Michael Saylor, co-founder of Strategy, formerly MicroStrategy is convinced that Bitcoin is on an unstoppable trajectory to replace gold, predicting a staggering price of $500,000 per coin in the near term and $5 million per coin in the long run.
Speaking in an X Space on Sept. 20, 2024, the Strategy co-founder outlined three key catalysts that he believes will trigger an unprecedented Bitcoin rally.
At the time of the X spaces, BTC was trading at $63,000. It is now at $97,000, up 53.97%. If Bitcoin continues to grow at an average rate of 54% every five months, it would take approximately 3 years and 3 months to reach $5 million.
Saylor argued that even without any major regulatory or institutional breakthroughs, Bitcoin is already on track to surpass gold as the dominant store of value.
“It’s going to be a grind up by a factor of 10 just because gold is broken and Bitcoin is going to replace gold,” he said. “Everybody in the universe now knows they need a non-sovereign store of value in the form of a bearer instrument.”
With inflation concerns now a mainstream narrative, Saylor believes Bitcoin’s role as an inflation hedge will drive its gradual ascent.
“Last year, people said inflation may be coming. Now, the mainstream narrative has flipped to ‘inflation is here, you need an inflation hedge,’” he noted.
According to him, this alone is enough to propel Bitcoin to $500,000 per coin — but three additional factors could send it to $5 million per Bitcoin.
Saylor believes Bitcoin’s price could skyrocket to $5 million per coin if three major catalysts unfold. The first, he says, is the approval of a Spot Bitcoin ETF, which would allow institutions to make large purchases seamlessly.
“Someone can go ahead and buy $100 million of Bitcoin through a security, an ETF security. I think that’s one.”
The second major factor is banks custodying Bitcoin and offering loans against it, a move that would integrate Bitcoin into the traditional financial system and increase institutional demand.
“Your bank is going to custody it for you and lend against it,” he noted.
Lastly, Saylor sees fair value accounting for Bitcoin on corporate balance sheets as a game-changer. If companies can report Bitcoin’s true market value rather than being forced to write down losses, it could accelerate adoption. “I can mark it up or mark it down on my balance sheet based on fair value, the same way I handle Apple stock or even Treasury bonds.”
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