Bitcoin’s remarkable rise has more to come, according to MicroStrategy’s cofounder and chairman Michael Saylor. Speaking to CNBC, Saylor forecasted that the cryptocurrency could deliver a 29% annualised return over the next 21 years, supported by increasing adoption and reduced volatility.
- Long-Term Returns:
Bitcoin is currently experiencing a 60% annualized return, but Saylor expects it to stabilize at 29% annually over the next two decades. - Decreasing Volatility:
As more investors embrace bitcoin, Saylor predicts its infamous price swings will reduce, making returns more predictable and sustainable. - Record Highs Ahead:
Bitcoin is nearing the $100,000 milestone, but Saylor envisions even greater growth, estimating the cryptocurrency could reach $13 million per coin by 2045, a staggering 12,900% gain.
Political Boost for Bitcoin:
- Republican Support:
Saylor sees Donald Trump’s presidential victory and Republican control of Congress as bullish for bitcoin. Pro-crypto policies could foster industry growth and potentially lead to the creation of a strategic bitcoin reserve. - New Federal Proposals:
Senator Cynthia Lummis suggested the Federal Reserve consider selling gold to invest in bitcoin, aligning with Saylor’s vision of bitcoin as the ultimate capital asset.
MicroStrategy’s Investment:
Saylor’s confidence in bitcoin is reflected in MicroStrategy’s holdings. The company owns 331,200 bitcoins worth over $30 billion, funded partly through debt issuance. Saylor continues to use the firm to expand its bitcoin reserves.
Bitcoin vs. Traditional Assets:
Saylor describes bitcoin as a superior capital asset compared to the S&P 500, reinforcing his belief in its long-term dominance. “Every bitcoin you don’t buy today could cost you $13 million in the future,” he emphasized.
Saylor’s bold predictions reflect his unwavering faith in bitcoin’s role as a transformative financial asset, with substantial growth and broader adoption on the horizon.
