Cryptocurrencies

Bitcoin towards a market cap of $ 300T? Michael J. Saylor’s demonstration is more than solid

asset managers understand bitcoin

Bitcoin has just celebrated the 12th anniversary of the official launch of its network. When Bitcoin was launched in the most complete anonymity by Satoshi Nakamoto on January 3, 2009, he himself should not have imagined that a Bitcoin would ever reach the price of $ 40K. Yet this is what happened at the start of 2021. For Michael J. Saylor, everything that happens today is only the goal. MicroStrategy CEO believes Bitcoin capable of reaching a market cap of $ 300T one day. Overview of his demonstration which really makes sense.

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Preamble

The year 2021 has started off as amazingly for Bitcoin as the year 2020 has ended. Bitcoin ended the year 2020 by chaining All-Time High (ATH) to All-Time High for its price. The start of 2021 saw Bitcoin do the same with a (temporary) ATH of $ 41,946 reached on January 8, 2021.

I’m talking about temporary ATH here, as the price of Bitcoin is set to go much higher in the months and years to come. Regardless of the corrections that await the price of Bitcoin in the months to come, the price of Bitcoin retains the potential to rise such that the current price will appear extremely cheap in the future.

On January 8, 2021, Bitcoin also broke its record in terms of market cap, reaching almost $ 780 billion.. This is a colossal sum which is more than two and a half times greater than the maximum market cap reached by Bitcoin during the Bull Run at the end of the year 2017.

See Bitcoin getting closer to 1,000 billion dollars market cap has resurfaced an old question that many people ask themselves in the world of Bitcoin.

This question is: How far can the Bitcoin market cap go in the future?

Bitcoin will first surpass the gold market cap

The first step for Bitcoin is going to be to replace gold as a favorite store of value for individuals. Currently, the market cap for gold is around $ 10T. When Bitcoin reaches the current gold market cap, its price will be around $ 540K.

I mean when here, and not if. It is a conscious choice that I am making, because I believe that by the end of this decade, Bitcoin will have overtaken gold in terms of market cap. It is only a matter of time in my opinion before a majority of people finally embrace Gold 2.0.

The world is changing as it goes digital. No sector will be able to resist this digitization of the world. Gold will not escape the rule. As version 2.0 of gold within the framework of its properties which make it an incredible store of value for the greatest number, Bitcoin can only exceed gold in terms of market cap.

Once Bitcoin has seen its market cap exceed that of gold, how far can Bitcoin go?

After going past gold, Bitcoin won’t stop, that’s for sure

It will then be a big unknown in my opinion. The day we get there, we will obviously have more clues to try to put forward hypotheses to answer this question. In the meantime, we can only do foresight.

This is exactly what Michael J. Saylor, who discovered himself in Maximalist Bitcoin in the summer of 2020, just done in an interview given on YouTube. In his interview, Michael J. Saylor thinks that when Bitcoin has passed the gold market cap, it will continue its march forward to start eating the market cap of other markets.

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The first interesting thing to take away from his interview is that he believes that many organizations and investors are not using gold to protect their money from crises like the ones we are experiencing:

“It’s important to note that there are a lot of organizations and investors who don’t use gold as a safe haven. They use government debt, sovereign debt, so cash is a safe haven, and sovereign debt is a safe haven, and another safe haven that people use as a store of value is index funds. Bond index funds and equity index funds like the Russel 2000, the S&P 500, the Dow Jones index. ”

These organizations and investors use government debt, sovereign debt, or even index funds. From this observation, it is clear that the silver used as a store of value exceeds the market cap for gold.

Money used by people to protect themselves in times of crisis far exceeds the gold market cap

Michael J. Saylor “thinks there are between $ 300T and $ 400T in financial instruments: cash, debt, stocks, commercial real estate indices”. On this colossal mass of money, Michael J. Saylor believes that “between 50% and 75% are simply looking for a store of value as a container”.

The example given by Michael J. Saylor concerning index funds is relevant in my opinion:

“Like when I buy the S&P 500 Index or the Vanguard Fund, I don’t buy it because I like all 500 S&P stocks the same, proportionate to their market capitalization… I bought the index because I had a million dollars and I knew if it was cash it would weaken purchasing power so I needed to put it in something that was going to earn more than the economic cutoff rate, or the cost of capital. ”

For Michael J. Saylor, it makes sense to consider that all the money dedicated to being placed in a store of value ends up in Bitcoin. Indeed, Bitcoin is the best store of value for the greatest number of people on Earth. Buying Bitcoin simply requires having a smartphone and an internet connection.

Bitcoin could therefore drain much more than $ 100T in theory:

“In theory, all of the money energy that is simply looking for a safe haven index would likely flow from real estate, cash, stocks and bonds to the Bitcoin network and, in this case, price discovery will come back. to real estate and bonds… ”

If the top is not $ 100T, Michael J. Saylor estimates that it will instead be between $ 100T and $ 300T of today’s money :

“The top is over $ 100T, it is between $ 100T and $ 300T of today’s money.”

The price of Bitcoin could then target $ 14 million

By reaching a market cap of $ 300T, Bitcoin would see its price reach les $ 14 million. If it might sound wacky to some today, Michael J. Saylor’s demo is extremely solid once you understand that Bitcoin is the best store of value in the world.

The best store of value in the world will necessarily ultimately attract all the money intended to be protected from the ravages of monetary inflation and censorship. It is therefore only a matter of time for the Bitcoin market cap to reach heights that many still imagine unattainable.

Bitcoin is used to this anyway. Indeed, when it was created, no one would have imagined that Bitcoin would be so close to a market cap of 1,000 billion dollars.

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Bitcoin has always emerged as an outsider, and this will continue in the months and years to come. In the meantime, just one thing to do: You must have the same confidence in Bitcoin as Michael J. Saylor who has repeatedly confessed that MicroStrategy has been ready to HODL Bitcoin for over 100 years. Like what, the long term vision in Bitcoin is the key to be among those who will benefit the most.

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