What Happened: MicroStrategy MSTR CEO Michael Saylor believes that Bitcoin’s market value will continue to rise to $100 trillion.
Earlier today, Saylor told CNBC that the cryptocurrency would continue to appreciate to become a “stabilizing influence” for the global financial system.
Why It Matters: Bitcoin price recently crossed $1 trillion in market cap, but its price fell sharply earlier today, taking its market cap with it.
Saylor’s predictions for the asset effectively mean he foresees a 100 times increase in its current market value.
“There’s a $500 trillion monetary planet, and the outer layer is currency, then you’ve got stocks, bonds, real estate. There’s $10 trillion worth of gold in there, $1 trillion of bitcoin in there. Bitcoin is going to flip gold, and it’s going to subsume the entire gold market cap,” said Saylor as he made his case for predicting such a drastic increase in value.
After Bitcoin crosses gold’s market cap, Saylor says it will subsume negative yielding sovereign debt and other monetary indexes until it grows to $100 trillion.
According to him, “Once it gets to $10 trillion, its volatility will be dramatically less. As it marches toward $100 trillion, you’re going to see the growth rates fall, the volatility fall, and it’s going to be a stabilizing influence in the entire financial system of the 21st century.”
What Else: Saylor is a known proponent of Bitcoin, and his decision to allocate over $1.15 Billion of MicroStrategy’s cash holdings to Bitcoin has largely benefited its share price – MicroStrategy is up over 300% since the announcement of its initial Bitcoin purchase.
Yes. I have purchased over $1.3 billion in #BTC in past months & would be happy to share my playbook with you offline - from one rocket scientist to another.— Michael Saylor (@michael_saylor) December 20, 2020
Saylor is also believed to have played a part in Tesla’s TSLA $1.5 Billion Bitcoin purchase.
Image: Screeshot of TV episode
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