The executive expressed concern about the growing influence of BRICS, particularly their interest in Bitcoin and crypto.
Key Takeaways
- VanEck's Matthew Sigel forecasts Bitcoin's value at $3 million by 2050.
- He thinks Bitcoin could be a big part of the global economy.
Matthew Sigel, head of digital assets research at VanEck, projects that Bitcoin could hit $3 million by 2050 as it becomes a widely accepted and valuable reserve asset. He envisions Bitcoin as a global reserve asset with 2% central bank allocation.
“We have a model that assumes that by 2050, this is a very long term, Bitcoin becomes a reserve asset that’s used in global trade and held by global central banks at a very modest 2% weight. And in that model, we arrive at a $3 million dollar price target for Bitcoin,” said Sigel in a recent interview with CNBC.
While this prediction may seem ambitious, Sigel said it’s not unrealistic. Over the next few decades, Bitcoin could rise by an average of 16% each year, leading to the $3 million target by 2050, he noted.
“That sounds extreme but that’s a 16% compound annual growth rate for a couple of decades…that’s not really that extreme. So into the millions over the medium term is a high conviction call.”
Discussing the growing influence of BRICS, especially after the group leaders advocated for Bitcoin to bypass Western sanctions, Sigel warned that the US risks losing its dominant position in the global financial system if it continues to ignore crypto.
BRICS has recently expanded to include six new members, significantly increasing its combined GDP. According to Sigel, the growth has made BRICS an economic power potentially rivaling the G7.
“Of these six new members, three of them, Argentina, the UEA, and Ethiopia, are now mining Bitcoin with government resources,” Sigel noted. “So there is tremendous urgency outside of the US to find a way to circumvent the irresponsible fiscal policy that we’ve been running here in the US.”
“In fact, Russia announced an initiative. Their sovereign wealth fund is going to invest in regional initiatives to build Bitcoin mining and AI infrastructure throughout BRICS with the idea of settling global trade in Bitcoin,” he added.
He suggested that if the US doesn’t adapt to the changing global financial landscape, it could be left behind as other countries, particularly those within the BRICS, embrace Bitcoin and digital assets.
“Someday, I don’t know if it’s 5 years or 10 years, Putin’s gonna die, we’re gonna look to reintegrate some of these countries into the world’s financial system, and they’re gonna be trading with Bitcoin. What are we gonna be doing?” Sigel stressed.
