This is Part 2 of a 2 article series about the future of Bitcoin. We looked at a speech by Michael Saylor. He’s the founder and CEO of MicroStrategy.
So, let’s see what he has to say about Bitcoin. Here’s a link to Part 1.
What Is Money?
Saylor sees money as “A way to store your economic energy and not have it stolen from you”. For example, by the government or by bad investment decisions. So, what makes good money? For instance, gold. However, this is defective because we keep creating more of it. By creating 2% more, the half-life of your gold money is 35 years. It halves in value, every 35 years.
So, he states that it is difficult to create sound money. For example, it became 50 trillion times more difficult to mine Bitcoin. That’s since its conception. As a result, good money needs a cap, and it must be not easy to create it. Like Bitcoin, with a 21-million-coin cap.
All monetary assets have a natural frequency. In this case, their half-times or half-lives. So, a low frequency means that it will last longer. Bitcoin started with a high frequency. However, now it has a much slower frequency. With each new Bitcoin halving, Bitcoins frequency half-life will go up. In 2024, it will go up to 100 years. See the picture below. For instance, in 2036, the half-life of your economic energy in Bitcoin is 1000 years. In 2048, it will be 10,000 years.
He states that politicians will tell you that this is not possible. However, according to Saylor’s charts, there is one asset, Bitcoin, that has a long and low enough frequency. You can expect this asset to keep its value forever. You can keep that money forever. He calls this economic immortality. Now, this gives hope. So, perfect money is a way to escape the economic misery of the economic war. The picture below shows the Bitcoin economic energy in 1000 years.
What Is the Winning Economic Strategy?
According to Saylor, the best strategy is to hold the best money. It should come as no surprise that Saylor sees this as being Bitcoin.
The best currency, according to him, the USD, is going to zero. So, he sees gold as better money than USD. Stocks are better than gold. And, Bitcoin is better than stocks.
Corporate equity makes 7% gains. Many experts see this as a good investment. However, owning Bitcoin has a lifelong escape from technological destruction. It lives in cyberspace, so you can’t destroy it and it’s incorruptible. So, he looks at owning $100 million today. With the current inflation rate of 7-8%, what do you have, 100 years from now? See the picture below. It gives a clear view of the winning strategy.
We looked at Michael Saylor, founder and CEO of MicroStrategy. He gave a speech at a Bitcoin conference in early June 2023. This is a recap of his speech. He makes a clear case of why investing in Bitcoin is a winning strategy. It will let you escape the economic war.
At the end of the speech, he also shows how MicroStrategy’s Bitcoin assets performed. It outperformed inflation with 14% gains vs. 7% inflation.
At the time of publishing this article, the current price of Bitcoin is $30,242.55. Its market cap is $587 billion. There’s a max and total supply of 21 million BTC coins. The circulating supply is currently 19.4 million BTC.
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