According to VanEck, Bitcoin could reach $2.9 million by 2050

Repeated economic crises have eroded confidence in traditional currencies, pushing investors to consider new forms of value. Among these, bitcoin emerges not only as a speculative asset but also as a potential global economic pillar, according to a recent analysis by VanEck.

VanEck’s Bold Predictions for Bitcoin

The latest VanEck analysis on bitcoin suggests a promising future for the crypto asset. The report, published on July 24 by the investment manager, reveals that BTC’s total market capitalization could reach 61 trillion dollars by 2050. VanEck estimates that this capitalization would equate to a price of 2.9 million dollars per BTC. This bold outlook is based on the assumption that bitcoin will be widely adopted as a reserve currency and for settling commercial transactions on an international scale.

“It is conceivable that by 2050, bitcoin could be used to settle 10% of international trade and 5% of global domestic trade,” explains VanEck in its report. This scenario would also see central banks holding 2.5% of their assets in BTC, an undeniable sign of the legitimation of this crypto.

One of the key aspects of this projection relies on Bitcoin’s scalability solutions, notably Bitcoin Layer 2 (L2). VanEck estimates that these solutions could collectively be worth around 7.6 trillion dollars, representing nearly 12% of bitcoin’s total value. These technologies are seen as a response to scalability challenges, which have hindered the widespread adoption of cryptocurrency.

Factors Influencing the Rise of Bitcoin

VanEck’s report also highlights the relative decline of major fiat currencies, such as the euro and yen, in international payments. The euro, for example, has dropped from 22% to 14.5% market share in cross-border payments since the mid-2000s. The yen has also seen its share fall from 6.2% to 5.4%. This trend could encourage broader bitcoin adoption, which is perceived as a stable and neutral alternative in the face of global economic uncertainty.

Nevertheless, VanEck identifies several potential challenges to the continued adoption of bitcoin. These include regulatory issues, security in mining, and scalability. However, L2 solutions and the evolution of technological infrastructure could mitigate these obstacles. Despite these challenges, VanEck sees bitcoin as a promising store of value capable of playing a central role in the global financial system in the future.

In summary, VanEck’s forecasts outline an ambitious future for bitcoin, which could become an essential pillar of the global economy. The growing adoption of the crypto asset, supported by technological innovations, could propel its value to unprecedented levels. However, the crypto market remains subject to uncertainties, particularly in terms of regulation and security.