Bitcoin vs S&P 500: Saylor Sees BTC Outperforming by 29% Annually

Michael Saylor, co-founder and executive chairman of Strategy, has once again put Bitcoin in its revolutionary place. In a recent Coin...

Quick overview

  • Michael Saylor describes Bitcoin as 'digital capital' that appreciates faster than traditional investments like the S&P 500.
  • He highlights Bitcoin's fixed supply and decentralized nature as key advantages over fiat currencies, which are prone to inflation.
  • Saylor predicts that the S&P 500 will underperform Bitcoin by nearly 29% annually over the next 20 years based on historical comparisons.
  • He believes Bitcoin represents a new financial infrastructure that could transform corporate finance and investment strategies.

Michael Saylor, co-founder and executive chairman of Strategy, has once again put Bitcoin in its revolutionary place. In a recent Coin Stories interview, he called it “digital capital,” saying it appreciates faster than traditional investments. While the S&P 500 is the benchmark for investment returns, Bitcoin outpaces it every time, he said, offering a long-term growth opportunity.

Saylor pointed to Bitcoin’s fixed supply and decentralized nature as the advantages. Unlike fiat currencies which are subject to inflation and central bank intervention, Bitcoin is a more stable foundation for credit and investment. He said Bitcoin-backed loans could have longer terms and higher returns and could change the way the world does finance.

S&P 500 vs. Bitcoin

Saylor’s numbers for Bitcoin are crazy. He thinks the S&P 500 will underperform BTC by nearly 29% per year for the next 20 years. This is based on the historical comparison of Bitcoin to equities over the last 10 years which show BTC outperforming every time.

  • Strategy started buying Bitcoin in 2020 and now holds over 638,500 BTC worth tens of billions of dollars.
  • Saylor says BTC is a better store of value than stocks and fiat currency.
  • The company expects to be included in the S&P 500 when fair value accounting and profitability benchmarks are met.

Saylor said corporate Bitcoin treasuries are accelerating and compared it to the early days of the oil industry where applications and business models were still emerging.

Bitcoin in Corporate Finance

For Saylor, Bitcoin is more than an investment, it’s a new financial infrastructure. Its predictability allows businesses to use it for new credit models, unlike traditional currencies which are volatile and depreciate long term.

The Strategy chairman also does policy work, including the strategic Bitcoin reserve bill, and is committed to getting BTC into the global financial system. As adoption grows, Saylor says the market will evolve and there will be opportunities for companies and investors.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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