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1 Best Cryptocurrency to Buy Before It Soars 13,000%, According to MicroStrategy’s Michael Saylor
With the changes taking place in the global economy, can Bitcoin realistically reach a price of $8 million?
The meteoric rise of Bitcoin (BTC -3.22%) may be far from over, according to Michael Saylor, executive chairman and co-founder of Microstrategy (MSTR -1.37%). At the Prague Bitcoin event in June, Saylor predicted that Bitcoin could eventually reach a value of $8 million per coin.
Given Bitcoin’s current price of around $60,000, that would imply a return on investment of over 13,000%. That equates to Bitcoin’s price skyrocketing from $450 to $60,000, a process that took nearly a decade. As a result, it might be tempting to dismiss this bold $8 million prediction. But there are two very good reasons why Saylor may be right.
Bitcoin is the “perfect money”
Given that Bitcoin is a digital currency created by an algorithm, it has some very specific properties that distinguish it from traditional money. First, it has a limited supply. You can’t just print more Bitcoin, like a government that is short of cash can print dollars. There can only be 21 million coins in existence, and the Bitcoin algorithm carefully controls the overall supply in circulation. Additionally, Bitcoin is a completely decentralized currency, meaning no sovereign power or government can control it.
It’s these properties, Saylor says, that help make Bitcoin “perfect money.” It’s anti-inflationary, making it a potential hedge against inflation. It’s a superior long-term store of value, making it an alternative to physical gold. And it’s resistant to government seizure, making it a potential safe haven if you live in a country with an intrusive central authority.
Over time, Saylor suggests that the differences between Bitcoin and traditional currencies will become even more apparent, which will lead to a flow of capital into Bitcoin-denominated assets rather than dollars. It could also lead to Bitcoin revolutionize the global financial systemas the world moves to a new Bitcoin standard.
Of course, if you’re new to Bitcoin, this might all sound incredibly optimistic. In fact, Saylor, who is probably the most high-profile Bitcoin bull in the world right now, is often so relentlessly bullish on Bitcoin’s future that some of his predictions ring hollow.
Yet it’s hard to deny that the U.S. government is running unsustainable deficits. By some estimates, the U.S. is adding $1 trillion in new debt every 100 days. At some point, people will stop buying U.S. government debt, and that’s when the “Bitcoin is perfect money” scenario might start to play out.
Bitcoin Offers “Corporate Immortality”
Saylor is also at the forefront of advising companies to add Bitcoin to their balance sheets as a treasury asset. This is the approach pioneered by MicroStrategy, which began an aggressive Bitcoin buying strategy in 2020. Since then, MicroStrategy has bought so much Bitcoin that it is now the world’s largest corporate holder of Bitcoin, and it’s no close call. MicroStrategy now holds more than 1% of all Bitcoin, worth about $15 billion.
Image source: Getty Images.
According to Saylor, holding Bitcoin on a company’s balance sheet creates the potential for “corporate immortality.” As the value of Bitcoin increases in perpetuity, so will the value of a company.
To illustrate this point, Saylor points to the last 100 years of U.S. economic history. How many companies are still around from 100 years ago? A handful at most. In contrast, the last sliver of the last Bitcoin will be mined in 2140, so companies holding significant amounts of Bitcoin today theoretically have the potential to survive at least 100 years.
Over time, as more companies buy Bitcoin, the higher its price will become as a result of this new buying pressure. Keep in mind that at some point, you may have to suspend faith for this scenario to come to fruition. During the latest Bitcoin bull market rally, for example, companies like Tesla were lining up to buy Bitcoin. However, that strategy didn’t work out exactly as they thought, due to Bitcoin’s huge volatility.
“Everyone gets Bitcoin at the price they deserve”
Of course, by now you’ve probably realized that Saylor’s $8 million price prediction is based more on a macro narrative about where the world is headed than a numbers-driven analytical model. So it’s perfectly plausible that you might decide to ignore Bitcoin as an investment opportunity. Fair enough.
But, as Saylor warns, “Everyone gets Bitcoin at the price they deserve.” Saylor says he first thought about buying Bitcoin in December 2013, when it was trading at $892. But the Bitcoin story seemed too good to be true. So he waited and waited, and finally bought Bitcoin when it was trading at $9,500. That was the price he deserved.
While I am not convinced that Bitcoin is going to hit $8 million anytime soon, I am convinced that there is a paradigm shift taking place in the global economic order. Because of this, I am becoming increasingly optimistic about Bitcoin’s ability to appreciate in the long term.