The prediction from MicroStrategy Chief and billionaire Michael Saylor suggests a potential 13,761% surge for this specific BlackRock Index Fund.
Michael Saylor's year has been outstanding. His company, MicroStrategy (MSTR 6.58%), which he co-founded around 35 years ago, has seen a surge of over 500% in 2024. As a result, Saylor's net worth has increased by approximately $1 billion, as reported by Fortune.
The primary driver behind MicroStrategy's success and Saylor's wealth growth is Bitcoin (BTC 4.79%), the world's leading cryptocurrency. Given that MicroStrategy is its largest publicly traded holder and Saylor is a significant Bitcoin private owner, the cryptocurrency's gains have significantly contributed to their prosperity.
Saylor projects an even brighter future for Bitcoin, predicting a potential rising of more than 13,760% for one specific BlackRock index fund. Saylor is vocal about his optimism regarding Bitcoin's growth, expressing his belief that Bitcoin could potentially hit $13 million by 2045.
His reasoning involves two main points. Firstly, Saylor proposes that Bitcoin's current minimal proportion of 0.1% of the world's total capital will increase significantly by 2045, reaching up to 7%. Secondly, he points to Bitcoin's past annual returns of 46% during the past four years, and predicts that its future annual returns will be 29%, leading him to estimate a $13 million target for 2045.
An exchange-traded fund (ETF) that tracks Bitcoin's spot prices is the iShares Bitcoin Trust (IBIT 4.19%). Launched early this year by the world's largest asset manager, BlackRock, the ETF gained approval from the Securities and Exchange Commission (SEC) for spot Bitcoin ETFs.
Spot Bitcoin ETFs aim to parallel Bitcoin's price by purchasing and holding actual Bitcoin tokens in reserve. Each ETF share corresponds to a fraction of a Bitcoin, safeguarded in a custodial account managed by the fund manager. As expected, iShares Bitcoin Trust has mirrored Bitcoin's returns in 2024.
Purchasing a Bitcoin ETF presents investors with advantages, such as avoiding the operational, tax, and custody complications associated with obtaining actual tokens. While ETFs have minor fees to cover fund marketing costs, iShares charges 0.12% of investors' holdings until January 11, 2025, or until the $5 billion asset threshold is reached, at which point the fee increases to 0.25%.
Whether Saylor's prediction will materialize is uncertain. Predicting prices, especially for volatile cryptocurrencies, can be challenging even for established blue-chip stocks, and this price projection is set more than two decades down the line. Moreover, the law of large numbers suggests that as Bitcoin's price escalates, achieving the same remarkable gains could become increasingly difficult.
However, Bitcoin currently boasts several favorable factors. The incoming Trump administration's regulatory stance may become more favorable toward the crypto industry. There's a possible relaxation of the SEC's Staff Accounting Bulletin-121, which currently makes it more complicated for banks to safeguard cryptocurrency assets.
Furthermore, an escalating dollar inflation could benefit Bitcoin, as some fear that Trump policies might spark higher consumer prices. Bitcoin is increasingly being perceived as a digital variant of 'gold,' making it more enticing as an asset for investment purposes.
Saylor is placing a daring bet on Bitcoin, which in turn translates to a wager on the iShares Bitcoin Trust. While I don't anticipate Bitcoin reaching $13 million per token, it does show promise for a prosperous future in the cryptocurrency market. Investors could consider allocating a portion of their portfolios to Bitcoin, viewing it as a potential long-term asset.
Given Michael Saylor's conviction in Bitcoin's growth, he encourages investors to consider allocating a portion of their portfolios to Bitcoin or its relevant ETFs, such as the iShares Bitcoin Trust, to potentially benefit from its potential long-term growth. With Bitcoin's increasing perceived value as a digital form of gold and potential regulatory changes, investing money in this cryptocurrency could offer appealing finance opportunities.
