VanEck, an investment company with over $90 billion in assets under management, has developed a highly ambitious Bitcoin price prediction for 2050. It expects that Bitcoin price will rise to $2.9 million in 2050, a move that would give its market valuation of over $61 trillion.
VanEck’s Bitcoin price prediction
The fund also expects that Bitcoin layer 2 networks like Stacks will rise and account for about 12% of the total Bitcoin value. By then, these L2 networks will have a market cap of over $7.2 trillion.
These are highly ambitious numbers since Bitcoin was trading at $66,500 on Friday, while the combined market cap of all cryptocurrencies stands at $2.39 trillion. Such a move would mean that Bitcoin would need to rise by over 4,200% by 2050. Bitcoin has risen by over 17,000% since 2014, meaning this forecast is possible.
In a note, the company backed this argument by noting that the coin could be used to settle about 10% of global international trade.
Still, VanEck’s Bitcoin price prediction should be taken with a grain of salt since it is highly invested. Its Bitcoin ETF HODL has over $714 million in assets, meaning it will benefit if this forecast is right.
VanEck is not the only big fund excited about Bitcoin’s future. In a recent statement, Larry Fink, the head of Blackrock, noted that Bitcoin had become a real asset and that its price would continue rising. He cited the need for protection now that the US public debt has surged to $35 trillion.
Cathie Wood, the founder of Ark Invest, believes that the price of Bitcoin will also rise to $3.8 million in the long term.
The case for Bitcoin
A case for Bitcoin is easy to make because of its rarity. The coin will only have 21 million tokens, and over 19.6 million have been mined. Many have been lost while investors have saved many in their cold wallets. Bitcoin balances in the biggest exchanges stand at around 2.5 million.
Also, because of the halving mechanism, Bitcoin’s supply will continue slowing. A combination of lower supplies and high demand means Bitcoin will likely do well in the next few decades.
Not everyone is convinced about Bitcoin. Peter Schiff, one of the most prominent Bitcoin critics, argues that the coin will ultimately crumble in the long term since it lacks any use.
Other critics note that Bitcoin has failed as a means of transfer or a replacement for a dollar. Instead, it is a store of value, while stablecoins like Tether and USD coins now dominate the transfer aspect.
