VanEck, a New York-based asset manager, has released a report with bullish predictions for Bitcoin, far more bullish than anything you have heard before, that's for sure. The firm suggests the cryptocurrency could reach $52 million per coin by 2050.
This forecast is based on several assumptions. VanEck's digital assets team foresees Bitcoin becoming a global reserve asset. They also anticipate a decline in current reserve currencies.
The report, authored by Matthew Sigel and Patrick Bush, presents two scenarios. The base projection puts Bitcoin at $2.9 million by 2050. The more bullish scenario sees it hitting $52,386,207.
Bitcoin currently trades at $64,896. It has risen 95,564% in 11 years. VanEck's predictions represent a massive jump from current levels.
"We expect BTC to be widely used in international trade," the report states. It adds that Bitcoin could become "a significant medium of exchange and a valuable store of wealth."
The authors argue that increased adoption will drive up demand. "Central banks and long-term investors will want to hold more BTC," they write. This could reduce the available supply, pushing prices higher. In other words, Satoshi Nakamoto was absolutely right about scarcity as the main tool to secure Bitcoin's ability to survive and prosper.
VanEck's base projection assumes 2.5% of central bank assets will be held in Bitcoin. This scenario factors in world GDP and current growth projections.
The $52 million prediction is based on even wider Bitcoin adoption. It assumes increased use in global trade and reduced circulation.
However, the report comes with a caveat. It stresses the need for improved scaling networks. "If Bitcoin cannot become an important medium of exchange because adequate scaling is not completed, our core thesis for its meteoric rise will be broken," it warns. Simply put, Layer-2 solutions for Bitcoin are the absolutely mandatory condition for its survival.