Categories: Payment system news

What Would the Bitcoin Price Be if it Replaced Fiat Currency Reserves According to Van Eck

According to the global investment manager Van Eck, the prices of bitcoin and gold could skyrocket to record highs if fiat currencies lose their dominance. Specifically, BTC could start trading between $1,300,000 and $4,800,000, while the yellow metal could tap $31,000 per ounce.

Bitcoin’s Price if it Replaces Fiat

It is safe to say that the global financial landscape has drastically changed in the last few years. The Covid-19 pandemic halted operations of numerous businesses. And while production was crippled, many central banks (including the Federal Reserve) printed colossal amounts of fiat to support the economy.

The infinite money printing, however, has had its consequences in many parts of the world. For one, the inflation rate in the USA reached almost 8%, which is the highest number in decades.

The military conflict between Russia and Ukraine is another factor that affected the global monetary network. Ever since Vladimir Putin announced his “special military operation,” the EU, the USA, and many other countries imposed financial sanctions on the largest nation by landmass. Those embargoes had significantly harmed Russia, but they also shook the stability of international economic relations and global trade involving fiat currencies.

Having said that, many theorized a possibility where digital assets such as bitcoin replace traditional currencies like the US dollar, the euro, etc. The investment manager Van Eck believes that if this development occurs, BTC’s valuation could skyrocket to as high as $4,800,000.

The company discussed gold, too. Often touted as providing the same inflation hedge merits as bitcoin, the precious metal could climb to $31,000 per ounce in the future if fiat currencies lose their supremacy, Van Eck added.

ARK Invest Also Thinks BTC Could Surpass $1 Million

Another investment management firm that is highly bullish on bitcoin’s future price is ARK Invest. Earlier this year, the company envisioned that a single coin could be worth more than $1,000,000 in the next decade.

For this to happen, though, bitcoin’s market capitalization should reach $28.5 trillion by 2030, ARK Invest outlined.

Additionally, the organization pointed out that the primary cryptocurrency has received more attention from institutional investors who want to hold it long-term, which could be considered another bullish factor.

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