1 Top Cryptocurrency to Buy Before It Soars 20,000%, According to Michael Saylor

Bitcoin (CRYPTO: BTC) is a famously successful investment, returning more than 10,000% over the past decade. But the cryptocurrency is polarizing. Legendary investor Warren Buffett has said he wouldn’t buy all the Bitcoin in the world for $25. On the other hand, some, including MicroStrategy founder Michael Saylor, believe Bitcoin is a significant component of the global economy.

Saylor recently spoke at the 2024 Bitcoin conference and expressed his belief that the price of Bitcoin will reach $13 million per coin by 2045. This is approximately 20,000% higher than its current value.

Saylor isn’t just talking nonsense; he reportedly owns around $1 billion worth of Bitcoin, while his company has amassed 226,500 Bitcoins worth around $13.6 billion.

Does his bold prediction hold up? Should investors buy Bitcoin at today’s prices?

Here’s what you need to know.

Is Michael Saylor’s $13 million Bitcoin target price realistic?

Before getting too excited about Bitcoin’s investment potential, investors should understand that Saylor’s price target is quite optimistic. Saylor is a notorious Bitcoin whale, so it should come as no surprise that he made such a bold prediction. So how much is it actually worth?

Let’s do some back-of-the-napkin math.

Although Bitcoin is priced in dollars, comparing it to gold can help investors understand the valuation of each asset. The Federal Reserve can influence the dollar, but gold, like Bitcoin, is driven more by the free market. It is also valued globally, like Bitcoin.

If you take all the gold in the world, an estimated 208,874 metric tons, and multiply that by the current spot price of $2,471 per ounce, you get a total value of about $16.5 trillion. Now, the total gold supply increased by 3% last year, so let’s assume that it increases at the same rate annually for the next 20 years (which might be generous).

This means that the global gold supply will be approximately 377,357 metric tons by 2045. The spot price of gold has increased by 519% in the last 20 years. For this example, I’ll assume it will increase by the same amount between now and 2045. The resulting spot price would be $14,058 per ounce. Do the math again and let’s say the world gold supply is hypothetically worth $170.5 trillion in 2045.

Today, Bitcoin’s market cap, the total market value of all Bitcoin in circulation, is around $1.2 trillion. Increasing Bitcoin’s price by 20,000% from its current level would bring its market cap to over $241 trillion, even without taking into account the increase in supply through 2045.

The story continues

Could Bitcoin displace gold as the global economy’s primary asset? I won’t say it’s impossible, but it’s a tall order and Bitcoin’s potential to grow is likely real. Investors should probably temper their expectations.

That doesn’t mean investors shouldn’t get excited

Remember, the great thing about aiming for the Moon is that even if you don’t reach your destination, you can still land among the stars.

Price targets may be high or low, but don’t change Bitcoin’s trajectory as an anti-inflation asset. Bitcoin is no longer new, so it’s hard to call its investment returns a fluke. Its ever-increasing value suggests that society has real demand for Bitcoin, in the face of a weakening US dollar and other fiat currencies as policymakers flood the economy with supply.

Bitcoin is far from providing any real utility in everyday life. Generally speaking, you can’t pay with Bitcoin to put gas in your car. Still, more and more merchants are accepting it as payment every year, and companies and some governments are starting to hoard it as a hedge against cash. If this continues, there’s no reason why Bitcoin’s price won’t continue to rise. It’s a digital asset with a fixed supply, priced against a weakening currency (the US dollar).

Should you buy Bitcoin today?

Bitcoin’s price has proven to be quite volatile, so investors should avoid jumping in with both feet at once. If you want to buy Bitcoin, do it like Michael Saylor did:

Buy Bitcoin on a schedule, making regular purchases to slowly build an investment over the long term at an average price. Sometimes you buy when it’s up, sometimes when it’s down. However, if Bitcoin continues on its current trajectory, you’ll reach an average of a number that you’re happy with.

Should you invest $1,000 in Bitcoin right now?

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has a position in Bitcoin and recommends Bitcoin. The Motley Fool has a disclosure policy.

The 1 Best Cryptocurrencies to Buy Before They Go Up 20,000%, According to Michael Saylor, was originally published by The Motley Fool