American investment management company WanEck established an astonishing target price for Bitcoin (BTC), the world’s largest cryptocurrency. This forecast, which seems almost unthinkably high compared to most market forecastshas attracted considerable attention. Despite the ambitious forecast, the VanEck research team has provided a comprehensive rationale explaining why they believe such a significant price escalate is achievable.
VanEck predicts bitcoin value in 2050
On July 24, VanEck published reportpresenting the teams’ assumptions on bull scenario where BTC could potentially grow to $52.38 million by 2050. Significantly, the research team predicted Future Bitcoin Price based on three scenarios of the underlying, bearish and bullish markets.
VanEck’s team believes that in the case of the base case scenario Bitcoin could potentially rise as much as USD 2.9 million by 2050. Analysts base their predictions on the possibility of using Bitcoin to settle 10% of international trade and 5% of global domestic trade.
In this scenario, central banks could hold about 2.5% of its assets in Bitcoin, which would further escalate its adoption and exposure. VanEck’s team also attributed their projected BTC value escalate to assumptions of projected global growth, increasing investor demand, and A significant amount of Bitcoin transactions.
The research team estimated the value of bitcoin in 2050 using a straightforward velocity of money equation that includes three key factors – GDP of trade settled in bitcoin, supply of circulating Bitcoins and the speed of Bitcoin in the market. VanEck analysts, predicting a rise to $52.38 million, assumed that by 2050 Bitcoin would play a key role in the international monetary systemtaking significant market share from the major currencies.
In addition, they expect that Bitcoin is set to become widely adopted to international trade, transforming into the main medium of exchange and key store of valueFurthermore, VanEck believes that BTC can act as a reserve currency for various countries.
The team noticed that Bitcoin was designed to replace fiat money. and can become a reliable and effective alternative to current monetary systems which are dominated by “corrupt human authorities guided by unchanging logic.”
VanEck’s Bearish Scenario for BTC
Although VanEck’s team estimated exceptionally ambitious price target for bitcoin in 2050, they also presented a more bearish scenario for the pioneering cryptocurrency. In less favorable conditions, analysts suggest that Bitcoin could reach a price level of $130,314 by 2050.
A target of $130,314 over the next 25 years could be the most bearish scenario for Bitcoin’s value. This contrasts sharply with the predictions of analysts at financial firms such as Standard Chartered AND Bernsteinwho predict that the price of Bitcoin could rise to $150,000 by the end of 2024 and $200,000 by 2025, respectively.
Despite VanEck’s negative assumptions at the time of going to press, Bitcoin price According to CoinMarketCap, the stock is trading at $67,101, up 4.24% in the last 24 hours and another 4.78% escalate in the last week.
Featured image created with Dall.E, chart from Tradingview.com
