How Is This Calculated?

Michael Saylor (Gigachad) has a price target of $13 million per Bitcoin in the year 2045.

This assumes a Compound Annual Growth Rate (CAGR) of 26.09%.

Understanding the Calculation

The future value of Bitcoin is calculated using the formula for compound interest:

Future Value = Current Price × (1 + CAGR) ^ Years

Where:

• Current Price: The price of Bitcoin today (e.g., $100,000).
• CAGR: The assumed annual growth rate (26.09%).
• Years: The number of years until the target date (e.g., 2045 - 2024 = 21 years).

Example Calculation

If Bitcoin is currently worth $100,000 and we assume a CAGR of 26.09%:

Future Value = 100,000 × (1 + 0.2609) ^ 21

The result is approximately $13,000,000.

Why CAGR?

CAGR (Compound Annual Growth Rate) is a common financial metric used to estimate consistent growth over time. It assumes that Bitcoin will grow at a steady rate each year (it doesn't, it's volatile), but this simplifies long-term projections.

Disclaimer

This calculation is for informational purposes only and assumes consistent growth, which will not reflect real-world market conditions.