VanEck predicted bitcoin to rise in price to $4,8 million

This is the conclusion the company’s experts drew from the global M0 and M2 money supplies

01.04.2022 - 14:30

573

1 min

What’s new? US investment firm VanEck believes that the potential price of bitcoin could be between $1,3 million and $4,8 million if it becomes a global reserve asset. The experts came to this conclusion based on the global M0 and M2 money supplies.

VanEck’s report

What does the report say? VanEck’s analysis showed that the potential price of BTC ranged from $1,3 million to $4,8 million. The lower prediction was based on bitcoin becoming the M0 (monetary base), which includes all cash in circulation. The higher prediction was based on the M2 estimate, which is seen as a measure of money supply that includes all bank deposits in a particular currency and their ability to be converted into cash.

The experts noted that Russia is exploring the possibility of using cryptocurrencies to transact for oil as part of the sanctions imposed by the West. They do not rule out the possibility that other countries may adopt this approach, which could lead to the collapse of the dollar as the world’s reserve currency. The experts stressed that the Chinese yuan has a better chance to challenge the dollar’s hegemony.

What had happened before? On March 24, head of the State Duma Budget Committee Pavel Zavalny said that Russia can sell energy resources to other states for bitcoins. He added that “unfriendly countries” would pay for supplies in rubles, while for “friendly countries” the Russian Federation can switch settlements to their national currencies (yuan, lira, dinar).

Author: