Bitcoin on track to hit $2.9 trillion by 2050: The future of global trade and reserves

Bitcoin on track to hit $2.9 trillion by 2050: The future of global trade and reserves

According to analysts at VanEck, Bitcoin has the potential to reach a value of up to $2.9 trillion by 2050. This scenario is based on the assumption that the cryptocurrency will become a key part of global trade, covering 5-10% of international and domestic trade and accounting for 2.5% of central bank reserves.

How will this be possible?

VanEck estimates that Bitcoin will gradually become more accepted as a means of payment and strategic currency hedging. As global liquidity grows and traditional currencies depreciate, it would become a long-term tool against the instability of monetary systems. If Bitcoin enters central bank reserves, it could make up a significant portion of their assets - an estimated value of around 2.5%.

Long-term growth and different scenarios

The base case assumes that Bitcoin will grow at an average annual rate of 15%, which could lead to its price reaching up to $2.9 million by 2050. More optimistic scenarios with 20% annual growth could push the price up to over $52 million, while a pessimistic scenario would predict a price of around $130,000.

Global adoption and comparison to traditional currencies

Although Bitcoin is already finding use in sanctioned countries, for example, its wider adoption in international trade is still in its early stages. According to SWIFT data, Bitcoin could become as widespread as the British pound if it were to claim a 5-10% share of global settlements.

Conclusion

Bitcoin is thus likely to become not only a store of value, but also a key player in global trade and central bank reserves. As its adoption and integration into the financial system grows, its value could reach astronomical heights by 2050, rewriting the rules of global finance.

*This is not investment advice.

The Coingarage Team