VanEck makes a bold prediction for Bitcoin (BTC), projecting that the world’s largest cryptocurrency could hit a price target of $3 million by 2050.
Matthew Sigel, VanEck’s Head of Digital Asset Research, made the projection during a recent CNBC interview. In the interview, Sigel disclosed that the company arrived at the $3 million price target for Bitcoin using its proprietary model.
Potential Factors That Could Drive BTC Price to $3M By 2050
Sigel outlined multiple factors that could drive Bitcoin’s price to the $3 million target. They include Bictoin’s use as a global reserve asset, with central banks allocating about 2% of their total reserves to the cryptocurrency.
Additionally, he envisions Bitcoin being utilized in international trades by 2050. According to Sigel, these factors would potentially bring Bitcoin’s price to a target of $3 million in 2050, 26 years from now.
Sigel Defends VanEck’s $3M Bitcoin Forecast
Given the current price of Bitcoin, VanEck’s prediction may be seen as utterly outrageous. Hitting the $3 million target requires Bitcoin to surge 4,116% from its current price of $71,152.
However, Sigel defended the projection, noting that reaching the $3 million target requires Bitcoin to register an annual compounded growth rate of 16%.
VanEck has continued to issue multiple forecasts regarding Bitcoin’s future performance. Last month, the company issued its 2050 target for Bitcoin under three different scenarios. In a worst-case scenario, VanEck expects Bitcoin to trade at $130,314 by 2050.
The asset manager also set base-case and best-case targets for Bitcoin, projecting that BTC could change hands at $2.9 million and $52.38 million, respectively.
MicroStrategy Chairman Urges People to Buy Bitcoin
Meanwhile, MicroStrategy executive chairman Michael Saylor emphasizes his confidence in Bitcoin, urging people and businesses to acquire as much BTC as possible.
Per Saylor, buying Bitcoin at every opportunity remains the “best use of time.” He characterized the premier crypto asset as the “hardest money on earth.” This encourages everyone to invest in it. The Bitcoin bull advised people to use all their cash to purchase Bitcoin.
Furthermore, he suggested that people who do not have money should borrow or mortgage valuable assets to purchase Bitcoin. In addition, Saylor advised employees to convince their bosses to convert cash-backed treasuries into Bitcoin, as he believes the move would bring significant returns.
“If you’re working for a company that has $100 million in the treasury, you have to convince the CEO to convert the treasury to Bitcoin. That’s the most creative thing you can do; it will be worth billions to them,” Saylor remarked.
Saylor’s recent comment aligns with a viewpoint similar to the one he shared about Bitcoin with his followers earlier this month. As reported earlier, Saylor told his 3.5 million followers they might regret not committing more funds to BTC.
In the meantime, Bitcoin is trading above the $70,000 mark, with one BTC currently priced at $71,152.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
