Michael Saylor Predicts Bitcoin Will See 12,900% Gains Over the Next 21 Years

Michael Saylor predicts bitcoin will deliver a 29% annualized return over the next 21 years. Saylor attributes bitcoin's potential growth to increased adoption

Michael Saylor has made a bold prediction for bitcoin's future returns, projecting an annualized rate of 29% over the next 21 years.

The cofounder and chairman of MicroStrategy shared his long-term outlook for bitcoin with CNBC on Friday, following a banner year for the cryptocurrency.

"My long-term forecast is 21 years, 29% ARR. Right now we're 60% ARR, it will decelerate toward 20% ARR over the next 21 years, and the volatility will decelerate," Saylor said.

"ARR" stands for annualized rate of return, and Saylor's projection suggests that bitcoin's astronomical gains will continue, but at a slower pace and with less volatility.

To put Saylor's prediction into perspective, a 29% annualized return over two decades would translate to gains of about 12,900%. If that pans out, and you were to buy one bitcoin today for around $95,000, it would be worth roughly $1.2 million by 2045.

Saylor's bullish outlook on bitcoin is largely driven by his belief that the cryptocurrency will see wider adoption by investors and experience diminishing volatility.

"The narrative will shift toward lower volatility, higher capital appreciation, and ultimately bitcoin will become the strongest capital asset in the world," Saylor said.

Another factor that Saylor believes will boost bitcoin's value is the Republican Party's strong showing in the recent midterm elections.

"I think that the red wave was incredibly bullish," Saylor said, referring to the Republican gains in the House and Senate.

"We saw Donald Trump come out and say that bitcoin is very interesting, and we saw a lot of the candidates talking about crypto," he added.

"I think that bodes very well for bitcoin-friendly legislation in the next two years, and it could even lead to the creation of a strategic bitcoin reserve."

Senator Cynthia Lummis told CNBC on Thursday that the Federal Reserve should sell some of its gold holdings and use the proceeds to buy bitcoin, which would be a major development in the cryptocurrency's history.

Saylor has been a vocal proponent of bitcoin for several years, and he has used his company, MicroStrategy, to acquire a vast holding of the cryptocurrency.

As of December 1, MicroStrategy owned 331,200 bitcoins, which were valued at more than $30 billion at the time.

The company has been raising debt via convertible bonds to continue buying bitcoin, and Saylor has said that MicroStrategy will "never sell" its bitcoin holdings.

"Ultimately, I think the right way to think of it is, it's always going to be the stronger capital asset versus a conventional S&P index," Saylor told CNBC.

He added that his "long-term forecast is $13 million a coin by the year 2045. And what I tell everybody is every bitcoin you don't buy today is going to cost you $13 million in the future."