In a recent panel discussion at the Bitcoin Atlantis conference on March 1, MicroStrategy chairman Michael Saylor emphasized the transformative impact of spot Bitcoin Exchange-Traded Funds (ETFs) on institutional adoption. According to Saylor, Bitcoin has entered a period of “high growth institutional adoption” since the launch of spot Bitcoin ETFs, triggering what he describes as the “Bitcoin gold rush era” that began in January 2024 and is expected to extend until November 2034.
By 2035, Saylor predicts that 99% of all Bitcoins will have been mined, marking the commencement of a significant “growth phase” for the leading cryptocurrency. As of now, approximately 93.5% of the total 21 million Bitcoins that will ever be issued have been mined, according to Buy Bitcoin Worldwide.
Saylor highlighted that spot Bitcoin ETFs currently serve as a “distribution channel” to 10-20% of interested parties, foreseeing this figure rising to 100% when banks and institutional wirehouses facilitate Bitcoin trades. He anticipates widespread pressure on banks to offer Bitcoin custody services as demand from their largest clients intensifies.
The MicroStrategy chairman envisions a future where Bitcoin surpasses gold in value and trades more than S&P index ETFs. Saylor contends that almost all banks will eventually succumb to the pressure to custody Bitcoin as resistance diminishes.
Furthermore, Saylor sees Bitcoin playing a crucial role in securing the internet, particularly amid the AI revolution. He emphasized the necessity of Bitcoin for watermarking, timestamping, and cryptographically signing messages, documents, and content as a system of truth.
Autonomous artificial intelligence, according to Saylor, will drive demand for Bitcoin, especially as it becomes essential for powering AI systems. He envisions an interesting demand function emerging when digital energy is required to sustain AI versions of individuals on the internet.
Addressing concerns about Bitcoin’s environmental impact, Saylor argued that the cryptocurrency’s increasing energy efficiency has shifted attention to the energy demands of AI. As AI scales up, the focus on its energy consumption is expected to surpass current debates about Bitcoin.
During the same panel discussion, investment strategist and Bitcoin commentator Lyn Alden added that Bitcoin adoption by nation-states could further drive demand. Embracing Bitcoin, as seen with El Salvador’s “Bitcoin Beach,” has the potential to create financial hubs and attract capital over the long term.
Alden criticized short-term thinking among countries that restrict or ban Bitcoin, emphasizing that such measures are counterproductive in the face of Bitcoin’s powerful potential. Investment manager and Bitcoin advocate Lawrence Lepard concurred, pointing out that capital controls from oppressive regimes tend to boost adoption, as witnessed in Nigeria’s peer-to-peer market volumes despite previous bans.
In conclusion, the panelists painted a picture of a dynamic future for Bitcoin, fueled by institutional adoption, technological developments, and a changing geopolitical landscape.
