Can Bitcoin Soar to New Heights? Insights from MicroStrategy’s Michael Saylor

In the last decade, Bitcoin (CRYPTO: BTC) has emerged as a top performer in the investment world, climbing in value from just $100 to its current impressive $65,000.

There may still be opportunities to invest in Bitcoin’s incredible potential for growth. Michael Saylor, founder and executive chairman of MicroStrategy, predicts that Bitcoin could reach a staggering $13 million by 2045. At current prices, that scenario suggests a remarkable increase of about 20,000%. While this forecast may seem astonishing, it rests on solid ground for at least two key reasons.

The Rise of Institutional and Corporate Support

According to Saylor, a significant driving force behind Bitcoin’s potential is the growing institutional and corporate adoption. Investors on Wall Street are starting to recognize Bitcoin as a distinct asset class, giving rise to new investment products designed to provide exposure. The recent launch of spot Bitcoin exchange-traded funds (ETFs) in January illustrates this trend well.

This development signifies just the beginning of a broader trend. For instance, Cathie Wood of Ark Invest has identified eight distinct applications for Bitcoin, each contributing to a rise in global demand for the digital currency. Currently, Bitcoin serves primarily as a store of value, appealing to institutional investors and central banks as an alternative to gold.

However, increased demand alone cannot account for an explosive 20,000% price surge. The finite supply of Bitcoin adds another layer of intrigue to this picture.

Bitcoin’s total supply is capped at 21 million coins, with approximately 19.8 million already in circulation. The remaining coins will be gradually mined over the next century. This mismatch—growing demand paired with limited supply—typically leads to upward price pressure.

Bitcoin as a Candidate for Global Reserve Currency

Another critical factor in Bitcoin’s outlook is its potential to challenge the U.S. dollar as the primary reserve currency worldwide. Saylor describes Bitcoin as “sound money,” highlighting the flaws he sees in fiat currencies. In the U.S., for example, government spending has inflated the national debt to $35 trillion. The only route to pay down such debt is to print more money, which only serves to devalue the dollar further. While this approach has held up for now, the risk of a future crisis looms large.

Some investors are becoming aware of this risk and shifting their assets away from traditional dollars toward Bitcoin. This steady movement could transform into a significant trend. Saylor suggests that 2025 could mark the start of a “digital gold rush,” where Bitcoin gains widespread acceptance and interest surges.

Image source: Getty Images.

Skepticism is understandable, yet Saylor’s position carries weight. As one of the largest Bitcoin investors globally, his commitment is evident. MicroStrategy now holds a Bitcoin portfolio valued over $16 billion and continues to issue debt specifically to acquire more Bitcoin.

Assessing the Realism of Bitcoin’s Sky-High Predictions

It is crucial to examine some of these assumptions critically. When someone claims that Bitcoin could skyrocket in value by 20,000%, caution is warranted. A price of $13 million would imply a valuation exceeding $250 trillion for Bitcoin, eclipsing the total market cap of the entire S&P 500. This outcome would position Bitcoin as the most significant asset in the world.

Nevertheless, warning signs exist. Over the past three decades, many have grown accustomed to the idea of a major U.S. debt collapse, while several emerging nations have begun to distance themselves from the U.S. dollar. Could Bitcoin actually emerge as a reserve currency for other nations?

While I am more cautious about Bitcoin’s prospects than Saylor, I agree that it is likely to play a larger role in the global financial system over the next two decades. Hence, I am currently investing in Bitcoin and plan to hold it for the long term.

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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.