Ang Wika ng Bitcoin: 6
Michael Saylor
Ang cash at credit ay gumuho. Palagi silang gumuho. Ngunit ngayon sila ay gumuho sa isang mas mabilis na rate. Sa mga magagandang panahon sila ay gumuho sa 7% sa isang taon at sa mga hindi magandang panahon ay gumuho sila sa 10 o 15 o 20% sa isang taon. Sa mga kakila-kilabot na oras, kung nasa Venezuela, Argentina, o Lebanon ka, sila ay gumuho sa 60-80% sa isang taon. Hyperinflation iyan.
Isang taon na ang nakalilipas ay nakatingin kami sa isang sheet ng balanse na may $ 500 milyong dolyar na cash at credit at mukhang halos tiyak na gumuho ito sa rate na 15% sa isang taon sa loob ng apat na taon. Na humimok sa amin upang matuklasan ang Bitcoin. Ang isang bombilya ay nawala at napagtanto kong maaari nating ibigay ang $ 500 milyong dolyar para sa isang bagay na mas mahusay.
Maraming mga paraan upang matingnan ang Bitcoin. Maaari mong tingnan ang Bitcoin bilang digital na pag-aari, digital na pera, o digital na enerhiya. Kung makilala mo ito bilang digital na pag-aari, pagkatapos ay bumili ako ng isang $ 500 milyong bloke ng pag-aari sa cyber space. Kung makilala mo ito bilang digital na pera, pagkatapos ay bumili ako ng $ 500 milyon ng isang pera na walang ibang maaaring mag-print ng higit pa. Kung makilala mo ito bilang digital na enerhiya, kinuha namin ang analog na lakas at na-digitize ito.
Maaari mong hawakan ang digital na enerhiya bilang Bitcoin sa network magpakailanman nang walang pagkawala ng kuryente. Walang totoong gastos upang ilipat ito. Walang gastos upang hawakan ito. Walang mga hadlang sa pag-iimbak nito. Ang kalahating buhay ng Bitcoin ay magpakailanman.
Kung titingnan ko ang Bitcoin sa palagay ko, i-convert lamang natin ang sheet ng balanse mula sa analog na pera patungo sa digital na pera, o mula sa isang nagpapahina ng pag-aaring asset sa isang nagpapahalaga na pag-aari. Ginawa namin yun. Kinuha namin ang unang kagat ng mansanas noong Agosto ng 2020. Ginawa ng Bitcoin ang dapat gawin, na pinahahalagahan. Mula sa puntong iyon ang aming stock ay nagsimulang pahalagahan.
Ang MicroStrategy ay may kakayahang makalikom ng mas maraming pera sa pamamagitan ng pagpapatakbo ng negosyo. Gumawa kami ng cash flow. Ibinenta namin ang equity. Nagbenta kami ng mababagong utang. Patuloy kaming nagtatayo ng aming posisyon sa Bitcoin dahil napagtanto namin na maaari at dapat magkaroon kami ng dalawang diskarte. Ang isang diskarte ay upang patakbuhin ang negosyo ng software. Ang iba pang diskarte ay upang magpatakbo ng isang negosyo sa pag-aari. Ang MicroStrategy ay nasa kakanyahan sa pagpapatakbo ng isang kumpanya ng pag-unlad ng cyber, o isang cyber REIT, kung nais mo.
Kung sasabihin ko sa iyo na mayroong 21 milyong mga bloke sa cyber space, at ang bawat isa ay isang Bitcoin, at ang mundong ito ay magkakaroon lamang ng 21 milyong mga bloke, at nagpakita ka roon 200 taon bago ipakita ng iba pataas, maiisip mo, magsisimula na lamang ako bumili ng mga bloke ng lungsod sa puwang ng cyber nang mas mabilis hangga’t makakaya ko.
kaya patuloy kaming bumibili.
Paghambingin natin ito. Isang taon na ang nakalilipas kami ay isang $ 500 milyong negosyo na lumalaki 0% sa isang taon, na may $ 500 milyon sa balanse sa crumbling cash at credit. Ang kumpanya ay nagkakahalaga ng halos $ 1 bilyong dolyar. Siguro 1x kita para sa negosyo ng software ng enterprise, at ang cash at credit ay nagkakahalaga ng $ 1 bilyon. Doon tayo isang taon na ang nakakalipas.
Ngayon, ang MicroStrategy ay isang $ 500 milyon na negosyo ng software na lumalaki sa halos 10% sa isang taon. Kaya nakakuha kami ng paglago mula rito. Nakakuha kami ng higit na pagiging kilala. Mas mabuti para sa moralidad ng empleyado. Mas mahusay para sa kamalayan ng produkto. Kami ay isang $ 5 bilyong negosyo sa pag-aari ng Bitcoin na lumalaki ng 100% sa isang taon o higit pa.Ang aming negosyo na may mataas na paglago ay digital na enerhiya o digital na pag-aari. Ang aming negosyong mababa ang paglago ay software ng enterprise. Pareho silang naka-link. Pareho silang nakikinabang sa bawat isa sa iba`t ibang paraan.
Bakit namin ito nagawa? Una naming ginawa ito nang nagtatanggol. Ang yugto ng isa ayokong mawala ang aking pera. Ang entablado dalawa ay oportunista, ginawa ko ito dahil kaya ko. Ang entablado ng tatlong ay madiskarteng ito.
Maaari akong mangutang ng pera sa 6% o 5% o 1%, kung gayon ang aking arbitrage ay magiging 100%, 95%, anuman ang numero. Sa palagay ko ang Bitcoin ay umakyat ng 130% sa average sa loob ng isang dekada at mas mabilis ito sa taong ito.Sabihin nating sa tingin natin ay aakyat ito ng 110% para sa malapit na hinaharap. Kung makahiram ako ng pera sa 5%, kukuha ako ng 105% na arbitrage. Bakit ayaw mo p Alex tumutulo yaman. Maraming mga pangmatagalang may-ari ng Bitcoin ang lumipat sa kanilang pagtingin sa mundo sa pananalapi mula sa bilang na ito na umakyat, fiat mindset, sa pagkolekta ng digital na pag-aari at humahawak sa Bitcoin. Walang pagkasumpungin kapag naiipon mo ang Bitcoin at iniisip ito sa mga tuntunin ng Bitcoin. Maaari mo bang kausapin ang mindset na iyon? p> Michael Saylor
Karamihan sa mga tao ay hindi iniisip na ang kanilang numero ay bababa kapag sila ay may hawak na dolyar, ngunit sa sandaling maunawaan mo ang rate ng inflation na napagtanto mong bumababa ang iyong lakas sa pagbili kung hindi mo nasusunod ang gastos sa kapital. Nasisira ang yaman mo. Kaya muna gusto ko lang mapanatili ang yaman.
Pagkatapos ay napagtanto namin ang Bitcoin ay isang mataas na kalidad na pag-aari. Sa palagay ko ang epiphany ay dumating kapag napagtanto mo na ang Bitcoin ang nangingibabaw sa network ng digital na pag-aari, at ang digital na pag-aari ay mas mahusay kaysa sa pisikal na pag-aari sa anumang paraang maisip. Kung teoretikal kong dinisenyo ang digital na pag-aari upang mag-imbak ng isang bilyong dolyar, nais kong hawakan ito sa aking palad, ilipat ito sa bilis ng ilaw, i-vibrate ito ng isang libong beses bawat segundo. Gusto kong magtagal ito magpakailanman. Nais kong walang kamatayan, hindi masisira, walang katapusan, lahat ng makapangyarihang, nai-program na enerhiya.
