MicroStrategy’s executive chairman Michael Saylor believes that Bitcoin (BTC) can still be 1000x from its current price of $41,500 – if given enough time.
In a keynote published to X on Monday, the billionaire explained how all major asset classes appreciate against the US dollar in perpetuity, and argued that BTC will appreciate faster than all others in the long run.
“Bitcoin is the world’s leading scarce, desirable, portable, durable, and maintainable asset,” said Saylor, adding that most investment strategies besides 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 one hand, the average investor earns 2.9% returns per year and outperforms the standard 2% consumer inflation rate. On the other, almost no major asset class is capable of outperforming the “real” monetary inflation rate – or rate of M2 money supply growth, of roughly 7-8% per year in the United States.
The S&P index, for example, has done little more than remain on par with the monetary inflation rate since 2001. Bitcoin, by comparison, lacks the former’s risk of asset devaluation due to companies issuing new shares, thus making it the “apex ETF” of the future.
Bitcoin’s fixed supply of 21 million coins also makes it the “apex commodity,” according to Saylor, since competitors like wheat, lumber, and oil can be produced by humans. Gold, Bitcoin’s largest competitor in that arena, still suffers from high transportation costs and fierce difficulty to audit.
As a form of property, real estate also suffers major disadvantages next to Bitcoin. Those include maintenance costs, zoning risks, immobility, and illiquidity, among other things.
Bitcoin may even capture the appeal of tech investors who would otherwise choose to buy top-performing stocks like Apple, Amazon, and Tesla. “Getting rid of all of the liability risk that comes with corporations is a big upgrade for Bitcoin,” Saylor said.
How Fast Can Bitcoin Go?
In Saylor’s view, while stocks continue to garner a 7% return year over year, Bitcoin will likely return 14% annually once it becomes a mature asset. He explained:
“Bitcoin not only does not have the risks and liabilities of company… but also Bitcoin has all the virtues of a pure crypto decentralized network.”
Over the next 20 years, however, the billionaire expects Bitcoin to grow at a much faster 21%+ per year, as people reallocate their wealth into BTC from alternative asset classes.
Based on Saylor’s calculations, he expects $1 million worth of Bitcoin today to reach $1 billion in real terms by the year 2123.
Saylor’s company MicroStrategy is famous for going all-in on BTC, having accumulated over 174,000 coins since 2020. Last month, the company bought $600 million worth of the digital currency using money raised through issuing new stock.
As of Monday, the company’s investment is up 37%, amounting to $2 billion in profit. MicroStrategy’s stock, MSTR, is up 288% year to date.
Saylor personally bought over 17,732 BTC in 2020 which, assuming he hasn’t sold, is now up 320%.
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