Michael Saylor, MicroStrategy’s executive chairman, expects Bitcoin to capture 7% of global capital in the coming years and outclass other assets.
On Sept. 9, Bitcoin (BTC) was trading just under $55,000 after a 2% rise in 24 hours, according to crypto.news price pages. Saylor told CNBC that this price would increase by 70 times as adoption skyrockets, placing BTC at $3.85 million per coin soon.
Saylor explained that the thesis behind Bitcoin’s exponential price leap is rooted in its technological superiority over other assets and its yearly returns.
Since August 2020, when MicroStrategy began buying BTC, the cryptocurrency has rewarded investors with an average of 44% in annual profits. In comparison, the S&P 500 has averaged 12% over the same four-year period.
MicroStrategy’s founder also affirmed the software maker’s leveraged Bitcoin strategy. According to Saylor, securitizing BTC by selling convertible bonds to buy more crypto has yielded 825% on MicroStrategy’s capital. Nvidia, the S&P’s best-performing stock, has managed 821%.
The billionaire entrepreneur also argued that recent outflows from spot BTC exchange-traded funds (ETFs) would increase investor demand. Last week, Wall Street traders pulled $1.2 billion from BTC ETFs due to global financial market volatility, according to Bloomberg. Crypto products recorded the second-largest week of outflows this year as well.
Bitcoin to command more global capital
In the long run, the former crypto skeptic turned BTC evangelist insists that HODL’ers will outperform volatility traders and those primarily focused on the asset’s short-term price movements.
HODL is crypto jargon for “holding on for dear life,” a term derived from the word “hold” and used to describe a long-term outlook on digital assets.
Saylor’s short-term view places BTC close to $4 million, but his longer outlook predicts an even larger price tag. The Bitcoin maximalist predicted that Bitcoin would trade at $13 million per coin within 21 years. Currently, Bitcoin’s trillion-dollar market cap commands 0.1% of global capital, but Saylor believes this number will surpass 13% before 2050.
From: crypto.news
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