Bitcoin Could Reach $3 Million by 2050, According to VanEck’s Head of Crypto Research

Cryptonews Politics Clara Montgomery October 28, 2024

Bitcoin Could Reach $3 Million by 2050, According to VanEck’s Head of Crypto Research

Matthew Sigel from VanEck projects that Bitcoin could soar to $3 million by 2050 if it is used as a reserve asset by global central banks. He emphasizes the need for the United States to adapt to the growing influence of BRICS, particularly regarding Bitcoin as a means to bypass Western sanctions. The potential average growth rate of Bitcoin is estimated at 16% per year, which supports his ambitious valuation.

Matthew Sigel, the head of digital assets research at VanEck, has projected that the price of Bitcoin may reach an astonishing $3 million by the year 2050. This projection is predicated on the assumption that Bitcoin will evolve into a widely accepted reserve asset utilized within global trade and held by central banks with a moderate allocation of 2% to this cryptocurrency. In an interview with CNBC, Mr. Sigel stated, “We have a model that assumes that by 2050, this is a very long term, Bitcoin becomes a reserve asset that’s used in global trade and held by global central banks at a very modest 2% weight. And in that model, we arrive at a $3 million dollar price target for Bitcoin.” While such a lofty target may appear ambitious, he contended that it is not entirely unrealistic. Over the subsequent decades, Bitcoin could potentially appreciate at an average annual growth rate of 16%, achieving the $3 million milestone by 2050. Sigel elaborated, “That sounds extreme but that’s a 16% compound annual growth rate for a couple of decades…that’s not really that extreme. So into the millions over the medium term is a high conviction call.” Mr. Sigel also highlighted the increasing influence of the BRICS nations, particularly in light of their backing for Bitcoin as a means to circumvent Western sanctions. He cautioned that the United States may jeopardize its dominant status in the global financial system if it continues to disregard the significance of cryptocurrency. With BRICS recently expanding to include six new members, thus boosting its combined GDP, Sigel posited that it now represents an economic bloc capable of rivaling the G7 nations. He noted, “Of these six new members, three of them, Argentina, the UEA, and Ethiopia, are now mining Bitcoin with government resources. So there is tremendous urgency outside of the US to find a way to circumvent the irresponsible fiscal policy that we’ve been running here in the US.” Furthermore, Sigel referenced an initiative from Russia, which announced that its sovereign wealth fund would invest in regional projects aimed at developing Bitcoin mining and AI infrastructure within BRICS, with the intention of facilitating global trade in Bitcoin. He cautioned that should the United States fail to adapt to the evolving financial landscape, it risks being marginalized as countries, particularly those aligned with BRICS, increasingly adopt Bitcoin and other digital assets. “Someday, I don’t know if it’s 5 years or 10 years, Putin’s gonna die, we’re gonna look to reintegrate some of these countries into the world’s financial system, and they’re gonna be trading with Bitcoin. What are we gonna be doing?” Sigel emphasized.

Bitcoin, introduced in 2009, has evolved from a digital novelty to a significant player in the financial landscape, capturing the interest of investors and institutions alike. Its potential as a reserve asset is being discussed in the context of changing global dynamics, especially given the increasing role of the BRICS nations in the global economy. BRICS, comprising Brazil, Russia, India, China, and South Africa, is expanding its influence and has more recently welcomed additional countries, raising questions about its economic impact and strategies to utilize Bitcoin as a means of fostering trade and resistance to Western financial sanctions. In this context, projections about Bitcoin’s future value, such as those made by experts like Matthew Sigel, reflect a growing recognition of cryptocurrency’s potential role in the global financial framework.

In conclusion, Matthew Sigel’s prediction of Bitcoin potentially reaching $3 million by 2050 underscores the cryptocurrency’s anticipated evolution into a pivotal reserve asset in global trade. While this forecast is characterized by a significant annual growth expectation of 16%, it aligns with the increasing economic influence exerted by the BRICS nations, which are exploring Bitcoin mining and its application in global trade. Sigel’s warnings about the need for the United States to embrace cryptocurrency in the face of changing economic alliances highlight the potential risks of remaining passive in a rapidly developing financial environment.

Original Source: cryptobriefing.com