On Thursday, the investment firm Vaneck published a blog post that calculates how much gold or bitcoin would be worth if the two assets became global reserve assets.
Vaneck’s report explained that the investment team “attempted to quantify the emergence of new gold or bitcoin-backed currency regimes.” The study’s calculations estimate that gold could reach $31,000 per ounce and bitcoin could potentially hit $1.3 million per coin. If the assets became M2 monetary supplies, then the values of bitcoin and gold could be much higher.
Vaneck’s Insights blog post says “money has changed,” and highlights the recent sanctions against Russia which froze the country’s USD, EUR, and JPY fiat reserves. Fine and Gurushina write that Vaneck’s EM bond investment team thinks the world’s central banks “will act, as will private individual actors.” The team attempts to quantify the emergence of gold and bitcoin-backed regimes and after the calculations, both estimates are quite substantial in terms of price value.
“We built a simple framework to value gold and bitcoin. For gold, we divide global money supply (M0 and M2) by global gold reserves,” the Vaneck EM bond investment team blog post explains. “The money liability is divided by the reserve asset. We used current reserve holdings in troy ounces for gold, and we used the current exchange rate to convert the monetary base liability into U.S. dollars.”
Also in the news, US Banking Giant Citi Says, the Metaverse may be worth $13 Trillion by 2030. Citi is the latest banking behemoth to give an optimistic forecast for the metaverse, which envisions the internet’s future as a collection of decentralized technology and virtual environments.
According to the New York-headquartered global investment bank, the metaverse economy may be worth up to $13 trillion by 2030. While some remain suspicious of the metaverse, the Wall Street player says it sees tremendous potential in the concept of extended reality.
According to the Citi analysis, the metaverse is mainly defined at the moment as an immersive mix of online gaming platforms that rely heavily on 3D interactive play with others or offline augmented reality. However, this will change in the future years. The multinational lender anticipates that the metaverse’s user base will grow to as many as 5 billion.
