Bitcoin Entering a Decade-Long Gold Rush Fueled by AI and ETFs?

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Michael Saylor, co-founder of MicroStrategy, believes the launch of spot Bitcoin exchange-traded funds (ETFs) has ushered in a “decade-long institutional gold rush“ for the leading cryptocurrency.

Saylor, speaking at the Bitcoin Atlantis conference on March 1st, 2024, argued that Bitcoin is experiencing a surge in “high growth institutional adoption” due to these new investment vehicles. He claims this “gold rush” began in January 2024 and will continue until November 2034.

Here are some key points from Saylor’s remarks:

Spot Bitcoin ETFs act as a springboard for wider adoption: Currently, these ETFs only cater to a limited audience. However, Saylor predicts wider accessibility through traditional financial institutions like banks and wirehouses, leading to larger investments.
Banks will embrace Bitcoin: Saylor believes growing client demand will force most banks to offer Bitcoin custody services.
Bitcoin’s future dominance: Saylor predicts Bitcoin surpassing the trading volume of the S&P 500 index ETF and even gold in the future.

AI and its impact on Bitcoin:

Beyond ETFs, Saylor sees several factors driving future Bitcoin demand:

Securing the AI revolution: Saylor emphasizes the importance of Bitcoin in securing the internet as AI advancements attract malicious actors. He views Bitcoin as a crucial element in establishing a trustworthy digital environment.
Powering AI: Saylor argues that the energy needs of sophisticated AI will benefit Bitcoin. He suggests that AI systems might require Bitcoin to function effectively.
Shifting environmental concerns: Saylor believes Bitcoin is gradually shedding its negative image regarding energy consumption. He highlights the growing energy demands of AI, potentially drawing attention away from Bitcoin’s environmental footprint.

This ain’t your grandpappy’s gold rush. It’s digital, decentralized, and about to explode.

Nation-states and Bitcoin adoption:

The panel discussion also featured insights from other industry figures:

Lyn Alden, investment strategist: Alden highlights the potential for increased Bitcoin demand as nation-states embrace the cryptocurrency. She cites the positive example of “Bitcoin Beach” in El Salvador and the emergence of similar hubs globally.
Lawrence Lepard, investment manager: Lepard emphasizes that capital controls imposed by certain governments, often out of fear of losing control over their currencies, can backfire and actually drive up Bitcoin adoption. He cites Nigeria as a prime example, where a ban on Bitcoin led to a thriving peer-to-peer market.

Current state of Bitcoin supply:

It’s important to note that approximately 93.5% of the 21 million Bitcoin that will ever be mined have already been issued, according to Buy Bitcoin Worldwide. This limited supply, coupled with the factors mentioned above, contributes to the bullish sentiment surrounding Bitcoin’s future.

Overall, the discussion suggests a confluence of factors potentially propelling Bitcoin towards a decade of significant growth and mainstream adoption. Whether Saylor’s specific predictions come true remains to be seen, but the conversation highlights the growing interest and potential of Bitcoin in the evolving financial landscape.

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