Analysts at the investment management giant VanEck think Bitcoin’s price (BTC) could skyrocket to $2.9 million by 2050.
For that to happen, BTC will need to become a key part of the international monetary system, according to Matthew Sigel, VanEck’s head of digital assets research, and Patrick Bush, a senior investment analyst at the firm.
“We expect BTC to be widely used in international trade, becoming a significant medium of exchange and a valuable store of wealth. This leads to a Gresham’s Law-like feedback loop: as BTC becomes more useful and valuable, central banks and long-term investors will want to hold more BTC, reducing the amount available in the floating supply.”
Sigel and Bush say it’s “conceivable” that Bitcoin could be used to settle 10% of the globe’s international trade and 5% of the world’s domestic trade by 2050.
“This scenario would result in central banks holding 2.5% of their assets in BTC. Using assumptions about global growth, investor BTC demand, and Bitcoin’s turnover, we apply a velocity of money equation to suggest a potential price of $2.9 million per Bitcoin, translating to a total market cap of $61 trillion.”
The velocity of money measures the rate money is used to buy goods and services in an economy.
BTC is trading at $65,309 at time of writing.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
