Bitcoin could reach a range of $1.3 million to $4.8 million if it attains global reserve currency status. Those projections come from VanEck’s analysts.
— Mike Alfred (@mikealfred) March 31, 2022
The lower bound of the range is based on the monetary aggregate M0, which includes cash in circulation, while the upper bound is based on M2, which includes M0, bank reserves and their “near equivalents.”
Analysts stressed that there are greater prospects for the yuan to challenge the dollar’s hegemony.
The presented forecast is more of a starting point for investors seeking to gauge bitcoin’s value in an “extreme” scenario [the full transfer of all global reserves into digital gold].
Events surrounding the war in Ukraine prompted the analysts to consider it. They pointed to Russia’s exploration of using digital assets to settle oil trades amid sanctions.
VanEck did not rule out that this trend could be taken up by other countries as well, which could undermine the dollar’s status as the world’s reserve currency.
«Central banks, in pursuit of diversification, are likely to shift the structure of their reserves away from dollars (and also euros and yen) toward other assets», — said in the document.
Among alternatives, besides gold and bitcoin, analysts named real estate, equities and currencies of developing economies.
Earlier, the founder and CEO of BTC.TOP Jiang Zhuer described the sanctions against Russia as a positive factor for the crypto market in the long term.
In January, Fidelity Digital Assets envisaged sovereign purchases of bitcoin.
Earlier, MicroStrategy CEO Michael Saylor described bitcoin as a global reserve asset.
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