VanEck: If certain important conditions are met, BTC may reach $2.9 million by 2050

ChainCatcher news, the spot Bitcoin ETF issuer VanEck predicts in its latest report that, assuming certain key conditions are met, the price of Bitcoin (BTC) could reach $2.9 million by 2050.

Matthew Sigel, head of digital asset research at VanEck, stated that as geopolitical tensions rise and debt repayment costs soar, Bitcoin may become an important component of the international monetary system in the coming decades.

In the report's base scenario, BTC will become a key medium of exchange for local and global trade, accounting for 10% of international trade settlements and 5% of GDP. At the same time, it will also become a global reserve asset, making up 2.5% of international monetary reserves.

If VanEck's vision unfolds, the price of Bitcoin will grow 44 times, with an annual growth rate of 16%, and its market capitalization will soar to $61 trillion. The report notes that the adoption of L2 networks will play a crucial role in overcoming the bottlenecks of the Bitcoin blockchain.

However, VanEck also warned of potential risks, including increased energy demand from miners, the need for a significant increase in transaction processing revenue, government efforts to restrict or ban Bitcoin, competition from other cryptocurrencies, and the possibility of large financial institutions exerting excessive control.