MicroStrategy CEO Michael Saylor Interview: The Predator Prey Dynamics Of Bitcoin

the center cannot hold

the language of btc: 6

michael saylor

transcript:

every company on earth is sitting na' balance sheet that is normally $$$ and credit. witha few exceptions, everyone is holding some form of local fiat $. iffey want an alternative to that, they’re holding lo risk debt or sovereign debt. $$$ and credit.

$$$ and credit are crumbling. they’ve always been crumbling. but now they’re crumbling at a faster rate. in good times they’re crumbling at 7% a yr and in bad times they’re crumbling at 10 or 15 or 20% a yr. in horrific times, if you’re in venezuela, argentina, or lebanon, they’re crumbling at 60-80% a yr. that’s hyperinflation.

one yr ago we were staring at a balance sheet with $500 million usds in $$$ and credit n'it looked like twas almost certainly goin to crumble at a rate of 15% a yr for 4 yrs. that drove us to discover btc. a litebulb went off and i realized we ‘d swap out that $500 million usds for something better.

there are a lotta wys'2 view btc. you can view btc as digital property, digital mny, or digital energy. if you toonize it as digital property, then i bought a $500 million block of property in cyber space. if you toonize it as digital mny, then i bought $500 million offa $ that nobody can print any + of. if you toonize it as digital energy, thn'we took analog energy and digitized it.

you can hold digital energy as btc onna network forever with no power loss. no real cost to move it. no cost to hold it. no constraints onna storing o'it. the ½-life of btc is forever.

when i look at btc i think, let’s just convert the balance sheet from analog mny to digital mny, or from a depreciating asset to an appreciating asset. we did that. we took the 1st bite of the apple in aug of 2020. btc did wha’ it’s supposed to do, which is appreciated. from that point our stock started appreciating.

microstrategy had the ability to rez + mny through business operations. we generated $$$ flo. we sold equity. we sold convertible debt. we continue to build our btc position cause we realize that we can and ‘d ‘ve two strategies. one strategy is to run the software business. the other strategy is to run a property business. microstrategy is in essence running a cyber development company, or a cyber reit, if you will.

if i tell you there’s 21 million blocks in cyber space, and each one is a btc, and this realm is 1-ly goin to consist of 21 million blocks, and you showed up there 200 yrs b4 everybody else showed up, you ‘d think, i’m just goin to start buying city blocks in cyber space as fast as i can.

so we bought ourselves some, and thn'we realized there were + to be bought, and so we kept buying.

let’s contrast this. a yr ago we were a $500 million business growing 0% a yr, with $500 million onna balance sheet in crumbling $$$ and credit. the company was vald at bout $1 billion usds. maybe 1x revenue for the enterprise software business, na $$$ and credtwas worth $1 billion. that’s where we were a yr ago.

tody, microstrategy is a $500 million software business growing at bout 10% a yr. so we got some growth out o'it. we got + notoriety. better for employee moral. better for product awareness. we’re a $5 billion btc property business growing 100% a yr or +.

our high-growth business is digital energy or digital property. our lo-growth business is enterprise software. they’re both linked. they both benefit from each other in ≠ ways.

whyd' we dweet? 1st we did it defensively. stage one is i don’t wanna lose my mny. stage two is opportunistic, i did it cause i ‘d. stage 3 is primordialistic.

this is a pretty good idea to buy up all of cyber manhattan b4 everybody else moves here.

if btc is appreciating at 100% a yr, and if i can borrow mny at 6% or 5% or 1%, then my arbitrage is goin to be 100%, 95%, wha’ever the № is. i think btc went up 130% on μ for a decade n'it’s up faster this yr.

let’s say we think it’s goin to go up 110% for the near future. if i can borrow mny at 5%, i’m goin t'get 105% arbitrage. why ‘dn’t you?

alex mcshane

you’ve come to btc defensively for the № go up tek, as most pplz do, they come to make mny and to stop leaking wealth. many long-term btc holders ‘ve transitioned their financial realm view from this № go up, fiat Ψset, to that of collecting digital property and holding btc. thris no volatility when you’re accumulating btc and thinking o'it on btc’s terms. can you speak to that Ψset?

michael saylor

1st i just wanted the № not to go down. most pplz don’t think their № goes down when they’re holding usds, but once you cogg the inflation rate you realize yr purchasing power is goin down if you’re not keeping up w'da cost of capital. yr wealth is bein’ destroyed. so 1st i just wanted to preserve wealth.

thn'we realized btc is a high quality property. i think the epiphany comes when you realize that btc tis dominate digital property network, and digital property is betta tha' physical property in every way conceivable. if i theoretically designed digital property to store a billion usds, i ‘d wanna hold it inna palm of my hand, move it atta speed of lite, vibrate it one thousand times per 2nd. i want it to last forever. i want immortal, indestructible, ∞, all uber, programmable energy.

matter is energy. energy is matter. i can take a billion usds and turn it into a building. i can in theory turn a building back into a billion usds. i can buy a billion usds worth of electricity. i can buy a billion usds worth of guns. wha’ever tis you wanna do. mny is ultimately monetary energy and you can convert it into any kind of product or srvc or property. tis the apex.

once you realize that btc is digital property, or digital mny, or digital energy, all of these things, then it becomes clear that everything else you ‘d possibly own is inferior to that. you ‘d really never wanna own anything other than pure digital energy.

why do you wanna own a building? it’s something to come in from the cold to. a building is something to livin'. that’s a good reason. but if you chose to own a 50 story skyscraper in manhattan, s'dat as good as digital property?

no, cause the mayor of manhattan can seize yr building by eminent domain. if you’re thinking you’re goin to rent the building out, a politician can tell you that you’re not alloed to evict any of yr tenants even though they don’t pay you. property inna physical realm can be impaired by any-1 with political jurisdiction ‘oer the property. that means the neighborhood review board, the mayor, the governor, the regulator, osha, environmental review boards, the congress, the senate, the white house. . . everybody in that domain can impair the val of yr physical property.

not 1-ly that, yr physical property is goin to be taxed. when they decide to tax yr building you can’t move yr building. if you ‘ve a billion usds of property in manhattan it’s not fungible n'it’s not desirable to everyone else on earth.

wha’ i want is something that is universally desirable through all space and time. how desirable will yr building be in 500 yrs? there’s another interesting dynamic here with physical property. there’s a maintenance cost. the cost of maintenance tis theoretical investment you ‘ve to make every yr to preserve the property val. if you ever owned a boat, you know wha’ that is. if you stop investing inna boat, the boat sinks.

property inna physical domain doesn’t hold its val through time n'it doesn’t hold its val through space, n'it’s not fungible. the rockefeller center aint the same thing as 1,000 acres in kansas. the rockefeller center aint even the same as another big building in manhattan. whereas a btc tis same as a btc.

howzit get rid of volatility? one btc is = to one btc. one btc is one 20-one millionth of all the energy inna network. wha’ s'dat goin to be in 1,000 yrs? one 20-millionth of all the energy inna network. who s'dat interesting to? everybody that joins the network. wh'cn join the network? it’s open and permissionless. anybody on earth can join the network. s'dat everybody? it’s not everybody, cause some pplz ‘ven’t join the network. but, tis + inclusive than any other property network.

