Bitcoin Could Hit $2.9 Million by 2050 – VanEck

Analysts at VanEck, a leading investment management firm and issuer of crypto ETFs, predict that the price of Bitcoin (BTC) could rise to $2.9 million by 2050.

This prediction , made by Matthew Siegel, VanEck’s head of digital asset research, and Patrick Bush, senior investment analyst, hinges on Bitcoin becoming a central component of the international monetary system.

Siegel and Bush foresee Bitcoin becoming widely used in international trade, becoming a significant medium of exchange and a valuable store of wealth.

This anticipated change would create a feedback loop similar to Gresham’s law, where “bad money drives out good money.” As BTC gains functionality and value, central banks and long-term investors will seek to own more of it, reducing the supply in circulation.

Analysts believe it is possible that by 2050, Bitcoin will be responsible for 10% of global international trade payments and 5% of domestic trade. In this scenario, central banks would hold approximately 2.5% of their assets in Bitcoin.

Applying the velocity of money equation – which measures how often money is used to purchase goods and services – they suggest that these conditions could bring the price of Bitcoin to $2.9 million, which equates to a total market capitalization of $61 trillion.

This analysis includes assumptions about global economic growth, investor demand for Bitcoin, and Bitcoin transaction turnover, painting a picture of Bitcoin’s potential future role in the global economy.