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VanEck: Bitcoin Could Rise to $2.9 Million by 2050
Summary: VanEck has released a new report on long-term capital market assumptions for Bitcoin, predicting strong growth for the cryptocurrency over the next few decades. The report, authored by VanEck's Director of Digital Asset Research Matthew Sigel and Senior Analyst Patrick Bush, outlines how institutional investors may allocate this asset in diversified portfolios. The model shows ...
VanEck has released a new report on long-term capital market assumptions for Bitcoin, predicting strong growth for the cryptocurrency over the next few decades. The report, authored by VanEck's Director of Digital Asset Research Matthew Sigel and Senior Analyst Patrick Bush, outlines how institutional investors may allocate this asset in diversified portfolios. The model shows that in a baseline scenario, Bitcoin could reach $2.9 million per coin by 2050. This forecast implies a compound annual growth rate (CAGR) of approximately 15% from current prices. The model assumes Bitcoin will account for 5-10% of global trade and become a reserve asset for central banks, representing 2.5% of their balance sheets. In a conservative scenario (bear market), Bitcoin's annual growth rate would be only 2%, reaching around $130,000 per coin by 2050. In an extremely bullish 'super Bitcoinization' scenario, where Bitcoin accounts for 20% of global trade and 10% of GDP, each coin could theoretically reach $53.4 million, corresponding to a 29% CAGR. The report emphasizes Bitcoin's potential as a strategic, low-correlation asset in institutional portfolios. VanEck suggests allocating 1-3% of diversified portfolios to Bitcoin, with the potential to increase this allocation to 20% for investors with higher risk tolerance to optimize returns. VanEck believes that Bitcoin is evolving beyond speculation and has the potential to become a reserve asset, providing a hedge against currency devaluation risks, especially in developed markets facing high sovereign debt levels.
