MicroStrategy CEO Michael Saylor expects Bitcoin to capture 7% of global equity in the coming years and outperform other assets.
On September 9, Bitcoin (Bitcoin) was trading just below $55,000 after a 2% increase in 24 hours, according to crypto.news’ price pages. Saylor told CNBC that this price increase by 70x as adoption skyrockets, putting BTC at $3.85 million per coin soon.
Saylor explained that the thesis behind Bitcoin’s exponential price jump is based on its technological superiority over other assets and its annual returns.
Since August 2020, when MicroStrategy began buy BTC, the cryptocurrency, has rewarded investors with an average of 44% in annual gains. By comparison, the S&P 500 has averaged 12% over the same four-year period.
The MicroStrategy founder also confirmed the software maker’s Bitcoin leverage strategy. According to Saylor, securitization Selling convertible bonds to buy more cryptocurrencies has yielded an 825% return on MicroStrategy’s equity. Nvidia, the best-performing stock in the S&P, has returned 821%.
The billionaire entrepreneur also argued that recent outflows from spot BTC exchange-traded funds (ETFs) would increase investor demand. Last week, Wall Street traders withdrew $1.2 billion from BTC ETFs due to volatility in the global financial market, according to Bloomberg. Crypto Products recorded It was also the second week with the largest capital outflows this year.
Bitcoin will attract more global capital
In the long run, the former crypto skeptic turned BTC evangelist insists that HODLers will outperform volatility traders and those focused primarily on the asset’s short-term price movements.
HODL is crypto slang for “holding on to something with all your might,” a term derived from the word “hold” and used to describe a long-term outlook on digital assets.
Saylor’s short-term view puts BTC close to $4 million, but his longer-term outlook predicts an even higher price. The Bitcoin bull predicted that Bitcoin would trade at $13 million per coin within 21 years. Currently, Bitcoin’s trillion-dollar market cap represents 0.1% of global capital, but Saylor believes this figure will surpass 13% before 2050.
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