The digital assets team of VanEck’s investment firm, led by Matthew Sigel, and Patrick Bush makes a bold prediction in a report published on July 24th, 2024: Bitcoin will reach a price per coin of $52.38m by 2050, according to their bullishest scenario. In a new report dated July 24, 2024, the digital assets research team of VanEck led by Matthew Sigel and Patrick Bush makes an exceptional prediction: Bitcoin could soar to a value of $52,38 million per coin in their most bullish scenario by 2050. analysisThe title of this article is: “Bitcoin 2050 Valuation Scenarios: Global Medium of Exchange and Reserve Asset,” The article paints the picture that Bitcoin will become a cornerstone in global financial framework. It will serve as a significant international medium of exchange, and also a currency of reserve.
The Bitcoin Value Could Reach $52,38 Million
The report elaborates Bitcoin’s trajectory potential, and predicts that it will become a major reserve currency before the mid-century. “By 2050, we see bitcoin solidifying its position as a key international medium of exchange, ultimately becoming one of the world’s reserve currencies,” Researchers state. This scenario is based on the belief that trust in current reserve assets, which are primarily due to today’s unsustainable geopolitical policies and fiscal policies of economic leaders will decline.
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VanEck believes that Layer-2 technologies will improve Bitcoin’s functionality and make it a more attractive choice in the future. financial The systems of developing countries “The combination of Bitcoin’s immutable property rights and sound money principles with the enhanced functionality provided by L2 solutions could enable the creation of a global financial system capable of better meeting the developing world’s needs,” Sigel argues with Bush.
Within their analysis of the International Monetary System (IMS), VanEck underscores the declining relevance of the principal currencies—USD, EUR, JPY, and GBP—in global trade. The analysts predict a decline in the collective share they hold. cross-border payments The percentage of people who are able to work will drop from 86% by 2023, to 64% at the end of 2050. “This opens significant opportunities for Bitcoin to become an important alternative to settle international trade,” According to the report,
In the base scenario, Bitcoin is expected to reach $2.9 million in value per coin by 2050. This prediction is anchored in the cryptocurrency’s projected role in settling a portion of global trade—10% of international and 5% of domestic trade—combined with a significant allocation as a central bank reserve.
“This scenario would result in central banks holding 2.5% of their assets in BTC, contributing to a total market cap of $61 trillion.” This view predicts that Bitcoin will make up 1.66 % of World Financial Assets. It is a result of the expected growth in trade and investment worldwide.
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However, the bull case is a more positive outlook. The VanEck bull case scenario outlines a more optimistic view where Bitcoin’s inclusion in the global economy will be more profound. This report claims that Bitcoin will facilitate 20 percent of the global trade volume and 10 percent of domestic trade by 2050.
This scenario shows that Bitcoin represents a stunning 29,79% of the global economy. financial assets. In this case, nearly 99 percent of Bitcoin would be taken out of circulation because of its ability to store value, with only 210,000 BTC remaining. active circulation.
This report highlights Bitcoin’s current limitations as an international trading medium, including its transaction processing capability and the lack of complex smart contract support. VanEck remains optimistic, however. He believes that future improvements will be made, and he suggests “continuous development of Bitcoin’s Infrastructure, specifically through Layer-2 solutionsIt will gradually enhance its functionalities and appeal as an attractive, robust decentralized financial system.”
VanEck concludes the analysis by stating that Bitcoin is not just a currency. financial Money is not just a tool, but a force for transformation that redefines it in the global context. “Bitcoin applies constitutional constraints to money, representing a system created by the people, for the people, and might serve as the ultimate check against the often arbitrary financial powers of the state,” The report is a reflection.
BTC is currently trading for $64,210.
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Source: www.newsbtc.com