Bitcoin’s most ardent supporter didn’t shy away from explaining why he thinks the cryptocurrency has many advantages.

There are few people who can claim to be bigger fans of Bitcoin (Bitcoin 0.07%) than Michael Saylor. The CEO of Microstrategy (MSTR 1.25%) became what could only be described as a Bitcoin evangelist.

Over the past four years, his company has embarked on a strategy of replacing all of its available cash with Bitcoin and, in some cases, even going into debt to buy more Bitcoin. Today, MicroStrategy owns about 1% of the total Bitcoin supply.

To some, it may seem absurd to do such a thing, but if all goes according to plan, Saylor’s decision to follow the Bitcoin strategy could make him and his company billions – especially if Bitcoin reaches its recent prediction of $8 million per coin, a value of 12,000. % increase from its current price. See how and why Saylor believes the global cryptocurrency can maintain its historic momentum.

Image source: Getty Images.

Saylor takes his shot

Over the weekend, the city of Prague hosted Europe’s largest Bitcoin conference and one of the keynote speakers was none other than Michael Saylor. Titled “21 Rules of HODLing,” Saylor’s speech elaborated on the do’s and don’ts of investing in Bitcoin, some of the lessons he learned, and, of course, a little speculation.

He touched on several points, but the most convincing highlighted the simplicity and role of Bitcoin (and why he thinks the cryptocurrency has what it takes to reach $8 million per coin).

In their eyes, Bitcoin is the main safe haven asset. Its decentralized and virtually impenetrable network makes Bitcoin immune to the manipulation that has become so prevalent in today’s financial system.

In other words, not only can holders have confidence that their hard-earned money saved in Bitcoin will be available when they need it, but it will likely be worth more over time. This is because only 21 million Bitcoins will be created and the rate at which these Bitcoins enter the market is decreasing thanks to the reduce by half.

Although terms like “proof of work” It is “decentralized networks“It may sound like a foreign language to some investors, Saylor elaborated that while the inner workings of Bitcoin may be abstract, at its core, Bitcoin is simple, reliable and constant – something that the existing economic and financial landscape cannot claim.

In today’s world, economies and markets are pushed, pulled and manipulated by the regulators and agencies that oversee them, Saylor said. He believes this inevitably ends up hurting those who are forced to play this unfair game, prone to inflation, ever-increasing debt and ever-changing policies.

But with Bitcoin, there is a way out. Holders can rest assured that there will only be 21 million coins in existence, that reductions will occur approximately every four years, and that nothing will change no matter who the chairman, president or director of some agency is. And Saylor believes the world is beginning to recognize this paradigm shift.

As more people recognize that the existing financial system is like a leaky ship that does not serve the interests of the common person, Bitcoin will benefit as it is the antithesis of fiat currencies and the ultimate cryptocurrency.

Zooming out a little

While Saylor believes there are other factors and catalysts that will influence Bitcoin’s growth (i.e. increasing institutional investor interest, financial censorship and geopolitical instability), it is the resilience and simplicity of cryptocurrency that will make it the leader of all assets and is the reason it is on track to reach $8 million per coin.

While he didn’t specify a timeline, the CEO probably doesn’t care. As he said in an interview with Fox News a few months ago: “I will buy at the top forever.” This sums up his belief that Bitcoin’s unique qualities will position it for eternal price appreciation as the destruction of the existing financial system continues.

Some things to keep in mind

Saylor’s projection is neither new nor special. Since Bitcoin’s launch in 2009, there have been thousands of predictions about how high the cryptocurrency will go. And while it’s unknown whether Bitcoin has what it takes to reach $8 million per coin, two things are certain. First, Bitcoin has defied almost all expectations over its decade and a half lifespan. And two, Bitcoin is still early in its adoption curve.

Although it has come a long way and has millions of users around the world, it is on track to be as transformative as the Internet and will likely one day reach a similar number of users. Rest assured, even though Bitcoin may not reach Saylor’s optimistic projection, what is certain is that demand for its 21 million coins will come under increasing pressure in the coming years.

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