Janice R. Andrews
With astounding returns of more than 10,000%, Bitcoin (CRYPTO: BTC) has been among the most successful investments of the past ten years. It is still, however, a very divisive asset. Some renowned investors, such as Warren Buffett, believe Bitcoin is worthless, but others believe it will revolutionize the financial industry. Michael Saylor, the creator of MicroStrategy and a prominent participant in the Bitcoin movement, is one such supporter.
Saylor made a big prediction at the 2024 Bitcoin conference: he thinks Bitcoin would reach a price of $13 million per coin by 2045. This is a whopping 20,000% gain over its present value. Saylor has demonstrated his conviction with action, purportedly possessing approximately $1 billion in Bitcoin personally, while MicroStrategy has amassed an astounding 226,500 bitcoins, estimated to be worth $13.6 billion.
Many investors question if they should buy in Bitcoin now, following Saylor’s lead given his substantial position and audacious forecasts. Is this the best time to invest, and is his projection of a $13 million Bitcoin realistic? Let’s investigate these queries.
Is Michael Saylor’s Target Bitcoin Price of $13 Million Realistic?
Saylor has certainly drawn attention with his $13 million price projection, but is it realistic? In terms of its potential as a store of value, Bitcoin, sometimes known as “digital gold,” is increasingly being likened to actual gold. We may draw some parallels between Bitcoin and gold in order to evaluate whether Saylor’s price target is reasonable.
A Comparison between Bitcoin and Gold
For many years, investors looking to protect themselves from inflation and unstable economies have turned to gold. With 208,874 metric tonnes of gold in circulation at a current price of $2,471 an ounce, the market worth of gold as a whole is estimated to be around $16.5 trillion.
Assuming a generous 3% annual growth in the gold supply over the following 20 years, the global gold supply is expected to reach 377,357 metric tons by 2045. Over the past 20 years, the price of gold has increased by 519%. By 2045, the price of an ounce of gold might reach $14,058 if growth rates stay the same. As a result, the total estimated value of the world’s gold supply in 2045 would be around $170.5 trillion.
Bitcoin’s market capitalization, on the other hand, is currently at about $1.2 trillion. Saylor projected that if Bitcoin’s price surged by 20,000%, its market capitalization would surpass $241 trillion. As a result, Bitcoin would be far more valuable than gold. Still up for debate is whether Bitcoin could really hit this level of value.
Can Bitcoin Become the New Global Standard and Replace Gold?
Saylor believes that in order for Bitcoin to achieve its projected valuation, gold would have to give way to it as the main medium of exchange in the world economy. Although not unfeasible, this would be a significant change. Bitcoin is a relatively new cryptocurrency, having only been around since 2009, yet gold has been used as a store of value for almost 5,000 years.
Bitcoin has a distinct advantage in terms of scarcity because of its fixed quantity of 21 million coins. Given that fiat currencies are losing value as a result of inflation and greater money printing, Bitcoin’s deflationary characteristics might actually boost its worth. It would be difficult to completely replace gold, though, unless Bitcoin became widely accepted as a global store of value.
The Price Trajectory of Bitcoin: Causes for Hope
Saylor may have set an ambitious price estimate of $13 million per coin, but that doesn’t imply there isn’t hope for Bitcoin in the future. There will only ever be 21 million Bitcoin coins produced, which is one of its main selling points. Its price may rise further due to its fixed supply and the rising demand from organizations, businesses, and even governments.
Bitcoin’s standing as an asset against inflation has grown over time. The purchasing value of these currencies declines as central banks throughout the world pour fiat currency into economies. As a decentralized digital asset, Bitcoin provides an option. Bitcoin’s value has steadily increased over time, despite its volatility, which is indicative of rising demand.
Additionally, Bitcoin is becoming more and more useful each time. Although using Bitcoin for regular purchases is still uncommon, more businesses are starting to accept it as payment. Businesses like Square and Tesla have included Bitcoin in their balance sheets, and some nations—like El Salvador—have gone so far as to recognize it as legal money.
Is It Time to Buy Bitcoin?
Because of its volatility, investors ought to proceed cautiously while purchasing Bitcoin. Michael Saylor’s investment approach, however, provides a possible course of action. Dollar-cost averaging (DCA) is what Saylor has argued for, rather than trying to time the market. This entails gradually making smaller, more frequent purchases over time, regardless of the price of Bitcoin at any one time.
Investors can lessen some of the well-known volatility of Bitcoin by employing the DCA technique. You will eventually average out your buying price regardless of when you buy—you can buy at high and low prices. Use of this method could result in substantial profits for people if Bitcoin keeps growing at its current rate.
Final Reflections ###
Although Michael Saylor’s audacious forecast that Bitcoin will reach $13 million per coin by 2045 is undoubtedly optimistic, it illustrates the potential that many believe exists in the cryptocurrency. Although it would be difficult to replace gold as the world’s main store of value, investors with a long-term view may find Bitcoin to be an appealing investment due to its limited supply and growing popularity.
Although investors should have realistic expectations, they should still be enthusiastic about Bitcoin’s future. Bitcoin is still one of the best cryptocurrencies to buy right now, especially if you share Saylor’s belief in its long-term potential. It has a track record of success and is becoming more widely accepted.
