Neil Patel, The Motley Fool
4 min read
-
In his base case, tech entrepreneur Michael Saylor thinks 7% of the world’s wealth will flow to this top cryptocurrency in 20 years.
-
By having a fixed supply cap that cannot be altered, this digital asset has appreciated in remarkable fashion in the past.
-
Even with the cryptocurrency trading close to its all-time high, investors have meaningful long-term upside.
Michael Saylor made waves when he announced in August 2020 that the software enterprise he co-founded, MicroStrategy, bought Bitcoin (CRYPTO: BTC) to hold on its balance sheet. After numerous other purchases and a complete overhaul of the company's strategy, this is the biggest corporate holder of the digital asset on planet Earth.
It's not a shock to learn that Saylor is incredibly optimistic about Bitcoin's future. In fact, he believes the world's top cryptocurrency will soar 12,521% during the next 20 years to $13 million per coin. Continue reading to learn more about this lofty projection.
As of this writing, Bitcoin's price is almost $104,000. The cryptocurrency has thus far had a volatile year, but it has been surging in the past few weeks. It's trading at only 5% off its record high from January.
There are much bigger numbers on the horizon. At least that's what Michael Saylor thinks. In his base case scenario, he sees Bitcoin reaching $13 million per coin, which would translate to an unbelievable 126-fold gain. This equates to a compound annual rate of about 27%, which would undoubtedly outperform every other asset class.
Saylor's thesis is simple. Over time, his view is that more of the world's wealth, whether it's tied up in bank accounts, equities, bonds, real estate, commodities, or collectibles, will move to Bitcoin. The base case calls for a 7% allocation by asset managers to the crypto by 2045, compared to significantly less than 0.5% today.
The bear case has Bitcoin reaching $3 million, while the bull case forecasts a monster $49 million price target. Again, the key variable for Saylor is the amount of wealth that eventually finds its way to Bitcoin.
Regardless of what price target is believable, it's obvious that Saylor is perhaps the most bullish Bitcoin supporter out there. His firm currently owns almost 570,000 Bitcoin units, making it the largest public holder. MicroStrategy has morphed into a Bitcoin treasury business, opportunistically raising capital in the debt and equity markets to finance Bitcoin purchases. He's clearly all in.
