TechFlow news — Spot Bitcoin ETF issuer VanEck forecasts in its latest report that, assuming several key conditions are met, the price of Bitcoin (BTC) could reach $2.9 million by 2050.
Matthew Sigel, Head of Digital Asset Research at VanEck, said that amid escalating geopolitical tensions and soaring debt servicing costs, Bitcoin could become a significant component of the international monetary system over the coming decades.
In the report's base-case scenario, BTC would become a key medium of exchange for domestic and global trade, accounting for 10% of international trade settlements and 5% of GDP. It would also serve as a global reserve asset, representing 2.5% of global currency reserves.
If VanEck’s vision materializes, Bitcoin’s price would increase 44-fold with an annual growth rate of 16%, pushing its market capitalization to $61 trillion. The report highlights that the widespread adoption of Layer-2 networks will play a crucial role in overcoming Bitcoin blockchain bottlenecks.
However, VanEck also warned of potential risks, including rising energy demands from miners, the need for substantial growth in transaction processing revenue, government efforts to restrict or ban Bitcoin, competition from other cryptocurrencies, and possible excessive control by large financial institutions.
