Michael Saylor, former MicroStrategy co-founder, is confident that Bitcoin is on an unstoppable trajectory to replace gold, bringing $500,000 per coin in the near term and $5 million in the long run. We are forecasting an incredible price.
Speaking on X Space on September 20, 2024, the strategy co-founder outlined three key catalysts that it believes will trigger an unprecedented Bitcoin rally.
At the time of X-space, BTC was trading at $63,000. It is currently at $97,000, an increase of 53.97%. If Bitcoin continues to grow at an average rate of 54% every five months, it takes about three years and three months to reach $5 million.
Saylor argued that even without major regulators or institutional breakthroughs, Bitcoin is already on track to outweigh gold as the dominant storage of value.
“It would be ten times more crushed just because gold is broken and Bitcoin will replace gold,” he said. “Everyone in the universe knows that there is a need for a valueless, unsauvering storage in the form of a Bearer instrument.”
As inflation concerns are the mainstream narrative, Saylor believes that Bitcoin’s role as an inflation hedge will drive progressive rise.
“Last year, people said that inflation might come. Now, the mainstream story reversed, “Inflation is here, we need inflation hedge,” he pointed out.
He said that this alone is enough to drive Bitcoin to $500,000 per coin, but three additional factors could send it to $5 million per bitcoin.
Saylor believes that if three major catalysts roll out, Bitcoin’s price could skyrocket to $5 million per coin. The first is the approval of the Spot Bitcoin ETF, he says. This allows institutions to seamlessly make large purchases.
“Someone can go ahead and buy $100 million in Bitcoin through security, ETF security. I think that’s one thing.”
The second main factor is that the banks detain Bitcoin and provide loans against it. This is a move to integrate Bitcoin into the traditional financial system and increase institutional demand.
“Your bank is going to detain it for you and lend it against it,” he pointed out.
Finally, Saylor looks at fair value that accounts for Bitcoin as a game changer on the company’s balance sheet. It could accelerate adoption if companies can report the true market value of Bitcoin, rather than being forced to write down losses. “Like processing Apple stocks and Treasury bonds, you can mark your balance sheet or mark it up based on fair value.”
The story continues