Bitcoin’s most fervent supporter didn’t shy away on why he thinks the cryptocurrency has plenty of upside.
There are few people who can claim to be bigger fans of Bitcoin (BTC 0.15%) than Michael Saylor. The CEO of MicroStrategy (MSTR 1.25%) has become what could only be described as a Bitcoin evangelist.
Over the last four years his company has embarked on a strategy of replacing all its cash on hand with Bitcoin, and in some instances even taking on debt to buy more Bitcoin. Today, MicroStrategy owns around 1% of the total Bitcoin supply.
To some it may seem absurd to do such a thing, but if all goes to plan, Saylor’s decision to pursue the Bitcoin strategy could make him and his company billions — especially if Bitcoin hits his recent prediction of $8 million per coin, a 12,000% increase from its current price. Here’s how, and why, Saylor thinks the world’s cryptocurrency can keep up its historic pace.
Image source: Getty Images.
Saylor calls his shot
Over the weekend, the city of Prague hosted the largest Bitcoin conference in Europe and one of the keynote speakers was none other than Michael Saylor. Titled “21 Rules of HODLing,” Saylor’s speech elaborated on the do’s and don’ts of investing in Bitcoin, some of the lessons he has learned, and of course, a little speculation.
He touched on several points, but the most compelling highlighted the simplicity and role of Bitcoin (and why he thinks the cryptocurrency has what it takes to reach $8 million per coin).
In his eyes, Bitcoin is the premier safe haven asset. Its decentralized and virtually impenetrable network makes Bitcoin immune from manipulation that has become so prevalent in the current financial system.
In other words, not only can holders have confidence that their hard-earned money saved in Bitcoin will be there when they need it, but they will likely be worth more as time marches on. This is because there will only be 21 million Bitcoins created and the rate at which those Bitcoins enter the market is diminishing thanks to the halving.
While terms like “proof of work” and “decentralized networks” might sound like a foreign language to some investors, Saylor elaborated that while the inner workings of Bitcoin might be abstract, at its core, Bitcoin is simple, reliable, and constant — something the existing economic and financial landscape cannot claim.
In the current world, economies and markets are pushed, pulled, and manipulated by the regulators and agencies overseeing them, Saylor said. He believes that inevitably, this ends up damaging those forced to play in this unfair game that is prone to inflation, ever-expanding debt, and constantly changing policies.
But with Bitcoin, there is a way out. Holders can rest assured that there will only ever be 21 million coins, that halvings will occur roughly every four years, and that nothing will change no matter who the president, chairman, or director of some agency is. And Saylor believes the world is beginning to recognize this paradigm shift.
As more people come to recognize that the existing financial system is like a leaky ship that doesn’t serve the interests of the common person, Bitcoin will benefit as it is the antithesis to fiat currencies and the ultimate cryptocurrency.
Zooming out a bit
While Saylor believes there are other factors and catalysts that will play into Bitcoin’s growth (i.e., increasing institutional investor interest, financial censorship, and geopolitical instability), it is the cryptocurrency’s resilience and simplicity that will make it the leader of all assets and is the reason it’s on track to reach $8 million per coin.
Although he didn’t specify a timeline, the CEO likely doesn’t care. As he said in an interview with Fox News a few months ago, “I’ll be buying at the top forever.” This encapsulates his belief that Bitcoin’s unique qualities will position it for everlasting price appreciation as the destruction of the existing financial system continues.
A few things to keep in mind
Saylor’s projection isn’t new or special. Since Bitcoin launched in 2009, there have been thousands of predictions on just how high the cryptocurrency will go. And while there is no telling whether Bitcoin has what it takes to reach $8 million per coin, two things are certain. One, Bitcoin has defied nearly every expectation over the course of its decade-and-a-half life. And two, Bitcoin is still early in its adoption curve.
While it has come a long way and has millions of users around the world, it is on track to be as transformative as the internet and will likely one day reach a similar number of users. Rest assured, even though Bitcoin might not reach Saylor’s optimistic projection, what is certain is that demand for its 21 million coins will come under more and more pressure for years to come.
This news is republished from another source. You can check the original article here
