Summary:
Michael Saylor predicts Bitcoin could reach $13 million per coin by 2045.
Bitcoin has returned over 10,000% in the last decade.
Saylor holds about $1 billion in Bitcoin; MicroStrategy owns 226,500 bitcoins.
A 20,000% increase would push Bitcoin's market cap to over $241 trillion.
Investors should consider regular purchases to average out costs.
One of Bitcoin's most dedicated investors believes the life-changing returns have just begun.
Bitcoin (BTC) has been a famously successful investment, returning more than 10,000% over the past decade. However, it remains a polarizing asset. While legendary investor Warren Buffett has famously stated he wouldn't purchase all the world's Bitcoin for $25, others, including MicroStrategy founder Michael Saylor, argue that Bitcoin is essential to the global economy.
At the recent 2024 Bitcoin conference, Saylor expressed his belief that Bitcoin's price could reach $13 million per coin by 2045, a staggering 20,000% increase from its current value.
Saylorâs commitment is evident as he reportedly holds around $1 billion in Bitcoin, and his company, MicroStrategy, has amassed 226,500 bitcoins worth approximately $13.6 billion.
Is Saylor's $13 Million Bitcoin Target Price Realistic?
Before getting too excited about Bitcoin's potential, it's important to recognize that Saylor's target is remarkably optimistic. As a well-known Bitcoin whale, his bold predictions may not be entirely grounded in reality.
To put this into perspective, comparing Bitcoin to gold can help clarify valuations. The Federal Reserve influences the dollar, but gold, like Bitcoin, is largely driven by the free market. Currently, the total value of all gold in the world is about $16.5 trillion, and if we assume a similar growth rate for gold as seen in the past 20 years, its value could hypothetically reach $170.5 trillion by 2045.
As of today, Bitcoin's market cap is around $1.2 trillion, so a 20,000% increase in its price would push its market cap to over $241 trillion. This raises the question: can Bitcoin truly replace gold as the underlying asset of the global economy? While it may not be impossible, it is an enormous challenge.
That Doesn't Mean Investors Shouldn't Be Excited
Despite the lofty predictions, thereâs still plenty to be excited about. Bitcoin's trajectory as an anti-inflation asset is becoming clearer. As Bitcoin gains more acceptance and demand increases, its value continues to rise, especially against fiat currencies that are losing strength due to inflationary pressures.
Although Bitcoin still lacks widespread utility for everyday transactions, more merchants are beginning to accept it as payment. This trend, along with corporate and governmental accumulation of Bitcoin as a hedge, suggests that Bitcoin's price could continue to rise.
Is Bitcoin a Buy Today?
Given Bitcoin's volatility, investors should consider a strategic approach. Following Michael Saylor's example, consider making regular purchases over time to average out your investment cost. This way, you can balance your buying price whether Bitcoin is up or down, leading to a more favorable long-term average.
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