Fast Take
In a current interview on CNBC, MicroStrategy’s Government Chairman, Michael Saylor, shared his long-term outlook on Bitcoin. Saylor was requested about Bitcoin’s place as “digital gold” and its potential to seize a portion of gold’s market cap.
He defined that Bitcoin presently represents about 0.1% of world wealth, with a value of round $55,000 and a market cap of simply over $1 trillion. Nevertheless, Saylor believes that Bitcoin’s future is far brighter, predicting that it may rise to 7% of the world’s capital. This might place the value of a single Bitcoin at roughly $2 million, assuming world wealth is roughly $500 trillion. Nevertheless, estimates of world wealth fluctuate considerably.
Trying even additional forward, Saylor forecasted that Bitcoin may attain a staggering $13 million per coin over the subsequent 21 years. He additionally touched on Bitcoin’s historic progress fee, noting that whereas its compound annual progress fee (CAGR) has been round 44%, he expects this to decrease over time.
In the end, he believes Bitcoin’s return will align with the S&P 500’s return (roughly 13% CAGR), plus an extra 8%, on account of Bitcoin’s world, open nature as a free capital asset.
