Bitcoin hits new record high of $21 million
In a bold prediction made in July 2021, Michael Saylor, the founder of Strategy (formerly MicroStrategy), forecasted that the price of Bitcoin could reach an astounding $13 million USD by 2045, accounting for 7% of global wealth. This prediction, made at a Bitcoin conference, has since garnered significant attention within the financial community.
Saylor, a firm believer in the inevitability of Bitcoin's success, asserts that those who understand this have a significant informational advantage. He encourages investors to capitalise on this opportunity by learning and mastering the technology.
One strategy suggested by Saylor is the implementation of a Bitcoin savings plan. This involves making an annual investment, which can increase by 5% each year. For instance, an initial investment of $50,000 could potentially grow to an ending balance of 1.9 BTC (equivalent to $40 million according to Saylor's projections).
Another strategy is to start a company and use it to accumulate Bitcoin. This can be achieved by issuing shares to buy Bitcoin, a method employed by companies such as Strategy, Metaplanet, and others.
Saylor also emphasises the importance of using leverage, but cautions against paying high interest rates and opting for long loan terms. He expects the volatility of Bitcoin to be higher than the US stock market index S&P 500 in 2046, but the annualized return to decrease over time to settle at 21% in 2046.
Since August 2020, Strategy has been pursuing a Bitcoin strategy. Notably, since Saylor's last Bitcoin prediction, U.S. institutions offering Bitcoin services have expanded. Galaxy Digital, for example, plans to issue a tokenized money market fund with Anchorage Digital as custodian, and Coinbase, a major cryptocurrency exchange and custodian service provider, has emerged as a significant player.
Saylor argues that the misconception that it's too late to invest in Bitcoin is due to ignorance about its nature as digital energy and technology. He maintains that it's never too late to utilise a world-changing technology like Bitcoin.
At the Bitcoin conference in Prague, Saylor adjusted his price forecast to $21 million USD per coin in 2046. He advises using this knowledge for financial advantage, developing a strategy, and never selling Bitcoin. He expects the price to continue to experience strong fluctuations on the way to $21 million.
Interestingly, Saylor's stock has outperformed high-flyers like NVIDIA in the past period, further cementing his reputation as one of the most convinced Bitcoin bulls. However, as with any investment, it's important for investors to conduct their own research and consider their risk tolerance before making decisions.
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