a building in manhattan is interesting to pplz who do business in manhattan. land inna us is interesting to pplz wh'cn traverse to, or do business inna us. a picasso is interesting property to pplz who appreciate picassos. presumably, a lotta pplz do, but not everyone does. gold has val to pplz who val gold. bullets ‘ve val to pplz that wanna fire bullets. but if the bullet doesn’t actually fit in yr gun it’s like a rock. there’s a certain bullet you want and a certain bullet you don’t want. so why btc?

btc tis most universally desirable property in space and time. it’s the property w'da loest maintenance cost. you can put one billion usds of btc in cold storage and you don’t ‘ve to pay to maintain it. you ‘ve to pay to store yr gold, pay to store yr artwork. there’s a cost to storing everything else. you own a company? there’s a cost to owning a company. you actually get diluted by the ceo or the executive team when they issue stock options. if the company didn’t ‘ve any employees and didn’t ‘ve any cost then maybe there ‘dn’t be as much maintenance. but wha’ do you call a company that has no employees or no maintenance cost? btc.

i think that when you embrace btc as yr property strategy you can get away from maintenance costs. the likelihood that yr btc is goin to be impaired decreases exponentially. it’s a lot harder to seize a billion usds of btc than tis to seize a billion usds of land or art or gold or a building or stock. exponentially harder. it’s easy to seize a billion usds inna bnk.

if i wanted to take all the mny from everybody in argentina, i ‘d dweet overnite if twas sitting in $$$ or credit. iffey all used btc and held their own private keys, i’d ‘ve to incarcerate 70 million pplz for 90 dys, and i’d ‘ve to sweat it out o'em. so how hard is it to jail 70 million pplz for 3 mnths? how many pplz do i nd'2 do that? very difficult. it’s probably 10 million to 100 millions times harder to seize btc than tis to seize $$$ or credit or securities.

seizing companies and seizing buildings is easy. the cuban’s seized all the buildings, everybody lost their private property in cuba when castro took over. it’s easy to nationalize an oil company. it’s easy to seize all the gold. it’s very difficult to seize passs in pplz’s heads.

so i look at btc and i think it’s a universal property. it’ll last forever. it’s very hard to seize. it’s very hard to tax. it’s easy to move. that makes it universally appealing. onna dy that you wake up and you find it’s illegal to own btc in yr country you can take it to another country. try taking a billion usds of gold to another country with you.

so u can take btc with you, or you can send it somewhere, or you can sell it. the ability to send it, to take it, to keep it, or to sell it, all those are rites that you sacrifice when you buy a house, or a building, or land, or securities, or credit, or $$$, or art, or collectibles, or sports teams. you don’t ‘ve the property rites you think you ‘ve with those things.

ultimately, the idea of btc is elegant. one 20-one millionth of all odda val onna network for as long as the network may last. there’s nothing + stable, nothing + predictable inna entire financial universe than that. that tis single most stable body inna entire financial universe. if you’re looking for something to revolve round thris nothing + stable.

alex mcshane

btc has the potential to be the most useful asset for meeting the coincidence of wants for the most pplz. it doesn’t predict the future but it can alleviate future uncertainty for the most pplz onna planet. those pplz ‘ve the freedom to accumul8 property cause of this tek. wha’ do you think from a humanitarian standpoint?

michael saylor

i think it naturally follos, digital energy, digital property, digital mny tis gr8est utilitarian asset, the gr8est utilitarian val onna gr8est utilitarian network inna realm and inna history of the realm.

that means for 8 billion pplz btc offers the possibility of economic empowerment. i think if you wanna give joy to 8 billion pplz, you need digital ♫. if you wanna give enliteenment to 8 billion pplz, you need digital books or digital education. if you wanna give wealth to 8 billion pplz you need digital property, digital mny.

thris no other. thris nothing else that offers that promise. the reason btc is uber is cause atta end of the dy you can put trillions and trillions of usds of energy onna network and you can distribute it over something like the btc litening network to 8 billion mobile devices na mobile devices cost $50.

btc tis ability t'give economic energy to 8 billion pplz na' $50 device and to dweet with integrity and to dweet with no friction. when you move energy onna litening network you’re movin it for like one satoshi. it’s friction free, speed of lite, at any scale, at any frequency.

cogg frequency. if i ‘ve $1 billion of gold and put it in a vault the frequency is like once every ten yrs. that’s the velocity of gold. if i ‘ve $1 billion of fiat $ and i move it ‘oer the visa rails na fed wire, then i'takes one to two mnths to move it. if i make a charge transaction, b4 final settlement it’s goin to be 30 dys b4 you know that you’re not goin t'get clawed backin another 15 dys. so 45 to 60 dys after i pay you for something you can move it. so u’re talking bout an annual velocity of 6 per yr.

i put the same mny onna btc litening network na velocity is 6 per hr, 6 per minute, 6 per 2nd. you’re talking bout a velocity which is orders of magnitude higher, na cost is incomparable.

btc is a revolutionary transaction network n'it’s also a revolutionary monetary network atta same time. dual revolutions. in one case you can distribute economic energy to billions and billions of pplz, billions of times per hr. that is something of wanda. inna other case you can store a billion usds of energy in a battery for 100 yrs and still ‘ve the energy. we don’t ‘ve any other credit or $$$, or asset instrument or property instrument where you can store $1 billion of economic energy for 100 yrs without dissipating it. it’s just a ? of how fast.

in gold you dissipate 90% o'it in 100 yrs. in fiat, in us usds you dissipate 98%, 99% in 100 yrs. in electrical energy you dissipate 100%. no one can store electrical energy for 100% yrs. you dissipate it all. it’s all gone.

last yr they were pumping oil out of the ground na oil price went neg cause there was no where to store the oil. once you run out of containers or tanks to store the oil you’ve gotta pour it onna ground or inna'da ocean, you can’t store it. we run inna'da same issues with natural gas na like. every single form of energy or form of property is challenging to move, to store over time, and btc solves that problem.

if you wanna empower 8 billion pplz, you need a monetary network that can reach all o'em at an economic cost with something like litening on top of btc. there are other layer 3 apps. centralized solutions s'as □’s $$$ app ‘ve exponentially decreasing transaction costs that you get by accepting counter-pty risk. if you accept a central btc bnk, and you make g, or apple, or f’bok, or □, or paypal that bnk, you can still move a billion transactions per hr. it’s almost frictionless.

btc offers the promise of monetary superconducting. in a superconducting network, when you get the temperature to a lo enough lvl and there’s no friction any+, you can do some pretty amazing things. that’s wha’ we ‘ve in btc. call it w8lessness. if i actually took you into a w8less orbit and i can all offa sudden push a million pounds witha finger, interesting things happen. i think that’s wha’ we ‘ve here. it’s a major breakthrough.

