TLDR
- Saylor forecasts Bitcoin will surpass the S&P 500 by 29% annually.
- Bitcoin is expected to become a foundational asset for new financial products.
- Saylor believes Bitcoin’s stability will attract institutional investors.
- Bitcoin’s lack of cash flow makes it a perfect asset for long-term wealth.
Michael Saylor, co-founder of Strategy, has made a bold prediction about Bitcoin’s future. During an interview with Natalie Brunell on the CoinStories podcast, Saylor claimed that Bitcoin would continue to outperform the S&P 500 indefinitely. According to Saylor, Bitcoin’s appreciation rate will surpass the S&P 500 by 29% annually over the next two decades. He described Bitcoin as “digital capital,” positioning it as a superior asset for long-term wealth accumulation compared to traditional investments.
Bitcoin as a Superior Asset to Traditional Investments
Saylor has long been a vocal advocate for Bitcoin as a valuable asset. In the interview, he explained how Bitcoin’s lack of cash flow and its finite supply make it ideal as “perfect money.” He drew comparisons to historic “great property assets” such as gold, diamonds, and land, which also do not produce cash flows but are considered valuable.
Saylor believes Bitcoin’s characteristics set it apart from other investment assets and make it a reliable store of value.
Saylor also addressed the volatility of Bitcoin’s price. Despite the fluctuations, he pointed out that Bitcoin has risen 99% year-on-year, which he views as a sign of its growing maturity. He explained that the price dips are often due to early Bitcoin adopters needing liquidity, but these sell-offs help move Bitcoin into the hands of long-term institutional buyers. Saylor sees this as an important step in Bitcoin’s development into a stable and reliable asset.
Bitcoin as Digital Capital and Collateral for New Credit Systems
Saylor highlighted Bitcoin’s potential to serve as a foundation for a new generation of financial products. He predicts that Bitcoin’s appreciation rate will continue to outpace traditional assets like the S&P 500. As a result, Saylor envisions Bitcoin becoming collateral for new types of credit instruments. In his view, Bitcoin-backed loans would offer higher returns and lower risks compared to traditional credit products, such as corporate or sovereign debt.
The idea of “digital credit” based on Bitcoin is one Saylor strongly supports. He suggests that as Bitcoin’s value grows, it will become a key asset for financial systems, enabling the creation of credit that is more stable and backed by appreciating assets. This, he believes, will attract even more institutional capital into the Bitcoin ecosystem, ultimately reshaping global finance.
Traditional Finance and Bitcoin’s Disruptive Potential
Saylor has been critical of the traditional finance system, particularly the 60/40 split between bonds and equities that has long been considered the standard investment strategy. He believes that this framework fails to account for assets like Bitcoin that do not generate cash flows but are still valuable. Saylor rejected the notion that capital must always be allocated based on cash-generating assets and instead argued that Bitcoin’s inherent value makes it a better store of wealth.
Saylor also noted that many traditional financial institutions, such as Vanguard, will be slow to adopt Bitcoin as a mainstream asset due to their entrenched practices. Despite this, he remains optimistic that Bitcoin will eventually disrupt the existing financial order. According to Saylor, Bitcoin offers an alternative to fiat currencies, which he views as vulnerable to inflation and central bank policies. As the value of Bitcoin continues to grow, he believes more institutions will see it as a viable option for long-term capital preservation.
Saylor’s stance on Bitcoin reflects his broader vision for its role in global finance. He sees it not only as an investment opportunity but as a tool for financial stability in a world where traditional assets may no longer be as reliable. While his views are bold, they continue to shape the conversation around the future of Bitcoin and its potential to redefine the financial landscape.