Ang bagay ay enerhiya. Mahalaga ang enerhiya. Maaari akong kumuha ng isang bilyong dolyar at gawin itong isang gusali. Maaari kong sa teorya gawing isang bilyong dolyar ang isang gusali. Maaari akong bumili ng isang bilyong dolyar na halaga ng kuryente. Maaari akong bumili ng isang bilyong dolyar na halaga ng mga baril. Anuman ang nais mong gawin. Ang pera ay huli na lakas ng pera at maaari mo itong i-convert sa anumang uri ng produkto o serbisyo o pag-aari. Ito ang taluktok.
Kapag napagtanto mo na ang Bitcoin ay digital na pag-aari, o digital na pera, o digital na enerhiya, lahat ng mga bagay na ito, pagkatapos ay magiging malinaw na ang lahat ng bagay na maaari mong pagmamay-ari ay mas mababa kaysa doon. Hindi mo talaga gugustuhin ang pagmamay-ari ng anupaman maliban sa purong digital na enerhiya.
Bakit mo nais na pagmamay-ari ng isang gusali? Ito ay isang bagay na papasok mula sa malamig hanggang. Ang isang gusali ay isang bagay upang manirahan. Iyon ay isang magandang dahilan. Ngunit kung pinili mo ang pagmamay-ari ng isang 50 story skyscraper sa Manhattan, kasing ganda ba ng digital na pag-aari?
Hindi, sapagkat maaaring sakupin ng alkalde ng Manhattan ang iyong gusali sa pamamagitan ng sikat na domain. Kung iniisip mong uupahan mo ang gusali, maaaring sabihin sa iyo ng isang pulitiko na hindi ka pinapayagan na paalisin ang anuman sa iyong mga nangungupahan kahit na hindi ka nila binabayaran. Ang pag-aari sa lupang pisikal ay maaaring mapinsala ng sinumang may kapangyarihang pampulitika sa pag-aari. Nangangahulugan iyon ng board ng pagsusuri sa kapitbahayan, ang alkalde, ang gobernador, ang regulator, OSHA, mga board ng pagsusuri sa kapaligiran, ang kongreso, senado, ang puting bahay… Lahat ng tao sa domain na iyon ay maaaring makapinsala sa halaga ng iyong pisikal na pag-aari.
Hindi lamang iyan, ang iyong pisikal na pag-aari ay mabubuwis. Kapag nagpasya silang buwisan ang iyong gusali hindi mo maililipat ang iyong gusali. Kung mayroon kang isang bilyong dolyar ng pag-aari sa Manhattan hindi ito magagamit at hindi kanais-nais sa iba pa sa mundo.
Gaano kahusay ang iyong gusali sa loob ng 500 taon? May isa pang kagiliw-giliw na pabago-bago dito sa pisikal na pag-aari. Mayroong gastos sa pagpapanatili. Ang gastos sa pagpapanatili ay ang teoretikal na pamumuhunan na kailangan mong gawin bawat taon upang mapanatili ang halaga ng pag-aari. Kung nagmamay-ari ka ng isang bangka, alam mo kung ano iyon. Kung titigil ka sa pamumuhunan sa bangka, ang bangka ay lumubog.Ang isang gusali sa Manhattan ay kawili-wili sa mga taong nagnenegosyo sa Manhattan. Ang lupain sa US ay kawili-wili sa mga taong maaaring dumaan, o magnegosyo sa US. Ang isang Picasso ay kagiliw-giliw na pag-aari ng mga tao na pinahahalagahan ang Picassos. Marahil, maraming tao ang gumagawa, ngunit hindi lahat ay ginagawa. Ang ginto ay may halaga sa mga taong pinahahalagahan ang ginto. Ang mga bala ay may halaga sa mga taong nais magpaputok ng mga bala. Ngunit kung ang bala ay hindi talaga umaangkop sa iyong baril ito ay tulad ng isang bato. Mayroong isang tiyak na bala na gusto mo at isang tiyak na bala na ayaw mo. Kaya’t bakit Bitcoin?
Sa palagay ko na kapag tinanggap mo ang Bitcoin bilang iyong diskarte sa pag-aari maaari kang lumayo mula sa mga gastos sa pagpapanatili. Ang posibilidad na ang iyong Bitcoin ay magkakaroon ng kapansanan ay bumababa nang mabilis. Mas mahirap itong agawin ang isang bilyong dolyar ng Bitcoin kaysa sa agawin ang isang bilyong dolyar na lupa o sining o ginto o isang gusali o stock. Exponentially mahirap. Madaling makuha ang isang bilyong dolyar sa bangko. Kung nais kong kunin ang lahat ng pera mula sa lahat sa Argentina, magagawa ko ito magdamag kung nakaupo ito sa cash o credit. Kung lahat sila ay gumagamit ng Bitcoin at may hawak ng kanilang sariling mga pribadong key, kakailanganin kong makulong ng 70 milyong katao sa loob ng 90 araw, at kakailanganin kong pawisin ito. Kaya’t gaano kahirap makulong ang 70 milyong tao sa loob ng 3 buwan? Gaano karaming mga tao ang kailangan kong gawin iyon? Napakahirap. Marahil ay 10 milyon hanggang 100 milyong beses itong mas mahirap upang sakupin ang Bitcoin kaysa sa pag-agaw ng cash o kredito o seguridad.
Kaya’t tinitingnan ko ang Bitcoin at sa palagay ko ito ay isang unibersal na pag-aari. Ito ay magtatagal magpakailanman. Napakahirap mang-agaw. Napakahirap magbuwis. Madaling ilipat. Ginagawa itong pandaita sa lahat. Sa araw na gisingin mo at nahanap mong labag sa batas ang pagmamay-ari ng Bitcoin sa iyong bansa maaari mo itong dalhin sa ibang bansa. Subukang kumuha ng isang bilyong dolyar ng ginto sa ibang bansa kasama mo.
Kaya’t maaari mong kunin ang Bitcoin, o maaari mo itong ipadala sa kung saan, o maibenta mo ito. Ang kakayahang ipadala ito, kunin ito, panatilihin ito, o ibenta ito, lahat ng mga iyon ay mga karapatan na iyong isinakripisyo kapag bumili ka ng isang bahay, o isang gusali, o lupa, o mga security, o credit, o cash, o sining , o mga koleksiyon, o mga koponan sa palakasan. Wala kang mga karapatan sa pag-aari na sa palagay mo mayroon ka sa mga bagay na iyon.
Sa huli, ang ideya ng Bitcoin ay matikas. Isang dalawampu’t isang milyon ng lahat ng halaga sa network hangga’t maaaring tumagal ang network. Walang mas matatag, walang mas mahuhulaan sa buong uniberso sa pananalapi kaysa doon. Iyon ang nag-iisang pinaka-matatag na katawan sa buong uniberso sa pananalapi. Kung naghahanap ka para sa isang bagay na iikot sa paligid ay walang mas matatag.
Hindi nito hinuhulaan ang hinaharap ngunit maaari nitong maibsan ang kawalan ng katiyakan sa hinaharap para sa karamihan ng mga tao sa planeta. Ang mga taong iyon ay may kalayaan na makaipon ng ari-arian dahil sa teknolohiyang ito. Ano sa palagay mo mula sa isang makataong pananaw?
Michael Saylor
Nangangahulugan iyon para sa 8 bilyong katao na nag-aalok ang Bitcoin ng posibilidad ng paglakas ng ekonomiya. Sa palagay ko kung nais mong bigyan ang kagalakan sa 8 bilyong tao, kailangan mo ng digital na musika. Kung nais mong magbigay ng paliwanag sa 8 bilyong tao, kailangan mo ng mga digital na libro o digital na edukasyon. Kung nais mong bigyan ang yaman sa 8 bilyong tao kailangan mo ng digital na pag-aari, digital na pera.
