About 14 years ago, the first Bitcoin (BTC) transaction was made, launching a revolutionary system. Over the years, the currency has continued to increase in value and has certainly shown its potential. So the question is what will the price of the largest cryptocurrency do in the future. One well-known asset manager made a stunning prediction in an analysis he conducted in July of this year.
Bitcoin worth $52 million
One of the most popular asset managers, VanEck, shared a future analysis of Bitcoin with the public last month. In the article, they discuss the various aspects of the currency in detail, and then make a prediction about the rate it could reach in 2050.
He – She Digital Assets Research Team The director recently researched the potential of Bitcoin. He predicted that the minimum price would be $2.9 million in 2050. But in the most positive scenario, this amount could reach $52 million. The basic idea is that Bitcoin, according to them, will become an important global reserve currency.
Bitcoin as a global reserve currency
For decades, the US dollar has been the world’s largest reserve currency. Accordingly, research Over the past 45 years, on average, about 61% of international payments have been made in US dollars. While the dollar has remained stable, the same has not been true for the euro and yen. For example, since 2005, the euro has seen its share of international payments fall from 22% to 14.5%. In addition, the world’s central banks are also holding fewer euros. By 2010, this share was still 25.3%, while it currently stands at about 19.75%. The Japanese yen has seen a sharp decline. They have seen their share of international payments in their national currency fall from 12% in 1995 to 5% in 2023. The yen in central banks has also fallen from 6.2% to 5% in the same period. Van Eck said that because of the gaps that currencies leave in international payments and reserves, bitcoin could be an important solution.
Although the dollar has remained stable, more and more countries seem to be moving away from the currency. There are several reasons for this, including global political events, the rising cost of the dollar for countries as their currency depreciates, and changing relations between countries and the Gulf states. Van Eck expects the Chinese yuan to play a significant role in international usage by 2050. The currency has already doubled in value in recent years. In addition, China is playing an increasing role in the global financial system.
According to the research team, Bitcoin is the best solution as a reserve currency for the future. For example, the currency is decentralized, which makes it transparent and its operation cannot be affected by political policy.
The growth in the use of BTC will lead to an increase in the price.
The researchers based their Bitcoin price prediction on three factors: the velocity of the currency, the GDP (both national and international) of Bitcoin, and the supply of Bitcoin actively circulating. The research predicts that the current major currencies will lose about 20% of their market share in the coming years. At the same time, the role of Bitcoin will increase. For example, there will be a projected increase of 5% for national payments and 10% for international payments. Due to the growth, central banks will store about 2.5% of their assets in Bitcoin by 2050. And because the currency will become a reliable and stable investment, about 85% of the available Bitcoin will be removed from circulation by then.
Therefore, the estimated price of Bitcoin will be 2.9 million in 2050. If the coming years are very positive, this could rise to $52 million per Bitcoin. If the movement is weak and negative, the price is expected to reach $130,000 by that year.
Critics see a negative future for Bitcoin
The research did not mention the possibility of Bitcoin falling to zero. However, there are well-known critics who have clearly expressed this view of the future. They believe that Bitcoin will eventually be worthless because it is not based on anything. Another important factor will be global governments. If they jointly choose to remove cryptocurrencies from the financial system, their value will also fall significantly.
Many governments are also currently working on their own digital currency. This could also pose a risk to Bitcoin, when governments only allow their own digital currencies and exclude the larger cryptocurrencies. In this case too, the price of Bitcoin is likely to fall sharply. If these paths are not followed, solutions will also have to be found to counter the currency’s volatility and scalability. Only then will Bitcoin be widely adopted.
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