, VanEck also presented a more conservative forecast. In their bear scenario, Bitcoin could still reach $130,314 by 2050. This conservative estimate contrasts with other financial analysts, such as those from Standard Chartered and Bernstein, who foresee Bitcoin hitting $150,000 by the end of 2024 and $200,000 by 2025, respectively.
As of now, Bitcoin is trading at $69,600, reflecting a 3.24% increase in the last 24 hours and a 4.78% rise over the past week, according to CoinMarketCap.
