- 2036
- Posts
- š Crypto billionaireās new prediction
š Crypto billionaireās new prediction
PLUS: how long should you hold BTC?
GM everyone. This is 2036.
Youāre probably familiar with Michael Saylor. Heās the founder of Microstrategy, one of the largest Bitcoin holders in the world (ā¼$8.3 billion BTC on their balance sheet).
Michael is very smart, and heās a fantastic bitcoin bull. Heās the chief marketing officer we didnāt know we needed.
Earlier this week, Michael was on CNBC. And he brought the heat š„
He was on for ā¼10 min, dropping wisdom bombs left and right.
But if you donāt have 10 min, here are the most important things he said:
1/ After buying Bitcoin, Microstrategy has been the best-performing stock in the S&P 500 š
Microstrategy started buying Bitcoin in August 2020. Since then, the company has become a form of leveraged exposure to Bitcoin.
And the betās paid off. Its performance has beaten even NVIDIA - and Bitcoin itself.
During the dotcom crash, Michael fell out of the billionaireās clubā¦ but with his stock up 10X in the last 4 years, heās back in.
2/ Michael Saylor predicts Bitcoin will reach $13 million š®
Hereās how he gets to that number: in recent years, Bitcoin has increased 44% per year on average (vs. 12% for the S&P).
He says this will eventually fall to 40%, then 35%, then 30%, etc., until Bitcoin reaches $13 million in 2045.
After that, it will outperform the S&P500 by about 8% per year, with slightly more volatility.
Fade him at your peril.
Oh, and the big catalyst for the next leg up? Banks custodying Bitcoin for their clients.
3/ The way to capture those returns is to hold Bitcoin for 4+ years ā
Iāve covered this a million times before: crypto works in 4-year cycles, and holding majors through an entire cycle practically guarantees youāll outperform any other asset on the planet.
But hereās the thing: holding through volatility is hard.
When everything else goes UP, and crypto goes NOWHERE (or down) for months at a time, itās difficult to hold. Thatās why many people panic-sell (and FOMO-buy when crypto outperforms).
But volatility is the price we pay for high returns.
4/ Bitcoin is the ultimate safe asset š”ļø
Hereās why: Bitcoin is an asset without counterparty risk.
When sh*t hits the fan, you donāt want to be a counterparty to any country, city, currency, commodity, culture or company (thatās a lot of ācā-s there).
You also donāt have to guess whether Picasso paintings, New York real estate or NVIDIA stock will be higher in 10 years.
All you have to do is buy a fraction of the worldās purest form of money - BTC.
Ok - so why does this matter?
Because baked into Michaelās prediction is a key lesson in crypto: buy the right thing and be patient.
The good times will return. Itās just a matter of time.
When in doubt, zoom out.
[You can watch the full Michael Saylor segment here.]
šÆ What does an ideal crypto portfolio look like? How do you spot winners? How do you avoid FOMO? How and when should you take profits?
Get these answers (and many more) in Enter, Earn & Exit, my 2024 blueprint for investing in cryptoā now available again for the first time since February (get $100 off using code ā2024ā)
This newsletter is sponsored by Kudos.
Itās time to STOP using Honey and Credit Karma
Kudos: The all-in-one app that outshines Honey, Credit Karma, and Apple Pay. Maximize rewards at 3M+ stores, discover top card deals with The Points Guy, and enjoy one-click checkouts. Pick your best card, earn more cashback, and simplify online shopping. Kudos does it all.
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.