Walang iba. Walang ibang nag-aalok ng pangakong iyon. Ang dahilan kung bakit malakas ang Bitcoin ay dahil sa pagtatapos ng araw maaari kang maglagay ng trilyon at trilyong dolyar na enerhiya sa network at maaari mo itong ipamahagi sa isang bagay tulad ng Bitcoin Lightning Network sa 8 bilyong mga mobile device at ang mga mobile device ay nagkakahalaga ng $ 50.
Maunawaan ang dalas. Kung mayroon akong $ 1 bilyong ginto at ilagay ito sa isang vault ang dalas ay tulad ng isang beses bawat sampung taon. Iyon ang bilis ng ginto. Kung mayroon akong $ 1 bilyong Fiat currency at inililipat ko ito sa daang-bakal ng Visa at ng wire ng Fed, kailangan ng isa hanggang dalawang buwan upang ilipat ito. Kung gumawa ako ng isang transaksyon sa pagsingil, bago ang pangwakas na pag-areglo ay 30 araw bago mo malaman na hindi ka makakabalik sa claw sa isa pang 15 araw. Kaya’t 45 hanggang 60 araw pagkatapos kong bayaran ka para sa isang bagay maaari mo itong ilipat. Kaya’t pinag-uusapan mo ang tungkol sa isang taunang bilis ng 6 bawat taon. Inilagay ko ang parehong pera sa Bitcoin Lightning Network at ang bilis ay 6 bawat oras, 6 bawat minuto, 6 bawat segundo. Pinag-uusapan mo ang tungkol sa isang bilis na kung saan ay mas mataas ang mga order ng lakas, at ang gastos ay walang maihahambing. Noong nakaraang taon ay nagbobomba sila ng langis sa lupa at ang presyo ng langis ay naging negatibo dahil walang kung saan maiimbak ang langis. Sa sandaling maubusan ka ng mga lalagyan o tank upang maiimbak ang langis na nakuha mo upang ibuhos ito sa lupa o sa dagat, hindi mo ito maiimbak. Tumatakbo kami sa parehong mga isyu sa natural gas at mga katulad. Ang bawat solong anyo ng enerhiya o anyo ng pag-aari ay hamon na ilipat, upang maiimbak sa paglipas ng panahon, at malulutas ng Bitcoin ang problemang iyon. ng mga ito sa isang pang-ekonomiyang gastos na may isang bagay tulad ng kidlat sa tuktok ng Bitcoin. Mayroong iba pang mga layer 3 apps. Ang mga sentralisadong solusyon tulad ng Square ng Cash App ay exponentially na bumabawas sa mga gastos sa transaksyon na makukuha mo sa pamamagitan ng pagtanggap ng panganib sa counter-party. Kung tatanggapin mo ang isang gitnang Bitcoin bank, at gagawin mo ang Google, o Apple, o Facebook, o Square, o PayPal sa bangko na iyon, maaari mo pa ring ilipat ang isang bilyong transaksyon bawat oras. Ito ay halos walang alitan. Iniisip ko ito bilang susunod na lohikal na ebolusyon ng enerhiya. Ang pag-usbong ng elektrisidad na enerhiya ay isang malaking deal. Kapag nagkaroon kami ng lakas na mekanikal, isang gilingan ang inilalagay sa paligid ng isang turbine sapagkat umaagos kami ng tubig sa pamamagitan ng gilingan at bawat makina ay kailangang tumakbo mula sa turbine na iyon. Pagkatapos nakarating kami sa elektrikal na enerhiya, at hindi mo na kailangang magtayo sa paligid ng turbine. Maaari mong ikalat ang halaman sa 18 ektarya. Maaari mong ilipat ang kuryente pataas at pababa sa maraming mga sukat sa kalawakan. Sa digital na enerhiya hindi ako limitado sa isang halaman. Maaari kong ilipat ang enerhiya sa pamamagitan ng oras at espasyo ng isang milyong beses nang mas mahusay, kaya ang mga uri ng mga istraktura na maaari mong buuin at ang mga uri ng mga bagay na maaari mong gawin ay mas mahusay na ngayon. Alex McShane Nalutas namin ang problema ng entropy ng pera sa pamamagitan ng pag-desentralisa ng buong system at panatilihin itong gumagalaw sa pamamagitan ng patunay ng trabaho, na sinisiguro ang Bitcoin bilang pinakamatibay na pag-aari. Ngunit ano ang hitsura ng paglipat patungo sa Bitcoin na nagiging pinakamatibay na pera? p> Michael Saylor Kung mayroon kang isang milyong dolyar, hindi mo ito mamumuhunan sa lupa kung hindi mo pinagkakatiwalaan ang iyong mga karapatan sa pag-aari. Halimbawa, hindi ako komportable na gumawa ng isang pamumuhunan sa isang gusali ng apartment sa isang lungsod na ipinakita ang kanyang sarili na nais na alisin ang kanilang mga karapatan sa mga panginoong maylupa. May hawak kang isang gusali ng apartment. Hindi mo maaaring singilin ang iyong mga nangungupahan na manirahan sa gusali ng apartment, o maaari mo rin silang paalisin. Ano ang lohikal na halaga ng gusaling iyon? Tataas ba ito o bumababa sa pangyayaring iyon? Kung mayroon akong diskresyonaryong cash ibubuhos ko ba ito ulit sa maraming mga gusali ng apartment o hindi? Ang sagot ay, saan man tayo makakita ng kapansanan sa pag-aari, ang enerhiya ng pera sa pag-aari ay dumadaloy sa isang kahalili na mas mabuti. Sa palagay ko sa mga tao sa Estados Unidos ay komportable sa dolyar ng US, at kung ano ang hindi nila komportable, o kung saan hindi sila komportable sa marahil ay mapanganib na mga stock o mapanganib na pamumuhunan sa pag-aari o sabihin na ginto, mga bagay na tulad nito. Lohikal na hinuhubad ng Bitcoin ang premium ng pera mula sa mga kalakal, seguridad, index, at kredito. Sa palagay ko sa maunlad na mundo, sa Europa at sa US, ang Bitcoin ay magpapakita ng demonyo sa utang, mababang antas ng utang, o mababang utang na may utang, at kredito. Magpapakademonyo ito ng mga account sa pagtitipid. Pagsapit ng 2020 karamihan sa mga tao ay sumuko na sa mga pagtitipid na account. Ano ang punta nila? Mga ETF. Sa palagay ko ang Bitcoin ay talagang kumukuha ng lakas ng pera o kapital mula sa mga ETF, komersyal na real estate, at utang sa nabuong mundo. Sa umuunlad na mundo, sa mga lugar tulad ng Iran, China, North Korea, Lebanon, Syria, Iraq, Afghanistan, wala kang isang matatag na sistema ng pagbabangko, hindi ka rin na-dollarized, ang iyong pera ay mas masahol kaysa doon. Kung ano ang iyong makikita ay mula sa halos 180 mga bansa, 15 o 20 sa kanila ang nagpapanatili ng kanilang mga pribilehiyo sa pera. Ang ilalim ng 100 ay nawalan ng kanilang mga pera. Sa palagay ko ay mag-i-dollarize muna nila. Ngunit paano ako makakapagpe-dollarize? Ang pinakamahusay na paraan upang gawing manika ay ang diskarte sa El Salvador, na isang mobile application na mayroong dolyar at Bitcoin sa network ng kidlat. Ang nais mo ay isang pera bilang isang daluyan ng palitan, isang barya na matatag kumpara sa lahat ng pagpepresyo ng mga nagtitingi, tulad ng dolyar, at pagkatapos ay nais mo ang isang asset na kung saan ay isang nagpapahalaga ng token na hahawak sa halaga nito sa paglipas ng panahon. Bitcoin iyon. Kung nais mong i-maximize ang iyong utility inilalagay mo ang 90% ng iyong sheet ng balanse sa asset, at inilagay mo ang huling piraso, ang gumaganang kapital, ang check account sa kung ano man ang pera na kinuha ng karamihan sa mga nagtitingi na napapalibutan mo. Kung ako ay nasa Japan, maghawak ako ng isang buwan na halaga ng Yen. Kung nasa Italya ako, maghawak ako ng isang buwan na halaga ng Euro. Kung nasa isang dolyar na ekonomiya ako, magkakaroon ako ng isang buwan na halaga ng dolyar at pagkatapos ay ang natitira na pag-aayos ko sa aking pangmatagalang portfolio ng asset, portfolio ng pag-aari. Ay baka bumili ako ng isang pag-aari na tirahan dahil ito ay isang magandang bahay at nais kong manirahan dito sa natitirang buhay ko at hindi ko ito inuupahan. Siguro bibilhin ko ang aking trophy art. Siguro binibili ko ang kotse o baka bumili ako ng bangka o eroplano, dahil nais kong lumipad dito, lumutang dito, manirahan dito, kahit anong gusto kong gawin. Ngunit ang lahat ng aking mga paghuhusay na pag-aari ay ilalagay ko sa pinakamataas na kalidad ng pag-aari, na syempre Bitcoin. Sa palagay ko sa pangkalahatan ang makikita mo ay $ 100 trilyong halaga ng pag-agos ng kapital mula sa mga pag-aari ng pamumuhunan sa maunlad na mundo patungo sa Bitcoin at ang mga pera ay magiging mas malakas. Hindi ko nangangahulugang mas malakas sa lakas ng pagbili. Ibig kong sabihin makikita mo marahil ang dolyar na maging ang perang nakikita mong ginamit sa Venezuela, Argentina, at bakit hindi mo ito nakikita kumalat sa bawat bansa sa Africa. Pangalanan ang isang pera sa Africa na mas gugustuhin mong i-hold sa iyong wallet kumpara sa dolyar. Wala. Mayroon bang mas mahusay na pera sa Africa kaysa sa dolyar? Kung mayroon akong $ 10,000 dolyar, marahil ay maghahawak ako ng $ 50 sa aking wallet wallet, at gagawin kong Bitcoin ang iba pang $ 9,950. Iyon ang aking account sa pag-check kumpara sa savings account. Ang perpektong sitwasyon na nais mong makuha ay sa paglaon ay ilagay ang 100% ng iyong mga assets sa Bitcoin. At pagkatapos ay mayroon kang isang credit card o linya ng kredito na iginuhit laban sa Bitcoin. Ay hindi ko talaga nabili