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Repeated economic crises have eroded confidence in traditional currencies, pushing investors to consider new forms of value. Among these, bitcoin emerges not only as a speculative asset but also as a potential global economic pillar, according to a recent analysis by VanEck.
VanEck’s Bold Predictions for Bitcoin
The latest VanEck analysis on bitcoin suggests a promising future for the crypto asset. The report, published on July 24 by the investment manager, reveals that BTC’s total market capitalization could reach 61 trillion dollars by 2050. VanEck estimates that this capitalization would equate to a price of 2.9 million dollars per BTC. This bold outlook is based on the assumption that bitcoin will be widely adopted as a reserve currency and for settling commercial transactions on an international scale.
“It is conceivable that by 2050, bitcoin could be used to settle 10% of international trade and 5% of global domestic trade,” explains VanEck in its report. This scenario would also see central banks holding 2.5% of their assets in BTC, an undeniable sign of the legitimation of this crypto.
One of the key aspects of this projection relies on Bitcoin’s scalability solutions, notably Bitcoin Layer 2 (L2). VanEck estimates that these solutions could collectively be worth around 7.6 trillion dollars, representing nearly 12% of bitcoin’s total value. These technologies are seen as a response to scalability challenges, which have hindered the widespread adoption of cryptocurrency.
Factors Influencing the Rise of Bitcoin
VanEck’s report also highlights the relative decline of major fiat currencies, such as the euro and yen, in international payments. The euro, for example, has dropped from 22% to 14.5% market share in cross-border payments since the mid-2000s. The yen has also seen its share fall from 6.2% to 5.4%. This trend could encourage broader bitcoin adoption, which is perceived as a stable and neutral alternative in the face of global economic uncertainty.
Nevertheless, VanEck identifies several potential challenges to the continued adoption of bitcoin. These include regulatory issues, security in mining, and scalability. However, L2 solutions and the evolution of technological infrastructure could mitigate these obstacles. Despite these challenges, VanEck sees bitcoin as a promising store of value capable of playing a central role in the global financial system in the future.
In summary, VanEck’s forecasts outline an ambitious future for bitcoin, which could become an essential pillar of the global economy. The growing adoption of the crypto asset, supported by technological innovations, could propel its value to unprecedented levels. However, the crypto market remains subject to uncertainties, particularly in terms of regulation and security.
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Graduated from Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, relay the latest technological innovations, and put the economic and societal issues of this ongoing revolution into perspective.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
