Is Bitcoin Worth Buying Before the Cryptocurrency Surges 13,000%?

Driven by global economic changes, can Bitcoin prices truly reach $8 million per coin? Michael Saylor, executive chairman and co-founder of MicroStrategy (MSTR), believes the meteoric rise in the price of Bitcoin (BTC) may be far from over. At a Bitcoin conference in June this year, Saylor predicted that the price of Bitcoin could eventually reach $8 million per coin.

Given that the current price of Bitcoin is around $60,000, this means a return on investment of over 13,000%. This is equivalent to the price of Bitcoin skyrocketing from $450 to $60,000, a process that took nearly ten years. Therefore, we will most likely reject this bold prediction of $8 million. However, there are two good reasons why Saylor's prediction is correct.

Bitcoin is the perfect currency

Given that Bitcoin is a digital currency created by an algorithm, it has some special properties that distinguish it from traditional currencies. First, its supply is limited, and the Bitcoin algorithm carefully controls the total circulating supply. Furthermore, Bitcoin is a completely decentralized currency, which means that no sovereign country or government has control over it. It is these properties that make Bitcoin the “perfect money”. Bitcoin is inflation resistant and therefore acts as a hedge against inflation. Bitcoin is an excellent long-term store of value, making it an alternative to physical gold.

Saylor believes that over time, the differences between Bitcoin and traditional currencies will become more pronounced, which will lead to capital flows towards assets denominated in Bitcoin rather than US dollars. This could also lead to Bitcoin revolutionizing the global financial system as the world moves towards a new Bitcoin standard.

Admittedly, if you are new to Bitcoin, this all may sound incredibly optimistic. In fact, Saylor is arguably the most high-profile Bitcoin bull in the world right now.

Bitcoin Provides “Corporate Immortality”

Saylor was also the first to recommend that companies include Bitcoin as a financial asset on their balance sheets. This is also a method pioneered by MicroStrategy. The company started an active Bitcoin buying strategy in 2020. The company bought a large number of Bitcoins and has now become the company with the largest number of Bitcoins in the world. Currently, the company now holds more than 1% of all Bitcoins, worth approximately $15 billion.

Saylor believes that holding Bitcoin on corporate balance sheets has the potential to create “corporate immortality.” Since the value of Bitcoin will grow forever, so will the value of companies.

To illustrate this point, Saylor points to the past 100 years of U.S. economic history. How many companies are there today from 100 years ago? At most there are only a handful. By comparison, the last Bitcoin block will be mined in 2140, so it's theoretically possible for a company holding a large amount of Bitcoin today to survive for at least 100 years. Over time, as more companies buy Bitcoin, the price of Bitcoin will rise higher and higher under new buying pressure.

Obviously, Saylor’s $8 million price prediction is based more on a macro narrative of where the world is headed than a numbers-driven analytical model. Therefore, it is entirely possible for investors to decide to abandon Bitcoin as an investment opportunity.

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