The cryptocurrency market, now valued at around 4 dollars, starts to win investors again. The industry attracts capital and interests while the current presidential administration adopts a friendly position towards digital assets.
However, there is a cryptocurrency that continues to be a favorite among the powerful and rich. Consider the taking of the billionaire Michael Saylor.
The technological entrepreneur was extremely vocal on his optimist towards Bitcoin (BTC 1.10%))even completely changing the operational plan of the company he co-founded, Strategy (formerly known as microstrategy). He thinks that the best global cryptocurrency will increase by 17,400% compared to its current price of $ 120,000 to around $ 21 million in 21 years.
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Increase the price goal
During the Bitcoin conference in Nashville, Tennessee, in July 2024, Michael Saylor revealed to the world his price of price for Bitcoin in 2045. The basic scenario made reach $ 13 million per unit per unit in two decades. This point of view was supported by the conviction that Bitcoin would bring capital of other asset classes, such as actions, obligations and real estate, more representing the wealth of the world over time.
During the BTC Prague conference last month, Saylor increased his price goal to $ 21 million by 2046. This figure represents a gain of 175 times by a monster from the current Bitcoin price of $ 120,000. And this results in a 27.9% in the jaw compound annual growth rate.
Last year’s original Saylor’s thesis is still true. However, it has become even more optimistic thanks to positive developments. For example, the United States embracing Bitcoin, with the planned creation of a Strategic bitcoin reserveis something that many probably haven’t planned. There is also the favorable regulatory environment, with the House of Representatives which recently adopted the Act on Engineering, the Clarity Act and the CBDC anti-surveillance State Act.
Accumulate more bitcoin over time
Saylor Cofonded sells business software solutions. But the billionaire changed his course after the start of the COVVI-19 pandemic.
In August 2020, the strategy bought Bitcoin for the first time for its own assessment. Saylor was concerned about the unprecedented level of growth that occurs with government debt and expenses at the time, adopting the opinion that the detention of money was improper use of capital because it would constantly lose its purchasing power. Since then, the company has created creative capital in the equity and fixed income markets to buy more bitcoin aggressively.
As of July 22, the strategy held 607,770 Bitcoin units, valued at nearly $ 73 billion. This makes it by far the biggest company holder Bitcoin on the planet. THE Ishares Bitcoin TrustA negotiated stock market (ETF) is the only entity that has more cryptocurrency than strategy.
Saylor plans to continue to buy as much bitcoin as possible. The success of this strategy to stimulate the market capitalization of the company has influenced other companies to follow a similar approach, creating more Bitcoin demand.
Bitcoin’s rarity is a precious feature
Bitcoin is a decentralized and purely digital network that transcends borders. It is the oldest cryptocurrency, and it carries the highest long-term market capitalization, to 2.4 billions of dollars, or 60% of the total value of the sector. In addition, it has a robust financial services ecosystem which supports its adoption.
However, no characteristic may be as important as the Bitcoin fixed supply ceiling of 21 million units. This limit is written in network software. And it is unlikely that it is changed – something that the majority of nodes Must agree, as this would undermine the value of Bitcoin and would probably decrease the request to own it.
The US government will continue to print money to finance enormous budgetary deficits. This will lead to an increasing federal debt, resulting in a persistent gear. That the high price of Saylor becomes a reality is the assumption of anyone. But investors should seriously consider to allocate even a small part of their Bitcoin portfolios.
Neil Patel has positions in Ishares Bitcoin Trust. The Motley Fool has positions and recommends Bitcoin. The Motley Fool has a policy of disclosure.
