TLDR

  • VanEck forecasts Bitcoin could hit $2.9 million by 2050, citing its expanding function in worldwide commerce.
  • The prediction is based on Bitcoin settling 5-10% of cross-border trade and 5% of internal trade by 2050.
  • Long-term price appreciation is anticipated to be fueled by expanding global liquidity and currency devaluation.
  • VanEck projects central banks may allocate as much as 2.5% of their reserves to Bitcoin by 2050.
  • In the base-case outlook, Bitcoin would make up 1.66% of global financial assets by 2050.

Asset management firm VanEck has issued a forecast projecting Bitcoin’s value to rise to $2.9 million by 2050. This outlook depends on the digital currency’s increasing adoption for international trade and its potential addition to central bank balance sheets. VanEck analysts propose that Bitcoin might facilitate 5-10% of global international trade and 5% of domestic trade by the mid-century mark.

Bitcoin Price Projection Relies on Strong Global Liquidity and Monetary Trends

Analysts at VanEck calculate that Bitcoin will sustain a 15% compound annual growth rate (CAGR) in the coming decades. They assert that the cryptocurrency’s value will be propelled by worldwide liquidity growth and persistent monetary debasement. “Bitcoin is not a short-term trade; it serves as a long-term hedge against unfavorable monetary policy results,” stated the head of digital assets research at VanEck.

Sigel and Patrick Bush, a senior investment analyst at the firm, estimated that central banks could allocate up to 2.5% of their assets to Bitcoin by 2050. Such expansion would elevate Bitcoin’s price to $2.9 million, with the asset constituting 1.66% of the planet’s total financial assets. The firm considers this its base-case scenario, noting that more bullish projections indicate Bitcoin could achieve even higher valuations.

Bitcoin has already witnessed limited use in global commerce, especially in nations facing sanctions like Venezuela, Iran, and Russia. Although it is not yet commonly used in G7 countries, VanEck’s model indicates Bitcoin could secure a 5-10% share of global trade settlements. This level of adoption would place Bitcoin’s role close to that of the British pound, which presently facilitates 7.4% of international trade.

The forecast also presents a bear case, which posits Bitcoin will attain $130,000 by 2050 with a 2% CAGR. Conversely, a more optimistic bull case proposes Bitcoin could surge to $52.4 million, powered by a 20% CAGR. VanEck’s analysis emphasizes that Bitcoin’s expansion into international trade and central bank reserves will be crucial determinants of its ultimate worth.