MicroStrategy CEO Michael Saylor told CNBC on Tuesday he believes bitcoin will continue appreciating in value to the point where the cryptocurrency becomes a “stabilizing influence” for the entire global financial system. He predicted, in a bold call, that bitcoin’s market value would be worth $100 trillion one day.
Saylor’s comments on “Squawk Box” came as the price of bitcoin fell more than 10% Tuesday, dipping below $50,000 per unit. The move lower took the market value of the world’s largest cryptocurrency back under $1 trillion, just a few days after the volatile digital asset eclipsed that level for the first time.
However, Bitcoin was still up 60% since the start of the year and up more than 360% in the last 12 months.
“There’s a $500 trillion monetary planet and the outer layer is currency, then you’ve got stocks, bonds, real estate. There’s $10 trillion worth of gold in there, $1 trillion of bitcoin in there. Bitcoin is going to flip gold, and it’s going to subsume the entire gold market cap,” contended Saylor, who has become one of the most prominent evangelists for bitcoin since his enterprise software company began buying it in August.
“Then it’s going to subsume negative yielding sovereign debt and other monetary indexes until it grows to $100 trillion. Once it gets to $10 trillion, its volatility will be dramatically less,” Saylor continued. “As it marches toward $100 trillion, you’re going to see the growth rates fall, the volatility fall, and it’s going to be a stabilizing influence in the entire financial system of the 21st century.”
In his addition to his company’s significant bitcoin holdings, Saylor told CNBC he also owns the digital coin in a personal capacity.
Bitcoin has been called “digital gold” by some crypto bulls, and they tout its ability to serve as a store of value due to the fact its total supply is capped at 21 million coins. Currently, there are 18.64 million coins in circulation, according to Coindesk. New bitcoins come onto the market as a reward to so-called miners, who use high-powered computers to verify transactions across the decentralized system.
Saylor laid out his grand vision for bitcoin a day after Treasury Secretary Janet Yellen once again raised questions about the digital coin. She said she was worried about its role in “illicit finance” and the energy consumption used to mine bitcoin.
“It is a highly speculative asset and you know I think people should be aware it can be extremely volatile and I do worry about potential losses that investors can suffer,” Yellen, also a former Federal Reserve chair, added at Monday’s New York Times DealBook conference.
In an interview last week on CNBC, St. Louis Fed President James Bullard said he was not concerned about bitcoin’s potential to upend the U.S. dollar’s status as the world’s reserve currency.
“I just think for Fed policy, it’s going to be a dollar economy as far as the eye can see — a dollar global economy really as far as the eye can see — and…