i think o'it as the nxt logical evolution of energy. the advent of electrical energy was a big deal. whn'we had mechanical energy, a mill was put round a turbine cause we were running wata through the mill and every machine had to run off odat turbine. thn'we gotta electrical energy, and you didn’t ‘ve to build round the turbine any+. you ‘d spread out the plant across 18 acres. you can move electricity up and down in multiple dimensions in space.

with digital energy i’m not limited to a plant. i can move the energy through time and space a million times + efficiently, so the kinds of structures that you ‘d build na kinds of things you can do are now exponentially + efficient.

alex mcshane

til we found a use for it, oil na' plot of land ‘d depreciate its val for most of human history. we’ve solved the problem of monetary entropy by decentralizing the whole system and keeping it movin through proof of work, which secures btc as the strongest asset. but wha’ does the transition look like toward btc becoming the strongest $?

michael saylor

i think btc as a network is goin to continue to grow. it’s goin to demonetize other assets. the assets it’s goin to demonetize ll'be a function of the cultures tis within. for ex, in a culture where you ‘ve hyperinflation na government collapses, it’s goin to demonetize the $, cause everybody desperately needs a $ and there isn’t an alternative. in a culture where pplz feel that it’s unsafe to own property, for ex if you had weak property rites, and you felt like the government was goin to seize yr house or seize yr land, or you ‘dn’t own land, maybe it’s illegal to own land, then btc is goin to demonetize the property.

if you ‘ve a million usds, you’re not goin to invest it in land if you don’t trust yr property rites. for ex, i ‘dn’t be comfortable making an investment in an aptment building in a city that has shown itself willing to strip landlords o'their rites.

you’re holding an aptment building. you can’t charge yr tenants to livin' the aptment building, nor can you evict them. wha’’s the logical val odat building? does it go up or does it go down in that circumstance? if i had discretionary $$$ am i goin to reinvest it in + aptment buildings or not?

the answer is, wherever we see property impaired, the monetary energy inna property is goin to flo to an alternative which is better. i think that inna us pplz are comfortable w'da us usd, and wha’ they’re not comfortable with, or wha’ they’re less comfortable with is maybe risky stocks or risky property investments or say gold, things like that. it’s logical that btc strips the monetary premium from commodities, securities, indexes, and credit.

my company ‘d normally put 90% of our treasury into sovereign debt, and 1-ly $50 million o'it, or 10% of twas sitting in $$$. wha’ we did is we demonetized the sovereign debt for the most pt. we rolled it into btc.

i think inna developed realm, in € na us, btc is goin to demonetize debt, lo-grade debt, or lo-yielding debt, and credit. it’s goin to demonetize savings accounts. by 2020 most pplz had already given up on savings accounts. wha’’d they go to? etfs.

i think btc actually grabs monetary energy or capital from etfs, commercial real estate, and debt inna developed realm. inna developing realm, in places like iran, china, north korea, lebanon, syria, iraq, afghanistan, you don’t ‘ve a stable bnking system, you’re not even usdized, yr $ is much worse than that.

wha’ you’re goin to see is out of bout 180 countries, 15 or 20 o'em keep their $ privileges. the bottom 100 lose their currencies. i think they’re goin to usdize 1st. but how do i usdize? the best way to usdize tis el salvador strategy, which is a mobile application that has usds and btc onna litening network. wha’ you want is a $ as a medium of xchange, a coin that is stable versus all odda pricing of the retailers, s'as the usd, and then you want an asset which is an appreciating token thall hold its val over time. that’s btc. if you wanted to maximize yr utility you put 90% of yr balance sheet inna'da asset, and you put the last piece, the working capital, the checking account into wha’ever tis $ that most of the retailers that you’re surrounded by take.

if i was in japan, i’d be holding one mnth worth of yen. if i was in italy, i’d be holding one mnth worth of euro. if i was in a usd economy, i’d be holding one mnth worth of usds and then the rest i’m sweeping into my long-term asset portfolio, property portfolio.

maybe i buy a property to livin' cause it’s a neat house and i wanna livin' it for the rest of my life and i don’t rent it. maybe i buy my trophy art. maybe i buy the car or maybe i buy the boat or the plane, cause i wanna fly in it, float in it, livin' it, wha’ever i wanna do. but all of my discretionary assets i ‘d put inna'da highest quality property, which is course btc.

i think generally wha’ you’re goin to see is $100 trillion worth of capital flo out of investment properties inna developed realm into btc na currencies will get stronger. i don’t mean stronger in purchasing power. i mean you’ll probably see the usd become the $ you see used in venezuela, argentina, and why ‘dn’t you see it spread to every country in africa. name a $ in africa that you ‘d prefer to hold in yr wallet versus the usd. none. is there a better $ in africa than the usd?

if i ‘ve $10,000 usds, i’m probably goin to hold $50 in my $ wallet, and i’m goin to convert the other $9,950 into btc. that’s my checking account versus savings account. the ideal situation you wanna get to is to eventually put 100% of yr assets into btc. and then you ‘ve a credit card or credit line which is drawn gainsta btc.

i never really sell my btc in this case. i just generate a debt against my btc. we’re a lil early here, but if yr expense ratio is ≤ yr expected appreciation over time, you never ‘ve to sell anything, ever. you can borrow against yr assets from now til the end of eternity.

now it requires that you ‘ve a btc bnking sector developed. you ‘ve to ‘ve a credit line gainsta btc and we see that developing in ≠ ways round the realm. ultimately that ‘d be the ideal situation, you ‘d wanna hold btc and draw credit lines inna currencies that exist.

i think wha’ we’ll see s'dat the realm reduce down to 10 currencies or to 5, s'as the chinese $, the us usd, the euro. the 1-ly way for currencies can exist is for the government to stay viable. there’s no afghan $ rite now rite? there’s not goin to be one of those. it’ll probably usdize. it’s already usdized.

i think that wha’ we see is a collapse of currencies to a few, and a collapse of properties to a few. for ex, there’s 100,000 buildings inna us you can buy for the cost of one btc, or you can buy btc. which of the two tis easier decision? why do i need a security, a reit, a bond, stuff that’s manufactured as a store of val, when i ‘d just buy btc?

how will btc develop? 'twill develop at ≠ rates organically in ≠ countries in ≠ mkts based upon the culture, the law, the circumstances of the pplz, based on crises, and based on common sense.

you’re in argentina. do you feel safe in argentina? you ‘ve $1 million usds, do you wanna own $1 million worth offa company, a ranch, a building, gold, a boat, $, or btc? if you’re thinking you’re goin to flee the country, everything i named is worthless except for the btc.

when i had mny in argentina and i was trapped there i ‘d ‘ve bought gold but i ‘dn’t get that out of the country. i thought i ‘d float a yacht out of the country, b'twas' b4 i knew bout btc. tody if you asked me the ? i ‘d say buy btc.

onna other hand, if you’re living in texas and you like texas, you mite feel like it’s okay to own 100 acres there. you feel safe in texas. you ‘ve a gun. you ‘ve some horses. you ‘ve a tractor, or a truck, or a jeep. you don’t nd'2 smuggle the gun, the jeep, na horses across the border 2morro. so u can own that property. if you think texas aint goin to impair the val of yr land you mite feel okay there. i feel like the circumstances of the individual and common sense will dictate yr property distributions. but'a apex property is always btc.

