VanEck says Bitcoin could hit $4.8M if it became the global reserve asset

Discussion in 'Crypto Assets' started by johnarb, Apr 1, 2022.

  1. johnarb

    johnarb

    prolly nothing...


    https://cointelegraph.com/news/vane...it-4-8m-if-it-became-the-global-reserve-asset


    VanEck says Bitcoin could hit $4.8M if it became the global reserve asset
    The investment firm made a very high valuation for BTC and gold based on the extreme case that either becomes the reserve global currency.

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    NEWS

    American investment firm VanEck believes that Bitcoin (BTC) has double the upside of gold and could be worth as much as $4.8 million per coin if it becomes the global reserve asset.

    That’s a big “if” of course, and VanEck thinks the Chinese yuan is a more likely contender.

    The lofty assessment for BTC came in a Thursday insights piece written by VanEck’s head of active EM debt Eric Fine and chief economist Natalia Gurushina, who attempted to compare the price implications for gold and Bitcoin if either were to be adopted as the backing for global currency regimes.

    VanEck’s analysis found that the implied price for BTC ranged from $1.3 million to $4.8 million. The lower prediction was based on BTC as a monetary base (M0), which investment database Investopedia says includes all circulating supply of a currency and bank deposits but is not a common marker for economists to look at.

    The higher prediction came from the more common M2 assessment, which Investopedia considers to be a measure of the money supply that includes all bank deposits with a currency and its ability to be converted into cash.

    In their assessment of gold’s per-ounce price, Fine and Gurushina leaned more toward the M0 price prediction of $31,000 as a reliable starting point because “a very big number of central banks have little or no reserve gold.” The lack of deposits skews the M2 prediction to a much higher and less reliable $105,000 per ounce of gold.

    Recent geopolitical unrest has already led Russia to consider using different currencies including Bitcoin to transact for oil with their “friendly” partners China and Turkey.

    The trend could apply to more nations’ central banks, and likely see the United States dollar’s dominance take a hit. Fine and Gurushina believe that the Chinese yuan should be considered the top prediction for a new reserve currency, but nations will probably reshuffle their holdings no matter what.

    “Central banks are likely to change their reserve mix to the detriment of dollars (and euros and yen) and the enhancement of something else, to one extent or another […] As a result, some central banks — and private actors — will be diversifying their reserves.”
    The analysts urged readers to bear in mind that the predictions are merely starting points for investors to formulate a framework for how to value gold and BTC in the extreme instance either becomes a global currency. It noted that there are alternatives such as finite real estate, infinite equities and even emerging market currencies that could serve the function of gold or BTC.

    VanEck has a stake in the crypto industry with its Bitcoin Strategy exchange-traded fund (ETF), which is a Bitcoin futures exchange-traded fund that has $30.1 million in total net assets. The firm also recently filed with the Securities and Exchange Commission (SEC) to launch a new ETF that focuses on gold mining and crypto mining companies.
     
    Trader Curt likes this.
  2. S2007S

    S2007S

    IT WILL NEVER EVER BECOME A GLOBAL RESERVE ASSET!!!!
     
  3. Tokenz

    Tokenz


    According to who?

    A little peon like you? Who is on this forum to learn about trading. Get out of here!
     
    VicBee, gkishot, NoahA and 2 others like this.
  4. johnarb

    johnarb

    Never say never

    • Look what happened with Russia and their fiat and gold confiscated (govt gonna figure out those reserve assets are no good in times when they are actually needed)
    • Look at what happened to Venezuela and their gold got stolen
    • [I think Germany's gold also got "stolen" but don't care to google it]
    • Look what happened in Canada freezing all financial accounts of "supporters of protests" and not allowing people who don't believe in the vaccine to travel
    • Look at what happened in EU, those people should convert everything they have into Bitcoin and leave EU
    • El Salvador GDP grew at the highest rate since adopting Bitcoin as legal tender
    • El Salvador will utilize Bitcoin for bonds and infrastructure development projects and giving the finger to the IMF
    • Argentina is interested in Bitcoin because of what they see with El Salvador
    • Turkey is interested in Bitcoin
    • Guatemala is interested in Bitcoin
    • Honduras is interested in Bitcoin
    • As nation-states figure out the game-theory, there's going to be a massive race and no one wants to be left behind
    • Once a country that has fiat printing capability adopts Bitcoin, it's game-over

    Don't be left behind


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    sridhga, NoahA, BKR88 and 1 other person like this.
  5. %%
    WELL if a frog had wings it could fly.:D:DFeathers can fly up also maybe not for long .......
     
    ElCubano and johnarb like this.
  6. M.W.

    M.W.

    "global reserve currency", lol. Help us, God!!! Really looking forward to waiting seconds if not longer for settlement of a purchase at the checkout counter. And hacks. And all the associated hocus pocus.
     
  7. how about you get out of here ? How much have u contributed to this forum ? And how much has he ?

    Right not bitcoin is easily manipulated in the market, easily hacked, can't really be used to purchase anything without a long lag for verification, and right now fluctuates / coorelates to a certain extent with what the S&P and nasdaq do. if i lose my wallet or my keys, i lose my life savings.

    Global reserve asset ? LOL right.
     
  8. johnarb

    johnarb

    Global Reserve ASSet

    You didn't do any research, did you?

    Have you paid with gold at McDonalds or Starbucks?

     
    Last edited: Apr 1, 2022
    Clubber Lang likes this.
  9. RedDuke

    RedDuke

    Sure why not a digital something which can easily be manipulated by four guys is the global reserve currency. Funniest thing I have seen this week
     
  10. Tokenz

    Tokenz

    Has nothing to do with contributing to this forum but everything to do with how successful of a trader you are.

    What market isn't? Everyone already knows this

    You mean the exchanges that hold the Bitcoin are hacked, not Bitcoin itself. And even then, it's mostly individual accounts, not the entire exchange.

    Don't buy it then, no different than verification at a bank while applying for a bank account, the only difference is a bank takes longer.

    Who's fault do you think that is then? Not Bitcoins fault.

    Tell you what, just stay away from crypto and stick to fiat. I think you trying to manage your own crypto would be a bad thing for your life savings.
     
    #10     Apr 1, 2022