Few people can claim to be bigger fans of it Bitcoin (CRYPTO: BTC) then Michael Saylor. The CEO of MicroStrategy (NASDAQ:MSTR) has become what can only be described as a Bitcoin evangelist.
Over the past four years, his company has embarked on a strategy to replace all of its cash with Bitcoin, and in some cases even take on debt to buy more Bitcoin. Today, MicroStrategy owns approximately 1% of the total Bitcoin supply.
To some, it may seem absurd to do something like this, but if all goes according to plan, Saylor’s decision to pursue the Bitcoin strategy could make him and his company billions – especially if Bitcoin hits its recent prediction of $8 million per coin, an amount of $12,000. % increase from current price. Here’s how and why Saylor thinks the world’s cryptocurrency can keep up with its historic pace.
Saylor calls his chance
This 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 talk delved into the do’s and don’ts of investing in Bitcoin, some of the lessons he’s learned, and of course, a little speculation.
He made 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 most important safe haven. The decentralized and virtually impenetrable network makes Bitcoin immune to manipulation that has become so prevalent in today’s financial system.
In other words, holders can not only be confident that their hard-earned money saved in Bitcoin will be there when they need it, but that it will also likely become more valuable as time goes on. This is because only 21 million Bitcoins will be created and the speed at which those Bitcoins enter the market will decrease thanks to the halving.
While terms like “proof of work” and “decentralized networks” may sound like a foreign language to some investors, Saylor explained that while Bitcoin’s inner workings may be abstract, at its core Bitcoin is simple, reliable and constant. – something that the existing economic and financial landscape cannot claim.
In today’s world, economies and markets are pushed, pulled and manipulated by the regulators and agencies that oversee them, Saylor said. He believes that this will ultimately inevitably harm those forced to participate in this unfair game that is prone to inflation, ever-increasing debt and constantly changing policies.
But with Bitcoin there is a way out. Holders can rest assured that there will only be 21 million coins, that halvings will occur approximately every four years, and that nothing will change regardless of who the president, chairman, or director of an agency is. And Saylor believes the world is starting to recognize this paradigm shift.
As more people come to realize that the existing financial system is like a leaky ship that does not serve the interests of ordinary people, Bitcoin will benefit because it is the antithesis of fiat currency and the ultimate cryptocurrency.
Zoom out a bit
While Saylor believes there are other factors and catalysts that will play a role in Bitcoin’s growth (i.e. increasing interest from institutional investors, financial censorship, and geopolitical instability), it is the cryptocurrency’s resilience and simplicity that will make it will make the leader of all assets. Therefore, it is on track to reach $8 million per coin.
Although he didn’t specify a timeline, the CEO probably doesn’t care. As he said in an interview with Fox News a few months ago, “I’m going to buy at the top forever.” This summarizes his belief that Bitcoin’s unique qualities will position it for perpetual price appreciation as the destruction of the existing financial system continues.
A few things to keep in mind
Saylor’s projection is not new or special. Since Bitcoin launched in 2009, thousands of predictions have been made about how high the cryptocurrency will go. And while it’s not clear whether Bitcoin has what it takes to reach $8 million per coin, two things are certain. First, Bitcoin has defied almost every expectation over the course of its decade and a half. And second, Bitcoin is still early in its adoption curve.
Although it has come a long way and has millions of users around the world, it is on track to become as transformative as the Internet and will likely reach a similar number of users one day. Rest assured that while Bitcoin may not meet Saylor’s optimistic projection, it is certain that demand for its 21 million coins will come under increasing pressure in the coming years.
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RJ Fulton has positions in Bitcoin. The Motley Fool holds and recommends positions in Bitcoin. The Motley Fool has a disclosure policy.
1 Top Cryptocurrency to Buy Before It Surges 12,000%, According to This CEO Originally Published by The Motley Fool
