The Future of Bitcoin w/ Michael Saylor (2024) | MOONSHOTS EP #92

Added: Mar 27, 2024

Corporate Adoption of Bitcoin

Saylor discusses the challenges faced by publicly traded companies in adopting Bitcoin due to accounting regulations and the perception of Bitcoin as a cryptocurrency. He explains that indefinite and intangible accounting is toxic to the balance sheet and P&L, making it difficult for companies to adopt Bitcoin as a treasury reserve asset. However, he highlights that MicroStrategy was in a unique position during the economic shutdown caused by the pandemic, which led them to consider investing in Bitcoin.

Bitcoin as Digital Property

Saylor argues that Bitcoin should be viewed as digital property rather than a currency. He explains that there is a vast amount of wealth in the world that seeks to be stored as value, with only a small portion needing to function as a medium of exchange. By reframing Bitcoin as digital property, Saylor believes that many of the criticisms and objections to Bitcoin as a currency become irrelevant.

Bitcoin as a Store of Value

Saylor emphasizes that Bitcoin's primary use case is as a store of value or digital capital. He points out that wealthy individuals often invest in real estate, stocks, or art to preserve their wealth over time. However, he argues that Bitcoin offers unique advantages over traditional assets, such as portability and the ability to remain valuable over long periods. He illustrates this point by comparing the feasibility of holding real estate versus Bitcoin in Africa for 100 years, highlighting Bitcoin's superiority in terms of longevity and security.

Bitcoin as a Financial Revolution

Saylor believes that Bitcoin is the financial side of the internet that was missing in the 1990s. He compares it to the digital transformation of information by companies like Google, Facebook, Apple, and Amazon. He explains that while these companies made money by digitizing information, the next wave of applications will involve digital energy, digital money, digital capital, and digital property. Bitcoin, according to Saylor, is the key to unlocking this new era of digital finance.

Bitcoin as a Solution to Inflation

Saylor argues that traditional currencies are subject to inflation, which erodes their value over time. He suggests that by investing in Bitcoin, individuals and businesses can protect themselves from the devaluation of fiat currencies. He gives the example of companies holding cash on their balance sheets, which loses value due to inflation. By converting this cash into Bitcoin, they can preserve and potentially grow their wealth over time.

Bitcoin as an Investment Strategy

Saylor proposes that companies should consider investing a portion of their treasury reserves into Bitcoin as a way to generate returns that outperform traditional investments. He suggests that by holding Bitcoin, companies can benefit from its potential for growth and value appreciation. He advises CEOs to think strategically about their balance sheets and consider Bitcoin as a way to turn liabilities into assets.

Bitcoin and Artificial Intelligence

Saylor discusses the relationship between Bitcoin and artificial intelligence. He sees Bitcoin as digital money and AI as digital intelligence, both of which have the potential to transform various industries. He envisions a future where AI-powered services can be paid in Bitcoin, enabling seamless transactions and cross-border payments. He believes that Bitcoin can empower AI by providing a secure and efficient means of conducting financial transactions.

Government Digital Currencies

When asked about government-issued digital currencies, Saylor expresses skepticism about their effectiveness. He questions the motives behind governments controlling how people spend money through digital currencies. He believes that Bitcoin offers a more decentralized and secure alternative to government-controlled digital currencies. He emphasizes the importance of financial sovereignty and the ability to transact freely without government intervention.

Investing in Bitcoin

Saylor encourages individuals and businesses to consider investing in Bitcoin as a way to protect and grow their wealth. He suggests that Bitcoin offers a low-risk investment opportunity with the potential for significant returns. By diversifying their portfolios to include Bitcoin, investors can hedge against inflation and economic uncertainty. He believes that Bitcoin is a sound financial strategy for the future.

Bitcoin Halving Event

Saylor anticipates the upcoming Bitcoin halving event, where the number of new Bitcoins generated per day will be reduced by half. He views this event as highly significant, as it will decrease the available supply of Bitcoin and potentially lead to a price increase. He believes that the halving event will create a supply squeeze, making Bitcoin even more attractive as an investment asset.

Self-Custody and Bitcoin Security

When it comes to managing Bitcoin investments, Saylor emphasizes the importance of self-custody. He discusses the various options available for storing Bitcoin securely, including cold wallets and multi-sig solutions. He advises individuals to consider their technical capabilities, risk tolerance, and personal circumstances when deciding on the best storage method for their Bitcoin holdings.