VacEck Places $52.4 Million Price Tag On Bitcoin, But How Is This Possible?
The post VacEck Places $52.4 Million Price Tag On Bitcoin, But How Is This Possible? appeared on BitcoinEthereumNews.com.
American investment management firm VanEck has set an astonishing price target for Bitcoin (BTC), the world’s largest cryptocurrency. This forecast, which seems almost inconceivably high compared to most market predictions, has garnered significant attention. Despite the ambitious forecast, VanEck’s research team has presented a comprehensive rationale explaining why they believe such a substantial price increase is attainable. VanEck Predicts Bitcoin Valuation For 2050 On July 24, VanEck published a report, outlining the teams’ assumptions for a bull scenario in which BTC could potentially rise to $52.38 million by 2050. Notably, the research team predicted Bitcoin’s future price based on three scenarios during a Base, Bear and Bull market. Related Reading For the base scenario, VanEck’s team believes that Bitcoin could potentially surge as high as $2.9 million by 2050. The analysts have rooted their predictions on the possibility that Bitcoin could be utilized to settle 10% of the globe’s international trade and 5% of the world’s domestic trade. Under this scenario, central banks may hold about 2.5% of their assets in Bitcoin, further increasing its adoption and exposure. VanEck’s team has also attributed their projected surge in BTC’s value to assumptions of anticipated global growth, rising investor demand and Bitcoin’s substantial transaction volume. The research team estimated Bitcoin’s value for 2050 using a simple velocity of money equation that includes three key factors – GDP of trade settled in Bitcoin, supply of circulating Bitcoin and Velocity of Bitcoin in the market. While predicting a bull surge to $52.38 million, VanEck’s analysts assumed that by 2050, Bitcoin will play a crucial role in the international monetary system, capturing significant market share from major currencies. Additionally, they expect Bitcoin to become widely adopted for international trade, transforming into a major medium of exchange and a key store of value. Moreover, VanEck believes…
Filed under: News - @ July 27, 2024 3:08 am