ang aking Bitcoin sa kasong ito. Gumagawa lang ako ng utang laban sa aking Bitcoin. Medyo maaga kami dito, ngunit kung ang iyong ratio sa gastos ay mas mababa kaysa sa inaasahan mong pagpapahalaga sa paglipas ng panahon, hindi mo na kailangang magbenta kahit kailan. Maaari kang mangutang laban sa iyong mga assets mula ngayon hanggang sa katapusan ng kawalang-hanggan. Ngayon kinakailangan na magkaroon ka ng nabuong sektor ng pagbabangko ng Bitcoin. Kailangan mong magkaroon ng isang linya ng kredito laban sa Bitcoin at nakikita namin na ang pagbuo sa iba’t ibang paraan sa buong mundo. Sa huli iyon ang magiging perpektong sitwasyon, gugustuhin mong hawakan ang Bitcoin at gumuhit ng mga linya ng kredito sa mga perang umiiral. Sa palagay ko ang makikita natin ay ang mundo ay bumababa sa 10 pera o hanggang 5, tulad ng Chinese currency, US dollar, the Euro. Ang tanging paraan lamang para sa mga pera ay maaaring magkaroon ay para sa pamahalaan upang manatiling buhay. Walang pera sa Afghanistan ngayon di ba? Walang magiging isa sa mga iyon. Marahil ay mag-i-dollarize ito. Nag-dollarize na ito. Sa palagay ko ang nakikita namin ay isang pagbagsak ng mga pera sa iilan, at isang pagbagsak ng mga pag-aari sa iilan. Halimbawa, mayroong 100,000 mga gusali sa US na maaari mong bilhin sa halagang isang Bitcoin, o maaari kang bumili ng Bitcoin. Alin sa dalawa ang mas madaling desisyon? Bakit kailangan ko ng isang seguridad, isang REIT, isang bono, mga bagay-bagay na panindang bilang isang tindahan ng halaga, kung kailan ako makakabili lamang ng Bitcoin? Paano bubuo ang Bitcoin? Ito ay bubuo sa iba’t ibang mga rate ng organiko sa iba’t ibang mga bansa sa iba’t ibang mga merkado batay sa kultura, batas, mga pangyayari ng mga tao, batay sa mga krisis, at batay sa sentido komun. Nasa Argentina ka. Sa tingin mo ba ligtas ka sa Argentina? Mayroon kang $ 1 milyong dolyar, nais mo bang pagmamay-ari ng $ 1 milyon na halaga ng isang kumpanya, isang bukid, isang gusali, ginto, isang bangka, pera, o Bitcoin? Kung iniisip mong tatakas ka sa bansa, lahat ng pinangalanan ko ay walang halaga maliban sa Bitcoin. Kapag nagkaroon ako ng pera sa Argentina at ako ay na-trap doon ay makakabili ako ng ginto ngunit hindi ko maalis iyon sa bansa. Naisip ko na maaari kong palutangin ang isang yate sa labas ng bansa, ngunit iyon ay bago ko pa nalalaman ang tungkol sa Bitcoin. Ngayon kung tinanong mo ako ng tanong na sasabihin kong bumili ng Bitcoin. Sa kabilang banda, kung nakatira ka sa Texas at gusto mo ang Texas, maaari mong maramdaman na okay lang na pagmamay-ari ng 100 ektarya doon. Nararamdaman mong ligtas ka sa Texas. May baril ka. Mayroon kang ilang mga kabayo. Mayroon kang isang traktora, o isang trak, o isang Jeep. Hindi mo kailangang ipuslit ang baril, ang Jeep, at ang mga kabayo sa kabila ng hangganan bukas. Kaya mong pagmamay-ari ang pag-aari na iyon. Kung sa palagay mo hindi masisira ng Texas ang halaga ng iyong lupa maaari kang maging okay doon. Nararamdaman ko na ang mga pangyayari ng indibidwal at sentido komun ay magdikta ng iyong mga pamamahagi ng pag-aari. Ngunit ang apex na pag-aari ay palaging Bitcoin. Ang aking opinyon, na medyo kilalang-kilala, ay kung mayroon kang $ 10 milyon na na-convert sa Bitcoin, at nais mong bumili ng anuman, mas mabuti na huwag mong ibenta ang Bitcoin. Pinakamainam na manghiram laban sa Bitcoin. Kung makatuwiran ka na ang Bitcoin ay magpapahalaga sa 20% sa isang taon, at kung mapapanatili mo ang iyong mga gastos sa 5% sa isang taon, at kung ang pagkasumpungin ay hindi magdulot ng pinakamababang pagguhit ng higit sa 80% a taon, o 50% sa isang taon, malalaman mo kung ano ang numero… Kapag naisip mo ang tatlong kalkulasyon na maaari mong makuha ang puntong magpapasya ka, hahawak lang ako sa aking mga assets. Hahayaan ko na pahalagahan ang aking mga assets. Papondohan ko ang aking mga gastos sa pamumuhay sa utang. Kung may gusto akong bilhin, isa pang pag-aari, baka gusto ko pa ring mangutang laban sa aking Bitcoin upang bilhin ang ibang asset na iyon. Kung talagang ibinebenta mo ang iyong Bitcoin upang bumili ng isang asset, iyon ay isang pag-iba-iba. Maaari kang mag-iba-iba dahil nais mo, iyon ay isang personal na desisyon. Ngunit kung mayroon kang isang asset na aakyat ng 130% sa isang taon, at sinabi mo sa akin Mike na may pangalang iba pa na sa tingin mo ay tataas ng 130% sa isang taon na maaari kong pag-iba-ibahin, ang sagot ay wala akong anuman. Kung sinabi mo sa akin kailangan kong hatiin ang aking pera limampung limampu, ang kalahati ay napupunta sa Bitcoin, ano ang kalahati? Hindi ko alam Ang isang portfolio ng malalaking mga stock ng tech siguro? Siguro ang Nasdaq? Siguro isang kombinasyon ng Apple at Amazon at Facebook at Google? Bumili ka ng ilang masamang cool na teknolohiya. Siguro. O kung nais kong maging napaka-konserbatibo bumili lang ako ng bahay na inaasahan kong manirahan sa natitirang buhay ko dahil alam kong makakakuha ako ng halaga mula doon dahil may halaga sa akin na bumangon sa umaga at nasa aking espasyo. Nakatuwiran iyan. Mayroon akong isang hotel. Kung ang hotel ay may bawat silid na naka-book ng 365 araw sa isang taon malinaw na pinipilit ko ang mas maraming kita sa labas ng hotel. Ngunit gumawa tayo ng isang eksperimento sa pag-iisip. Paano kung mayroon akong 100 mga silid sa hotel at ang bawat silid ay nai-book tuwing gabi, 365 araw sa isang taon at naniningil ka sa oras. Well nakakainteres iyon. Gaano karaming oras ng taon, kung gaano karaming mga oras ng silid ang talagang wala sa hotel kahit na ang hotel ay teoretikal na nai-book tuwing silid gabi? kailangang umalis sa silid. Umalis na sila para magtrabaho. Umalis sila upang lumabas sa isang bar, umalis sila upang magbiyahe. Sa punto ng katotohanan, ang hotel na kumpletong nai-book ay walang laman sa dalawang katlo ng oras. Kung maaari kong mai-book out ang mga kuwarto sa oras-oras ang aking mga kita ay triple. Ngayon kung paano ko talaga mai-book ang mga silid bawat oras sa sinuman sa anumang lungsod sa Earth? Paano kung talagang maililipat ko ang hotel o mai-teleport ang hotel bawat oras? Kung gayon hindi ko lamang maitutulak ang pag-upo ng isang salik na sampu, maaari ko ring taasan ang pagpepresyo. Maaari kong ilipat ang hotel sa lugar sa mundo kung saan ang mga rate ng kuwarto ay pinakamataas ng oras. Venice para sa Venice Film Festival. Maaari kong ilipat ito sa kung nasaan man ang Super Bowl. Ang aking paggamit ay tataas. My price per hour would go up. What if my costs were fixed? Well now, if you think about it, the profitability of a 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 at the highest marginal rate you can get for a room anywhere on Earth at any point in time is going to 3,000% or 30,000%. What did I just do? I just dematerialized the property and I moved it with a frequency which was unimaginable. That’s what Bitcoin is. That’s what happens when you dematerialize property. You have the option to move it with a frequency which is unimaginable, to the highest marginal use. When people get their heads around that they realize, do I want to own a hotel in Texas? No. Do you want to own anything fixed in the real world? No. What do you want to own? You want to own the apex property in cyber space that’s universally desirable to everybody and then you want to loan it out to them for the number of seconds that they want to use it, and then snatch it back at no cost, or for one Satoshi. That really is what’s interesting about Bitcoin and everything around it, all of the possibilities to develop those businesses and develop those applications. We don’t have them all now. I just described defi by the way. I described defi on lightning, on Bitcoin, with an intelligent exchange that is hunting for highest optimal use. But you don’t have to develop all those businesses immediately to grasp the potential. All you’ve got to do is figure 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 exchange. It’s hard to build PayPal. It’s hard to build Fidelity. It’s just hard. You have to deal with the regulatory issues, the technical issues, the security issues. Or, the other thing you can do is just own the Bitcoin and wait. There’s an intermediate, you can own the Bitcoin and you can loan it out but that means that basically you have to pick the counter party you trust. So maybe I get 130% appreciation by just waiting 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 someone else. Or