Bitcoin’s implied price would be between $1.3 and $4.8 million, according to VanEck

VanEck has published an analysis of potential Bitcoin and gold prices following the impact of Russian sanctions. According to the predictions of this analysis, both assets could experience a significant rise if a new money paradigm were to develop.

Executives at asset management firm VanEck say Bitcoin’s price could be between $1.3 million and $4.8 million, as suggested by global money supplies M0 and M2. The executives released an analysis on how BTC and gold could be affected as potential reserve assets due to sanctions against Russia.

“So using the same M0 aggregate as used for gold, the implied price of Bitcoin is around $1,300,000 per BTC.”

Saying money has changed, analysts believe sanctions on Russia have reduced demand for hard currencies, shifting focus to old reserve currencies like gold, or even next-gen digital gold what is bitcoin. To that end, they claim that “the bottom line is that the rise in gold and Bitcoin is potentially dramatic” with “a potential price for BTC of around $1,300,000 per coin.”

Leaders applied a framework of dividing global money supply, M0 and M2, by global gold reserves. The analysis specifies:

“Monetary debt is divided by reserve assets. We used current reserves in troy ounces for gold, and we used the current exchange rate to convert monetary liabilities to US dollars. We use base money because econometrics is good (globally) and understandable; it’s just coin in pocket/circulation and demand deposits.”

Analysts have calculated the global price of BTC and divided it globally. Of course, the predictions are based on the reasoning that Bitcoin could become a reserve asset. They also note that the potential upside for crypto is much steeper than that for gold, at 33x for crypto versus 16x for gold.

Could Bitcoin Really Hit $1 Million With Growing Regulations?

The prices speculated by VanEck’s analysis are precisely nothing more than speculation, and executives admit that it can be difficult to quantify their effect on assets like Bitcoin and gold. The analysis, however, concludes that there is a huge implication, i.e. a potentially large upside, for BTC and the precious metal.

However, these sky-high prices would be phenomenal even though Bitcoin has seen an incredible rise over the years. There is still a long way to go before the cryptocurrency reaches such a price, although the market is still in its infancy and regulations are still being formulated.

Authorities around the world are cracking down on the crypto market, whether by imposing taxes or demanding strict compliance measures. Some of these regulations will bring some order to the market, but others are likely to affect it heavily.


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