VanEck’s emerging markets fixed income strategy chief economist shared his point of view on the price of Bitcoin, which can surge more likely that it has pumped in the last 13 years.
At present Bitcoin is 13+ years old and now at this price of bitcoin people are thinking that it will not be easy for Bitcoin to hit $100k or more because bitcoin has already reached the high price level. But on the other hand, many factors are hinting that Bitcoin still has huge potential to gain more prices.
Recently Natalia Gurushina, emerging markets fixed income strategy chief economist at VanEck, and head of active emerging markets debt Eric Fine shared some positive factors, which can push the price of Bitcoin toward upsides.
According to VanEck, the price of Bitcoin will touch $1.3 million one day in the future. VanEck’s prediction on the price of Bitcoin is based on the chances of a highly liquid global money supply, M2, which may be divided by the flagship cryptocurrency’s existing supply.
According to VanEck when a low liquid global money supply will be divided by the flagship Bitcoin’s total supply then in that situation the price of Bitcoin could hit $4.80 million. This was the probable case of M0.
M2 is a situation, where money remains outside the banks, while M0 is a situation in which money supply exists in the physical currency form, which includes both notes and coins, held inside or outside of the banking system.
“The implied price of Bitcoin using the same aggregate M0 that we used for gold is around $1,300,000 ….(..)…the implied price of Bitcoin using global M2 is $4,800,000 per coin.”
VanEck also noted that international financial Sanctions on Russia because of Russian military invasions on Ukraine may result in more buy support for Gold and Bitcoin-like assets as a national reserve.
“Precious metals are the original reserve asset, but cryptocurrencies are a possible addition/replacement/portion.”