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Michael Saylor: The reason I think that Bitcoin is compelling is first of all, it is pretty clear that Gold is broken. Bitcoin is digital gold it is not broken. We just had the Senator of Wyoming go on National Television this week and state pretty much that. And, so we know that BTC is digital gold and there is going to be an Avalanche. There is 10 trillion dollars still sitting in Digital gold.
If you are still believing in gold after a decade of minus 6 basis points, you just must not like money. Either you don’t read charts. Like how many years of your life are you going to wait and fail before you admit it does not work because if I walked in to a house with no electricity for 10 years, I think you would figure out that you can’t turn on the lights at some point.
So, the first issue is gold is busted. I think the second thing that is compelling about Bitcoin is, the big tech trade looks crowded and overdone. I mean, if you go and if you pull and watch what is Amazon stock trading right now, Amazon is at 3384 and that is exactly where it was a year ago.
So, with Big Tech, the real question here in inflationary economy is where is the risk. Apple has got supply chain risk, they just cut their I pad manufacturing in to half, because they weren’t getting ships. Amazon has got unionization risk. What happens when 1 and a half million people unionize? Right. And, they have also got supply chain risk.
You have got Google and Facebook; they have got regulatory risk. They are getting banned in China. They are getting reviewed in the US. And, they are getting fined billions of dollars throughout the world.
So, if you are looking for no risk and if you are running away from risk, the truth of the matter is “the lowest risk thing you can possibly buy now is bitcoin.” There is no CEO, there is no corporate headquarters, there is no product – the product is simple it is one 21 millionth of all the money in the network that is the product. So, you are getting away from the board of directors and the employee base and regulatory nexus and the competition. And, you already know there is a demand of a non-sovereign store of value. And, if you are waiting, right fundamentally, it has to pass institutional investor, anything you invest has to pass the Microstrategy test. And that test is 3 part – Will it be copied? Will it be banned? Will it be hacked? And, we talked about this a year ago.
With bitcoin, will it be copied? There is no one with a straight face that will tell you they are a Bitcoin substitute. The Proof of Work network and the approach, the Ethos, the engineering and the protocol makes it very unique as a non-sovereign store of value. So, it won’t be copied.
Will it be hacked? No one can hack it.
Will it be banned? You might have wondered a year ago after Christina laggard, Jerome pal all the senators all the congress people, the secretary, the treasury, and the head of the SEC just noted it is all Digital property, they might say speculative, it is a speculative store of value, but you know if it wasn’t speculative, it would be trading at 10 million dollars a coin right now.
The only thing that keeps it by a factor of 100 is the fact that it is speculative. But otherwise, it seems to me it is a lot riskier to buy gold. It is a lot riskier to buy a company, a stock.
Name a big tech monopoly that is safe. Well because of your monopoly you are not safe. If you are not a monopoly you are not safe for different reason. So, I think that the best thing you can possibly have is the volatility that keeps all of the conventional thinkers out of the asset. Because that gives you a chance to buy it cheap.
