Asset management company VanEck said Bitcoin (CRYPTO: BTC) could touch $4.8 million should the digital asset emerge as a global reserve currency.
What Happened: “Money has changed” in the wake of sanctions on Russia’s central bank, said VanEck analysts Eric Fine and Natalia Gurushina in a recent note titled, “How One Bond Manager Values Gold and Bitcoin.”
The sanctions decimated the Russian Central Bank's dollar, euro and yen reserves, which in turn should reduce demand for hard currencies as reserve assets.
VanEck’s emerging markets bond investment team made an attempt to quantify the emergence of gold- and BTC-backed currency regimes.
Jan van Eck, CEO of VanEck called his colleague’s analysis “interesting.”
One colleague’s view. Interesting analysis. https://t.co/Ua7vTqPU1w— Jan van Eck (@JanvanEck3) March 31, 2022
See Also: How To Buy Bitcoin (BTC)
Why It Matters: The analysts said the implied price for BTC could range between $1.3 million to $4.8 million should it get adopted as a global reserve currency.
The lower number was based on Bitcoin as a monetary base (M0), which is the amount of currency in general circulation or in the form of deposits held by commercial banks and in turn held in the central bank’s reserves, according to Investopedia.
The $4.8 million was arrived at using the (M2) assessment — including all elements of (M1), i.e. physical currency and reserves along with demand deposits, traveler’s checks, and other checkable deposits — as well as savings deposits, money market securities, mutual funds and other time deposits, according to the Investopedia definition.
However, VanEck said it agreed with the top common prediction that China’s currency, the Renminbi (RMB), could be the new reserve currency.
Recently, an analyst with Cathie Wood-led Ark Invest said Bitcoin could rise above $1 million by 2030.
BTC Price Action: At press time Friday morning, BTC traded 3.17% lower at $45,441.93, according to data from Benzinga Pro.
Read Next: Coinbase (NASDAQ:COIN) CEO Slams EU Over New Proposals For Bitcoin, Ethereum, Dogecoin Transactions; Parliament Passes It Anyway
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