VanEck says Bitcoin could hit $4.8M if it became the global reserve asset
American investment firm VanEck believes that Bitcoin has double the upside of gold and could be worth as much as $4.8 million per coin if it becomes the global reserve asset.
That’s a big ‘if’ of course, and VanEck thinks the Chinese Yuan is a more likely contender.
The lofty assessment for BTC came in a March 30 insights piece written by VanEck’s Head of Active EM Debt Eric Fine and Chief Economist Natalia Gurushina who attempted to compare the price implications for gold and Bitcoin (BTC) if either were to be adopted as the backing for global currency regimes.
VanEck’s analysis found that the implied price for BTC ranged from $1.3 million to $4.8 million. The lower prediction was based on BTC as a monetary base (M0), which investment database Investopedia says includes all circulating supply of a currency and bank deposits but is not a common marker for economists to look at.
One colleague’s view. Interesting analysis. https://t.co/Ua7vTqPU1w
The higher prediction came from the more common M2 assessment, which Investopedia considers to be a measure of the money supply including all bank deposits with a currency and its ability to be converted into cash.
In their assessment for gold’s per-ounce price, Fine and Gurushina leaned more toward the M0 price prediction of $31,000 as a reliable starting point because “a very big number of central banks have little or no reserve gold.” The lack of deposits skews the M2 prediction to a much higher and less reliable $105,000 per ounce of gold.
Recent geopolitical unrest has already led Russia to consider using different currencies including Bitcoin to transact for oil with their “friendly” partners China and Turkey.
The trend could apply to more nations’ central banks, and likely see
Read more on cointelegraph.com
