VanEck Predicts Bitcoin Could Hit $2.9 Million by 2050

VanEck's recent research suggests Bitcoin could reach $2.9 million per coin by 2050, utilizing valuation frameworks focusing on its role as a medium of exchange (MoE) and reserve asset.

Key Insights from VanEck's Analysis

Projected 15% CAGR for Bitcoin, positioning it as a global economic player.
Settlement Pivot: By 2050, Bitcoin may handle 5-10% of global international and domestic trade settlements.
Reserve Pivot: Potential growth linked to declining trust in G7 sovereign debt, prompting central banks to consider Bitcoin as a hedge.

'Hyper-Bitcoinization' Scenario

If Bitcoin captures 20% of international trade and 10% of domestic GDP, it could reach $53.4 million per coin with a 29% CAGR.
This scenario requires Bitcoin to rival or surpass gold as a primary global reserve asset.

The analysis includes a Bear Case target of $130,000, reflecting a modest 2% CAGR. VanEck predicts low to moderate correlation with global equities, bonds, and gold but emphasizes Bitcoin's negative correlation with the US Dollar, highlighting its potential as a hedge against monetary debasement.

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