Why does Michael Saylor see US$13 million in Bitcoin?

In July 2024, Michael Saylor, chairman of the Strategic Company (formerly MicroStrategy), took part in a Bitcoin Conference in Nashville, USA, where his paper predicted the billionaire prices for the currency created by Nakamot Sato in 20 years.

The largest list of Bitconners recognized, Saylor, is a project in which Bitcoin (BTC) has a price of $3 million at the bearish stage. Optimistic $13 million And in the most extreme cases, it costs up to $50 million.

Before continuing, it is important to note that the strategy is currently the public company with the largest Bitcoin reserve and has 499,096 BTC in the Ministry of Finance.

Thanks to this business model, The company holds the 14th place among S&P500 companiesan index that connects the most valuable companies in the United States.

Aside from the enthusiasm these predictions create among the Bitconner community, it is worth asking. What analysis did Saylor do to reach an objective price of 13 million per BTC?

Financial Markets Analyst Jesse Myers revealed that businessmen used a study they conducted in February 2023.

Furthermore, Myers uses the “Max Potential Assessment” frame to predict and suggest the future value of the currency created by Nakamoto Atoshi. Employment as a reserve asset can lead to acquiring a key portion of the marketbonds, money, actions, real estate, or artwork found.

As can be seen in the following graph, if BTC continues its adoption trajectory as a value reserve, its price could rise over the next 20 years. The red line represents annual growth rate, while the yellow bar is the price of digital currency.

At this starting point, Myers notes in his report that Saylor needs to determine the capital that absorbs BTC from other reserve assets groups, and how this process can be absorbed quickly.

At the time, the company’s president focused on computer services through his X account, with Bitcoin “competing with gold, collectable articles, art, behavior, bonds and money as value deposits of the 21st century.”

All Total Values These assets in circulation add $900 billion. For Myers, “BTC maintains the most attractive properties of investment panorama value reserves, but it continues to be. BTC is a black hole in the balance of the world.” Furthermore, he believes:

“What makes Bitcoin different (generally as an asset of value and as a specific raw material) is that the market must absorb half of its new offers from mining every four years. In 2016, the annual supply growth rate was 3.6%. Today, 1.8%. 2024, 0.9%. 2028, 0.45%, etc. And no one in the world can change its relentless rhythm.”

Jesse Myers, financial market analyst.

Specialists also emphasize that BTC is a savings technology for increasing shortages and early adoptionunlike fíat money. “Dolol Design makes it a bad savings technology, so everyone saves action and real estate,” he says.

As Cryptootics reports, Bitcoin supply is limited to 21 million units, and its broadcasts are reduced by four-year events known as half. This is a factor that affects the price of an asset in the medium and long term

Its inherent rarity attracts both large and small investors.

Another problem that generates interest is unlike fíatmoney; The BTC has not been devalued at all times by central bank issuance or monetary policy.

$13 million from Bitcoin

To reach the price of $13 million per BTC, Myers proposes to acquire value reserve assets and analyze each of these categories to calculate the current potential valuations of capital that can be moved to BTC. So it gets “rational and conservative” projections of future growth.

The first row includes value reserve assets such as gold, collectable goods, artworks, real estate, bonds, fia money, and stock markets.

The second column shows the total value of each type of assets, while the third column shows the percentages that BTC can capture, according to Myers’ estimates. For example, it is estimated that BTC can absorb 50% of that total for gold, worth $12 billion. This amounts to $6 billion (column 4).

Adding all asset categories, the analysis suggests that Bitcoin can win up to $200 billion in total value. Based on this forecast, the price of BTC would reach $10 million. “If this happens, it will be the most important event in financial history,” says the specialist.

Michael Saylor, who applies the same method, projects even bigger estimates. We will place the BTC price at $13 million.

Finally, the analyst emphasized: “Bitcoin’s total potential is to absorb around 25% of the world’s value, but today it accounts for just 0.05%. That’s ridiculous. I think Bitcoin can effectively multiply by 500 in the next few decades (adjusted to inflation).