my opinion, which is pretty well known, is if you had $10 million converted to btc, and you wanted to buy anything, you’re best not to sell the btc. you’re best to borrow gainsta btc.

if the volatility of btc is goin to be + or minus 80%, then keep yr loan to val 10% and you’re safe. if you’re reasonably certain that btc is goin to appreciate at 20% a yr, and if you can keep yr expenses at 5% a yr, and if the volatility aint goin to cause a max draw down of + than 80% a yr, or 50% a yr, you fig out wha’ the № is… once you fig out those 3 calculations you can get to the point where you decide, i’m just goin to hold my assets. i’m goin to let my assets appreciate. i’m goin to fund my living expenses with debt.

if i wanna buy something, another asset, i mite still wanna borrow against my btc to buy that other asset. if you actually sell yr btc to buy an asset, that is a diversification. you ‘d diversify cause you wanna, that is a personal decision. but if you’ve got an asset goin up 130% a yr, and you said to me mike name something else that you think will go up 130% a yr that i can diversify into, the answer is i don’t ‘ve anything.

if you said to me i ‘ve to split my mny fifty fifty, ½ goes into btc, wha’ tis other ½? i don’t know. a portfolio of big tek stocks maybe? maybe the nasdaq? maybe a combination of apple and amazon and f’bok and g? you buy some wickedly cool tek. maybe. or if i wanna be very conservative i just buy a house that i expect to livin' for the rest of my life cause i know i’m goin t'get val from that cause there’s val to me gettin up inna morning and bein’ in my space. that’s rational.

i don’t expect a million usd house to be worth a billion usds in 20 yrs. but there are pplz that put a million in btc and will make a billion off o'it by holding it. course it’s a very simple principle, which is, yr house in texas isn’t universally appealing to everybody with mny on earth. and i can’t oscill8 the house in texas a million times a 2nd on an iphone. the problem tis velocity of the asset is sloer na appeal of the asset is loer and there’s a maintenance charge. the house leaks. you’ve gotta paint it. there are things you ‘ve to do to it. there’s a property tax on it.

so if you’re looking for a measure of energy that’s easiest to develop or property that you can develop on top of, then you want the most universally desirable property that’s hardest to impair, that’s easiest to develop, that can be utilized atta highest frequency.

i ‘ve a hotel. if the hotel had every room booked 365 dys a yr i’m obviously squeezing + revenue out of the hotel. but let’s do a thought experiment. wha’ if i had a 100 rooms inna hotel and every room is booked every nite, 365 dys a yr and you’re charging by the hr. well that’s interesting. how many hrs of the yr, how many room hrs are actually unoccupied inna hotel e'venode hotel is theoretical booked every room nite?

even if 100 pplz book every room nite inna hotel for 365 dys they ‘ve to cutout the room. they cutout to go t'work. they cutout to go out to a bar, they cutout to commute. in point of fact, the hotel that’s fully booked is empty two thirds of the time. if i ‘d really book out the rooms hr by hr my revenues ‘d triple. now wha’ if i ‘d actually book out the rooms hr by hr to anybody on any city on earth? wha’ if i ‘d actually move the hotel or teleport the hotel every hr?

well not 1-ly ‘d i drive the occupancy up by a factor of ten, i ‘d also increase the pricing. i ‘d move the hotel to the place inna realm where the room rates are highest by the hr. veneat for the veneat film festival. i ‘d move it to wherever the super bowl is. my utilization ‘d go up. my price per hr ‘d go up. wha’ if my costs were fixed?

well now, if you think bout it, the profitability offa hotel running at 47% occupancy, at standard rates in dallas texas, is 10%, the profitability of the hotel running at 100% occupancy running at standard rates goes to 70%, the profitability of the hotel running at 300% occupancy goes to 200%, the profitability of the hotel running at 300% occupancy atta highest marginal rate you can get for a room anywhere on earth at any point in time is goin to 3,000% or 30,000%.

wha’ did i just do? i just dematerialized the property and i moved it witha frequency which was unimaginable. that’s wha’ btc is. that’s wha’ happens when you dematerialize property. you ‘ve the option to move it witha frequency which is unimaginable, to the highest marginal use. when pplz get their heads round t'they realize, do i wanna own a hotel in texas? no. do you wanna own anything fixed inna real realm? no.

wha’ do you wanna own? you wanna own the apex property in cyber space that’s universally desirable to everybody and then you wanna loan it out to them for the № of 2nds t'they wanna use it, and then snatch it back at no cost, or for one satoshi.

that really is wha’’s interesting bout btc and everything round it, all odda possibilities to develop those businesses and develop those applications. we don’t ‘ve them all now. i just described defi btw. i described defi on litening, on btc, with an intelligent xchange that is hunting for highest optimal use. but you don’t ‘ve to develop all those businesses immediately to grasp the potential.

all you’ve gotta do is fig out that the potential is there. the incentive is there. you can do one of two things. you can either build one of those businesses, which is hard. it’s hard to build binance. it’s hard to build an xchange. it’s hard to build paypal. it’s hard to build fidelity. it’s just hard. you ‘ve to deal w'da regulatory issues, the teknical issues, the security issues. or, the other thing you can do is just own the btc and w8.

there’s an intermediate, you can own the btc and you can loan it out b'that means'dat basically you ‘ve to pick the counter pty you trust. so maybe i get 130% appreciation by just w8in in cold storage. maybe i get 135 or 140% appreciation, i get an extra boost of 5% to 10% by loaning it out and trusting some1 else. or maybe i go and create my own coinbase, create abra, create □, create the nxt gr8 payment network or the nxt gr8 bnk. and maybe if you’re really good and work really hard you’ll create something worth billions and billions of usds. b'that’s a ≠ thing. that’s industry.

so the way i look at tis you ‘ve capital. you’ve gotta invest it. if i lived 200 yrs ago, if ye go back ex post facto, if i had a priori knowledge, i ‘d go back and buy manhattan in 1900. all o'it. why ‘dn’t you?

buy everything. just buy the land. hold it. keep it inna family. that ‘d be a good idea. buy apex property 100 yrs b4 everybody else has to move there and w8. that’s wha’ i ‘d do then.

tody? knowing wha’ we know now, i ‘d buy the apex property in cyber space. na apex property in cyber space is btc. i ‘d just w8 and let nature take its course. pplz are goin to do everything they can to develop those applications, those businesses on top of digital property and as they succeed they’re goin to lock up the property, they’re goin to create + demand for it, they’re goin to drive up the price o'it, and you’re goin to benefit as a property holder at any scale.

you can ‘ve $37 worth o'it or $37 billion worth o'it. that’s the option you didn’t ‘ve in manhattan. you ‘dn’t buy $37 worth of dirt in manhattan. you had to buy it one block at a time and so tody if you wanna own natural gas rites, or commodities, or commercial real estate, you’ve gotta buy into a reit or something like that. you ‘ve to buy a security which gives you a share of di ting.

