VanEck predicts bitcoin could reach $2.9 million by 2050, based on a new research blog post. The analysis, authored by VanEck’s digital assets team, outlines a base-case valuation model for bitcoin’s future. Key assumptions include increased adoption for global trade settlement and central banks diversifying reserves with bitcoin.

VanEck’s framework focuses on adoption scenarios and macroeconomic factors influencing bitcoin’s valuation. The firm notes that bitcoin’s historical price behavior aligns more closely with global liquidity trends than with traditional assets. VanEck suggests small allocations of 1-3% to bitcoin can improve risk-adjusted returns in diversified portfolios.

The analysis acknowledges the need for regulatory clarity, operational infrastructure, and political acceptance for bitcoin’s adoption. VanEck’s model projects annualized volatility between 40-70%, reflecting bitcoin’s growing structural relevance. Even in a bear-case scenario, the firm assumes positive long-term returns due to bitcoin’s potential utility beyond trading purposes.

Read more at Yahoo Finance: Asset manager VanEck explains how one bitcoin could be worth $2.9 million by 2050