Despite the volatility in the Bitcoin market, the bullish forecasts for this leading cryptocurrency continue to appear. VanEck is the latest to make a forecast. They are an asset manager, Bitcoin ETF provider and have over $100 billion of assets managed.
Bitcoin Price Projection
A recent updateVanEck predicted that Bitcoin’s price would be a major international currency by 2050. It could even become one of the reserve currencies of the planet. This statement is based on the expectation of a decline in trust for current reserves, leading to a switch towards stable alternatives such as Bitcoin.
The scalability of Bitcoin has proven to be one of its biggest barriers. VanEck anticipates Layer-2 (L2) technologies will enhance Bitcoin’s performance and efficiency.
VanEck’s vision of a global financial system is based on combining Bitcoin’s unchangeable property rights and the advanced features offered by L2 solutions. financial System better equipped to meet needs of developing countries
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The firm estimates that Bitcoin will be used by central banks to hold 2.5% of assets. By 2050, it is expected to account for 10% of all international transactions and 5% domestic ones. BTC.
VanEck, based on projected global economic growth and BTC demand, estimates that the price per Bitcoin could reach $2.9 million, translating to a possible total of $19.4 billion. market capitalization Approximately $61 trillion.
This forecast incorporates assumptions about the global trade landscape, with trade growth expected to lag behind overall Gross Domestic Product (GDP) growth—projected at 2% versus 3%.
VanEck also predicts that traditional currencies such as the US Dollar and Euro will lose market share due to the deteriorating fundamentals of the economy, allowing Bitcoin and other emerging currency to gain momentum.
The Store of Value Potential
VanEck estimates that Bitcoin will capture around 10% of the global market. cross-border payments The firm also highlights that as Bitcoin becomes increasingly recognized as a store of value, approximately 85% of the circulating supply may be effectively removed from the market and further drive its value. As Bitcoin gains in popularity as a form of store of value it is likely that 85% of its circulating supply will be taken off the market. This would further increase the value of Bitcoin.
The analysis is a reflection of a larger trend for the Bitcoin correlation to traditional risk-assets, which suggests that it will be closely related to its movements. macroeconomic conditions.
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VanEck says that, as global economies evolve, Bitcoin is likely to become an integral part of the International Monetary System. It will also gain market share over existing reserve currency.
Bitcoin’s price is currently $59,140. This represents a 3% increase in the past few hours, after recovering from Monday’s drop to $57,000.
Chart from TradingView.com, image from DALL.E
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Source: www.newsbtc.com