the beauty of btc is you don’t ‘ve to buy the security. if you want you can buy the primordialistic property in a pristine unit, 37 million satoshis, and t'has the same security na same financial appreciation potential as if you bought as much as we bought.

alex mcshane

1-odda ways we’ve dematerialized property is by open sourcing btc. so wha’ i’m wandaing is, as a patent holder, wha’ do you think bout the free flo of ideas? do you think it’s a net + for society to ‘ve patents on things? or are they + offa business opportunity?

michael saylor

i think that the 1-ly reason to pursue a patent, in my opinion, and this is my opinion ‘oer the course offa 30 yr career, the 1-ly reason you get a patent is defensively, so u can defend yrself against patent trolls when they sue you. i’ve used it over n'oer again. there are pplz with one patent and they just sue for a living. some1 finds out that you’ve used mathematics na' phone, or that you’ve used the color green inna interface. and they show up saying that you’ve used math or the color green in yr software, and they want 10% of yr company, and then you ‘ve to defend yrself. it turns out that n'our legal system the best way to defend yrself is to knock out their patent by having a prior claim or a ≠ rel8d patent. so defensive portfolios of patents make sense.

am i a fan of patents? not really, no. if i ‘d wave my hand i ‘d eliminate all patents cause i think they’re a restraint to trade and i really don’t think that society is served by pplz laying claim to the rite to send messages ‘oer the air, or to add №s na' screen. ultimately all these patents boil down to is, i ‘ve an idea to do something. well yea, everybody inna human race has ideas. sometimes pplz ‘ve ideas twice. so why ‘d you be able to prevent every other human from starting a fire b4 it starts raining. i’m not a big fan o'em.

if we got rid o'em all the realm ‘d be a better place, but in a realm where we can’t get rid o'em, then accumulating them to defend sovereignty is useful. putting together the crp patents as pt of the copa initiative is primarily a defensive move n'it’s a useful thing to do, to defend it.

i do think the open network is obviously much + uber, espeshly in this context. i think the closed network is helpless. 1st of all, you can’t ‘ve a centralized mny, cause you can’t establish it as bein’ anything other than a security. every centralized system is goin to pass the howey test. it’s goin to be a common enterprise in pursuit of profit. and if that’s the case then you lose yr moral standing.

as a senator, or congressmen, or mayor, or governor, or president, you can’t actually promote a security. if a senator said i think that apple stock is better store of val than the us usd, that’s a violation of house ethics rules. that’s just wrong in so many ≠ ways that you can’t imagine how wrong that is.

so i think that things tha're patented and to any degree centralized, they don’t serve as a universal medium of xchange or a universal store of val, or a universal unit of account. they’re not mny. they can’t be mny.

if you’re trying to create digital energy, the whole idea is, i wanna be able to move my energy tween 8 billion pplz, across every political jurisdiction, across 100 million corporations, na' universal open protocol. so if you attempt to constrain or license the protocol, it’s no longer a universal language of energy any+. imagine if ½ the pplz inna realm weren’t able to use the word 4? how does anything work if you’re not alloed to use the № 4 cause some1’s got a patent on it?

the answer is it doesn’t work as a protocol. you’ll never install a universal monetary protocol unless it’s open, for so many obvious reasons. it ‘d never be successful.

alex mcshane

information is by definition copyable, this is everything, including btc private keys. the one trade off with btc tis burden of responsibility can fall onna usr to protect that one piece of information. wha’ do you think bout the future of btc lending? wha’ do you think bout bnks coopting the custody of btc from the majority of pplz, who aren’t goin to put inna 1,000 hrs to learn how to dweet successfully?

michael saylor

i think there’s a very vibrant dynamically evolving mkt of btc applications tha're mutating faster than we can speak or describe them, in every jurisdiction. a petri dish of life.

for ex, there’s a use case for btc, which is, i’m goin to use it and i’m goin to use a hardware wallet, and place a certain amount in cold storage. there’s a lotta pplz that ‘ve mastered that, and that’s a good thing. but even pplz who ‘ve mastered that ‘d admit there’s another use case, which tis chivo application in el salvador. that is a downloadable wallet that’s movin round btc onna litening network. it’s riskier. you’ve got kyc involved so tis not as private. it’s riskier cause you ‘d lose yr mobile phone, but it’s faster.

then you’ve got a third application which is like strike, or a third pty litening wallet. there are some like muun or breez, tha're not kyc. they are non-custodial. that’s a third option. did that benefit from the existence of the chivo wallet? sure t'does. the demand for those wallets will go up cause that of the chivo wallet goes up.

in defense of the president of el salvador, it’s kind of hard t'give $30 worth of btc to every citizen unless ye do some kind of kyc citizenship check. otherwise one citizen claims it 10 million times, and everybody else gets nothing. so there’s an application that’s ≠ there.

now, there’s a 4th application. wha’ if you’re a company? a corporation is goin to take the view t'they don’t want a single individual, they’ll wanna ‘ve a multi-signature relationship when it comes to the custody o'their btc and they’ll ‘ve + sophisticated custodial rules.

a government needs a ≠ application also. if you were a citizen offa city, na city put a billion usds of btc on its balance sheet, ‘d you want the mayor to carry the keys round? and btw, if you were the mayor, ‘d you want pplz to know that you actually ‘ve the keys? i mean ‘dn’t you be concerned bout bein’ kidnapped and having yr fingers ripped off one at a time? or having a family member kidnapped?

so in that pticular case they’re goin to be interested in a ≠ thing. that’s another application. that’s multi signature application. who ‘d be signing it? in some cases it’s not even multisig across pplz. it’s multisig across organizations like 3 agencies, or 3 corporations or auditors mite nd'2 ‘ve some involvement.

i’m not threatened by the entry of bnks. i think t'they’re all just ≠ manifestations of btc. btc is property and you can build things on top o'it. one thing you can build on top of tis a checking account and savings account. we need □ and paypal t'offer their mobile apps on top o'it. but wolso' ‘d use an etf.

for ex, if i’m an institutional investor, i ‘ve $2 billion. it took me 30 yrs to rez the $2 billion. the mny is rezd from firemen’s pension funds and ∪s, nother organizations and foundations. the rockefeller foundation. they gave me the mny and they gave it to me 15 yrs ago. i ‘ve the ability to buy securities with it, but i don’t ‘ve the ability to buy property with it. i don’t ‘ve the ability to buy btc with it.

if i wanted to buy btc, i ‘d ‘ve to convince a board of directors with 28 pplz on it that meets once every 6 mnths. then i’d ‘ve to convince my outside auditors. then i ‘d ‘ve to go change the law inna state of utah. then i’d ‘ve to go back to all of my limited ptners and explain to them. then i’d ‘ve to actually educate 252 pplz and my outside auditors.

after i did that i go through a one yr process to establish my relationship witha btc xchange. then i’d ‘ve to fig out how we’re goin to custody it. that ‘d take me bout, oh, 5 yrs, and i’d probably fail 99% of the time. or, i ‘d punch a button and buy $27 million worth of the btc etf, and i ‘d do that in 30 2nds.

