Bitcoin Price Prediction: BTC Will Have $100 Trillion Valuation, Says MicroStrategy CEO

MicroStrategy CEO Michael Saylor has made a bold prediction about the future of Bitcoin: a $100 trillion market value.

Speaking on CNBC’s Squawk Box, the CEO said he thinks the dominant cryptocurrency will continue to appreciate and that at some point in the future, will become a stabilizing influence for the global financial system.

According to Saylor, the current value of the entire monetary system is $500 trillion. Much of these are national currencies, followed by equities like stocks, bonds, then real estate. Saylor believes the first target of Bitcoin is eclipsing gold’s market capitalization. “There’s $10 trillion worth of gold in there, $1 trillion of Bitcoin in there. Bitcoin is going to flip gold, and it’s going to subsume the entire gold market cap,” he said.

At some point, Saylor said Bitcoin will subsume negative-yielding sovereign debt as well as other monetary indexes until it reaches the $100 trillion value. On the subject of volatility, Saylor is unconcerned. “Once it gets to $10 trillion, its volatility will be dramatically less,” he added.

MicroStrategy owns 71,079 BTC, making it the public company with the largest Bitcoin holdings. The Bitcoin holdings were bought at a base price of $1.14 billion, but their current value is now $3.6 billion. Most recently, the company completed another debt offering worth $1.05 billion, which would allow it to buy another round of Bitcoins in the future.

The CEO also owns Bitcoins, in addition to MicroStrategy’s Bitcoin holdings. Forbes said Saylor is one of cryptocurrency’s 11 billionaires, which included Tyler and Cameron Winklevoss of Gemini and Brian Armstrong of Coinbase.

Microstrategy kickstarted the trend in public companies purchasing Bitcoin and putting it in their reserves. Following Saylor’s lead, Square also invested $50 million of its cash into Bitcoin. This year, Tesla said in its SEC filing that it bought $1.5 billion worth of Bitcoins while Square added more BTC into its portfolio. With MicroStrategy’s recent debt offering, it might be a while before other companies can catch up with the number of Bitcoins in its reserves.