With bitcoin hovering below $60,000, the cryptocurrency community has shifted its attention toward building once again instead of price. Bitcoin bull Michael Saylor is an exception. The MicroStrategy CEO whose company holds more than 114,000 bitcoins on its balance sheet and is not done buying is looking through a long-term lens and is bullish as ever on the BTC price.
Saylor talked to CNBC about bitcoin as a store-of-value asset and his long-term view on the BTC price. He gave a scenario in which the bitcoin price doubles on an annual basis until it flips gold at the end of the current decade.
From there, he expects that it will “flip monetary indexes” as well as some bonds, real estate and equity before emerging as a $100 trillion asset class. At that point, bitcoin would comprise 5-7% of the U.S. economy, Saylor explains, suggesting that there will only be a handful of fiat currencies left standing, including the U.S. dollar, euro and the CNY.
“At the end of the decade it will have flipped gold, and then it will flip monetary indexes, a little bit of bonds, a little bit of real estate, a little bit of equity and emerge into a $100T asset class,” says @saylor on #bitcoin. “100x of where it is right now.” pic.twitter.com/PIObQ3wc0N
— Squawk Box (@SquawkCNBC) November 19, 2021
Saylor also believes that as the bitcoin price increases, volatility will decrease.
When the price is much higher, the volatility will be much lower. #Bitcoin
— Michael Saylor⚡️ (@saylor) November 19, 2021
Bitcoin vs. Gold
With inflation at a 30-year high and not expected to abate anytime soon, store-of-value assets like bitcoin and gold are out front. Gold has done what it is designed to do and has been inching higher, with the price currently hovering at about $1,860. Bitcoin recently touched on a fresh all-time high but is currently experiencing a downdraft.
Saylor said there’s a war going on for the “non-sovereign bearer instrument store-of-value” title, with bitcoin one side vs. gold and silver on the other. Even though gold’s market cap trounces that of bitcoin at $10 trillion vs. $1 trillion, bitcoin is winning and will continue doing so, according to the MicroStrategy chief. He pointed to the nimble nature of digital gold as well as the speed in which it can be transacted vs. bars of gold, not to mention the lower costs associated with the digital asset. Saylor predicted,
“It’s pretty clear, digital gold is going to replace gold this decade.”
The bitcoin price is up more than 120% since about mid-July.