VanEck Predicts Bitcoin Could Soar to $2.9 Million by 2050 as Global Trade Expands

• VanEck predicts Bitcoin will account for 10% of global trade and 5% of domestic trade by 2050.
• Central banks could hold 2.5% of their assets in Bitcoin, reflecting rising institutional confidence.
• Bitcoin Layer 2 solutions may reach $7.6 trillion, 12% of Bitcoin’s projected total value by 2050.

A recent projection from VanEck, a major investment firm, forecasts Bitcoin reaching an unprecedented price of $2.9 million by 2050. This ambitious prediction suggests Bitcoin’s role in global trade will expand significantly, driven by increasing adoption and institutional investment. 

The firm believes Bitcoin will account for 10% of international trade and 5% of domestic trade worldwide. Furthermore, central banks might hold 2.5% of their assets in Bitcoin, reflecting growing confidence in the digital asset’s long-term potential.

Bitcoin’s Role in Global Trade and Central Bank Reserves

VanEck anticipates that Bitcoin will play a key role in global financial systems by 2050. The firm’s model predicts that Bitcoin will account for a substantial portion of both international and domestic trade. This shift could mark a major turning point for cryptocurrency as it gains acceptance among institutions. 

Additionally, the forecast suggests central banks could allocate 2.5% of their reserves to Bitcoin, showcasing its increasing appeal as an alternative to traditional assets like gold. Notably, Bitcoin Layer 2 (L2) solutions are expected to further boost the ecosystem, with an estimated value of $7.6 trillion, or about 12% of Bitcoin’s total market cap.

Bitcoin’s Potential to Rival Gold

During a recent interview a few weeks ago, Jan van Eck, CEO of VanEck, emphasized Bitcoin’s maturation, drawing parallels between the digital asset and gold. He noted that Bitcoin’s future market cap could rival that of gold, which currently stands at around $16.8 trillion. 

If Bitcoin were to reach half of gold’s current market value, the price per Bitcoin could soar to $350,000. VanEck’s long-term projection, however, sets a more ambitious target of $2.9 million per Bitcoin, driven by Bitcoin’s expanding role in the financial system and increased investor demand.

Bitcoin’s Recovery from Recent Market Pressures

Matthew Sigel, VanEck’s Head of Digital Assets, highlighted the factors influencing Bitcoin’s recovery. According to Sigel, forced selling pressure, including government liquidations and high-profile bankruptcies, has subsided. The liquidation of coins by the German and U.S. governments, along with bankruptcies like Mt. Gox, contributed to market instability. 

However, as these events are now in the past, Bitcoin appears poised for growth. Sigel noted that Bitcoin often experiences challenges following halving events but tends to recover as fiscal policies evolve and elections approach, signaling potential future gains.