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Billionaire Michael Saylor, CEO of enterprise software provider MicroStrategy (MSTR 8. 04%), is a prominent Bitcoin bull (BTC -1. 41%). This vision worked well for him after the world’s most valuable cryptocurrency saw its value jump 151% in 2024 (as of the afternoon of December 17).
Saylor has located MicroStrategy to raise equity and debt capital to aggressively purchase Bitcoin. And he remains incredibly bullish on the virtual asset in the long term, predicting a target value of $13 million in 2045.
This is what a $100 investment would be like if cryptocurrencies were to reach that maximum figure.
Saylor, whose net worth is estimated to be around $10 billion, is bullish on Bitcoin in 2020, considering it a better position to park capital than cash. In August of the same year, MicroStrategy purchased the virtual asset to include it on its own balance sheet. As time passed and the value of cryptocurrencies continued to rise, Saylor’s conviction grew even stronger.
These days, his business can be viewed as a Bitcoin holding company. As of Oct. 30, MicroStrategy owned 252,220 bitcoins, worth almost $27 billion at today’s price, which is equal to more than 1% of the asset’s entire market cap.
To see the price keep rising is certainly a beneficial outcome for Saylor and MicroStrategy shareholders. And he has never shied away from voicing his opinion.
The base scenario that the value would reach $13 trillion by 2045 is based on the assumption that 7% of the world’s total asset base (which includes cash in spaces such as real estate, stocks, and bonds) will move to Bitcoin. Currently, this figure is less than 0. 2%.
This means that if someone invested just $100 in Bitcoin right now, that holding would be worth $12,200 in 21 years if the base case situation is true. That’s a pullback that translates into an average annual gain of 25. 7%.
Saylor’s most bullish case predicts 22% of the global asset base goes to the crypto, with a price target of $49 million. That would be a $46,000 value for today’s $100 investment. And even in the bear case, he sees the price rising 28-fold to $3 million over the next 21 years. Here, your $100 in 2024 would grow to roughly $2,800.
Whenever someone throws out huge numbers like this, it definitely catches everyone’s attention. This is doubly true considering how lucrative Michael Saylor’s reliance on Bitcoin has been in recent years.
However, it is vital for investors to realize how complicated it is to make accurate long-term forecasts. No matter how wise or wise it may seem, no one knows approximately what the value of cryptocurrencies will be in the next week, month, quarter, or year, let alone in the next few years. next two decades. There are a lot of variable points at play – such as investor sentiment, macroeconomic forces, regulatory adjustments, and technological advances – all of which have an impact.
This is why I think it’s best to take Saylor’s forecast with a grain of salt. But that doesn’t mean the digital token isn’t worth a closer look. In fact, I think Bitcoin should be on every long-term investor’s radar, particularly those who have a way to go until retirement. The digital gold could be a lucrative asset even if it falls short of Saylor’s specific price targets.
The fixed supply of 21 million coins points to its scarcity, something Saylor undoubtedly appreciates. This is an incredibly compelling characteristic for investors looking to store their wealth in an asset that doesn’t face significant inflationary pressures. It makes Bitcoin superior to fiat currencies like the U.S. dollar or the euro, which are constantly being debased by central bank activities.
For those who are new to Bitcoin and still on the learning curve, it makes sense to allocate 1% of a well-diversified portfolio to the virtual asset. Based on your wisdom and understanding over time, it is moderate to increase this allocation to reflect the highest point of conviction you could possibly have.
Neil Patel and his company have no position in any of the stocks mentioned. The Motley Fool publishes and recommends Bitcoin. The Motley Fool has a disclosure policy.
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