VanEck predicts Bitcoin's value will rise to $2.9 trillion by 2050 as reckless governments put the global financial system at risk

Fund management giant VanEck says the price of bitcoin could reach $2.9 trillion by 2050 amid rising geopolitical tensions, mounting debt and government abuse of the printing press.

The prediction is based on the assumption that bitcoin It will play a pivotal role in global finance as the current system erodes over the next few decades, says a July 24 article. bitcoin-2050-valuation-scenarios-global-medium-of-exchange-and-reserve-asset”>Investigation report led by head of digital asset research Matthew Sigel.

<img decoding="async" alt="VanEck to launch community nft collection – Blockchain.News” src=”https://technicalterrence.com/wp-content/uploads/2024/07/VanEck-predicts-Bitcoin39s-value-will-rise-to-29-trillion-by.jpg”/><img decoding="async" src="https://technicalterrence.com/wp-content/uploads/2024/07/VanEck-predicts-Bitcoin39s-value-will-rise-to-29-trillion-by.jpg" alt="VanEck to launch community nft collection – Blockchain.News”/>

Government abuse of the printing press puts the financial system at risk

G7 governments have “abused the printing press” to spend borrowed money on “impossible goals,” Sigel told CNBC in an interview. This, combined with “massive economic imbalances, growing distrust in existing institutions and continued deglobalization,” has put the traditional financial system at risk, he added.

<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”9.9884393063584″>

Oh twitter.com/matthew_sigel?ref_src=twsrc%5Etfw”>@Matthew_Sigel brought the to national television. “Many of these distortions stem from a massive misallocation of capital since the global financial crisis, as G7 governments have abused the printing press, spending borrowed money on impossible goals… twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin is the ultimate protection against this… https://t.co/fkvDhLx2zQ

— Van Eck (@vaneck_us) twitter.com/vaneck_us/status/1816460725646131400?ref_src=twsrc%5Etfw”>July 25, 2024

Sigel went on to call bitcoin “the ultimate hedge against this growing fiscal recklessness.”

In a base scenario, btc would account for 10% of international trade settlement and 5% of GDP, according to the report. Sigel also wrote that bitcoin would reach a weight of 2.5% in international foreign exchange reserves at the expense of the US dollar, euro, British pound and Japanese yen.

bitcoin price could increase 43-fold from current price

If VanEck's prediction comes true, the crypto The market leader's price will see its value increase 43-fold by 2050. This translates to an annual growth of around 16% from its current value. bitcoin/”>pricewhich stood at $67,027.24 as of 3:00 a.m. EST.

With this anticipated growth, bitcoin's market cap will also skyrocket to approximately $61 trillion.

However, VanEck issued several warnings that could restrict bitcoin's expansion. Rising energy demand from miners, future halving rewards, and concerted efforts by governments to ban btc were mentioned as major hurdles that will need to be overcome.

Layer 2 networks were mentioned as a potential way to increase bitcoin’s scalability and reduce its congestion. Given their intended role in removing btc bottlenecks, VanEck predicted that these sidechains could collectively reach a market cap of $7.6 trillion by 2050.

Related Posts:

PlayDoge (PLAY): The Latest ICO on the BNB Chain

• Virtual 2D Doge Pet
• Play to Win Meme Coin Fusion
• Participation rewards and in-game tokens
• SolidProof audited – playdoge.io