The CEO of Microstrategy says that Bitcoin will emerge as a $100 trillion asset class and grow 100 times more than it is today. He said cryptocurrency is winning against gold as a store of value and he is not worried about regulation. “I am not at all bothered by the regulations in force now.”
“Bitcoin wins, gold loses” as a store of value
Michael Saylor, CEO of Microstrategy, spoke about the future outlook for bitcoin in an interview with CNBC on Friday. He discussed institutional adoption of bitcoin, cryptocurrency regulation, market volatility, gold versus bitcoin, and BTC as the world’s dominant digital asset and a safe investment.
His company currently owns 114,042 BTC. He was asked if he would continue to accumulate bitcoin at the current price or wait for further declines. He replied, “We will continue to pile up forever.”
On the topic of bitcoin versus gold, Saylor was asked if he thinks “Bitcoin has replaced, is going to replace gold, or is in the process of replacing gold as a store of value for most investors.” Pointing out the advantages of bitcoin over gold, such as ease of transportation and low storage cost, he said:
It’s very clear that Bitcoin is gaining, gold is losing… and will continue… It’s very clear that digital gold will replace gold this decade.
Regarding regulation, including the controversial crypto clause in the $1 trillion infrastructure bill, Saylor said, “I’m not at all bothered by the regulations that are in place right now.”
He explained that “a safe haven for institutions is the use of bitcoin as a store of value,” stressing that “Bitcoin is the only ethical, technical and legal safe haven in the entire crypto ecosystem.”
The head of pro-bitcoin Microstrategy noted that the cryptocurrency regulations being discussed in Washington “will have an impact on security tokens, [decentralized finance] Exchanges, cryptocurrency exchanges, and all other use cases for cryptocurrencies that do not belong to bitcoin.”
‘Unstoppable’ – Bitcoin will become a $100 trillion asset class, a 100-fold increase
Saylor was also asked what he expects in terms of a realistic bitcoin price target and whether he sees BTC being worth $1 million one day. He replied that if bitcoin doubled every year, then:
At the end of the decade you’ll have flipped gold, and then cash indices, a little bit of bonds, a little bit of real estate, a little bit of equities, will have flipped and emerged as a $100 trillion asset class. So, 100 times more than it is now.
He continued, “When we get there, it will be 5% to 7% of the global economy. The US dollar is likely to replace 150 currencies. There will probably only be 2 to 3 left. There may be the euro, the Chinese yuan, and the dollar. Everything else will most likely disappear. Then Bitcoin will be the global monetary benchmark. If you simply want to keep your money, and you don’t want to express credit sentiment, stock sentiment, or some sentiment about property or real estate.”
Finally, Saylor was asked how countries would react to the scenario he described and whether Bitcoin was unstoppable or whether reaching the point he described would depend on governments. He emphasized:
I think bitcoin is unstoppable as a digital property.
He proceeded to explain that there would be three categories of countries. He described communist countries, such as North Korea, “will not give you property rights” and “will not allow you to own anything,” adding that “they will probably ban it.”
The second category includes countries with weak currencies. They will have “capital controls. They will let you own it but they don’t want you to trade it in.” He then noted, “It is not illegal to own bitcoin in China. They just don’t want you to take billions of dollars out of their economy.”
The third category includes Western countries that have strong currencies such as the US dollar. Of course, that would be considered proprietary, said Saylor. “You’ll pay capital gains tax when you sell it.”
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