MicroStrategy co-founder Michael Saylor believes Bitcoin could skyrocket by 13,800% to $13 million per coin by 2045. He argues that Bitcoin’s decentralised nature and finite supply make it ideal for tokenising global assets. The potential market cap would exceed $273 trillion, raising questions about feasibility. However, even without lofty predictions, Bitcoin might still be a good investment, with potential as a digital store of value akin to gold.
Bitcoin (BTC) continues to be the headliner in the cryptocurrency world, boasting a market cap of around $1.8 trillion. This accounts for over half of the total $2.9 trillion valuation of all cryptocurrencies in circulation, as of now. Michael Saylor, co-founder of MicroStrategy, believes there’s significant growth potential ahead, even claiming that Bitcoin could see a staggering 13,800% appreciation by 2045, reaching about $13 million per coin.
Saylor’s predictions are backed by his actions—MicroStrategy has converted itself mainly into a holding company, now owning over 538,000 Bitcoins valued at around $50 billion. But, one must pause and consider, how realistic is his lofty price target? Saylor argues that Bitcoin can overhaul our existing financial structures.
The current systems are often inefficient. For instance, real estate in the U.S. lacks a central database, which leads to inflated legal fees and prolonged buyer-seller negotiations. Additionally, companies track their intellectual property via opaque internal systems, raising questions about fair valuation for investors. Saylor believes these hurdles could be alleviated through “tokenization,” transferring ownership rights of all assets onto the blockchain. With this, information about properties and shares would become public, streamlining transactions.
Since Bitcoin is intrinsically decentralised—meaning no single entity can control it—Saylor posits it’s the ideal reserve asset for this tokenization journey. He envisions Bitcoin as the currency people will utilise for buying or selling tokenised assets. With an estimated $500 trillion in global assets, he anticipates that it might take until 2045 for his vision to become reality, hinging on a supportive digital asset framework from the U.S. government, a prospect he links to Trump’s crypto-friendly administration.
However, the price target provided by Saylor is unprecedented. His $13 million estimate would result in a market cap of $273 trillion for Bitcoin, which is about nine times the annual output of the U.S. economy. For perspective, this would mean Bitcoin would be nearly six times the total worth of the S&P 500 companies, valued now at $47.5 trillion.
But, the skepticism remains. Many experts, including Cathie Wood from Ark Investment Management, forecast Bitcoin reaching only $1.48 million by 2030 at the most optimistic. The path to tokenising every global asset is fraught with political and operational inefficiencies, and relying on a single currency for the global financial system could lead to serious problems.
Take Greece, for example—it uses the euro, which binds its currency to Germany, putting it at a disadvantage during economic downturns due to differing productivity levels. This bind denies it from adjusting its monetary policy to improve its economic standing, a scenario that might amplify under a global Bitcoin adoption.
That said, Bitcoin remains a worthwhile investment even outside of Saylor’s predictions. Many consider it a digital analogue to gold, especially with newly available exchange-traded funds (ETFs) making it more accessible and regulated. Currently, gold reserves total approximately $22.5 trillion, meaning Bitcoin’s market cap would need a 1,150% increase to match, translating to a price per coin of about $1,071,400. While reaching this target isn’t guaranteed, it’s arguably more realistic than Saylor’s exuberant forecast.
Lastly, it’s crucial to remember that Saylor’s exuberance is influenced by his company’s stake in Bitcoin, having over 538,000 units. Thus, his predictions carry a certain personal interest, reminding investors to approach his forecasts with caution.
