Saylor Sees Bitcoin Gold Rush by 2035 on Reduced Supply
Michael Saylor, chairman of Strategy, is predicting a 'gold rush' for Bitcoin between now and 2035. He believes that as the issuance of new Bitcoins slows down due to the halving of block rewards every four years, a growing market for income products will meet this reduced supply, driving up prices.
The key factor in Saylor's argument is the shrinking supply of new coins. By 2035, he expects around 99% of Bitcoin's eventual total supply to have been mined, resulting in a gradual reduction in the flow of new coins into circulation. This reduced supply, combined with strong demand for income products such as ETFs and collateral loans, will drive up prices.
Saylor is targeting income investors, who seek regular payments rather than direct exposure to Bitcoin's price swings. He believes that issuing securities backed by a large Bitcoin reserve can provide a more stable source of income for these investors. Strategy has already sold preferred shares to investors seeking income, providing a practical example of this concept.
The company is also exploring the development of a wallet-held token that aims to remain stable against the dollar while paying a yield. This product would need to have readily available cash or other liquid assets to meet withdrawals without depending on an immediate sale of the underlying shares.