Even though the world’s largest cryptocurrency is approaching its all-time high of $100,000, MicroStrategy co-founder and chairman Michael Saylor still believes it has about 12,900% more room to rise.
He told CNBC on Friday that Bitcoin should deliver an annualized return of 29% over the next 21 years.
“Bitcoin’s current average annual return (AAR) is 60%, and it will slow down toward 20% over the next 21 years, and volatility will decrease,” Saylor said.
In short, Thaler believes that as Bitcoin’s adoption grows and its investor base expands, its volatility should decrease significantly. If this is true, then the days of Bitcoin experiencing painful retracements of over 80% are gone.
Saylor predicts that Bitcoin's volatility will decrease, indicating that the future returns of the cryptocurrency should be more sustainable.
Saylor's bullish view on Bitcoin is further supported by Trump's election victory earlier this month and the Republican sweep for control of both houses of Congress.
I think the red wave is very bullish for Bitcoin, Saylor said.
Republicans promised to embrace cryptocurrency during their campaign, which could promote legislation supporting the industry and even establish strategic Bitcoin reserves.
Senator Cynthia Lummis suggested to CNBC last Thursday that the Federal Reserve should sell some of its gold holdings to buy Bitcoin.
Saylor puts his money where his mouth is, using his company as a vehicle to acquire large amounts of Bitcoin.
MicroStrategy holds 331,200 Bitcoins, worth over $30 billion, and the company is raising debt through convertible bonds to continue its buying spree.
Ultimately, I believe the right way to think about it is that compared to the traditional S&P 500 index, it will always be a more powerful capital asset, Saylor told CNBC.
He added, "My prediction is that by 2045, the price of Bitcoin will reach $13 million each. I tell everyone, if you don't buy a Bitcoin today, you'll have to spend $13 million to buy one in the future."
Article reposted from: Jin Shi Data