maybe I go and create my own Coinbase, create Abra, create Square, create the next great payment network or the next great bank. And maybe if you’re really good and work really hard you’ll create something worth billions and billions of dollars. But that’s a different thing. That’s industry. So the way I look at it is you have capital. You’ve got to invest it. If I lived 200 years ago, if you go back ex post facto, if I had a priori knowledge, I would go back and buy Manhattan in 1900. All of it. Why wouldn’t you? Buy everything. Just buy the land. Hold it. Keep it in the family. That would be a good idea. Buy apex property 100 years before everybody else has to move there and wait. That’s what I would do then. Today? Knowing what we know now, I would buy the apex property in cyber space. And the apex property in cyber space is Bitcoin. I would just wait and let nature take its course. People are going to do everything they can to develop those applications, those businesses on top of digital property and as they succeed they’re going to lock up the property, they’re going to create more demand for it, they’re going to drive up the price of it, and you’re going to benefit as a property holder at any scale. You can have $37 worth of it or $37 billion worth of it. That’s the option you didn’t have in Manhattan. You couldn’t buy $37 worth of dirt in Manhattan. You had to buy it one block at a time and so today if you want to own natural gas rights, or commodities, or commercial real estate, you’ve got to buy into a REIT or something like that. You have to buy a security which gives you a share of the thing. The beauty of Bitcoin is you don’t have to buy the security. If you want you can buy the underlying property in a pristine unit, 37 million Satoshis, and it has the same security and the same financial appreciation potential as if you bought as much as we bought. Alex McShane One of the ways we’ve dematerialized property is by open sourcing Bitcoin. So what I’m wondering is, as a patent holder, what do you think about the free flow of ideas? Do you think it’s a net positive for society to have patents on things? Or are they more of a business opportunity? Michael Saylor I think that the only reason to pursue a patent, in my opinion, and this is my opinion over the course of a 30 year career, the only reason you get a patent is defensively, so you can defend yourself against patent trolls when they sue you. I’ve used it over and over again. There are people with one patent and they just sue for a living. Someone finds out that you’ve used mathematics on a phone, or that you’ve used the color green in the interface. And they show up saying that you’ve used math or the color green in your software, and they want 10% of your company, and then you have to defend yourself. It turns out that in our legal system the best way to defend yourself is to knock out their patent by having a prior claim or a different related patent. So defensive portfolios of patents make sense. Am I a fan of patents? Not really, no. If I could wave my hand I would eliminate all patents because I think they’re a restraint to trade and I really don’t think that society is served by people laying claim to the right to send messages over the air, or to add numbers on a screen. Ultimately all these patents boil down to is, I have an idea to do something. Well yea, everybody in the human race has ideas. Sometimes people have ideas twice. So why should you be able to prevent every other human from starting a fire before it starts raining. I’m not a big fan of them. If we got rid of them all the world would be a better place, but in a world where we can’t get rid of them, then accumulating them to defend sovereignty is useful. Putting together the crypto patents as part of the COPA initiative is primarily a defensive move and it’s a useful thing to do, to defend it. I do think the open network is obviously much more powerful, especially in this context. I think the closed network is helpless. First of all, you can’t have a centralized money, because you can’t establish it as being anything other than a security. Every centralized system is going to pass the Howey Test. It’s going to be a common enterprise in pursuit of profit. And if that’s the case then you lose your 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 value than the US dollar, that’s a violation of House ethics rules. That’s just wrong in so many different ways that you can’t imagine how wrong that is. So I think that things that are patented and to any degree centralized, they don’t serve as a universal medium of exchange or a universal store of value, or a universal unit of account. They’re not money. They can’t be money. If you’re trying to create digital energy, the whole idea is, I want to be able to move my energy between 8 billion people, across every political jurisdiction, across 100 million corporations, on a universal open protocol. So if you attempt to constrain or license the protocol, it’s no longer a universal language of energy anymore. Imagine if half the people in the world weren’t able to use the word four? How does anything work if you’re not allowed to use the number four because someone’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 would never be successful. Alex McShane Information is by definition copyable, this is everything, including Bitcoin private keys. The one trade off with Bitcoin is the burden of responsibility can fall on the user to protect that one piece of information. What do you think about the future of Bitcoin lending? What do you think about banks coopting the custody of Bitcoin from the majority of people, who aren’t going to put in the 1,000 hours to learn how to do it successfully? Michael Saylor I think there’s a very vibrant dynamically evolving market of Bitcoin applications that are mutating faster than we can speak or describe them, in every jurisdiction. A petri dish of life. For example, there’s a use case for Bitcoin, which is, I’m going to use it and I’m going to use a hardware wallet, and place a certain amount in cold storage. There’s a lot of people that have mastered that, and that’s a good thing. But even people who have mastered that would admit there’s another use case, which is the Chivo application in El Salvador. That is a downloadable wallet that’s moving around Bitcoin on the Lightning Network. It’s riskier. You’ve got KYC involved so it is not as private. It’s riskier because you could lose your mobile phone, but it’s faster. Then you’ve got a third application which is like Strike, or a third party lightning wallet. There are some like Muun or Breez, that are not KYC. They are non-custodial. That’s a third option. Did that benefit from the existence of the Chivo wallet? Sure it does. The demand for those wallets will go up because that of the Chivo wallet goes up. In defense of the president of El Salvador, it’s kind of hard to give $30 worth of Bitcoin to every citizen unless you 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 different there. Now, there’s a fourth application. What if you’re a company? A corporation is going to take the view that they don’t want a single individual, they’ll want to have a multi-signature relationship when it comes to the custody of their Bitcoin and they’ll have more sophisticated custodial rules. A government needs a different application also. If you were a citizen of a city, and the city put a billion dollars of Bitcoin on its balance sheet, would you want the mayor to carry the keys around? And by the way, if you were the mayor, would you want people to know that you actually have the keys? I mean wouldn’t you be concerned about being kidnapped and having your fingers ripped off one at a time? Or having a family member kidnapped? So in that particular case they’re going to be interested in a different thing. That’s another application. That’s multi signature application. Who should be signing it? In some cases it’s not even multisig across people. It’s multisig across organizations like three agencies, or three corporations or auditors might need to have some involvement. I’m not threatened by the entry of banks. I think that they’re all just different manifestations of Bitcoin. Bitcoin is property and you can build things on top of it. One thing you can build on top of it is a checking account and savings account. We need