Van Eyck says that by 2050, Bitcoin could reach $2.9 million per coin.
As of July 24, investment manager Van Eyck predicts that Bitcoin will have a total market capitalization of $61 trillion, or $2.9 million per coin, by 2050 – a demand for a decentralized currency. Report it.
“It is estimated that by 2050 Bitcoin will be used to settle 10% of the world's international trade and 5% of the world's domestic trade,” VanEck said in the report. “This situation will result in central banks holding 2.5% of their assets in BTC.”
Van Eyck added that the value of Bitcoin's blockchain network — the Bitcoin Layer 2s (L2s) — could be around $7.6 trillion, or around 12% of BTC's total value.
“Crucially, we believe Bitcoin's scalability issues, which are the primary barriers to wider adoption, will be addressed by emerging Bitcoin Layer-2 (L2) solutions,” the report said.
According to the report, the withdrawal of BTC is partly due to a decrease in global economic activity in the world's leading economies – such as the United States, the European Union and Japan. Van Eyck also predicts that confidence in the currencies of those economies will decrease due to the unrestricted lack of liquidity.
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“In this uncertain environment, businesses and consumers around the world may perceive the shortcomings of alternative currencies, thereby generating a demand for neutral exchange with immutable asset rights and predictable monetary policy,” the report said. “This is where Bitcoin comes in.”
Van Eyck specifically cites the use of the euro and Japanese yen in international settlements as an opportunity to expand the use of BTC. Euro cross-border payments fell from around 22% in the mid-2000s to just 14.5%, the report said, while the yen fell from 6.2% to 5.4% over the same period.
The report notes continued fiscal mismanagement in the world's leading economies and the simultaneous deterioration of property rights, contributing to the spiraling out of fiat currencies. VanEck points to problems with mining, scaling, and regulation as potential risks to future BTC adoption.
Although gold has a proven track record as a global reserve, VanEck says the constraints related to logistics, security and financial integration are obstacles to returning to the gold standard.
Van Eyck says it's too early to declare winners among Bitcoin L2s, but identifies 16 “high-potential” projects, including the Lightning Network and Stack.
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