MicroStrategy CEO Michael Saylor believes Bitcoin (BTC) can still reach 1,000 times its current price of 41,500 USD – if given enough time.
In a keynote, published on Monday on -dollar gain in value, arguing that BTC will gain value faster than anyone else in the long term.
“Bitcoin is the world’s leading scarce, desirable, transferable, durable and durable asset,” Saylor said, adding that most investment strategies other than HODLing “don’t work.”
In my keynote at @labitconf I discuss economic wars, the power behind #Bitcoin, why $BTC is destined to be the apex commodity, technology, property, money, & ETF asset, winning & losing investment strategies, management of counterparty risk, & capital markets digital disruption. pic.twitter.com/QP0mHMTBKg
— Michael Saylor⚡️ (@saylor) December 2, 2023
On the one hand, the average investor earns a 2.9% return per year, exceeding the standard consumer inflation rate of 2%. On the other hand, almost none of the major asset classes are able to beat the “real” monetary inflation rate – or M2 money supply growth rate – of around 7-8% per year in the United States.
The S&P index, for example, has done little more than keep pace with monetary inflation since 2001. In comparison, BTC does not pose the risk of asset devaluation due to companies issuing new shares, making it the “apex ETF” of the future.
The fixed supply of 21 million coins also makes BTC the “apex commodity,” according to Saylor, as competitors such as wheat, timber and oil can be produced by humans. Gold, Bitcoin’s biggest competitor in this space, still suffers from high transportation costs and major difficulties in verification.
As a form of ownership, real estate also has major disadvantages alongside BTC. These include, but are not limited to, maintenance costs, zoning risks, immobility and illiquidity.
Bitcoin could even attract the attention of tech investors who would otherwise opt to buy top stocks like Apple, Amazon and Tesla. “Eliminating all the liability risks that come with businesses is a big improvement for Bitcoin,” said Saylor.
Bitcoin: How fast can it grow?
Saylor believes that while stocks continue to return 7% annually, BTC will likely return 14% annually once it is a mature asset. He explained:
“Not only does Bitcoin not have the risks and liabilities of a corporation…but BTC also has all the benefits of a pure decentralized crypto network.”
However, over the next 20 years, the billionaire expects Bitcoin to grow much faster at 21%+ per year as people shift their wealth from alternative asset classes into BTC.
According to Saylor’s calculations, he believes that a Bitcoin worth 1 million USD today will reach 1 billion USD in real terms by 2123.
Saylor’s company MicroStrategy is known for being fully focused on BTC and has accumulated more than 174,000 coins since 2020. Last month, the company bought 600 million USD worth of the digital currency with money raised by issuing new shares.
As of Monday, the company’s investment is up 37%, representing a profit of $2 billion. MicroStrategy stock, MSTR, is up 288% year to date.
Saylor personally purchased over 17,732 BTC in 2020, which, assuming he didn’t sell, is now up 320%.
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