VanEck Predicts Bitcoin to Hit $4.8m if It Replaces Fiat Currency

According to a projection model by VanEck executives – Eric Fine and Natasha Gurushina, Bitcoin is set to be valued at $4.8million if it is to become a global reserve asset. With the framework created by Fine and Gurushina, which was built for estimating the value of gold and Bitcoin, it is predicted that gold could be valued at $31,000 per ounce while Bitcoin will trade at $4.8 million.

Following a blog post published on Wednesday by VanEck’s Head of Active EM Debt, Eric Fine, and Chief Economist Natalia Gurushina, it suggests that Bitcoin will aim for a price target of $4.8 million if the world’s largest cryptocurrency becomes the global reserve asset. 

“We built a simple framework to value gold and Bitcoin,” the pair cited in the article. Key factors in the publication project are how the pair reached the $4.8 million valuations by dividing the total global money supply by 21 million – the total number of Bitcoins that will ever exist. 

RELATED: US SEC discard VanEck spot Bitcoin ETF Application

Also, the publication states an average price target of $31,000 per ounce of gold using the same technique. The VanEck executives indicated that the upside of Bitcoin appears to be much higher than that of gold. However, they pointed out that there might be a need for both predictions to be adjusted downwards due to the odds of either ever becoming the global reserve asset. The article states:

“For example, an investor who sees a 10% chance of gold becoming the reserve asset might say that our ‘extreme scenario’ price of $31,000 per ounce represents a practical price target of $3,100 per ounce.”

Back in January, Cathie Wood’s ARK Invest projected in a research report that Bitcoin could be valued at $1 million by the end of 2030. However, a few other firms have shown further skepticism about Bitcoin’s potential. Earlier in February, top analysts at JPMorgan evaluated that the current “fair value” for Bitcoin is only $38,000 but also gave a longer-term price target of $150,000 for the asset.

About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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