Bitcoin (BTC 0.48%)) is the largest cryptocurrency in the world. It has a market capitalization of 1.8 billion of dollars to date, which represents more than half of the total value of all parts and tokens in circulation in industry, which currently amounts to 2.9 billions of dollars.
Microstrategy (Mstr 5.20%)) The co-founder Michael Saylor thinks that there is still a substantial advantage in advance, because he predicts that Bitcoin will reshape the entire financial system thanks to its decentralized nature, its capped supply and its secure file system called the blockchain. According to his forecasts, Bitcoin could survive 13,800% by 2045, reaching $ 13 million per room.
Saylor supports his prediction with action – he has effectively transformed microstrateggie into a holding company which is now on more than 538,000 bitcoins, valued at $ 50 billion. But to what extent is its long-term price objective realistic?
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Saylor thinks Bitcoin could reshape the financial system
It is undeniable that existing registration systems are quite ineffective. For example, there is no centralized baseline database in the United States, which means that the purchase and sale of goods often involve significant legal costs and a long reasonable diligence process. In addition, intellectual property belonging to companies is followed by their own internal systems with very little transparency, it is therefore difficult for investors to determine if it is appreciated equitably.
Saylor thinks that many of these problems can be resolved by “token” all global assets, which means to move their files and their property rights to the blockchain. This means information on each real estate element, and each action of each company will be accessible to the public, which would simplify transactions.
Since Bitcoin is completely decentralized and cannot be controlled or manipulated by a person, a business or a government, Saylor thinks that it is the perfect reserve asset for the tokenization process. It would be the currency that people use when buying, selling or transferring token workers, so everyone should have a little bitcoin to participate in the new financial system.
There are around 500 billions of dollars in the world, so Saylor thinks he could take until 2045 for his vision to become a reality. He thinks that the first step is to create a digital asset framework (a system of rules and laws), which could be possible under President Donald Trump because he has gathered one of the most pro-Crypto administrations in history.
If Saylor is right, he thinks that this new financial system could possibly increase to $ 13 million.
A dizzying evaluation
Saylor’s price objective for Bitcoin is by far the highest in industry. Even Ark’s investment management of Cathie Wood – which is very positive in cryptographic space – thinks that Bitcoin will “only” $ 1.48 million by 2030 in the most optimistic scenario of the company.
The target of courses of $ 13 million in Saylor would give Bitcoin a fully diluted market capitalization of 273 billions of dollars, about 9 times higher than the annual production of the entire American economy. This would also make bitcoin almost 6 times more precious than the 500 companies in the S&P 500 Combined, which is currently worth 47.5 billions of dollars.
Personally, I don’t think Bitcoin Never reach these heights. The effort to tokenize each asset in the world will meet monumental political challenges, and the management of the global financial system using a single currency will also create substantial ineffectiveness. The economy of each nation operates at a different speed, which is why the euro, for example, has created problems for countries like Greece.
The Greek economy generates around $ 243 billion in annual results, it is therefore much smaller than the German economy, which generates around 4.5 billions of dollars in annual activity. Normally, Greece would have a much lower currency, which would make its exports cheaper and more attractive to its global business partners. But because the two countries use the euro, Greece is locked in the same exchange rate as Germany, which pleases it in a disadvantage because it cannot adjust its currency to compensate for its lower economic position. Greece is essentially forced to operate on unequal terms, crushing its competitive position.
This would become reality for dozens of countries if the world agreed to adopt Bitcoin (even if it is only used to buy and sell assets, as this could worsen existing asymmetries in purchasing power), creating a major obstacle for the vision of Saylor.
Bitcoin could always be a good purchase at the moment
Bitcoin could still have an upward potential even if you put aside Saylor’s forecasts. Many investors consider cryptocurrency as a reserve of value, a bit like a digital version of gold. The availability of the funds negotiated on the stock market (ETF) has added credibility to this idea, as financial advisers and institutional investors can now have a Bitcoin in a safe and regulated manner.
The total value of all gold reserves above the ground is currently 22.5 billions of dollars. Bitcoin market capitalization is expected to increase by 1,150% to correspond to this, translating by a price per piece of $ 1,071,400. There is no guarantee that it will never happen, but it could be a more feasible target than Saylor in the long term.
It is important to remember that the Saylor Society, Microstrategy, has more than 538,000 bitcoins, so he “speaks his book definitively” when he issues extremely bull.
