Strategy’s Saylor predicts Bitcoin will outperform the S&P 500 for decades

Michael Saylor, executive chairman of Strategy, has doubled down on his bullish stance on Bitcoin, predicting the crypto will outpace the S&P 500 for decades even after its recent market corrections.

In an interview on the CoinStories podcast hosted by Natalie Brunell, Saylor compared Bitcoin to what he called the “great property assets” of history. He propounded that the digital asset had entered a new stage in its life cycle to become the modern-day equivalent of wealth-defining assets like gold, diamonds, art, and land.

“There are a lot of assets, the greatest property assets of Western civilization, diamonds, gold, old master paintings, land acquisitions like Louisiana, California, Mexico, Alaska, none of them have cash flows,” Saylor said. 

“If we think about what we want in life, whether it’s marriage, kids, or a home, none of them generate cash flows. Perfect money has no cash flows.”

Saylor not fazed by price corrections

After peaking at dollars over $124,000 on August 14, Bitcoin’s price corrected back to levels below $108,000, before climbing slightly to settle at $115,760 as of Saturday, according to CoinMarketCap. The price retreat has wiped 6% from profits investors had counted, and there are no indications that there will be a bump in value before September ends.

But for Saylor, a price correction should be the least of holders’ worries, because Bitcoin is up 83% year-on-year, effectively doubling in value even with its current volatility. 

He believes the dips were caused by investors being “Bitcoin rich but fiat poor,” and they have to sell since traditional banks do not allow them to borrow against their Bitcoin. 

The Strategy executive chairman predicted the coin would outperform the S&P 500 by nearly 29% annually for the next two decades. His projections are based on a 10-year historical comparison of Bitcoin and equities, during which Bitcoin consistently surpassed traditional benchmarks.

“Once you acknowledge Bitcoin is appreciating faster than the S&P forever, you can create credit collateralized by that appreciating asset,” Saylor surmised, adding that “digital credit” would surpass bonds. 

“No company has a good enough business that they can be confident that they can generate uh uh returns north of 10% a year at infinitum. Bitcoin is an asset, and it’s appreciating faster than the cost of capital, which is the S&P 500.” 

Why Bitcoin institutional adoption will continue

Saylor also talked about a pivotal transformation in Bitcoin’s market structure, where what attracted early retail traders may give way to stability, making the asset more appealing to large corporations and financial institutions.

“The volatility is coming out of the asset. That’s a really good sign,” he told Brunell. “What you want for the asset to mature is for long-term capital holders, the big corporations, the big institutions, to buy.”

He admitted the conundrum of reduced volatility makes Bitcoin more suitable for corporate investment; it may simultaneously “bore” those who bought the coin early.

Bitcoin investors have room for mistakes

The Strategy chairman reiterated that Bitcoin is still at an early stage, with new products and business models only beginning to realize how it works. According to Saylor, from 2025 to 2035, the upcoming decade will be a “digital gold rush” that will see experimentation, mistakes, and opportunities in equal measure.

“There’s going to be many different business models and products created. There’ll be a lot of mistakes made and there’ll be a lot of fortunes created.” 

As of this publication, publicly listed Bitcoin treasury companies hold roughly $117.91 billion in Bitcoin, according to figures from BitcoinTreasuries.NET. Strategy has the largest share with over 638,985 coins, valued at approximately $73.52 billion.