Michael Saylor Predicts $200 Trillion Bitcoin Market Cap by 2045

Michael Saylor, a prominent figure in the cryptocurrency world, recently shared his vision for the future of Bitcoin (BTC). He predicted that by 2045, advanced artificial intelligence (AI) will dominate the world, using Bitcoin as the primary currency. This shift, according to Saylor, will cause the BTC market capitalization to surge to $200 trillion, as it becomes the settlement layer for AI agents. Saylor's projections hold significant weight, given his early involvement in creating a corporate Bitcoin investment firm and his success in transforming a small software company into a market giant.

Saylor's ambitions extend beyond his company. He is actively advising nations to adopt Bitcoin, aiming to make international Bitcoin adoption a reality. He is scheduled to speak at various high-profile finance events, including gatherings of South America’s wealthiest families, Middle Eastern sovereign wealth funds, and prestigious tech conferences. His ultimate goal is to encourage other nations to establish their own strategic Bitcoin reserves.

According to Saylor, Bitcoin is now in "escape velocity" as the United States has adopted this currency. He believes that as the USA's Bitcoin adoption increases, its allies will be compelled to create their own strategic Bitcoin reserves. This, in turn, will trigger a domino effect, making BTC a global currency. "It becomes a fait accompli; It’s one of those geopolitical moves that when you embrace the network, you force all of your allies first to adopt it, and then all your enemies have to adopt it," Saylor stated.

Saylor's strategy for growing both his company and Bitcoin involves maintaining high buying pressure on BTC. By purchasing Bitcoin, the value of the currency increases, which in turn boosts the value of his company, MSTR. This strategy makes MSTR's leverage more expensive, creating demand for equity and making convertible bonds and shares more valuable. Saylor openly acknowledges that this approach is a form of financial engineering.

Despite the innovative nature of Saylor's strategy, there are concerns about the company's impending debts and bond due dates. For instance, a bond's put date is scheduled for September 2027, at which point the company must persuade bondholders to accept MSTR stock instead of cash. If bondholders refuse, the company may need to buy back the $1.8 billion loan with cash, potentially forcing it to liquidate BTC to pay the debt.

Saylor has also mentioned alternative methods for the company to pay its debts, such as raising funds by using its BTC as collateral. He has firmly stated that he will never sell Bitcoin, betting on its continued growth and prosperity. "We’ve built an indestructible balance sheet. Bitcoin could trade down 99%, but there’s no margin call coming," Saylor asserted.

As the cryptocurrency industry continues to mature and gain global adoption, it remains to be seen whether Saylor's predictions will come to fruition. However, the company could benefit from implementing some failsafe measures. If BTC were to crash, the company might struggle to repay its debts, which could deal a significant blow to the legitimacy and adoption of cryptocurrencies, potentially setting the industry back decades.