year 2022 Bitcoin (BTC) It has been a very volatile year for crypto money holders, especially cryptocurrencies, but there may be light at the end of these fluctuating price movements.
Investment firm VanEckAccording to , Bitcoin (BTC) will not only be worth twice as much as gold, but will also rise to $4.8 million if it ends up as a global reserve asset.
Although this target may seem quite high and even ephemeral, it is not technically impossible because we have seen BTC make unexpected rises in an unexpected time frame in the past.
The analysis, published by VanEck officials Eric Fine and Natalia Gurushina, has brought to light possible price shifts for gold and Bitcoin if any of them are used as a support for global currency controls.
Although this claim is constructed in a big “if” format, it sees the Chinese Yuan as an important competitor in the race. It is worth noting that although not as widely used as the dollar or the euro, the Yuan appreciated rapidly. This makes it an important player in the global economy.
The yuan has significance in Asian markets, where it has become the dominant currency. This helps China gain much more control over the region and makes it a major player on the global stage. The Yuan will only become more important as Asia continues to grow.
Predictions for Gold and Bitcoin Price Surprised
In their report, VanEck’s analysts set out to answer a simple question: “What would Bitcoin be worth if it became the global reserve currency?” To answer this question, they first had to calculate the “global” price of Bitcoin. This was done by taking the total BTC supply and dividing it by the total global money supply (M2). The results were ‘dramatic’. If Bitcoin were the global reserve currency, its price would range from $1.3 million to $4.8 million.
VanEck noted that given that gold, like Bitcoin, has a limited supply, they apply the same concept to reach potential prices per ounce for gold.
All in all, the upside for gold and Bitcoin is potentially dramatic. Specifically, the method stated that gold prices were about $31,000 per ounce.
VanEck’s report also states that according to the M2 assessment, the price of BTC per BTC suggests a price of $4.8 million per coin if BTC manages to become the global reserve asset. The price for gold is around $105,000/oz, up more than 230%.
According to the report, the global reserve system may have changed significantly following the sanctions imposed after Moscow’s invasion of Ukraine. If you remember, Russia stated last week that it is considering accepting BTC for oil and gas exports.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.