VanEck Projects Bitcoin Could Hit $3 million By 2050

Matthew Sigel, VanEck's Head of Digital Asset Research, has sparked discussion with a bold prediction for Bitcoin's trajectory. Leveraging a proprietary prediction model, VanEck now estimates Bitcoin’s potential to reach $3 million by 2050, if it evolves into a global reserve asset. In a recent CNBC interview, Sigel pointed to several trends that could support Bitcoin’s ascent, including its inverse relationship with the US dollar and its positive alignment with money supply growth (M2). He also noted that, as seen in 2020, the upcoming election cycle could significantly influence Bitcoin’s price, highlighting how election results might drive fresh interest and capital inflow.

Sigel added that large government Bitcoin sales, notably by the United States and Germany, have alleviated some of the selling pressure, paving the way for potential market growth. Furthermore, BRICS nations, particularly Russia, are advancing initiatives related to Bitcoin. Russia’s recent announcement of using its sovereign wealth fund to invest in Bitcoin mining and AI infrastructure across BRICS nations is expected to stimulate global trade opportunities using Bitcoin as a settlement medium.

VanEck's model anticipates that with a modest 2% allocation of global reserves into Bitcoin, coupled with a sustained 16% annual growth rate, Bitcoin could reach the $3 million mark by 2050. “Our model assumes that by mid-century, Bitcoin is a reserve asset in global trade and central banks’ holdings, allowing us to forecast a $3 million target,” Sigel explained.

This projection comes on the heels of VanEck’s previous, more aggressive forecast, which suggested a possible $52.38 million valuation for Bitcoin by 2050 under optimal conditions. As a U.S.-based asset management giant, VanEck manages over $107 billion, with $1.8 billion in digital assets, and remains optimistic about Bitcoin’s long-term position as a key player in the financial landscape.