VanEck Predicts Bitcoin Could Reach $2.9M by 2050

Bitcoin’s value surge is driven by economic imbalances, institutional distrust, fiscal recklessness, and mounting debt, according to VanEck’s Matthew Sigel.

By 2050, VanEck suggests that bitcoin could account for 10% of international trade and 5% of local trade, serving as a reserve asset held by central banks. To achieve this, layer-2 networks will play a crucial role in overcoming scalability issues and enabling BTC to function as a medium of exchange.

However, there are risks. Rising energy demand, government crackdowns, and competition from other digital assets pose challenges to bitcoin’s growth. VanEck’s base case scenario envisions BTC becoming a key medium of exchange, representing 10% of global trade settlement and 5% of GDP. Additionally, it could gain prominence as a global reserve asset, potentially surpassing major fiat currencies.

If VanEck’s vision materializes, bitcoin’s price could increase 44-fold, reaching $2.9 million by 2050. Layer-2 networks, similar to those in Ethereum, are expected to be worth $7.6 trillion collectively.

Sentiment: Neutral