Michael Saylor, CEO of MicroStrategy, has dropped an audacious prediction on the trajectory of Bitcoin. The CEO of the business intelligence firm said that he expects governments to buy Bitcoin via sovereign wealth funds.
Comparing the performance of gold to Bitcoin, Saylor hyped the latter as the smart play. While Bitcoin has been struggling to reach new highs, gold has been on a steady decline since mid-last year.
On this note, Saylor believes that several traditional hedge funds will expose a portion of their portfolios to Bitcoin. Furthermore, he sees sovereign wealth joining the race to accumulate Bitcoin. He said:
I think you see the existing hedge fund players double down, triple down… I think it’s inevitable that you’ll see the sovereign wealth funds. They have to move, I mean, they have infinite money, and if you’re infinite money and see the asset class coming and you see it’s the best performing asset class, your only issue is, are other people with money doing this… So, if I can point to $100bn entities that are doing this, then yeah, I kind of want in.
But not everyone agrees with Saylor. For one, Jim Rogers, chairman of Beelance Interests Inc. thinks that governments would protect and promote their own central bank digital currencies, as opposed to supporting Bitcoin, which they have very little control over.
I believe that the virtual currency represented by bitcoin will decline and eventually become zero. This is a clear bubble and I don’t know the right price. Virtual currency is not an investment target. Many have already come and gone, so we’ll see.