'100x better than gold': Michael Saylor says bitcoin is the next big 'store of value asset' and will soar 2,500% within 10 years - here are 3 easy ways to bet on it




  • In Business
  • 2022-09-24 15:30:00Z
  • By MoneyWise
‘100x better than gold’: Michael Saylor says bitcoin is the next big ‘store of value asset’ and will soar 2,500% within 10 years — here are 3 easy ways to bet on it
‘100x better than gold’: Michael Saylor says bitcoin is the next big ‘store of value asset’ and will soar 2,500% within 10 years — here are 3 easy ways to bet on it  

Bitcoin is on a wild ride.

The world's largest cryptocurrency soared to $68,990 last November. Now, it's at around $19,000 - a staggering 72% pullback from the peak.

But MicroStrategy CEO Michael Saylor remains bullish. In fact, he not only sees a revival for the cryptocurrency but expects plenty of upside above its previous high.

  • Mitt Romney says a billionaire tax will trigger demand for these two physical assets

  • You could be the landlord of Walmart, Whole Foods and Kroger

  • High prices, rising rates, a volatile stock market - why you need a financial advisor

  • BofA says S&P 500 is the 'worst thing to hold' right now - 4 top sectors it prefers

"I think that the next logical stop for bitcoin is to replace gold as a non-sovereign store of value asset and gold is a $10 trillion asset right now. Bitcoin is digital gold, it's 100x better than gold," he says at MarketWatch's Money Festival on Wednesday.

"You can't inflate it. The half-life of money in bitcoin is forever. You can move it on billions of computers at the speed of light. So if bitcoin goes to the value of gold it's going to $500,000 a coin, and I think that happens this decade."

Considering where bitcoin is trading right now, $500,000 implies a potential upside of over 2,500%.

Saylor is putting his money where his mouth is. He tells MarketWatch that he personally owns 17,732 bitcoins that he's had for "about two years" and bought "around the $9,500 range."

His company MicroStrategy has bought about 130,000 bitcoins for a total price of approximately $3.98 billion.

Still, the path probably won't be a straight line.

"I think this is the decade where bitcoin institutionalizes from 2020 to 2030," he says, adding that "it'll be a wild ride."

If you share Saylor's view, here are a few ways to gain exposure to this cryptocurrency.

More: Compare the best investment apps

Buy bitcoin directly

The first option is the most straightforward: If you want to buy bitcoin, just buy bitcoin.

These days, many platforms allow individual investors to buy and sell crypto. Just be aware that some exchanges charge up to 4% commission fees for each transaction. So look for apps that charge low or even no commissions.

While bitcoin commands a five-figure price tag today, there's no need to buy a whole coin. Most exchanges allow you to start with as much money as you are willing to spend.

Bitcoin ETFs

Exchange-traded funds have risen in popularity in recent years. They trade on stock exchanges, so buying and selling them is very convenient. And now, investors can use them to get a piece of the bitcoin action, too.

For instance, ProShares Bitcoin Strategy ETF (BITO) started trading on NYSE Arca in October 2021, marking the first U.S. bitcoin-linked ETF on the market. The fund holds bitcoin futures contracts that trade on the Chicago Mercantile Exchange and has an expense ratio of 0.95%.

Investors can also consider the Valkyrie Bitcoin Strategy ETF (BTF), which made its debut a few days after BITO. This Nasdaq-listed ETF invests in bitcoin futures contracts and charges an expense ratio of 0.95%.

Bitcoin stocks

When companies tie some of their growth to the crypto market, their shares can often move in tandem with the coins.

First, we have bitcoin miners. The computing power doesn't come cheap and energy costs can be substantial. But if the price of bitcoin goes up, miners such as Riot Blockchain (RIOT) and Hut 8 Mining (HUT) will likely receive growing attention from investors.

Then there are intermediaries like Coinbase Global (COIN) and PayPal (PYPL). When more people buy, sell, and use crypto, these platforms stand to benefit.

Finally, there are companies that simply hold a lot of crypto on their balance sheets.

Saylor's company serves as a prime example. MicroStrategy is an enterprise software technologist with a market cap of $2.2 billion. Yet its stash of around 130,000 bitcoins is worth approximately $2.47 billion.

What to read next

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

COMMENTS

More Related News

Ask the Rational Investor: Checking the 2023 market outlook
Ask the Rational Investor: Checking the 2023 market outlook

Financial manager says weaker company profit numbers likely will weigh on the stock market.

Here are the 3 big Social Security changes that will have a significant impact in 2023 - some are overwhelmingly positive but others are a mixed bag
Here are the 3 big Social Security changes that will have a significant impact in 2023 - some are overwhelmingly positive but others are a mixed bag

New year, new Social Security rules.

These 2 Buy-Rated Stocks Are Too Cheap to Ignore, Say Analysts
These 2 Buy-Rated Stocks Are Too Cheap to Ignore, Say Analysts

Bad is good and good is bad. No, that's not an extract from Orwell's 1984, but rather the stock market's view of the jobs market at the end of 2022. Friday's...

Investors should buy this bargain while everyone else worries about interest rates
Investors should buy this bargain while everyone else worries about interest rates

Long-term investors sometimes forget the huge advantage they have over their less patient counterparts. While short-termist investors obsess about how high...

Resist any temptation to give up on income trusts as interest rates rise
Resist any temptation to give up on income trusts as interest rates rise

Rapid interest rate rises may prompt some income investors to question the merits of owning shares. After all, the Bank of England's increasingly hawkish...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business