Michael Saylor, the executive chair of MicroStrategy, is arguably the most prominent Bitcoin advocate. With all this in mind, he made a bold prediction in relation to the future of the world’s most popular cryptocurrency. In a recent interview with CNBC, Saylor maintained BTC could reach as high as $13 million per coin within a timeframe of two decades plus one year. He estimates the same based on his firm belief that Bitcoin is going to capture a big chunk of global capital and find a place as an exceptionally superior financial asset.
Bitcoin Performance in the Current Market
At the time of writing, September 9, Bitcoin changed hands at just under $55 000, up 2% over the last 24 hours, Saylor thinks that will surge to a 70-times appreciation as more and more begin to adopt it. His short-term prediction is that Bitcoin will reach $3.85 million per coin soon, when it would be more generally accepted as a store of value.
He bases his core argument for the thesis on Bitcoin’s performance since August of 2020, when MicroStrategy first started buying the cryptocurrency. During this period, BTC has averaged annual returns of 44% since that time, significantly outcompeting traditional investment assets like the S&P 500, which over the same period has provided a return of 12% average.
This, of course, has also made MicroStrategy’s unique approach to Bitcoin investment quite profitable. Through the issuance of convertible bonds for purchasing more BTC, the software company has managed to create an 825% return on its capital. For comparison, Nvidia sits atop the S&P as the best-performing stock and is at a return of 821%.
Bitcoin to Command More Global Capital
He said that, in the long run, BTC is going to represent a much larger portion of global capital, which will be driven by a technological advantage and the increasing institutional adoption of the asset. Today, Bitcoin’s market capitalization makes up just 0.1% of global capital. Saylor expects the figure to increase to 13% by 2050. If his projections continue to be very accurate, the price of bitcoin could reach $13 million per coin within the next twenty years.
Saylor said he’s still confident that the HODL’ers-investors in Bitcoin for the long run-will significantly outperform traders who try to catch the short-term ups and downs in the cryptocurrency’s price. He thinks better returns and resilience to volatility will ultimately drive wide-scale adoption as a store of value, much like gold.
Market Reactions and Investor Sentiment
Yet, Saylor remains optimistic despite recent market volatility and $1.2 billion outflows from spot BTC exchange-traded funds last week. According to him, such outflows would only increase demand from long-term investors when the market stabilizes. To him, short-term market turbulence cannot take away anything from Bitcoin’s long-term growth potential.
Hence, firm on his optimism over the BTC future, Saylor didn’t hide his 13 million dollar forecast for the currency in 21 years, out of which investors and crypto enthusiasts alike took a lot of interest in debating. With further development and advancement of Bitcoin, its complete potentiality of reshaping the world financial scenario is gradually emerging out.
