In a recent interview, MicroStrategy’s Executive Chairman, Michael Saylor, shared his vision for Bitcoin’s future growth and its potential to transform global finance. Saylor, a well-known advocate for Bitcoin, discussed the cryptocurrency’s role as “digital gold” and how it could capture a significant portion of the wealth currently held in traditional assets like gold. His predictions for Bitcoin’s future are not only ambitious but also reflect his deep belief in its long-term viability as a store of value.
[CNBC] Michael Saylor Predicts #Bitcoin to Reach $13 Million, Becoming 7% of Global Capital in 21 Years$MSTR $BTC pic.twitter.com/QTSDaTnKzj
— BecauseBitcoin.com (@BecauseBitcoin) September 9, 2024
At the time of the interview, Saylor pointed out that Bitcoin represents about 0.1% of the total global wealth, with its price hovering around $55,000 and its market cap slightly exceeding $1 trillion. While these numbers are impressive, Saylor believes that Bitcoin’s real growth is yet to come. He envisions a future where Bitcoin could capture as much as 7% of the world’s wealth, which would propel the price of a single Bitcoin to approximately $2 million. His calculations assume that global wealth is around $500 trillion, though estimates can vary based on different analyses of global assets.
Saylor didn’t stop there with his predictions. Looking far ahead, he forecasted that Bitcoin could soar to an astonishing $13 million per coin over the next two decades. This prediction is rooted in Bitcoin’s past performance and its potential for continued adoption on a global scale. He explained that Bitcoin’s historical compound annual growth rate (CAGR) has been roughly 44%, a phenomenal rate by any standard. However, Saylor also acknowledged that such rapid growth is unlikely to be sustained indefinitely and expects Bitcoin’s CAGR to gradually decline over time as the asset matures and becomes more widely adopted.
Even with this expected slowdown, Saylor remains highly confident in Bitcoin’s future returns. He predicts that Bitcoin will eventually align with the S&P 500’s historical average return of around 13% CAGR. However, due to Bitcoin’s unique characteristics as a global, decentralized asset that operates in an open financial system, he believes it will offer an additional 8% return on top of that, making it a highly attractive long-term investment. In his view, Bitcoin’s global reach, its freedom from centralized control, and its growing status as a “free capital asset” will help it outperform traditional investment vehicles over time.
On CNBC, Michael Saylor predicts that #Bitcoin will reach $13 million.
This suggests that he has lofty hopes for the price of bitcoin in the near future. pic.twitter.com/OxfS4Ver1R
— Solid STAR (@Solidstarforlyf) September 9, 2024
Saylor’s comments come at a time when institutional interest in Bitcoin continues to grow, and his long-term outlook is reflective of the increasing confidence in Bitcoin as more than just a speculative asset. He emphasized that Bitcoin’s ability to serve as a hedge against inflation and its decentralized nature gives it a unique place in the global financial ecosystem. For Saylor, Bitcoin represents a store of value that can transcend national borders and traditional economic systems, and his predictions suggest that its value could one day far surpass current expectations.
Key Points:
i. Michael Saylor predicts Bitcoin could reach a value of $2 million per coin as it grows to represent 7% of global capital, with current estimates placing global wealth at $500 trillion.
ii. Bitcoin presently accounts for roughly 0.1% of global wealth, with a market capitalization exceeding $1 trillion and a price of around $55,000 per coin.
iii. Looking even further ahead, Saylor forecasts Bitcoin could soar to $13 million per coin over the next 21 years, as it continues to gain widespread adoption.
iv. Bitcoin’s historical compound annual growth rate (CAGR) has been around 44%, but Saylor expects this to gradually decline as the asset matures.
v. Despite the predicted slowdown, Saylor believes Bitcoin will still outperform traditional investments, offering a return that aligns with the S&P 500’s average plus an additional 8%.
James Kravitz – Reprinted with permission of Whatfinger News
