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Bitcoin Price at $500,000 by 2035? VanEck’s Bold Prediction – Can BTC Replace Gold?

Bitcoin Price at $500,000 by 2035? VanEck’s Bold Prediction – Can BTC Replace Gold?

Author:
HashRonin
Published:
2025-10-08 10:04:03
15
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VanEck's latest analysis suggests bitcoin could hit $500,000 by 2035 and potentially replace half of gold's market cap. With BTC already reaching new all-time highs in 2025, we break down whether these projections hold water and what it means for investors.

VanEck's $500K Bitcoin Prediction: Too Good to Be True?

Investment firm VanEck has dropped a bombshell prediction - Bitcoin could reach $500,000 by 2035 and eventually capture half of gold's $26 trillion market capitalization. Their head of digital assets research, Matthew Sigel, argues that Bitcoin's growing adoption among younger investors and its advantages over gold could drive this massive valuation. Currently trading around $124,529 (per CoinMarketCap data as of October 2025), BTC would need to grow nearly 300% to hit this target. While ambitious, the prediction comes as Bitcoin continues gaining institutional acceptance, with spot ETFs now trading on major exchanges like BTCC.

Breaking Down the Gold Market Takeover Theory

VanEck's analysis suggests Bitcoin could eventually capture 50% of gold's store-of-value market (about $13 trillion), translating to roughly $644,000 per BTC. Currently, BTC's market cap stands at $2.48 trillion after a 12% monthly gain. Derek Lim from Caladan Markets cautions this WOULD require a 5.6x increase from current levels. "We're seeing Bitcoin mature from exponential jumps to steadier 50-60k gains per cycle," Lim notes. "This makes the target achievable but likely over a 5-10 year timeframe."

Why Younger Investors Prefer Digital Gold

"Surveys consistently show millennials and Gen Z prefer Bitcoin over gold," Sigel tweeted recently. This generational shift matters because roughly half of gold's value comes from being a store of value rather than industrial or jewelry use. As these digital-native generations accumulate wealth, their preference for Bitcoin could dramatically reshape the asset landscape. The BTCC research team notes that Bitcoin's programmatic scarcity (only 21 million will ever exist) gives it an edge over gold's less precisely measurable supply.

The Road to $500K: Key Milestones

VanEck outlines several catalysts that could drive Bitcoin toward its 2035 target:

  • Growing institutional adoption (central banks allocating 2.5% reserves to BTC by 2050)
  • Layer-2 solutions improving scalability
  • Increasing use in international trade (potentially 10% by 2050)

The firm's most bullish scenario using a "Velocity-of-Money" model suggests BTC could reach $2.9 million by 2050 - a $61 trillion market cap. While these numbers sound fantastical, they reflect growing confidence in Bitcoin's role as a global store of value.

Bitcoin vs Gold: The Inflation Hedge Showdown

2025 has seen both assets perform well amid economic uncertainty. Gold ROSE 49% year-to-date while BTC gained 31%. JPMorgan analysts categorize both as "debasement trades" - hedges against currency devaluation. Ryan McMillin of Merkle Tree Capital observes, "Smart investors will likely hold both. But long-term, Bitcoin's technological advantages could see it surpass gold entirely." The BTCC trading desk reports increased institutional interest in BTC during recent Fed rate cuts.

Why the Next Decade Matters Most

The 2025-2035 period could determine whether Bitcoin transitions from speculative asset to mainstream store of value. Key factors include:

  • Regulatory clarity (especially around spot ETFs and institutional custody)
  • Technological improvements (like the Lightning Network)
  • Generational wealth transfer to Bitcoin-preferring demographics

As one BTCC analyst quipped, "Grandpa's Gold bars might fund junior's Bitcoin portfolio."

DCA: The Smart Investor's Bitcoin Strategy

For regular investors, dollar-cost averaging (DCA) into Bitcoin makes sense given its volatility. This approach smooths out entry prices over time. While altcoins come and go, Bitcoin's 15-year track record, robust security (the network has never been hacked), and growing adoption make it the crypto market's safest bet. As the saying goes in crypto circles: "Time in the market beats timing the market."

Frequently Asked Questions

What is VanEck's Bitcoin price prediction?

VanEck predicts Bitcoin could reach $500,000 by 2035 and eventually capture half of gold's market cap, potentially valuing BTC at $644,000.

How realistic is a $500K Bitcoin?

While ambitious, analysts note Bitcoin's maturation into steadier growth patterns makes such targets plausible over a 5-10 year timeframe.

Why compare Bitcoin to gold?

Both serve as inflation hedges and stores of value. Bitcoin's digital nature and programmatic scarcity give it advantages with younger investors.

What's the best way to invest in Bitcoin?

Dollar-cost averaging through regulated platforms like BTCC allows investors to accumulate BTC while minimizing volatility risk.

Could Bitcoin really replace gold?

While unlikely to fully replace gold soon, Bitcoin could capture significant market share as digital-native generations accumulate wealth.

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