now, is there a role for an etf? sure thris. you can say well, the person that invests the firemen’s fund ought to actually hold their own keys. well, if you were a retired fireman, and you had yr entire pension, and some1 said there’s one dude we hired last week and he has $2 billion of yr mny and he’s got the keys and he just disappeared. you mite not take kindly to that.

it’s not always the case that the rite answer is cold storage, hardware wallet, self custody. it depends upon who ur. we can’t let the perfect be the enemy of the good. i ‘d say there’s probably 1,000 ≠ instantiations. in fact + than that. for ex, the etf is a way t'get btc exposure. you ‘d say, s'dat as good as holding the btc? no. is it betta tha' holding an etf that’s vested'na neg yielding sovereign debt of italy? yes. my choice isn’t the choice to own btc or to own the etf. my choice is to own the italian sovereign debt etf or to own the btc etf. that’s my choice.

once you realize that, you realize that wha’ we want is we want traditional bnks t'offer certain types of btc accounts. we want the new mobile bnks like □ and paypal. you’re goin to ‘ve □. but you’ll ‘ve □ that lets you hold btc and move it out of □, and move it na' $$$ tag. but they don’t support litening yet. but at some point □’s $$$ app will support litening. they’ll be better.

when paypal supported btc they didn’t support btc withdrawals. they were worse. when they add btc withdrawals they’re better. when they add litening they’ll be better still. then there’s goin to be non-custodial wallets. they’re better better. you’re goin to ‘ve layers of better. but'a guys inna hardware wallet business say non-custodial hot wallets on mobile phones aren’t as good.

so i’m goin to stack up layers of btc. i can name probably 20 off the top of my head. you can own a junk bond from microstrategy that yields 6.8% interest. s'dat as good as owning btc? no. is it betta tha' owning a junk bond that isn’t backed by btc that yields 2% interest? yea. you see?

you can own a convert in microstrategy and that yields like wha’ever, .5% interest. but it’s backed by btc and if btc goes up by a factor of 10 yr bond is goin to go up by a factor of 5. s'dat betta tha' owning btc? no. is it betta tha' owning another convertible bond that’s back by space tourism or something? maybe. it depends.

wha’ you ‘ve is a universe of pplz that can own certain types of securities and certain types of properties by charter. and then you ‘ve a universe of securities and properties of btc tha're bein’ offered as the bnking sector, na financial sector evolves. when the sector evolves, whn'we ‘ve a btc etf inna us, billions and billions of usds will flo into btc that under no circumstances ‘d ‘ve found their way into btc otherwise.

i know a 70 yr old guy whas' a phone onnis hand with something like paypal on it. he can do this, he can go $2000 usds, btc. that’s wha’ he can do. if ye go back to him and say, you know i need you to listen to 500 hrs of videos and learn to go through a 97 step process and buy these 14 things… i can’t dweet. i cannot dweet.

in theory it ‘d be neat if we all had our own gun and our own shack on our own ranch with our own livestock, and we ‘d grow our own food, and we ‘d ride our horses, and we ‘d go off the grid. it gets real when you ‘ve to perform yr own appendectomy. at that point you start thinking maybe this living off the grid thing wasn’t such a good idea.

i think with btc you’ve got ≠ srvcs in every country, in every mkt, and wha’’s legally possible and possible from a regulatory pov and wha’’s teknically possible and wha’’s practical is changing all the time.

i happen to think that the best outcome tis gr8est diversity of mkt opportunities. i’m not smart enough to know the one rite answer. i do think that if you look at consumers there’s a ≠ solution for ≠ types of individuals. if you look at my 83 yr old dad, he’s not goin to buy anything witha mobile app. but he mite sell his stock portfolio and put it into a btc etf, he ‘d do that.

individuals, they ‘ve their own needs. corporations are ≠. some companies can buy btc. some companies, for ex ‘d want a treasury srvc from fidelity that gave them 3% yield where they ‘d just buy $10 million worth o'it na' phone call. they don’t wanna custody it. rite now their choice is hold $$$ or tell jpmorgan or bnk of america or citigroup to put it in. the treasurers they just sweep billions of usds into short-dated sovereign debt portfolios. buy me a $157 million worth of 90-dy government debt. thank you. click.

they need something like a treasury-type srvc backed by btc. if ye go to institutions, every institution has got a ≠ charter. some pplz, by law they can do convertible debt arbitrage. if you give them a convertible debt instrument, they can buy it. if you don’t, they can’t. it’s not really an issue of do they wanna. they can’t. they guy that’s sitting with you can talk with you for 5 minutes, punch a button and buy $500 million worth of the security. you ‘d talk to him for 10,000 hrs and he can’t buy the primordialistic btc and take personal custody o'it. just can’t.

all those institutions are ≠. stuff gets really real when you get to municipal, state and federal governments. wha’ if jerome powell said 2morro, we decided to buy $100 billion of btc. howzit feel bout that? how ‘d you like him to do that? how ‘d he go bout that?

you want jerome powell to walk round w'da keys? you want the 12 members of the federal reserve board? who do you really trust? wha’ if we elect a new president na old one just won’t give up the mny? wha’ if my family just keeps the $100 billion.

when you get inna political domain, now it’s ≠. i tend to think there’s a place for all those things. and there’s some thall be + successful than others. some btc bnks will fail. some btc xchanges are crooked. sometimes they ‘ve security issues. sometimes somebody steals all the btc. rite? it’s happened. 'twill happen again.

the mkt needo squeeze out the weak offerings. even hardware wallets, there are some tha're betta tha' others. software wallets, some are betta tha' others. non-custodial, custodial. they’re not all =. they’re not all perfect.

i think the brawl ‘d continue. the beauty of the open network tis protocols are out there. when apple computer decides to build their own apple pay btc offering, they ‘ve access to the protocols. will they do betta tha' □? will they do betta tha' paypal? will they do betta tha' g? i don’t know.

here’s wha’ i do know, they ‘d be punished iffey don’t. rite? the mny, the capital ‘d go away from the pplz that do a poor job, to the pplz that do the best job. who gets to make the decision? the pplz w'da capital get to make the decision. if i tweet at you, take all yr mny and put it in this software wallet, you’d think it’s a lil bit offensive.

let the pplz w'da mny make the decision. give them an entire universe of options. some are goin to make a mistake. some are goin to lose their keys. some are goin to lose their phone. some xchanges are goin t'get hacked. that’s life inna universe. that which does not kill us makes us stronger. some stuff kills us. that still makes us stronger. the pt of the herd that doesn’t die tis stronger pt of the herd. that’s darwinian, natural selection. all the alternatives are less desirable in my opinion.

alex mcshane

btc is good at promoting its own production, much like genes. wha’, if any, are the predator prey dynamics of btc and how are they ≠ from those of the potentially ∞ asset class of fiat $.

michael saylor

i think there’s a very dynamic competitive mkt in btc mining onna security side of the network. i think there’s a very dynamic competitive mkt of btc xchanges. i think there’s a dynamic competitive mkt inna financial applications, call them the bnks. all 3 of those are very darwinian to the benefit of the network.

