Bitcoin to reach $13m in 21 years, Michael Saylor predicts

Michael Saylor, Chairman of MicroStrategy, predicts that Bitcoin will capture 7% of global capital in the coming years, outpacing other assets.

On September 9, Bitcoin (BTC) was trading just below $55,000 after a 2% increase in 24 hours, according to crypto.news price pages. Saylor told CNBC that this price will increase 70-fold as adoption skyrockets, soon pushing BTC to $3.85 million per coin.

Saylor explained that the thesis behind Bitcoin’s exponential price jump is due to its technological superiority and annualized returns compared to other assets.

Since August 2020, when MicroStrategy began buying BTC, the cryptocurrency has returned an average of 44% annualized profit to its investors. In comparison, the S&P 500 gained an average of 12% over the same four-year period.

MicroStrategy’s founder also confirmed the software maker’s leveraged Bitcoin strategy. According to Saylor, securitizing BTC by selling convertible notes to buy more crypto generated an 825% return on MicroStrategy’s capital. Nvidia, the S&P’s top performing stock, achieved an 821% return.

The billionaire entrepreneur also argued that recent outflows from spot BTC exchange-traded funds (ETFs) will fuel investor demand. Wall Street investors pulled $1.2 billion from BTC ETFs last week amid global financial market volatility, according to Bloomberg. Cryptocurrency assets also saw their second-biggest week of outflows this year.

Bitcoin will command more global capital

Over the long term, the former crypto skeptic and BTC advocate claims that HODLers will outperform volatility traders and those who focus primarily on the asset’s short-term price movements.

HODL is a term derived from the word “hold”, meaning “to hold onto” in crypto jargon, and is used to describe a long-term outlook on digital assets.

Saylor’s short-term view puts BTC near $4 million, but his longer-term outlook predicts an even bigger price tag. The Bitcoin maximalist predicted that Bitcoin will trade at $13 million per coin in 21 years. Currently, Bitcoin’s trillion-dollar market cap commands 0.1% of global capitalization, but Saylor believes that figure will exceed 13% before 2050.