2020 has been a year of institutional adoption for Bitcoin, as many entities have rushed near the second half of the year to invest in Bitcoin. One of the most prominent investors in the cryptocurrency space, MicroStrategy, has made its move in investing in Bitcoin.
The billion-dollar intelligence firm, MicroStrategy has made an investment of a total of $425 million of its treasury funds into Bitcoin (BTC). Michael J. Saylor, the CEO of MicroStrategy was once a Bitcoin skeptic. Seven years ago, the CEO once said that the Bitcoin days are “numbered,” and even compared Bitcoin to online gambling.
With time, the CEO’s beliefs have changed, and today, Saylor finds Bitcoin to be persuasive and BTC shows “evidence of its superiority as an asset class for those seeking a long-term store of value.” The move to bet on Bitcoin, making the investment of the cryptocurrency its primary treasury reserve asset has acted as a sign of massive institutional adoption in cryptocurrencies, at least as a first step.
Bitcoin’s price to reach $1 million by 2025
However, wall street veteran and CEO of Real Vision, Raoul Pal says that MicroStrategy’s bet on Bitcoin may not be able to drive corporate adoption. Raoul Pal has been a prominent Bitcoin enthusiast, and went on to even saying that “Bitcoin is eating the world.”
Pal recently tweeted that BTC has become a “supermassive black hole that is sucking in everything around it and destroying it.” He expects this narrative to become clearer in the coming 18 months.
Raoul Pal expects the current investors in gold to turn to Bitcoin in the near future, and he predicted that Bitcoin’s price could reach $1 million by 2025. According to his model on Bitcoin’s price projection based on past performance. Fidelity also puts Bitcoin’s price to reach $ 1 million eventually, according to Plan B’s stock-to-flow valuation model.
So why is Pal doubting MicroStrategy’s move on the institutional adoption of BTC?
Speaking the right language for crypto adoption
In the What Bitcoin Did podcast with Peter McCormack, Pal explained:
“I don’t think Michael is going to drive corporate adoption in the space because he’s really speaking the language of Bitcoin and not the language of corporate treasurers, and that has to happen.”
Pal went on to say that Saylor is a true believer in Bitcoin and that the move he made on Bitcoin—other companies would not have made. Pal emphasized that Saylor has not been “speaking the right language” for crypto adoption. He added:
“I’ve mentioned this numerous times: You’re not going to get the pension system and the asset allocations until you start talking in terms of bearer asset allocation models. None of us know what those are because nobody uses them except that industry.”
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