Asset manager VanEck has made a bold prediction: Bitcoin (BTC) could skyrocket to a staggering $2.9 million by 2050. However, this bullish forecast is contingent on several factors aligning perfectly.
According to the firm, Bitcoin is poised to become an integral part of the global monetary system as the current financial landscape unravels. Rising geopolitical tensions, coupled with ballooning debt burdens, are creating a fertile ground for Bitcoin’s adoption.
“We see enormous economic imbalances, rising distrust in existing institutions and continued deglobalization,” said Matthew Sigel, head of digital asset research at VanEck.
He believes Bitcoin is the ultimate hedge against this fiscal recklessness.
VanEck Head of Digital Assets Research Matthew Sigel tells @KellyCNBC on @CNBCTheExchange Bitcoin could hit $2.9 million per coin by 2050. pic.twitter.com/sCksMKVST7
— The Exchange (@CNBCTheExchange) July 24, 2024
To reach the $2.9 million valuation, Bitcoin would need to capture 10% of global trade settlement and 5% of GDP. Additionally, it would have to become a global reserve asset, competing with the likes of the US dollar, euro, pound sterling, and Japanese yen.
The report also emphasizes the crucial role of layer-2 networks in scaling Bitcoin’s capacity to handle transactions. These networks could collectively be worth $7.6 trillion by 2050.
Despite the optimistic outlook, VanEck acknowledges significant challenges. Energy consumption by miners, declining mining rewards, regulatory hurdles, and competition from other cryptocurrencies are potential roadblocks.
While the $2.9 million target is ambitious, it underscores the growing belief in Bitcoin as a long-term store of value and a potential disruptor to the traditional financial system. However, investors should approach such predictions with caution and conduct thorough research before making investment decisions.
Also Read: Bitcoin’s Store of Value Debate Reignited by Musk Amid Dollar Devaluation Concerns, Experts Clash
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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