Michael Saylor, the CEO of MicroStrategy, has made a bold prediction: he believes that Bitcoin could reach $13 million by 2045.
In an interview with CNBC, Saylor expressed confidence in the long-term potential of Bitcoin, despite its recent volatility. He predicts that Bitcoin’s annual growth rate will be 44% in the short term and gradually decline to around 5% in the coming decades.
I enjoyed the opportunity to discuss #Bitcoin and strong, fast, smart money with @JoeSquawk, @BeckyQuick, and @AndrewRSorkin this morning,pic.twitter.com/BUXa2IZ8II
— Michael Saylor⚡️ (@saylor) September 9, 2024
Saylor emphasized that Bitcoin currently represents only 0.1% of global investment capital but believes this figure could rise to 7%. He argued that Bitcoin would outperform traditional assets such as the S&P 500, offering higher yields and greater volatility.
According to his calculations, an average annual growth rate of 29.56% would be required to hit the $13 million price target by 2045. Saylor also noted that even in a less optimistic scenario, Bitcoin could reach $3 million, while the most ambitious predictions suggest a potential price as high as $49 million.
MicroStrategy, which has heavily invested in Bitcoin since 2020, now owns 226,500 BTC valued at $12.85 billion, with an average purchase price of $37,013 per coin. The company’s Bitcoin holdings have grown by 53.3%, amounting to a $4 billion profit in just four years.
Saylor emphasized that MicroStrategy stock (MSTR) investors benefit from the company’s Bitcoin-backed strategy, which allows for tax-deferred returns through convertible bonds.
Saylor’s bullish outlook has faced criticism from some, including long-time Bitcoin skeptic Peter Schiff, who called Saylor’s projections “shortsighted.” Schiff pointed out that MSTR stock has fallen 40% from its 52-week high, suggesting that actual returns are far less impressive than Saylor claims.
What a bunch of nonsense. CNBC is too beholden to their crypto advertisers to really push back against your false statements. MSTR is down 40% from its 52-week high and is 6% below its 2021 high. The actually returns are not nearly as rosy as you describe and will soon get worse.
— Peter Schiff (@PeterSchiff) September 9, 2024
Aside from financial implications, Bitcoin and cryptocurrency have also become significant in the political landscape, especially in the run-up to the 2024 U.S. presidential election.
Related news: Bitcoin’s Future Tied to 2024 US Presidential Election: Bernstein Report
Donald Trump, previously an outspoken critic of Bitcoin, has shifted his stance in favor of the cryptocurrency. At the same time, Democratic candidate Kamala Harris has yet to take a clear position on the issue. Saylor noted the growing pro-crypto sentiment within the Republican Party, contrasting it with the more centrist approach of the Democrats.
As Bitcoin continues to dominate financial and political discussions, Saylor remains steadfast in his belief that the cryptocurrency is poised for massive long-term growth, positioning it as a revolutionary asset in global finance.
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