Square and PayPal to offer their mobile apps on top of it. But we also could use an ETF. For example, if I’m an institutional investor, I have $2 billion. It took me 30 years to raise the $2 billion. The money is raised from firemen’s pension funds and unions, and other organizations and foundations. The Rockefeller foundation. They gave me the money and they gave it to me 15 years ago. I have the ability to buy securities with it, but I don’t have the ability to buy property with it. I don’t have the ability to buy Bitcoin with it. If I wanted to buy Bitcoin, I would have to convince a board of directors with 28 people on it that meets once every 6 months. Then I’d have to convince my outside auditors. Then I would have to go change the law in the state of Utah. Then I’d have to go back to all of my limited partners and explain to them. Then I’d have to actually educate 252 people and my outside auditors. After I did that I go through a one year process to establish my relationship with a Bitcoin exchange. Then I’d have to figure out how we’re going to custody it. That would take me about, oh, five years, and I’d probably fail 99% of the time. Or, I could punch a button and buy $27 million worth of the Bitcoin ETF, and I could do that in 30 seconds. Now, is there a role for an ETF? Sure there is. 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 your entire pension, and someone said there’s one dude we hired last week and he has $2 billion of your money and he’s got the keys and he just disappeared. You might not take kindly to that. It’s not always the case that the right answer is cold storage, hardware wallet, self custody. It depends upon who you are. We can’t let the perfect be the enemy of the good. I would say there’s probably 1,000 different instantiations. In fact more than that. For example, the ETF is a way to get Bitcoin exposure. You could say, is that as good as holding the Bitcoin? No. Is it better than holding an ETF that’s invested in negative yielding sovereign debt of Italy? Yes. My choice isn’t the choice to own Bitcoin or to own the ETF. My choice is to own the Italian sovereign debt ETF or to own the Bitcoin ETF. That’s my choice. Once you realize that, you realize that what we want is we want traditional banks to offer certain types of Bitcoin accounts. We want the new mobile banks like Square and PayPal. You’re going to have Square. But you’ll have Square that lets you hold Bitcoin and move it out of Square, and move it on a cash tag. But they don’t support Lightning yet. But at some point Square’s Cash App will support Lightning. They’ll be better. When PayPal supported Bitcoin they didn’t support Bitcoin withdrawals. They were worse. When they add Bitcoin withdrawals they’re better. When they add Lightning they’ll be better still. Then there’s going to be non-custodial wallets. They’re better better. You’re going to have layers of better. But the guys in the hardware wallet business say non-custodial hot wallets on mobile phones aren’t as good. So I’m going to stack up layers of Bitcoin. I can name probably 20 off the top of my head. You can own a junk bond from MicroStrategy that yields 6.8% interest. Is that as good as owning Bitcoin? No. Is it better than owning a junk bond that isn’t backed by Bitcoin that yields 2% interest? Yea. You see? You can own a convert in MicroStrategy and that yields like whatever,.5% interest. But it’s backed by Bitcoin and if Bitcoin goes up by a factor of 10 your bond is going to go up by a factor of 5. Is that better than owning Bitcoin? No. Is it better than owning another convertible bond that’s back by space tourism or something? Maybe. It depends. What you have is a universe of people that can own certain types of securities and certain types of properties by charter. And then you have a universe of securities and properties of Bitcoin that are being offered as the banking sector, and the financial sector evolves. When the sector evolves, when we have a Bitcoin ETF in the US, billions and billions of dollars will flow into Bitcoin that under no circumstances would have found their way into Bitcoin otherwise. I know a 70 year old guy who has a phone in his hand with something like PayPal on it. He can do this, he can go $2000 dollars, Bitcoin. That’s what he can do. If you go back to him and say, you know I need you to listen to 500 hours of videos and learn to go through a 97 step process and buy these 14 things… I can’t do it. I cannot do it. In theory it would be nice if we all had our own gun and our own shack on our own ranch with our own livestock, and we could grow our own food, and we could ride our horses, and we could go off the grid. It gets real when you have to perform your own appendectomy. At that point you start thinking maybe this living off the grid thing wasn’t such a good idea. I think with Bitcoin you’ve got different services in every country, in every market, and what’s legally possible and possible from a regulatory point of view and what’s technically possible and what’s practical is changing all the time. I happen to think that the best outcome is the greatest diversity of market opportunities. I’m not smart enough to know the one right answer. I do think that if you look at consumers there’s a different solution for different types of individuals. If you look at my 83 year old dad, he’s not going to buy anything with a mobile app. But he might sell his stock portfolio and put it into a Bitcoin ETF, he could do that. Individuals, they have their own needs. Corporations are different. Some companies can buy Bitcoin. Some companies, for example would want a treasury service from Fidelity that gave them 3% yield where they could just buy $10 million worth of it on a phone call. They don’t want to custody it. Right now their choice is hold cash or tell JPMorgan or Bank of America or Citigroup to put it in. The treasurers they just sweep billions of dollars into short-dated sovereign debt portfolios. Buy me a $157 million worth of 90-day government debt. Salamat. Click. They need something like a treasury-type service backed by Bitcoin. If you go to institutions, every institution has got a different charter. Some people, 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 want to. They can’t. They guy that’s sitting with you can talk with you for five minutes, punch a button and buy $500 million worth of the security. You could talk to him for 10,000 hours and he can’t buy the underlying Bitcoin and take personal custody of it. Just can’t. All those institutions are different. Stuff gets really real when you get to municipal, state and federal governments. What if Jerome Powell said tomorrow, we decided to buy $100 billion of Bitcoin. How do you feel about that? How would you like him to do that? How should he go about that? You want Jerome Powell to walk around with the keys? You want the twelve members of the federal reserve board? Who do you really trust? What if we elect a new president and the old one just won’t give up the money? What if my family just keeps the $100 billion. When you get in the political domain, now it’s different. I tend to think there’s a place for all those things. And there’s some that will be more successful than others. Some Bitcoin banks will fail. Some Bitcoin exchanges are crooked. Sometimes they have security issues. Sometimes somebody steals all the Bitcoin. Right? It’s happened. It will happen again. The market needs to squeeze out the weak offerings. Even hardware wallets, there are some that are better than others. Software wallets, some are better than others. Non-custodial, custodial. They’re not all equal. They’re not all perfect. I think the competition should continue. The beauty of the open network is the protocols are out there. When Apple computer decides to build their own Apple Pay Bitcoin offering, they have access to the protocols. Will they do better than Square? Will they do better than PayPal? Will they do better than Google? I don’t know. Here’s what I do know, they should be punished if they don’t. Right? The money, the capital should go away from the people that do a poor job, to the people that do the best job. Who gets to make the decision? The people with the capital get to make the decision. If I tweet at you, take all your money and put it in this software wallet, you’d think it’s a little bit offensive. Let the people with