VanEck allowed bitcoin to grow to $4.8 million when it was converted into a reserve asset

in vaneck •  3 years ago 

The price of bitcoin can reach a range of $1.3 million to $4.8 million, provided it acquires the status of a world reserve currency. Such calculations were made by VanEck analysts.

The lower limit of the range is based on the monetary aggregate M0, which includes cash in circulation, the upper one is based on M2, which includes M0, bank reserves and their "close equivalents".

Experts stressed that the Chinese yuan has more chances to challenge the hegemony of the dollar.

The presented forecast is rather a starting point for investors who want to estimate the value of the first cryptocurrency in an "extreme" scenario [the complete transfer of all world reserves to digital gold].

Analysts were prompted to consider it by the events surrounding the war in Ukraine. They pointed to Russia's study of the possibility of using digital assets to make transactions for oil under sanctions.

VanEck did not rule out that this trend could be picked up by other countries of the world, which could hit the status of the dollar as a world reserve currency.

"Probably, in order to diversify, central banks will change the structure of their reserves at the expense of dollars (as well as euros and yen) in favor of other assets," the document says.

Among the alternatives, in addition to gold and bitcoin, analysts named real estate, stocks and currencies of emerging economies.

Recall that the founder and CEO of the BTC.TOP pool, Jiang Zhuer, called financial sanctions against the Russian Federation a positive factor for the cryptocurrency market in the long term.

In January, Fidelity Digital Assets analysts allowed the purchase of bitcoin by states.

Earlier, MicroStrategy CEO Michael Saylor described the first cryptocurrency as a global reserve asset.

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