Bitcoin (BTC) to the Moon? VanEck Analyst Says $2.9 Million is Possible

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VanEck experts have made a bold prediction about the future of Bitcoin. They believe BTC could hit $2.9 million per coin by 2050. The analysts suggest Bitcoin could be used in international and domestic trade.

So, their forecast is based on Bitcoin becoming a vital part of the global monetary system.

Bitcoin to Become Major Player in International Trade: VanEck

VanEck’s Matthew Sigel (Head of Digital Assets Research) and Patrick Bush (Senior Investment Analyst) shared the vision for Bitcoin’s future. In a recent blog post, these experts predicted that BTC would become a significant global currency by 2050.

They believe it will be widely used for international transactions and could be one of the world’s primary reserve currencies.

“It is conceivable that by 2050, Bitcoin could be used to settle 10% of the globe’s international trade and 5% of the world’s domestic trade,” said VanEck’s experts. 

This increased use could lead to central banks holding 2.5% of their assets in Bitcoin. Further, the analysts explained that its value will likely rise as Bitcoin becomes more functional. 

This could create a feedback loop, with more investors and institutions wanting to hold BTC. As a result, the available supply of Bitcoin in circulation might decrease, driving Bitcoin’s price to new heights. 

Based on their projections, the VanEck team calculated a potential price of $2.9 million per Bitcoin, giving Bitcoin a total market cap of $61 trillion.

However, it’s important to note that this is a long-term prediction. Many factors could influence Bitcoin’s adoption and price over the next 26 years. 

For instance, the cryptocurrency market is known for its volatility and unpredictability, changing predictions without warning. However, VanEck’s analysis uses the velocity of money concept to support their prediction. 

This economic principle measures how quickly money is used to buy goods and services. In Bitcoin’s case, increased use in trade could boost its velocity and value.

So, the analysts’ prediction relies on Bitcoin becoming a significant medium of exchange. If this prediction were to occur, it would represent a massive increase in Bitcoin’s current price. 

Meanwhile, today, August 1, 2024, Bitcoin is still trading at a fraction of the predicted $2.9 million, highlighting the ambitious nature of VanEck’s forecast. While the prediction is exciting for Bitcoin supporters, it’s crucial to approach it with caution. 

Other Predictions of Bitcoin Price Reaching Higher Price Levels

In an X post on August 1, another analyst, Willy Woo, shared his view on Bitcoin’s future. According to this analyst, Bitcoin’s price could reach $700,000 per token if financial institutions continue supporting its adoption. 

Further, Woo noted that a 3% portfolio allocation to Bitcoin could drive its price to $700,000. According to the post, this estimate is based on the worth of global wealth assets, which exceeds $500 trillion.

For Bitcoin to reach $700,000, its adoption must surpass 16%.

Nobody knows what the ultimate price of #Bitcoin will be but simple maths can give us an upper bound. All wealth assets is $500T, if BTC captured all of this (never gonna happen) it's $24m per coin (today's value before future inflation adjustment).

The question is what will be…

— Willy Woo (@woonomic) August 1, 2024

Woo said that 4.7% of the world’s population has adopted Bitcoin. However, adoption could accelerate similarly to the growth of the internet after 15 years. 

Despite these predictions, Bitcoin is still 12% below its all-time high of $73,750. As of 06:40 a.m. EST, BTC is trading at around $64,521 with a volume of $36 trillion.