Analysis for $10 million per Bitcoin gets a nod from Michael Saylor of CoinEdition

• Former MicroStrategy CEO Michael Saylor says Bitcoin’s value could reach $10 million per coin, based on analysis by Twitter user Croesus.
• Croesus argues that Bitcoin’s increasing scarcity and its ability to enhance gold’s strengths make it a superior store of value.
• The analyst notes that Bitcoin’s current market cap represents less than 10% of the global store of value market.

Former MicroStrategy CEO Michael Saylor expects the price to reach $10 million per coin. Highlighting an analysis by Twitter user Croesus, Saylor noted that Croesus had made a compelling case for Bitcoin’s value.

#Bitcoin competes against gold, collectibles, art, stocks, real estate, bonds and money as a 21st century store of value. @Croesus_BTC analyzes the opportunity and makes a compelling case for $10M per $BTC.https://t.co/eLqJCYeCKW

— Michael Saylor (@saylor) February 19, 2023

In his analysis, Croesus explains that Bitcoin’s growth engine is its increasing scarcity, which will continue into the future, and that Bitcoin is designed to enhance gold’s strengths and address its weaknesses.

He further argues that the market for store of value assets is separate from industries and that different assets are valued for different reasons. Some appreciate in value, some maintain purchasing power, while others shrink over time. This means that Bitcoin competes with all assets, including stocks, real estate and bonds, not just gold.

According to Croesus, the value of traditional assets is constrained by key variables in their respective valuation equations, such as future cash flows, discount rates, mortgage rates and new supply. In contrast, the valuation of Bitcoin is driven by its scarcity and security, which is “absolute, incorruptible and inviolable”, and is not affected by new supply, interest rates or economic factors.

As such, he argues for a valuation of $10 million per Bitcoin based on the assumption that Bitcoin will to some extent replace gold as a global reserve asset. While this may seem like an overly optimistic prediction, Croesus notes that Bitcoin’s current market cap represents 0.05% of the global store of value market, which includes gold, real estate and other assets. He added:

I think Bitcoin’s full potential is to eat up ~25% of the world’s value…whereas today it’s only 0.05%. It is absurd. That means I think Bitcoin could 500x over the coming decades, in real (inflation adjusted) terms.

As such, he concludes that Bitcoin’s value proposition as a superior store of value, with no counterparty risk, no dilution and no inflation, makes it a compelling investment opportunity for long-term investors, especially in the face of the unprecedented. money printing by central banks worldwide.

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