for ex, if i take an s19 miner and 20 megawatts of energy i can create an exahash. it took me 150 megawatts of energy to create an exahash with an s9 miner. if you take the generation b4 that, you’re talking bout 500 megawatts of energy. so if i’m sitting on mining equipment after 6 to 8 yrs, i’m obsolete. the break-even point for the s19 is 45 cents per kiloatt hr. the break even point for the s9 is 9 cents per kiloatt hr. the break even point for the previous generation is 2 cents per kiloatt hr.

wha’’s happening tis btc mining network is upgrading its tek and squeezing off the grid all odda obsolete or the third generation, the older tek. if you can’t upgrade, if you don’t ‘ve the mny to buy the new generation tek, you ‘ve to pay the price with energy, and at some point you need 50x as much energy and you can’t afford the price. you’re gettin squeezed out no matter wha’.

if you can’t get the btc mining equipment vendor to sell to you… wha’ if bitmain won’t sell to me? well, you’re still losing. it’s a brawl to maintain the trust of the vendor. there’s a brawl atta hardware layer. if you don’t like the fact that bitmain controls most of the mkt ye go to another vendor and you get them to manufacture a mining rig which is comparable.

we’re continually creating new hash power. that’s competitive. we’re looking for cheaper srcs of energy. that’s competitive. if you trusted a free src of energy in china, na government cut you off, well you lost. twas' a bad decision. so u’re looking for political support.

if the energy provider isn’t trust worthy, iffey pull the rug out from under you, you’re out of ♣, you’re lost. if the politicians pull their political support you’re lost. if you can’t upgrade yr hardware you’re lost. if you engineer yr mining facility poorly and you don’t do the rite heat dissipation and you burn out yr rigs, you’re lost. if you can’t rez capital in order to buy new mining equipment, you’re lost.

if you don’t ‘ve the trust of the capital mkts, marathon and riot are publicly trading, they can go and they can rez equity and debt. if you can’t go public you’re at a disadvantage. if you’re in a mkt where there are no capital mkts, the chinese can’t take their chinese mining companies public, they’re at a disadvantage.

onna mining side there’s a brawl for capital. there’s a brawl to engineer mining facilities. there’s a brawl to design semiconductors, sha-256 mining rigs. there’s a brawl to operate. btw you can’t get ripped off by yr employees either. there’s a brawl to find supportive political jurisdictions. that’s never ending. wha’’s the result on btc?

btc gets + secure, and + robust, and + antifragile. it’s not inflationary, cause the protocol is locked in. the 1-ly result tis network decentralizes. ‘d btc be at risk if all the mining was in one place and one politician ‘d turn it off atta same time w'da snap offa finger? yes. so wha’ happens when some1 does that na' lil pt of the network? it teaches everybody else and they decentralize, and they’re looking for places.

if i’m goin to invest $500 million in btc mining, don’t you think i’m goin to pick a jurisdiction they’re not likely to outlaw me inna nxt decade? there’s a reason i mite wanna go to texas and not go to, say, new york, or california. rite? i’m goin to go find a supportive jurisdiction.

so the mining network has got a very healthy competitive dynamic across 5 ≠ types of capital. engineering capital, semiconductor, teknical capital, political capital, financial capital, and even human capital. so that’s goin on, and that’s good to the entire network. onna xchange side, well you see that in process rite now. all odda migration, coinbase is competing with binance is competing with ftx is competing with □ is competing with paypal.

wha’’s goin to happen? do i want a crp xchange? a btc-1-ly xchange? do i want a btc-1-ly non-custodial? custodial? do i wanna ‘ve leverage or not leverage? well, there’s legal issues, there’s teknical issues, there’s mkt driven issues. ultimately the brawl is driving + diversity and + choice and pplz are goin to migrate to di ting they’re most comfortable with.

the other dy i bought $30 worth of btc. i bought it on one application and paid a .69 cent fee. i went and i tried strike and i paid nxt to nothing. i thought that’s kind of cool. okay so thank you jack mallers, we appreciate that. brawl. it makes us all better. rite? there’s pressure. and that pressure will continue. when will that end? that won’t end.

it’s a herculean lift that el salvador managed to deliver the chivo wallet in 90 dys, but there’s already pplz complaining bout it, that it’s custodial, or that it’s kyc. well if we roll forward to the nxt generation every 90 dys or every 6 mnths, that seems pretty healthy to me. we need that cause we can never make the xchanges too efficient. we can never make the wallets too functional or too secure. we’re goin to continue with that.

the beauty is, look, we need □ to do wha’ they’re doin’. why? cause you need a big company to actually compete with apple. apple computer aint goin to enter the btc space cause they’re threatened by a non-custodial wallet coming out of south america. rite? they’re not goin to enter the space for chivo either.

but they will enter the space iffey see □ and paypal generating hundreds of billions of usds of mkt cap. if you think □ that is goin to take 500 million usrs off of apple pay? thall cause a response from a f’bok or a g orn' apple. so it’s useful to ‘ve that brawl goin there cause we mite want apple to decide to buy $100 billion in btc, and to build btc into a billion iphones and create a secure element as a hardware wallet onna iphone, that ‘d be a useful thing.

so that brawl is useful in that regime, but onna other hand, the brawl of muun versus breez versus strike versus wha’ever, that’s useful too. non-custodial versus custodial. litening 1-ly. there’s goin to be a ≠ wallet in every single country and you’re goin to ‘ve jurisdictions tha're goin to ‘ve an impact. i think that’s good.

i think the third zone we talked bout that i mentioned is just applications or bnking apps. microstrategy has a convertible bonds. there are hundreds of billions of usds of capital that can buy convertible bonds. is it good or is it bad? well it’s the 1-ly btc-backed convertible bond. there’s 1-ly two convertible bonds inna realm tha're backed by bonds and we issued both o'em. then there’s a junk bond that’s back by btc. there’s one o'em inna realm. we issued it.

there’ll be etfs. there’ll be other kinds of essentialisms. they all compete with each other. each one o'em meets a ≠ need inna mkt. wha’ if some1 comes along witha better convertible bond? well that’s good too. wha’ if coinbase turned round 2morro and decided to issue $20 billion worth of convertible bonds to buy btc? ‘d i be upset? well maybe it ‘d make the microstrategy bond less desirable but onna other hand it ‘d make the btc + desirable and then the btc ‘d trade up and then microstrategy equity ‘d trade up and then the microstrategy bond ‘d trade up. so the brawl is probably a good thing. if jpmorgan and morgan stanley and goldman sachs decided they wanted to start to do this, maybe that’s a good thing for everybody.

in fact, i won’t say maybe. the brawl is good. the + options there are for btc securities, the better tis for btc. the + options there are for btc wallets and btc xchanges, the better tis for btc. na + brawl in btc mining, the better tis for btc. the + btc mining rig companies there are the better tis for btc. btc wins no matter wha’ happens.

having said all that, and this is wha’ i say to entrepreneurs, if you ‘ve a btc company, there’s a 99% failure rate for most corporations over a long period of time. there were hundreds and hundreds of companies that wanted to be apple’s iphone. how many companies wanted to be instagram? and how many companies wanted to be f’bok? how many companies wanted to be amazon? for amazon to win 15,000 retailers ‘ve to lose.

