Michael Saylor, former CEO and current Chairman of MicroStrategy, has become a prominent advocate for Bitcoin. Under his leadership, MicroStrategy shifted its focus in 2020 from IT and Artificial Intelligence to a Bitcoin-centric strategy, using all its resources to acquire Bitcoin. The company, which holds over 210,000 Bitcoins—more than 1% of the total supply—was the first major business to fully embrace Bitcoin. Saylor himself owns around 15,000 Bitcoins and is a frequent speaker on Bitcoin, appearing in both mainstream and Bitcoin-specific media outlets. In the Bitconi community, Saylor is known for his 21 rules of Bitcoin.
At the Bitcoin 2024 conference in Nashville, Saylor was one of the keynote speakers as he went deep into Bitcoin’s transformative potential for the global economy. Here’s what he had to say.
Saylor kicked off by expressing his delight at being in Nashville, a city known for its music and freedom, and highlighted the significance of gathering with fellow Bitcoin enthusiasts.
We need new ideas and technology to thrive in the 21st century. Saylor emphasized, “The world as we know it is based on 20th-century ideas and 20th-century technology.” He highlighted the inefficiencies of current financial systems, noting, “Stocks trade 9:30 to 4: unless there’s a bank holiday, you can’t do things on the weekend, everything is slow, everything is expensive.”
“Bitcoin is digital capital. Bitcoin’s immortal, immutable, and immaterial capital.”
Global Wealth and Bitcoin’s Position
Saylor pointed out that global wealth is about $900 trillion, with Bitcoin representing only a small fraction of this. “It’s $900 trillion of global wealth, spread across physical assets and financial assets that are 20th-century ideas and 20th-century technology,” he said. He added, “The little orange asset that could, what we call Bitcoin, is one trillion. It seems like a lot if you started with zero, but when you look at it against the greater scheme of things in the world, it’s .1%.”
Saylor discussed the concept of useful life for financial assets: “Useful life is equal to the value of an asset divided by the cost to maintain that asset.” He explained Tesla’s principles in financial terms: “Energy is money or capital or wealth. Frequency is about the duration or the lifespan. We vibrate money every time we trade with each other or transfer from one local to another.”
Challenges with Traditional Assets
He highlighted the rapid depreciation of various currencies: “Start with a billion dollars, put it in the peso, and the money is decaying in two years.” Saylor also described the inefficiency of physical assets for long-term capital preservation, noting that even prized assets like homes and gold have significant upkeep costs and risks.
Bitcoin as the New Digital Capital
Saylor described Bitcoin as a revolutionary form of capital: “Bitcoin is digital capital. Bitcoin’s immortal, immutable, and immaterial capital.” He emphasized Bitcoin’s resistance to physical decay and external risks, stating, “It’s got an infinite lifespan, it’s not being attacked by the forces of weather and entropy and inflation.”
Highlighting Bitcoin’s potential for long-term value preservation, Saylor said, “Take your Bitcoin and put it at scale with a custodian, you pay 10 basis points, you’re going to last a thousand years.” Saylor forecasted Bitcoin’s value by 2045: “At that rate, Bitcoin’s $13 million a coin in the year 2045.”
“The first country to buy Bitcoin by issuing its own currency wins.”
Investment Strategies for Individuals, Corporations and Nations
For those of us looking to invest, Saylor suggested converting excess earnings to Bitcoin and using subsidized credit to invest: “Utilize subsidized credit if the government will loan you money, borrow the money at cheap rates and buy Bitcoin.” He warned against risky investment practices: “Don’t use margin loans and trade with leverage. You get wiped out while you’re asleep on a Saturday night.”
Saylor advised corporations to convert capital to Bitcoin and avoid dilutive financial practices: “Convert your capital to BTC, convert your cash flows to BTC, issue equity to buy BTC when it’s accretive.”
For national strategies, Saylor recommended reallocating treasury assets from gold and bonds to Bitcoin: “Reallocate your treasury from gold and bonds, their short duration assets, to a 10,000-year asset.” He also encouraged favorable laws for Bitcoin ownership and protection of self-custody: “Protect self-custody for individuals and corporations and support integration with the banking system of your country.”
Saylor discussed the potential for digital capital to be worth hundreds of trillions of dollars and emphasized the strategic advantage for countries to adopt Bitcoin early: “The first country to buy Bitcoin by issuing its own currency wins.”
Satoshi Nakamoto’s Vision
He concluded with a powerful quote from Satoshi Nakamoto: “It might make sense just to get some in case it catches on. If enough people think the same way, it becomes a self-fulfilling prophecy.”
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