the money make the decision. Give them an entire universe of options. Some are going to make a mistake. Some are going to lose their keys. Some are going to lose their phone. Some exchanges are going to get hacked. That’s life in the universe. That which does not kill us makes us stronger. Some stuff kills us. That still makes us stronger. The part of the herd that doesn’t die is the stronger part of the herd. That’s Darwinian, natural selection. All the alternatives are less desirable in my opinion. Alex McShane Bitcoin is good at promoting its own production, much like genes. What, if any, are the predator prey dynamics of Bitcoin and how are they different from those of the potentially infinite asset class of fiat currency. Michael Saylor I think there’s a very dynamic competitive market in Bitcoin mining on the security side of the network. I think there’s a very dynamic competitive market of Bitcoin exchanges. I think there’s a dynamic competitive market in the financial applications, call them the banks. All three of those are very Darwinian to the benefit of the network. For example, 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 before that, you’re talking about 500 megawatts of energy. So if I’m sitting on mining equipment after six to eight years, I’m obsolete. The break-even point for the S19 is 45 cents per kilowatt hour. The break even point for the S9 is 9 cents per kilowatt hour. The break even point for the previous generation is 2 cents per kilowatt hour. What’s happening is the Bitcoin mining network is upgrading its technology and squeezing off the grid all of the obsolete or the third generation, the older technology. If you can’t upgrade, if you don’t have the money to buy the new generation technology, you have 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 getting squeezed out no matter what. If you can’t get the Bitcoin mining equipment vendor to sell to you… what if Bitmain won’t sell to me? Well, you’re still losing. It’s a competition to maintain the trust of the vendor. There’s a competition at the hardware layer. If you don’t like the fact that Bitmain controls most of the market you 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 sources of energy. That’s competitive. If you trusted a free source of energy in China, and the government cut you off, well you lost. That was a bad decision. So you’re looking for political support. If the energy provider isn’t trust worthy, if they pull the rug out from under you, you’re out of luck, you’re lost. If the politicians pull their political support you’re lost. If you can’t upgrade your hardware you’re lost. If you engineer your mining facility poorly and you don’t do the right heat dissipation and you burn out your rigs, you’re lost. If you can’t raise capital in order to buy new mining equipment, you’re lost. If you don’t have the trust of the capital markets, Marathon and Riot are publicly trading, they can go and they can raise equity and debt. If you can’t go public you’re at a disadvantage. If you’re in a market where there are no capital markets, the Chinese can’t take their Chinese mining companies public, they’re at a disadvantage. On the mining side there’s a competition for capital. There’s a competition to engineer mining facilities. There’s a competition to design semiconductors, SHA-256 mining rigs. There’s a competition to operate. By the way you can’t get ripped off by your employees either. There’s a competition to find supportive political jurisdictions. That’s never ending. What’s the result on Bitcoin? Bitcoin gets more secure, and more robust, and more antifragile. It’s not inflationary, because the protocol is locked in. The only result is the network decentralizes. Would Bitcoin be at risk if all the mining was in one place and one politician could turn it off at the same time with the snap of a finger? Yes. So what happens when someone does that on a small part of the network? It teaches everybody else and they decentralize, and they’re looking for places. If I’m going to invest $500 million in Bitcoin mining, don’t you think I’m going to pick a jurisdiction they’re not likely to outlaw me in the next decade? There’s a reason I might want to go to Texas and not go to, say, New York, or California. Right? I’m going to go find a supportive jurisdiction. So the mining network has got a very healthy competitive dynamic across five different types of capital. Engineering capital, semiconductor, technical capital, political capital, financial capital, and even human capital. So that’s going on, and that’s good to the entire network. On the exchange side, well you see that in process right now. All of the migration, Coinbase is competing with Binance is competing with FTX is competing with Square is competing with PayPal. What’s going to happen? Do I want a crypto exchange? A Bitcoin-only exchange? Do I want a Bitcoin-only non-custodial? Custodial? Do I want to have leverage or not leverage? Well, there’s legal issues, there’s technical issues, there’s market driven issues. Ultimately the competition is driving more diversity and more choice and people are going to migrate to the thing they’re most comfortable with. The other day I bought $30 worth of Bitcoin. I bought it on one application and paid a.69 cent fee. I went and I tried Strike and I paid next to nothing. I thought that’s kind of cool. Okay so thank you Jack Mallers, we appreciate that. Competition. It makes us all better. Right? 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 days, but there’s already people complaining about it, that it’s custodial, or that it’s KYC. Well if we roll forward to the next generation every 90 days or every six months, that seems pretty healthy to me. We need that because we can never make the exchanges too efficient. We can never make the wallets too functional or too secure. We’re going to continue with that. The beauty is, look, we need Square to do what they’re doing. Bakit? Because you need a big company to actually compete with Apple. Apple computer is not going to enter the Bitcoin space because they’re threatened by a non-custodial wallet coming out of South America. Right? They’re not going to enter the space for Chivo either. But they will enter the space if they see Square and PayPal generating hundreds of billions of dollars of market cap. If you think Square that is going to take 500 million users off of Apple Pay? That will cause a response from a Facebook or a Google or an Apple. So it’s useful to have that competition going there because we might want Apple to decide to buy $100 billion in Bitcoin, and to build Bitcoin into a billion iPhones and create a secure element as a hardware wallet on the iPhone, that would be a useful thing. So that competition is useful in that regime, but on the other hand, the competition of Muun versus Breez versus Strike versus whatever, that’s useful too. Non-custodial versus custodial. Lightning only. There’s going to be a different wallet in every single country and you’re going to have jurisdictions that are going to have an impact. I think that’s good. I think the third area we talked about that I mentioned is just applications or banking apps. MicroStrategy has a convertible bonds. There are hundreds of billions of dollars of capital that can buy convertible bonds. Is it good or is it bad? Well it’s the only Bitcoin-backed convertible bond. There’s only two convertible bonds in the world that are backed by bonds and we issued both of them. Then there’s a junk bond that’s back by Bitcoin. There’s one of them in the world. We issued it. There’ll be ETFs. There’ll be other kinds of products. They all compete with each other. Each one of them meets a different need in the market. What if someone comes along with a better convertible bond? Well that’s good too. What if Coinbase turned around tomorrow and decided to issue $20 billion worth of convertible bonds to buy Bitcoin? Would I be upset? Well maybe it would make the MicroStrategy bond less desirable but on the other hand it would make the Bitcoin more desirable and then the Bitcoin would trade up and then MicroStrategy equity would trade up and then the MicroStrategy bond would trade up. So the competition 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 competition is good. The more options there are for Bitcoin securities, the better it is for Bitcoin. The more options