The $100 Trillion Bitcoin Bet

We all know that cryptocurrencies, and particularly Bitcoin, are all the rage right now in the investing landscape. And while raging asset classes such as this tend to be extremely volatile, they also tend to be extremely profitable for intrepid investors who know the value of being early adopters.

One such investor also happens to be the CEO of one of the premier tech companies around today, and no, I’m not referring to Elon Musk of Tesla Motors (TSLA), although his company is in on it, too. Rather, I am referring to MicroStrategy Incorporated (MSTR) Chairman and Chief Executive Officer Michael Saylor.

As head of one of the best companies in the enterprise analytics and software security space, Saylor is betting big on Bitcoin. In an interview Tuesday with CNBC, Saylor talked about the news that his company added some $1 billion in bitcoin to its balance sheet. More specifically, the company purchased 19,452 bitcoins. That bumps up the company’s bitcoin holdings to 90,531.

That’s certainly a vote of confidence by one of the leading tech companies; however, what really made news was Saylor’s bold prediction that Bitcoin’s market value would rise to $100 trillion one day!

To put this very robust call into perspective, the current market value of all bitcoin is about $1 trillion. That’s a 100X call on an asset class! Here’s the money quote from Saylor explaining his reasoning behind the provocative prediction: 

“There’s a $500 trillion monetary planet and the outer layer is currency, then you’ve got stocks, bonds, real estate. There’s $10 trillion worth of gold in there, $1 trillion of bitcoin in there. Bitcoin is going to flip gold, and it’s going to subsume the entire gold market cap.” 

The “entire gold market cap” is certainly a very bullish Bitcoin call, and one that I must disagree with here, both practically and in principle. Practically, gold isn’t going anywhere because of its actual physical utility. It’s not just for coins, it has both ornamental and industrial uses. 

However, what I do agree with Saylor on is that Bitcoin still can be considered in the nascent stages of widespread adoption. Think about this: Bitcoin was first created in January 2009. That means it’s only 12 years old, which is the average age a human male enters into puberty. 

I don’t know about you, but I remember puberty as being a confusing, exhilarating and extremely formative time in my life, and you might say that’s what’s taking place with Bitcoin. 

Yet as the digital currency matures, and as it continues working through its growing pains, I suspect it will continue to go “mainstream,” and that means more and more companies will add bitcoins and other cryptocurrencies to their respective balance sheets the same way MicroStrategy, Tesla, Square (SQ), PayPal (PYPL) and many others already have. 

Now, the Saylor Bitcoin call is yet another example of why every investor needs to know about cryptocurrencies. More importantly, the surge in the price of a bitcoin, as well as the dozens of other cryptocurrencies out there, is an opportunity for you to profit — even if you never actually own a cryptocurrency. 

But how can you benefit bigtime from cryptocurrencies (and by bigtime I mean over 5,900% over the past year), and still not actually own any digital currency? 

You can find out very soon, as tomorrow, Thursday, Feb. 25, 2 p.m. Eastern time, I will be holding a live online cryptocurrency summit that we’ve titled, “My $20 Backdoor Bitcoin Play.” 

This summit is free, but you do need to register to attend. So, simply click here, and get ready to find out more fascinating facts about cryptocurrencies — and how you can make huge profits from this tsunami-like wealth creation wave in this potential $100 trillion sector!

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Speedwagon Wisdom 

So if you’re tired of that same old story

Oh, turn some pages

I’ll be here when you are ready

To roll with the changes

— REO Speedwagon, “Roll with the Changes”

Learning to deal with change isn’t easy. And it seems as though the older we get, the more set in our ways we become. Yet when it comes to embracing the new, and embracing new investments, it behooves us all to learn to “roll with the changes.” The reason why is because change means new, and new means big opportunities to make money in new products, new technologies, new trends — and, yes, new forms of money such as cryptocurrencies. So, if you are tired of the same old story, then turn the pages on your current ways and embrace rolling with the changes.

Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.