brawl is good for the primordialistic network, it’ll be gr8 for the protocol of btc, it’ll be gr8 for the asset val of btc. it’s not good for the competitor. you’re goin to ‘ve to fite tooth and nail with every iota of yr energy to succeed in wha’ever mkt you choose to go into. and if you’re goin to go into that mkt you nd'2 ‘ve a set of primordialistic assets.

for ex fidelity has 22 million customers and they’ve been selling treasury srvcs and funds to big institutions for the last 50 yrs. can they offer a btc fund? sure. can they put btc into their fixed income fund essentialisms? yea. they ‘ve $2 trillion worth odat stuff. are they goin to defeat □’s $$$ app? no.

whas' got + customers? jack dorsey or fidelity? jack dorsey. he’s got + than 20 million. now, jack dorsey aint competing against fidelity, he’s competing against apple and paypal, in a ≠ way, and they’ve got their assets. and so wha’’s his advantage? he’s + nimble than they are.

and wha’’s yr advantage? maybe you’re + nimble than some1 bigger than you. can you turn that into a compelling sustainable advantage? maybe. apple did it. g did it. yahoo came 1st. you can. are the odds in yr favor? no. wha’’s the most rational strategy if you’re a competitor?

take yr entire balance sheet and invest it in btc and then borrow against yr balance sheet to fund yr operations. if you rezd $100 million to build a new btc software wallet i ‘d say take the $100 million and buy btc with it and now pay yr payroll by borrowing gainsta btc and if you succeed + power to you, you’ll be worth a lot +.

20 btc per million, so u buy 2,000 btc rite? so u’ll be worth 2,000 btc if you just invest yr treasury. i think btc is goin to one million nxt stop rite? so 2,000 times a million is pretty good. nothing wrong with that. and if the business itself works you’ll be worth 4,000 btc. but if you hold $100 million in $$$ na business doesn’t work you’re goin to be worth nothing. worth zero.

that same logic holds for btc miners. if you’re mining btc you never wanna sell any btc and if you rez mny you wanna buy btc w'da mny you rezd, and then you wanna borrow gainsta btc to pay the operating expenses.

if you believe in btc it’s obvious. if you don’t believe in btc, maybe you ‘dn’t be inna business. if you’re goin to look me inna face and you don’t think btc is goin to $1 million per coin and then $10 million per coin, i don’t think you ‘d be a btc miner. i don’t think you ‘d be a btc xchange. i don’t think you ‘d be a btc wallet. i just don’t think you ‘d be pure-play focused inna business at all, cause you’re already a loser. you’ve already decided you’re goin to lose. if you think yr asset is goin to zero, it’s hopeless all these other things.

if you think it’s not goin to zero, then rational thinking is, the brawl inna mkt is making my btc + presh. that’s good. but'a brawl is making my existing business less profitable. that’s bad. if i’m a genius and i exe well, maybe i can stay ahead of everybody else. maybe. maybe.

but while i’m doin’ that, every single free usd i can rez i ‘d convert to btc. cause, out of 100 possibilities, there’s 99 paths where you fail and btc succeeds, and there’s one path where you succeed and btc succeeds. some pplz don’t think btc is goin to succeed but they’re not with us, rite? if you don’t think btc is goin to succeed, go do something else, wha’ever with yr life, but don’t try to create a btc business.

alex mcshane

any closing remarks for tody michael?

michael saylor

my closing remark is, i thought btc was a good idea in aug of 2020. every single mnth for the past 13 mnths there ‘ve been primordial developments inna space that ‘ve made it a better idea. every single mnth. every week i almost see, a new development that makes the network stronger, smarter, faster, harder. it makes it + antifragile. it becomes clearer and clearer that this tis future of digital property. this is digital energy. this tis future of digital mny. this tis solution to the problems of the realm.

this is a macroeconomic imperative for $500 trillion worth of capital. this is a teknical imperative for everybody inna tek industry, inna energy industry, and this is a moral imperative for everybody on earth.

i’ve just become + convicted every single week, every single mnth that’s gone by. there’s not a single thing that’s happened inna last 13 mnths that caused me to think that the future was riskier or less certain. even the china exodus, which was probably the most brutal event that we’ve seen, twas a good thing for the network n'it removed the biggest existential threats. is btc goin to be hijacked by the chinese government? wha’ bout a 51% attack? how antifragile tis network? is btc american or chinese tek?

after the china exodus it became clear that btc is us tek. this is good for the western realm. this is pt of the western tek stack. this is g and apple and amazon and f’bok and btc. the worst thing that happened was the best thing that happened. everything else s'been a good thing to happen.

you’re watching every shoe drop. companies adopting, bnks adopting, politicians supporting. the neg fud inna media is just pplz noticing that btc tis most disruptive tek of the decade. even the neg publicity is + publicity. it’s all just mkt btc. if these pplz hate on it so much it must be really good, t'they’re so afraid o'it.

a shockwave forms when you move fast than the air. if i move through the air faster than the air can flo round me, then i create a shockwave. i’m disrupting laminar flo and i’m gettin turbulence, cause i’m goin too fast. btc is creating turbulence cause it’s goin too fast.

when you see some uninformed politician that critiques it, it’s cause they were asked to ‘ve an opinion and they had ten minutes to study it and so they gave an uninformed opinion.

when some billionaire investor says they like gold better it’s cause they were asked to ‘ve an opinion and they spent 30 yrs studying gold and they ‘ven’t spent 30 hrs or 300 hrs or a thousand hrs studying btc. they had 30 minutes, or 60 minutes, 15 minutes.

you know when these editorials are written inna wall street journal na new york times, i’ve never seen anybody ever say i’ve spent 1,000 hrs studying btc, let me break down my problems with it. i never seen anybody say i spent 100 hrs studying it let me tell you the 13 problems i ‘ve. you know?

there are no informed critiques. i ‘ve yet to see them. there are uninformed critiques. and wha’ s'dat? that’s the same as yr fiteer jet slamming into a wall of air faster than the speed of sound and you get a shock wave, and you get turbulence, and you get heat, and you get sound and fury.

is dat a' bad thing? it just means we’re movin fast. we’re movin very fast and we’re gettin noticed and everyone has to notice it. when you’re asking the spokesperson for the kremlin, for putin, whether or not Яussia is goin to adopt btc as the national $, when they say not yet, or no, that’s not a neg signal. that’s a + signal. nobody asked putin whether they’re goin to adopt apple stock, or gold, or silver, or the giant stone coin of the yap pplz, as $ in Яussia.

there’s 1-ly one ? they’re asking them. and they’re asking them the ? cause it’s onna table, and that’s indicative of the success of btc.

so to summarize, i am + bullish than ever. 

19 sep 2021

read the language of btc: 5: “btc has no brawl” 
read the language of btc: 4: “btc and existential risk”
read the language of btc: 3: “btc: the 1st and final rival mny”
read the language of btc: 2: “btc alleviates future uncertainty”
read the language of btc: 1: “btc tis best explanation for the way mny is”

original content at: btcmagazine.com…
authors: alex mcshane

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