there are for Bitcoin wallets and Bitcoin exchanges, the better it is for Bitcoin. And the more competition in Bitcoin mining, the better it is for Bitcoin. The more Bitcoin mining rig companies there are the better it is for Bitcoin. Bitcoin wins no matter what happens. Having said all that, and this is what I say to entrepreneurs, if you have a Bitcoin 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 Facebook? How many companies wanted to be Amazon? For Amazon to win 15,000 retailers have to lose. Competition is good for the underlying network, it’ll be great for the protocol of Bitcoin, it’ll be great for the asset value of Bitcoin. It’s not good for the competitor. You’re going to have to fight tooth and nail with every iota of your energy to succeed in whatever market you choose to go into. And if you’re going to go into that market you need to have a set of strategic assets. For example Fidelity has 22 million customers and they’ve been selling treasury services and funds to big institutions for the last 50 years. Can they offer a Bitcoin fund? Sure. Can they put Bitcoin into their fixed income fund products? Yea. They have $2 trillion worth of that stuff. Are they going to defeat Square’s Cash App? No. Who has got more customers? Jack Dorsey or Fidelity? Jack Dorsey. He’s got more than 20 million. Now, Jack Dorsey is not competing against Fidelity, he’s competing against Apple and PayPal, in a different way, and they’ve got their assets. And so what’s his advantage? He’s more nimble than they are. And what’s your advantage? Maybe you’re more nimble than someone bigger than you. Can you turn that into a compelling sustainable advantage? Maybe. Apple did it. Google did it. Yahoo came first. You can. Are the odds in your favor? No. What’s the most rational strategy if you’re a competitor? Take your entire balance sheet and invest it in Bitcoin and then borrow against your balance sheet to fund your operations. If you raised $100 million to build a new Bitcoin software wallet I would say take the $100 million and buy Bitcoin with it and now pay your payroll by borrowing against the Bitcoin and if you succeed more power to you, you’ll be worth a lot more. 20 Bitcoin per million, so you buy 2,000 Bitcoin right? So you’ll be worth 2,000 Bitcoin if you just invest your treasury. I think Bitcoin is going to one million next stop right? 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 Bitcoin. But if you hold $100 million in cash and the business doesn’t work you’re going to be worth nothing. Worth zero. That same logic holds for Bitcoin miners. If you’re mining Bitcoin you never want to sell any Bitcoin and if you raise money you want to buy Bitcoin with the money you raised, and then you want to borrow against the Bitcoin to pay the operating expenses. If you believe in Bitcoin it’s obvious. If you don’t believe in Bitcoin, maybe you shouldn’t be in the business. If you’re going to look me in the face and you don’t think Bitcoin is going to $1 million per coin and then $10 million per coin, I don’t think you should be a Bitcoin miner. I don’t think you should be a Bitcoin exchange. I don’t think you should be a Bitcoin wallet. I just don’t think you should be pure-play focused in the business at all, because you’re already a loser. You’ve already decided you’re going to lose. If you think your asset is going to zero, it’s hopeless all these other things. If you think it’s not going to zero, then rational thinking is, the competition in the market is making my Bitcoin more valuable. That’s good. But the competition is making my existing business less profitable. That’s bad. If I’m a genius and I execute well, maybe I can stay ahead of everybody else. Maybe. Maybe. But while I’m doing that, every single free dollar I can raise I should convert to Bitcoin. Because, out of 100 possibilities, there’s 99 paths where you fail and Bitcoin succeeds, and there’s one path where you succeed and Bitcoin succeeds. Some people don’t think Bitcoin is going to succeed but they’re not with us, right? If you don’t think Bitcoin is going to succeed, go do something else, whatever with your life, but don’t try to create a Bitcoin business. Alex McShane Any closing remarks for today Michael? Michael Saylor My closing remark is, I thought Bitcoin was a good idea in August of 2020. Every single month for the past 13 months there have been fundamental developments in the space that have made it a better idea. Every single month. Every week I almost see, a new development that makes the network stronger, smarter, faster, harder. It makes it more antifragile. It becomes clearer and clearer that this is the future of digital property. This is digital energy. This is the future of digital money. This is the solution to the problems of the world. This is a macroeconomic imperative for $500 trillion worth of capital. This is a technical imperative for everybody in the technology industry, in the energy industry, and this is a moral imperative for everybody on Earth. I’ve just become more convicted every single week, every single month that’s gone by. There’s not a single thing that’s happened in the last 13 months 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, it was a good thing for the network and it removed the biggest existential threats. Is Bitcoin going to be hijacked by the Chinese government? What about a 51% attack? How antifragile is the network? Is Bitcoin American or Chinese technology? After the China exodus it became clear that Bitcoin is US technology. This is good for the Western world. This is part of the Western technology stack. This is Google and Apple and Amazon and Facebook and Bitcoin. The worst thing that happened was the best thing that happened. Everything else has been a good thing to happen. You’re watching every shoe drop. Companies adopting, banks adopting, politicians supporting. The negative FUD in the media is just people noticing that Bitcoin is the most disruptive technology of the decade. Even the negative publicity is positive publicity. It’s all just marketing Bitcoin. If these people hate on it so much it must be really good, that they’re so afraid of it. A shockwave forms when you move fast than the air. If I move through the air faster than the air can flow around me, then I create a shockwave. I’m disrupting Laminar flow and I’m getting turbulence, because I’m going too fast. Bitcoin is creating turbulence because it’s going too fast. When you see some uninformed politician that critiques it, it’s because they were asked to have 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 because they were asked to have an opinion and they spent 30 years studying gold and they haven’t spent 30 hours or 300 hours or a thousand hours studying Bitcoin. They had 30 minutes, or 60 minutes, 15 minutes. You know when these editorials are written in the Wall Street Journal and the New York Times, I’ve never seen anybody ever say I’ve spent 1,000 hours studying Bitcoin, let me break down my problems with it. I never seen anybody say I spent 100 hours studying it let me tell you the 13 problems I have. You know? There are no informed critiques. I have yet to see them. There are uninformed critiques. And what is that? That’s the same as your fighter 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 that a bad thing? It just means we’re moving fast. We’re moving very fast and we’re getting noticed and everyone has to notice it. When you’re asking the spokesperson for the Kremlin, for Putin, whether or not Russia is going to adopt Bitcoin as the national currency, when they say not yet, or no, that’s not a negative signal. That’s a positive signal. Nobody asked Putin whether they’re going to adopt Apple stock, or gold, or silver, or the giant stone coin of the Yap people, as currency in Russia. There’s only one question they’re asking them. And they’re asking them the question because it’s on the table, and that’s indicative of the success of Bitcoin. So to summarize, I am more bullish than ever. 19 September 2021 Read The Language of Bitcoin: 5:”Bitcoin Has No Competition”
Read The Language of Bitcoin: 4:”Bitcoin And Existential Risk”
Read The Language of Bitcoin: 3:”Bitcoin: The First and Final Rival Money”
Read The Language of Bitcoin: 2:”Bitcoin Alleviates Future Uncertainty”
Read The Language of Bitcoin: 1:”BTC Is The Best Explanation For The Way Money Is”
