Why Michael Saylor Expects Bitcoin to Hit $13 Million by 2045

• Michael Saylor predicts that Bitcoin will deliver annual returns of 29% over the next 21 years.

• Saylor attributes Bitcoin’s potential rise to greater investor acceptance and lower volatility.

• Republican control in Washington could lead to bitcoin-friendly policies that would further boost its value, Saylor said.

Even though the cryptocurrency is nearing a record high of $100,000, Michael Saylor is still predicting a huge gain of around 12,900%.

MicroStrategy’s co-founder and chairman told CNBC on Friday that Bitcoin should deliver annual returns of 29% over the next 21 years.

“My long-term forecast is 21 years, ARR 29%. Right now we are at 60% ARR, over the next 21 years it will go down to 20% ARR and volatility will go down,” Saylor said.

Simply put, Saylor believes that as Bitcoin grows in popularity and its investor base expands, its volatility should decrease significantly. If this works, then the days of Bitcoin experiencing painful drawdowns of more than 80% will be over.

Saylor’s prediction that Bitcoin’s volatility will decrease suggests that the cryptocurrency’s returns should be more resilient in the future.

Another bullish factor for Saylor is Donald Trump’s election victory earlier this month and the Republican victory in Congress.

“I think the red wave has been incredibly bullish,” Saylor said.

Republicans embraced cryptocurrency in the last election cycle, and this could lead to legislation supporting the industry and even the creation of a strategic bitcoin reserve.

Senator Cynthia Lummis suggested to CNBC on Thursday that the Federal Reserve should sell some of its gold reserves to buy bitcoin.

Saylor puts his money where his mouth is, using his company as a vehicle to acquire massive amounts of Bitcoin.

MicroStrategy owns 331,200 bitcoins, worth more than $30 billion, and the company is raising debt through convertible bonds to continue its buying activity.

“Ultimately, I think the right way to look at it will always be that it will always be a stronger equity asset relative to the traditional S&P index,” Saylor told CNBC.

He added: “My forecast is $13 million per coin by 2045, and I tell everyone that every Bitcoin you don’t buy today will cost you $13 million in the future.”

Read the original article on Business Insider.