American investment management company VanEck established a surprising target price for Bitcoin (BTC), the world’s largest cryptocurrency. This prediction, which seems almost inconceivably high compared to most market forecastshas attracted significant attention. Despite the ambitious forecast, the VanEck research team has presented a comprehensive rationale for why they believe such a substantial price increase is achievable.
VanEck predicts Bitcoin valuation for 2050
On July 24, VanEck published a reportoutlining the teams’ assumptions for a bull scenario in which BTC could potentially rise to $52.38 million by 2050. Notably, the research team predicted Bitcoin Future Price based on three scenarios during a Base, Bear and Bull market.
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For the base case scenario, the VanEck team believes that Bitcoin can potentially rise up to $2.9 million by 2050. Analysts based their predictions on the possibility that Bitcoin could be used to settle 10% of the world’s international trade and 5% of the world’s domestic trade.
Under this scenario, central banks could hold around 2.5% of their assets in Bitcoin, further increasing its adoption and exposure. The VanEck team also attributed the projected increase in BTC’s value to assumptions of anticipated global growth, increased investor demand, and Bitcoin’s substantial transaction volume.
The research team estimated the value of Bitcoin by 2050 using a simple velocity of money equation that includes three main factors – GDP from trade settled in Bitcoin, circulating supply of Bitcoin and speed of Bitcoin in the market. While they predicted a bullish surge to $52.38 million, VanEck analysts assumed that by 2050, Bitcoin will play a major role. crucial role in the international monetary systemcapturing a significant market share of major currencies.
Furthermore, they expect Bitcoin will be widely adopted for international trade, becoming an important means of exchange and a key value storage. Furthermore, VanEck believes that BTC could act as a reserve currency for several countries.
The team observed that Bitcoin was designed to replace fiat currency and could become a reliable and efficient alternative to current monetary systems, which feature “corruptible human authorities with immutable logic”.
VanEck’s Bearish Scenario for BTC
Although the VanEck team estimated an exceptionally high value Ambitious Price Target for Bitcoin in 2050, also presented a more bearish scenario for the pioneering cryptocurrency. Under less favorable conditions, analysts suggest that Bitcoin could reach a price level of $130,314 by 2050.
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A target of $130,314 in the next 25 years may be the most pessimistic scenario for Bitcoin’s value. This contrasts sharply with the predictions of analysts at financial firms such as Chartered standard It is Bernsteinwho predicted that Bitcoin could rise to $150,000 by the end of 2024 and $200,000 by 2025, respectively.
Despite VanEck’s pessimistic assumption, so far, Bitcoin Price is trading at $67,101, reflecting a 4.24% increase in the past 24 hours and another 4.78% increase in the past week, according to CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com