As an analyst with over two decades of experience in the financial industry, I find Michael Saylor’s prediction of Bitcoin reaching $13 million by 2045 intriguing, to say the least. Having witnessed the rise and fall of numerous financial assets and trends, I can attest that such a forecast requires an extraordinary level of conviction and faith in the long-term potential of Bitcoin.
On Monday, Michael Saylor, the Chairman of MicroStrategy, forecasted that the value of Bitcoin could potentially soar up to $13 million within the next twenty years.
The billionaire explained why the leading digital asset’s recent volatility hasn’t frightened his company, and the advantages for investors to buy into MSTR instead.
Bitcoin To $13 Million, Says Saylor
In a chat with CNBC, Saylor predicted that Bitcoin would continue to maintain a 44% yearly growth rate for the near future. However, he also suggested that this rapid growth would gradually slow down by about 5% annually as the asset becomes more established and matured.
Saylor predicted that in the long run, the value would rise to $13 million over a span of 21 years. He also mentioned that at some point, the growth would exceed the S&P’s return by 8%, and similarly, the volatility would be 8% more than the S&P’s.
To reach that price by 2045, Bitcoin would need to maintain an average CAGR of 29.56%.
At Bitcoin 2024 in Nashville, Saylor initially proposed a price prediction that had some resemblance to what he said. His base scenario, or most likely outcome, was set at $13 million. However, his pessimistic projection, or worst-case scenario, aligned with VanEck’s predictions, standing at $3 million. On the optimistic side, or best-case scenario, Saylor projected a staggering $49 million – approximately 1000 times higher than current values.
For now, Saylor anticipates that Bitcoin’s price fluctuations will persist – mainly due to its status as a globally traded asset that can be exchanged around the clock and offers high liquidity.
If the threat of a missile attack has you concerned, transferring your ten-million-dollar apartment to Singapore and using it as collateral to increase its value tenfold while simultaneously betting against one hundred million dollars’ worth of New York real estate is not an option,” he clarified. “Instead, you can bet against one hundred million dollars’ worth of Bitcoin by borrowing ten million.
Concerning MicroStrategy (MSTR), Saylor contends that the company was a trailblazer in the Bitcoin-backed bond sector, as they issued billions of dollars worth of convertible bonds to acquire Bitcoin.
He describes MicroStrategy (MSTR) as functioning similarly to a “delayed tax” Bitcoin income generator. Essentially, it allows users to borrow funds to purchase Bitcoin at rates that would typically be unattainable for individuals on their own. Since 2020, MicroStrategy has employed a strategy of holding Bitcoin as its primary reserve.
Peter Schiff Disapproves
Peter Schiff, a critic of Bitcoin, took issue with Saylor’s celebration of the returns from both Bitcoin (BTC) and MicroStrategy (MSTR), labeling his perspective as “nonsensical.
As an analyst, I expressed my viewpoint on Twitter yesterday that MicroStrategy (MSTR) isn’t in such a great position as some might think. In fact, the stock is currently 40% below its 52-week high and has dropped 6% since reaching its 2021 peak. Consequently, the returns, which may seem promising at first glance, are actually quite disappointing and are likely to worsen in the near future.
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2024-09-09 22:06