Investment giant VanEck forecasts a staggering rise in bitcoin’s value to $2.9 million by 2050, positioning it as a pivotal reserve currency in the International Monetary System. Their optimistic base case scenario sees bitcoin facilitating 10% of international and 5% of domestic trade, with central banks holding 2.5% of their assets in BTC. This evolution is backed by an anticipated shift in trust from traditional reserve currencies, amidst increasing deficit spending and geopolitical tensions.

VanEck’s report also highlights the potential market capitalization of $61 trillion for bitcoin, with significant contributions from Layer-2 solutions like the Lightning Network valued at $7.6 trillion. These technological advancements are expected to enhance bitcoin’s scalability, making it suitable for widespread international transactions.

The analysis suggests that growing interest in bitcoin, spurred by its immutable monetary policy and limited supply, will lead to significant holdings by central banks and investors, driven by the Gresham’s Law effect. This increase in demand and reduction in supply is projected to further propel bitcoin’s price upward, securing its place as digital gold.

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