Top Cryptocurrency Pick Expected to Surge by 84,380%, Backed by Michael Saylor
Michael Saylor, the Executive Chairman of MicroStrategy, a company specializing in business intelligence software, made headlines by being the first public company to embrace Bitcoin as its primary treasury reserve asset. MicroStrategy, now known as a “Bitcoin development company,” holds a significant amount of Bitcoin, with 226,500 BTC valued at over $13 billion as of July 31. Investing in MicroStrategy stock essentially means investing in Bitcoin, as a substantial portion of the company’s market capitalization of $25 billion is tied to its Bitcoin holdings.
During a keynote speech at a Bitcoin conference in Nashville, Tennessee, Saylor shared his long-term outlook, envisioning a gradual deceleration in Bitcoin’s growth rate from the current 55% to potentially reaching $13 million per coin by 2045, representing a return of 5,170% to 84,380% from the current $58,000 price.
Saylor believes that the approval of spot Bitcoin ETFs could significantly increase demand for Bitcoin by attracting more mainstream investors to the market. These ETFs eliminate the need for investors to navigate cryptocurrency exchanges and incur high transaction fees, making Bitcoin more accessible through traditional brokerage accounts. The iShares Bitcoin Trust, for example, offers lower expense ratios compared to exchange fees, making it a more cost-effective option for investors.
Following the approval of spot Bitcoin ETFs in January, these investment vehicles shattered records in terms of asset accumulation, with the iShares Bitcoin Trust and Wise Origin Bitcoin Trust amassing more assets in their initial 50 trading days than any ETF in history. The iShares Bitcoin Trust also reached $10 billion in assets at a record pace.
Bitcoin halving events, which occur approximately every four years and involve a 50% reduction in block subsidies, play a crucial role in enforcing Bitcoin’s limited supply of 21 million coins. Historically, Bitcoin has increased in value between halving events, with returns ranging from 5,291% to 619% based on past halving cycles. The upcoming 2028 halving event could potentially see Bitcoin surpass $63,462, with the accessibility of spot Bitcoin ETFs potentially altering the expected return dynamics.
While Saylor’s price targets for Bitcoin may seem optimistic or even absurd to some, Bitcoin’s proven ability to generate substantial wealth over time cannot be ignored. Investors willing to weather the volatility associated with Bitcoin could potentially benefit from even modest returns. It is essential for investors to be comfortable with the inherent volatility of Bitcoin, as significant price fluctuations are common, and drawdowns have historically occurred. Considering a small position in Bitcoin, either directly or through a spot Bitcoin ETF, could be a strategic move for investors seeking exposure to this evolving asset class.
