Analysts at the investment management giant VanEck think Bitcoin’s price (BTC) could skyrocket to $2.9 million by 2050.
For that to happen, BTC will need to become a key part of the international monetary system, according to Matthew Sigel, VanEck’s head of digital assets research, and Patrick Bush, a senior investment analyst at the firm.
“We expect BTC to be widely used in international trade, becoming a significant medium of exchange and a valuable store of wealth. This leads to a Gresham’s Law-like feedback loop: as BTC becomes more useful and valuable, central banks and long-term investors will want to hold more BTC, reducing the amount available in the floating supply.”
Sigel and Bush say it’s “conceivable” that Bitcoin could be used to settle 10% of the globe’s international trade and 5% of the world’s domestic trade by 2050.
“This scenario would result in central banks holding 2.5% of their assets in BTC. Using assumptions about global growth, investor BTC demand, and Bitcoin’s turnover, we apply a velocity of money equation to suggest a potential price of $2.9 million per Bitcoin, translating to a total market cap of $61 trillion.”
The velocity of money measures the rate money is used to buy goods and services in an economy.
BTC is trading at $65,309 at time of writing.
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The post Here’s How Bitcoin (BTC) Reaches $2,900,000 per Coin, According to VanEck Analysts appeared first on The Daily Hodl.