The Unstoppable Rise of Bitcoin: Why $8 Million per Coin is Not as Far-Fetched as You Think
The meteoric rise of Bitcoin has left many in awe, and according to Michael Saylor, the executive chairman of MicroStrategy, this is only the beginning. At the Bitcoin Prague event in June, Saylor predicted that Bitcoin could eventually hit a value of $8 million per coin. While this may seem like an outlandish claim, there are two very good reasons why Saylor might just be right.
The Perfect Money
Bitcoin has some very specific properties that distinguish it from traditional money. For one, it has a finite supply, which means that it is anti-inflationary and a superior long-term store of value. Additionally, it is a completely decentralized currency, meaning that no sovereign power or government can control it. These properties, according to Saylor, make Bitcoin “perfect money.”
Bitcoin’s decentralized nature sets it apart from traditional currencies.
Over time, Saylor suggests that the differences between Bitcoin and traditional currencies will become even starker, and that will lead to capital flowing into assets denominated in Bitcoin rather than dollars. It might also lead to Bitcoin revolutionizing the global financial system, as the world moves to a new Bitcoin standard.
Corporate Immortality
Saylor is also at the forefront of suggesting that companies add Bitcoin to their balance sheets as a treasury asset. This approach, pioneered by MicroStrategy, has led to the company becoming the largest corporate holder of Bitcoin in the world. According to Saylor, holding Bitcoin on a corporate balance sheet creates the potential for “corporate immortality.” Since the value of Bitcoin will increase in perpetuity, so will the value of a company.
MicroStrategy’s aggressive Bitcoin buying strategy has made it the largest corporate holder of Bitcoin.
To illustrate this point, Saylor points to the last 100 years of U.S. economic history. How many companies still exist from 100 years ago? A handful at best. In contrast, the final sliver of the last Bitcoin will be mined in the year 2140, so companies that hold significant amounts of Bitcoin today theoretically have the potential to live for at least 100 years.
While Saylor’s $8 million price prediction may seem highly unlikely, it’s hard to deny that the U.S. government is running unsustainable deficits. By some estimates, the U.S. is adding $1 trillion in new debt every 100 days. At some point, people are going to stop buying U.S. government debt, and that’s when the “Bitcoin is perfect money” scenario might start to play out.
“Everybody gets Bitcoin at the price they deserve.” - Michael Saylor
Bitcoin’s price chart shows its potential for growth.
While I remain unconvinced that Bitcoin is about to hit a price of $8 million anytime soon, I am convinced that there appears to be a paradigm shift taking place in the global economic order. For that reason, I’m growing increasingly bullish on Bitcoin’s ability to rise in value over the long term.
