September 27, 2022

VanEck allows bitcoin to rise to $4.8 million when it is converted into a reserve asset


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

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

The specialists stressed that the Chinese yuan is more likely to challenge the hegemony of the dollar.

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

Analysts were prompted to consider it by the events around the war in Ukraine. They pointed to Russia’s exploration of the possibility of using digital assets to make deals 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 the world’s reserve currency.

“It is likely that 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 countries with 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, analysts at Fidelity Digital Assets allowed governments to buy bitcoin.

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

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