Microstrategy Chairman Michael Saylor is optimistic about the future demand for bitcoin, expecting it to double following the halving event and the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). According to Saylor, the next 12 months will be highly favorable for the asset class, and he has identified three key factors that he believes will drive the price of bitcoin to reach $5 million per coin.
Bitcoin Demand to Double, Says Saylor
In a recent interview with Fox Business, Michael Saylor, Chairman of Microstrategy (Nasdaq: MSTR), discussed the future outlook for bitcoin. When asked about the factors that will contribute to the increase in bitcoin's price, Saylor explained that the current supply and demand for BTC are in balance. However, he highlighted two significant events that will have a positive impact on the cryptocurrency's price: the halving event scheduled for April next year, which will cut the bitcoin supply in half, and the expected approvals of spot bitcoin ETFs by the SEC. Saylor emphasized that following these events:
"The demand has got to at least double. So the only thing that's going to adjust there is the price in order to get to market."
Saylor advised investors to closely monitor the halving event and the approvals of spot bitcoin ETFs, as he believes that the next 12 months will present great opportunities for the asset class.
According to Saylor, the price of bitcoin will eventually reach an astonishing $5 million. He explained during a recent discussion on X that there are three major catalysts that will drive this acceleration. However, he made it clear that these catalysts will not only take bitcoin to $500,000, but they will propel it to $5 million per coin.
Saylor further elaborated on these catalysts, stating that the first one is the introduction of a spot ETF that will allow individuals to purchase $100 million worth of bitcoin through an ETF security. The second catalyst is the ability for banks to provide custody services for bitcoin and offer loans against it. Lastly, businesses will have the ability to mark their bitcoin investments up or down in their balance sheets based on fair value.
Microstrategy, a company listed on the Nasdaq, has been implementing a bitcoin strategy since August 2020 and has been actively accumulating BTC for its treasury. As of October 31, 2023, the company holds 158,400 bitcoins, acquired for a total cost of $4.69 billion, at an average price of $29,586 per bitcoin.
What are your thoughts on Michael Saylor's predictions about bitcoin? Let us know in the comments section below.
Frequently Asked Questions
Should You Invest in Gold for Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you're unsure about which option to choose then consider investing in both.
In addition to being a safe investment, gold also offers potential returns. It's a great investment for retirees.
Gold is more volatile than most other investments. Therefore, its value is subject to change over time.
This does not mean you shouldn’t invest in gold. You should just factor the fluctuations into any overall portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold can be stored more easily than stocks and bonds. It can also be transported.
You can always access your gold as long as it is kept safe. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
A portion of your savings can be invested in something that doesn't go down in value. Gold usually rises when the stock market falls.
Gold investment has another advantage: You can sell it anytime. As with stocks, your position can be liquidated whenever you require cash. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Also, don't buy too much at once. Start small, buying only a few ounces. Next, add more as required.
The goal is not to become rich quick. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.
Is buying gold a good way to save money for retirement?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
The most popular form of investing in gold is through physical bullion bars. However, there are many other ways to invest in gold. It's best to thoroughly research all options before you make a decision.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you are looking for cash flow from your investment, buying gold stocks will work well.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
What is a Precious Metal IRA (IRA)?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These metals are known as “precious” because they are rare and extremely valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This ensures that you will receive dividends each and every year.
Precious metal IRAs have no paperwork or annual fees. Instead, your gains are subject to a small tax. Additionally, you have access to your funds at no cost whenever you need them.
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not exactly legal – WSJ
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Three ways to invest in gold for retirement
It's crucial to understand where gold fits in your retirement strategy. You have many options for investing in gold if there is a 401K account at your workplace. You might also be interested to invest in gold outside the workplace. You could, for example, open a custodial bank account at Fidelity Investments if your IRA (Individual Retirement Account) is open. Or, if you don't already own any precious metals, you may want to consider buying them directly from a reputable dealer.
These are three simple rules to help you make an investment in gold.
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, invest in cash. This will protect your against inflation and increase your purchasing power.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio. Never place all your eggs in the same basket. By investing in multiple assets, you can spread your wealth. This can reduce market volatility and help you be more flexible.
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