Michael Saylor predicts that Bitcoin will reach $13 million per coin

MicroStrategy Executive Chairman Michael Saylor predicted on Monday that Bitcoin will reach $13 billion over the next two decades.

The billionaire explained why recent volatility in the leading digital asset hasn’t spooked his company and the benefits for investors of buying into MSTR.

Bitcoin at $13 million, Saylor says

During an interview with CNBC, Saylor predicted that Bitcoin will maintain its compound annual growth rate of 44% in the short term, before that growth steadily declines to about 5% per year as the asset matures.

“My long-term forecast is that it will reach $13 million in 21 years,” Saylor said. “At some point, it’s going to be S&P return plus 8%, and it’s going to be S&P volume plus 8%.”

To reach this price in 2045, Bitcoin would need to maintain an average CAGR of 29.56%.

Saylor initially presented a similar price forecast during his speech at Bitcoin 2024 in Nashville. While $13 million was his “base case,” his “bear case” was $3 million (consistent with VanEck’s predictions), and his bull case was a whopping $49 million, almost 1000 times more than today.

In the meantime, Saylor expects continued volatility in BTC, largely because it is a highly liquid globally traded 24/7 asset.

“If you’re worried about a missile attack, you can’t teleport your ten million dollar apartment to Singapore, increase it 10 to 1, and short $100 million in New York real estate,” he explained. “But you can short $100 million in Bitcoin by borrowing $10 million.”

As for MicroStrategy (MSTR), Saylor argued that the company has been a “pioneer” in the Bitcoin-backed bond market by issuing billions of dollars in convertible bonds to buy BTC.

As an investment, he says MSTR is like a “tax-deferred” BTC yield instrument, allowing users to borrow money to buy BTC at rates they couldn’t access as individuals. Since a BTC reserve strategy was adopted in 2020

Peter Schiff disapproves

Bitcoin critic Peter Schiff called out Saylor for bragging about the gains of both BTC and MSTR, calling his ideas “a bunch of bullshit.”

“MSTR is down 40% from its 52-week high and is 6% below its 2021 high. In reality, returns are not as rosy as you describe and will soon get worse,” he argued on Twitter on Monday.

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