18 times bigger than Apple, four times bigger than gold: VanEck outlines a bullish scenario for Bitcoin. However, the largest cryptocurrency faces some challenges.

Rumors of a 'God Candle' and astronomical predictions for Bitcoin should be approached with caution. This time, however, the optimism comes from none other than financial giant VanEck.

As the asset manager stated in a report explains, Bitcoin will play an important role in the international monetary system in the coming decades. Increasing geopolitical tensions and rising debt burdens would undermine the current system.

"Looking at the world today, we see huge economic inequalities, growing distrust in existing institutions and continued deglobalization," Matthew Sigel, head of Digital Asset Research at VanEck, said in an interview with CNBC.

VanEck Head of Digital Assets Research Matthew Sigel tells @KellyCNBC on @CNBCTheExchange Bitcoin could hit $2.9 million per coin by 2050. pic.twitter.com/sCksMKVST7
— The Exchange (@CNBCTheExchange) July 24, 2024

Bitcoin could conceivably be used to settle ten percent of global international trade and five percent of domestic trade by 2050. Global growth, investor demand for BTC and Bitcoin transactions would justify a price of $2.9 million per BTC. This would equate to a market capitalization of $61 trillion, four times larger than the current valuation of gold.

However, this growth scenario faces major challenges, including the risk of bans by governments. But also: mining challenges. In addition, the report points to competition from other cryptocurrencies and excessive control from large financial institutions as risks.

With $588 million since the start of the trading notes VanEcks Bitcoin ETF (HODL) a slow but steady growth. With the ETH exchange-traded product (ETHV) launched early this week, the asset manager has already raised $35 million.