Michael Saylor, the chief executive of the world’s largest publicly traded business intelligence firm, is revealing how Bitcoin could meteorically rise by 100x from its current valuation.
On a fireside chat with Binance founder Changpeng Zhao, the MicroStrategy head says Bitcoin needs to transform its old narrative of being a volatile, speculative asset suitable for investing 1% or 2% of one’s capital into being the ultimate safe-haven and store-of-value asset.
[adinserter block="1"]“The speculative narrative was predominant before March, but that’s not going to appeal to 99% of the investors or the money in the world. They want something different. They want, ‘Bitcoin is the ultimate synthetic, long-term treasury reserve asset. It’s an engineered safe-haven asset engineered to be superior to gold in all aspects of bearer instruments that’s a store of value.’ And if I go from one to the other, then I’m not talking about getting 1% of the money from 1% of the investors. I’m talking about getting 50% of the money from 100% of the investors.”
Should this change in narrative happen, the outspoken Bitcoin bull notes a couple of markets that could start pouring their money into Bitcoin and drastically raise the price and market cap of the leading cryptocurrency.
[adinserter block="1"]“The people that we want to appeal to are the people that put their money in gold because they don’t trust fiat instruments so that’s $10 trillion there… That gets you a factor of 20-50x there.
The second bucket is people with bonds; $17 trillion in negative-yielding debt. $100 trillion of zero to three percent yielding debt. Why are you putting money in bonds and sovereign wealth? It’s a safe haven.
So people’s reaction is, the market gets scary they run to a safe haven. I think it’s pretty important in the crypto industry and with regard to Bitcoin, you position Bitcoin as the ultimate long-duration, safe-haven asset, so they run to it instead of running to sovereign debt. That gets you again another factor of 10, 20, 30x.
And then finally you’ve got a pool of big tech investors. You could argue a lot of people are using big tech like Tesla, Apple, Amazon as a store of value. They’ve lost faith in the currency. They know they can’t invest in negative-yielding bonds. They’re not quite sure about gold.”
Saylor believes gold is simply out of date and not a big competitor to Bitcoin.
“Gold is defective. It’s an antiquated store of value. It was the best store of value for 5,000 years until we invented the computer… It was a good idea until it became not a good idea.”
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