VanEck, a giant in investment management, believes that Bitcoin (BTC), the price of which could reach $2.9 million before 2050.
Matthew Sigel is VanEck’s director of research for digital assets, while Patrick Bush is a senior analyst.
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. The result is a Gresham-like feedback cycle: As BTC gains in value and utility, long-term and central bank investors want to buy more BTC. This reduces the available amount of BTC on the floating supply .”
Sigel and Bush claim that it is “possible” for Bitcoin to be used in the settlement of 10% of international trade on the planet and 5% domestic trade worldwide by 2050.
This scenario would see central banks hold 2.5% of assets in BTC. We use assumptions regarding global growth, BTC investor demand and Bitcoin’s volume to apply the velocity of money equation, which suggests a possible price of $2.9M per Bitcoin. This translates to a market cap of 61.1 trillion .”
In an economy, the velocity of money measures how fast money is spent on goods and services.
BTC was trading for $65,309 as of the time this article is written.
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The post How VanEck analysts predict that Bitcoin (BTC), a digital coin, will reach $2,900,000.00 per coin may change as new information becomes available.
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