The Amount That $100 of Bitcoin Would Amount to If It Matches This Billionaire's 2045 Predicted Value
Millionaire Michael Saylor, heading MicroStrategy, a prominent enterprise software provider (MSTR up 9.34%), has shown himself to be an ardent Bitcoin supporter. This stance has proven profitable for him, as the primary cryptocurrency saw its value surge by 151% in 2024 (as of Dec. 17 afternoon).
Saylor devised a strategy for MicroStrategy to acquire capital through both equity and debt means, to purchase Bitcoin aggressively. He remains unwaveringly confident in Bitcoin's future, forecasting a $13 million price point by 2045.
Investing $100 now could yield impressive returns, assuming Bitcoin reaches its predicted $13 million valuation:
Saylor's Baseline Scenario
With an estimated net worth of around $10 billion, Saylor embraced Bitcoin in 2020 as a potential refuge for investments over traditional options, such as cash. Following this shift, MicroStrategy invested in Bitcoin to incorporate it onto its balance sheet. As the crypto's price continued soaring, Saylor's conviction only intensified.
Today, MicroStrategy serves as a Bitcoin-focused enterprise, having amassed 252,220 bitcoins, valued at around $27 billion at present prices, exceeding 1% of Bitcoin's entire market capitalization.
Given the positive trajectory, investors will profit if the price retains its upward momentum. Saylor champions his viewpoint, incessantly.
The baseline scenario of $13 million worth per Bitcoin in 2045 relies on speculating that 7% of the world's total asset base – comprising assets in sectors like real estate, stocks, and bonds – will be directed towards Bitcoin. Currently, this ratio hovers just under 0.2%.
If an individual invests $100 in Bitcoin right now, that investment will hold a worth of $12,200 in 21 years, as per this baseline scenario. This translates to a staggering 25.7% yearly return.
Saylor's most optimistic scenario forecasts 22% of the global asset base redirected to Bitcoin, with a price target of $49 million. If this scenario materializes, your initial $100 investment would be worth $46,000. Even in a bearish scenario, Saylor anticipates a 28x price increase to $3 million over the next 21 years. In this scenario, your initial $100 investment would rise to around $2,800.
Predictions carry risks
Enticing as these soaring numbers may seem, it's crucial to comprehend the inherent difficulty of formulating precise long-term predictions. Regardless of one's intellectual prowess or eloquence, there exists no way to accurately estimate Bitcoin's future price, whether it's in the immediate future or the next decade(s). Multiple variables play a significant role in this, including investor sentiment, macroeconomic trends, regulatory decisions, and technological developments.
This warrants a healthy dose of skepticism when encountering Saylor's predictions. Despite this, Bitcoin still merits closer inspection. As a lucrative investment opportunity, Bitcoin should draw the interest of long-term investors, in particular, those who have a considerable savings horizon left before retiring. Despite possible falling short of Saylor's specific price targets, Bitcoin could still prove profitable as a digital 'gold.'
The scaled-down Bitcoin supply of 21 million coins reflects its scarcity, a quality that Saylor undoubtedly appreciates. This scarcity marks Bitcoin as a compelling investment option for investors seeking a secure storage space for their wealth, as it is less susceptible to considerable inflationary pressures when compared to fiat currencies, such as the USD or EUR, which are devalued through central bank activities.
For novice Bitcoin investors still grappling with acquiring knowledge, it might be prudent to allocate 1% of a well-diversified investment portfolio to Bitcoin. As your familiarity and comprehension of Bitcoin deepen over time, it's reasonable to adjust this allocation to correspond to a heightened level of conviction.
Investing $100 in Bitcoin now, based on Saylor's most optimistic scenario, could see a substantial return by 2045, rising to a value of approximately $46,000. This remarkable increase is predicated upon 22% of the global asset base being redirected towards Bitcoin, resulting in a price of $49 million per Bitcoin.
Saylor's strategy for MicroStrategy, which involves acquiring Bitcoin using both equity and debt means, highlights his belief in Bitcoin's role as a store of value and potential hedge against inflation, particularly when compared to fiat currencies like the USD or EUR. This belief stems from Bitcoin's limited supply of 21 million coins, making it a less susceptible investment option to significant inflationary pressures.
