Fund management titan VanEck says the Bitcoin price may reach $2.9 million by 2050 amid rising geopolitical tensions, ballooning debt and governments’ abuse of the printing press.
The prediction is based on the assumption that BTC will play a critical role in global finance as the current system erodes over the course of the next few decades, says a July 24 research report led by head of digital asset research Matthew Sigel.
Governments’ Abuse Of The Printing Press Have Put The Financial System At Risk
G7 governments have “abused the printing press” to spend borrowed money on “impossible goals,” Sigel told CNBC in an interview. This, combined with “enormous economic imbalances, rising distrust in existing institutions and continued deglobalization,” has put the traditional financial system at risk, he added.
Sigel went on to call Bitcoin “the ultimate hedge against this rising fiscal recklessness.”
In a base case scenario, BTC would represent 10% of international trade settlement and 5% of GDP, according to the report. Sigel also wrote that Bitcoin would reach a 2.5% weight in international currency reserves at the expense of the U.S. dollar, euro, British pound and the Japanese yen.
Bitcoin Price Could 43X From Its Current Price
Should VanEck’s prediction play out, the crypto market leader’s price will see its value 43X by 2050. This translates to an annual growth of around 16% from its current price , which stood at $67,027.24 as of 3:00 a.m. EST.
With this anticipated growth, Bitcoin’s market capitalization will also soar to approximately $61 trillion.
VanEck did, however, issue several warnings that could restrict Bitcoin’s expansion. The increasing energy demand from miners, future halving rewards and concerted efforts by governments to outlaw BTC were all mentioned as major obstacles that will need to be overcome.
Layer-2 networks were mentioned as a potential way to increase Bitcoin’s scalability and reduce its congestion. Given their anticipated role in removing BTC’s bottlenecks, VanEck predicted these side chains could collectively achieve a market cap of $7.6 trillion by 2050.
Related Articles:
- Upcoming Crypto Presales: Unlock Early Investment Opportunities!
- Kamala Harris Ducks Crypto Showdown With Donald Trump At Bitcoin 2024 Conference In Nashville
- 5 Best Cheap Crypto to Buy Now Under 1 Dollar July 25 – Kava, ConstitutionDAO, Gorilla
