Are you secptical it is too late to invest in Bitcoim (Cryptocurrency) True the mileage of some of the cryptocurrency s previous run-ups may be hard to match or beat, there is still plenty of room for it to grow,, well how much though? If you believe Micheal Saylor,the answer is then ‘a whole lot’.Popular for his bold and fearless Bitcoin advocacy, Audacious Chief of the MicroStrategy (NASDAQ: MSTR),Saylor is not a bit shy about setting high price targets. His most recent? That Bitcoin will reach $13 million by 2045- a potential gain of 18,600% from today’s price. Saylor is a big believer of Bitcoin Under Saylor’s leadership, the company made Bitcoin a core part of its business.
MicroStrategy began as a software company —still very much one— but in 2020 it began storing a large reserve of Bitcoin as a central strategy for growth. It now owns about 250,000 bitcoins valued at more than $16 billion.
The company spent just under $10 billion buying them— a really sweet deal. Investors appear to believe this is a winning strategy; the stock is up nearly 2,000% since Bitcoin buying began despite the company’s software revenue barely growing since then. He’s betting the farm, so to speak, or the success of Bitcoin but it’s clear he believes in the strategy wholeheartedly why? Saylor sees it as combining the best of the range of assets like currency, gold and real estate. The thing is it’s scarce. There is a fixed amount to Bitcoins that can ever be mined and it’s becoming difficult to extract new ones. This makes it a deflationary asset, meaning that its value tends to rise over a time period because of its limited supply. This is the direct contrast to currencies like the dollar which is by design, inflationary . Gold seems to work In a similar fashion, but Bitcoin has a few major merits over the precious metal;namely, it can be easily stored and exchanged. MicroStrategy can store $16 billion worth of Bitcoin running a few servers.
Can you imagine the cost of storing $16 billion worth of gold? Bitcoin is very secure and Decentralized — a vast network of computers around the world work together to make it so. Theoretically, no single entity can disrupt this or put its thumb on the scale to influence the value of Bitcoin like a central bank can with traditional currency.
These more ideological reasons are well and good, but when all is said and done, the market has proven that Bitcoin holds tremendous value. Bitcoin is by far the most widely adopted digital assets and at this point, it looks like it will be incredibly hard to delist.
That’s not to say its impossible, but the influx of institutional capital during the past few years, it doesn’t seem likely. Saylor’s target might be to OptimisticWhile it’s not impossible for Bitcoin to reach $13 million in 2045 ,I’m not sure its too likely. Here the reason it would mean a pretty massive paradigm shift in the global economy . At present , the total value of the Bitcoin market is just 1% that of traditional equities. If Saylor’s target holds true and equities were to grow at the historical rate , by 2045,Bitcoin would be worth about 35% of global equities. That is a gigantic economic shift., one that may be too fundamental to happen in the next 20 years. That being said, I still think Bitcoin will exceed the market during the next 20 years and it is an excellent investment. I align with the general thrust of Saylor’s belief in the digital asset even if he is super zealous,but bitcoin is here to stay.
If by 2045 it represented just even 5% of the global equities, that would still result in an annual return of about 19%.
Don’t miss the second chance at a potentially lucrative opportunity
Here are a couple of numbers to inspire your next investment before the next Big break.
–Amazon: if you invested $1,000 when we doubled down in 2010 you’ll have $22,050
–Apple If you invested $1,000 then , you would have $41,999
–Netflix ;If you invested $1000 in 2004,you would have $407,440′
on that note happy investing . Build the future today with your investments.
