Could BTC Eventually Be Worth $10 million?
The CEO of MicroStrategy and BTC enthusiast, Michael Saylor, has just revealed his extremely bullish views on BTC and a possible valuation of $10 million per coin.
Let’s take a look at this huge BTC-related news and a current BTC correction which may be just the boost that the crypto coin needs!
Michael Saylor Chooses BTC Over SP500 & Gold
Michael J. Saylor, CEO of MicroStrategy, a cloud-based service company, has been bullish on Bitcoin for a while now. He has even gone as far as to say that investing in Bitcoin is a much better option than putting money in traditional assets like stocks, gold, and bonds.
In an interview with John Darsie, the director of business development at Skybridge, Saylor compared BTC to other assets over the last decade. “I think that over the course of a decade, Bitcoin’s up 170% a year, every year for a decade. Nasdaq is up 19% every year for a decade and the S&P is up 14% every year for a decade. Gold is down 6 basis points a year, every year for a decade. Long bonds, 240 basis points.”
He also specifies that despite volatility concerns that scare away the majority of potential investors, the crypto asset has out-performed every other traditional asset for the past 10 years. He says that as long as investors can ignore the volatility and avoid being risk-averse, the returns are far superior.
Saylor also makes claims that the asset is very simple and straightforward and because there is no CEO or company behind it, it is very low risk. “The product is simple: it’s one 21-millionth of all the money in the network forever, so you’re getting away from the board of directors and the employee base and the regulatory nexus and the competition, and you already know there’s a demand for a non-sovereign store of value,” says Saylor.
The MicroStrategy CEO is so confident in the success of BTC, that he thinks the only reason the coin isn’t currently worth $10 million is due to the speculation surrounding it. “It’s scarce, they might say it’s a speculative store of value. But if it wasn’t speculative, it would be trading at $10 million a coin right now. The only thing that keeps it from going up by a factor of a hundred is the fact that it’s ‘speculative,’ but otherwise, it seems to me it’s a lot riskier to buy gold, it’s a lot riskier to buy a company, a stock, even a big tech monopoly.”
Will BTC’s Price Go Up Forever?
Despite Bitcoin almost doubling in valuation after the start of the year, the MicroStrategy CEO thinks that the coin’s value could go up forever. Speaking in an interview with CNBC, Saylor commented, “Our (MicroStrategy’s) view is that Bitcoin will be volatile because it’s plugged into the entire crypto market and it’s new, but it’s going up forever.”
We’ve also seen that Saylor likes to put his money where his mouth is after it was recently announced that his company purchased 9,000 Bitcoin in Q3 alone. The total bitcoin count of the company is a shocking 114,042, which equates to roughly $7.4 billion. Good thing Saylor does not seem like the pump and dump type. Microstrategy’s shares have surged by a crazy 103%, while Bitcoin has surged by almost 130% YOY. But what does the BTC correction mean for the biggest cryptocurrency in the world?
BTC’s Sight Correction
It looks like Bitcoin and the entire crypto space are going through a small correction patch. BTC, which corrected by 3% on November 10, was down another 4% on November 12.
At the time of writing, Bitcoin is trading at $62,662. Despite the coin recently rising just above $65,000, it has since gone down in value. It is still steering clear of the support level at $63,048, but with such fine margins, anything can change in a matter of hours.
But could this market correction actually be a good thing for the crypto space and BTC specifically? Let’s take a look.
$59K Could Be Good For BTC
CoinTelegraph claimed that October 12 was a very one-sided trading day since most of the coins were in the red. Currently, the losses have been at a minimum, but Coin Telegraph stated that BTC’s behaviour was now showing signs of breaking down.
On the chart below in @galaxyBTC’s tweet, it shows that BTC was trading at just under $64,000 and has since corrected a little bit more. This shows that the prediction was correct, but the long-term sentiment is still very much bullish.
In fact, many trading analysts have claimed that the correction is a good thing. The $9K to $61K zone will be a very important one in the coming days. One of these analysts goes by the name of ‘Galaxy’ on Twitter.
This pullback is believed to be due to rumours surrounding high inflation prices. The United States is believed to be hitting the highest inflation that it has faced in over 30 years. This bearish news has caused the derivatives markets to face extreme volatility, which has led to a slight dip in the prices of most altcoins.
But analyst William Clemente believes this to be nothing more than a temporary correction. He states that the upcoming Bitcoin upgrade, ‘Taproot’, will have a very positive effect on BTC in the coming weeks and months.
Taproot will supposedly be a host of protocol improvements for Bitcoin and will look to solve some of the bugs and issues that currently exist with BTC.