Bitcoin Price to Soar to $2.9M by 2050 with Rise in Global Trade Use

TLDR

• VanEck predicts Bitcoin could reach $2.9 million by 2050 based on its growing role in global trade.
• The forecast assumes Bitcoin will settle 5-10% of international trade and 5% of domestic trade by 2050.
• Global liquidity expansion and monetary debasement are expected to drive Bitcoin’s long-term price growth.
• VanEck estimates that central banks could hold up to 2.5% of their assets in Bitcoin by 2050.
• The base-case scenario suggests Bitcoin will represent 1.66% of the world’s financial assets by 2050.

Bitcoin is expected to reach $2.9 million by 2050, according to a forecast by asset management firm VanEck. The prediction hinges on the cryptocurrency’s growing role in global trade and its inclusion in central bank reserves. Analysts at VanEck suggest that Bitcoin could account for 5-10% of global international trade and 5% of domestic trade by 2050.

Bitcoin Price Projection Relies on Strong Global Liquidity and Monetary Trends

VanEck analysts estimate that Bitcoin will achieve a 15% compound annual growth rate (CAGR) over the next few decades. They believe Bitcoin’s price will be driven by global liquidity expansion and ongoing monetary debasement. “Bitcoin is not a tactical trade; it functions as a long-duration hedge against adverse monetary regime outcomes,” said Matthew Sigel, head of digital assets research at VanEck.

Sigel and Patrick Bush, a senior investment analyst at VanEck, projected that central banks may hold up to 2.5% of their assets in Bitcoin by 2050. This growth would push Bitcoin’s price to $2.9 million, with the cryptocurrency comprising 1.66% of the world’s total financial assets. The firm views this as their base-case scenario, with more optimistic projections suggesting that Bitcoin could be worth even more.

Bitcoin has already seen some adoption in global trade, particularly in countries under sanctions, such as Venezuela, Iran, and Russia. While it has not yet gained widespread use in G7 countries, VanEck’s model suggests Bitcoin could claim 5-10% of global trade settlement. This share would position Bitcoin similarly to the British pound, which currently accounts for 7.4% of international trade.

The forecast also includes a bear scenario, which assumes Bitcoin’s price will reach $130,000 by 2050 with a 2% CAGR. On the other hand, a more optimistic bull case suggests that Bitcoin could hit $52.4 million, driven by a 20% CAGR. VanEck’s analysis highlights that Bitcoin’s growth in international trade and central bank reserves will be pivotal in shaping its future value.

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