Michael Saylor BEST Interview: How Bitcoin Will Explode to $100 Million

It's the gold standard working in Turkey No if it was working the layer wouldn't Be crashing right is the gold standard Working in China no they're not on the Gold standard the CNY is weak they're Going to gravitate toward the most Powerful Network today we sit down with A billionaire investor Michael Saylor as He explains in Exquisite detail why Bitcoin the network is only growing Bigger and why Bitcoin the price is About to explode check the timestamps Down below smash the like button and Let's start in the last six months I've Watched the mainstream media trash Bitcoin maybe specifically more crypto But you know trash this new space yet in The last month we've seen BlackRock uh Citadel Deutsche Bank Charles Schwab Fidelity all in their own way Aggressively jump into Bitcoin how big a Deal is that Uh I think it's extreme Um Bitcoin represents Thermodynamically sound Money and thermodynamically sound Property and a modern a modern High Velocity economic Energy System so Um that being the case anybody not using It is running on a 20th century system That's defective And um You know we talk about the there's a

Mean Bitcoin fixes this Okay well If you're an individual if you're a Member of the working class and you keep Working harder and harder and things get More expensive and you can never catch Up then Bitcoin fixes your economic Problem but Um Bitcoin fixes every economic problem of Of everyone that adopts it so if for Example if only an individuals adopt Bitcoin but Banks and nation states and Cities and states and and uh Corporations don't Well you know how good is your life Going to be if all the corporations Collapse all the banks collapse and all The nations collapse and all the cities Collapse and your your economically Sound but all of these other Institutions are not right so It's inevitable that if Bitcoin is going To do the best good for the world it Needs to be adopted not just by the Early individualist right the rugged Sovereign individuals right that's That's one group but You also want to Pension funds Institutional investors Bakeries manufacturers trucking Companies unions cities states Agencies Charities universities churches

Everybody you want them all to adopt it And for them they need an infrastructure Of institutional custodians You know the pension fund for a bunch of Retired Truckers Is going to need the infrastructure that Wall Street provides so it needs Mega Banks and it also needs a large Institutional investors so so what we've Seen over the past week is we see big Banks uh Deutsche Bank credit agricole Santander right these are interesting Entities getting involved very important Because those those banks are the the National champion Banks and they hold The public money Which means that if you're a public Enterprise or a public institution and You want to actually fix your problems With Bitcoin you're going to need to do It with the help of one of those Banks The uh the news of of um the last week With regard to Blackrock And is significant when you take it In its entirety So uh BlackRock is probably the largest Institutional money manager and so They're being entrusted with uh the Money of all these other institutions And uh Black Rock applies for an ETF The significance is you now have the Establishment endorsing Bitcoin yeah it Used to be the Bitcoin narrative was oh

Yeah black rock is against us ESG is Against us the establishment is against Us The Establishment was never against Bitcoin uh they were merely indifferent Uh you know there there are enemies of Bitcoin but they're not in the Establishment they're actually in not in Kind competitors to bitcoin other crypto Tokens that want to be the next Bitcoin They're the ones that have an interest In spreading that ESG fund Um BlackRock is just interested in doing Good for the public as best they see it And it's a big diverse organization you Want to invest in silver or gold or land Or whatever then uh they'll handle it For you So BlackRock uh decides to bring a Bitcoin ETF to Market that's an Interesting Data point but the last 20 got denied by The SEC So the next question is why does BlackRock think they're going to get Approved you know they have this 570 to 1 win ratio right so people go Well it's 99 likely you'll get approved Why Well to the same day or the day Afterwards The edx Exchange got Announced and edx is a non-custodial Exchange backed by Fidelity and Citadel And Charles Schwab so three of the Big

Wall Street firms What's the significance of that Well the SEC has denied those 20 spot ETFs and in the denials uh they Generally say we're denying it because We don't see a Bitcoin spot exchange That's regulated and transparent you Know per our liking You know and in the SEC cases against Major crypto exchanges uh the issue they Take is they don't like the idea that an Exchange is is a broker dealer and an Exchange and a Clearinghouse those are Three separate functions well so edx is Just one of those functions it's just The exchange it's not declaring house It's not the broker dealer so if you're An industry watcher You say well the SEC can't approve this Unless their fundamental objection is Addressed or cured So edx coming online Sets up a situation where the SEC can Say okay well this is it's trading on You know between NASDAQ and maybe it'll Trade through edx and there's a Surveillance agreement per BlackRock and Adx is not a Clearinghouse it's not a Broker dealer so you know the crypto Industry now has Compliance exchanges and a compliant Product So we can go ahead and approve that now I don't I'm not I'm not the SEC I don't

Know what they'll do they could do Whatever they want to do it's still Possible theoretically they would deny It for any number of reasons Right what's the materiality of edx Versus all the other crypto trading I Don't know but edx did come live in the Same in the same week when this news is Breaking and what happened in Rapid Succession is like four or five other Bitcoin spot ETFs get refiled So if you step back and you look at this From the point of view of an indifferent Investor Or an indifferent industry Watcher the Conclusion would be oh it looks like a Spot ETF probably will get approved There's massive political pressure to Approve one The circumstances have changed and now There's a there's a way for the SEC to Approve it without backtracking on his Previous legal and policy guidance Um certainly there are a lot of Wall Street entities that have a vested Interested in seeing this happen If you're an institution One way to get Bitcoin exposure is uh to Buy the underlying asset but there have Been challenges with finding the right Exchange to buy it on and the custody of Arrangement and so a simpler way to do It is to buy the spot ETF There are to say there are trillions of

Dollars of capital that is required to Invest in in a security that trades and These compliant uh forums is understate Understating the obvious it's it's tens Of trillions of dollars so there's a lot Of capital that can't buy the Bitcoin or Self-custody the Bitcoin they don't have The charter maybe it's against uh tax Code maybe when they raise 10 billion Dollars from public investors they Raised it to invest in Securities but Not invest in Commodities or property so Uh the spot ETF availability is a major Milestone for institutional adoption the Approval of a spot ETF is a major Milestone in regulatory Clarity which is Attempt to mount to an endorsement right The engagement of fidelity Citadel and BlackRock and Schwab in this exercise is I mean Charles Schwab is literally Synonymous with Wall Street 100 Years of Wall Street so what you Have is Wall Street coming together to Offer offer uh Securities and Exchange Services and indirectly custody services For um mainstream investors And um If we look out about 12 months if I was Saying well what are the key Milestones To drive mainstream adoption of Bitcoin Well uh one of them clearly is uh is a Spot ETF the second is a designation That Bitcoin is an asset class right the Recognition of it as a legitimate

Commodity it's a big deal you know and When Jerome Powell says it's not going Away when Gensler in the head when the SEC and the cftc both say it's a digital Commodity Well I mean digital commodity might not Sound like much but but it when you go Down to the next round round which is Like it's a Ponzi scheme or it's a scam Or it's tulip bulbs right the difference Between tulip bulbs And digital commodity is a zero versus a One and I have said uh before and I Would repeat it again if it's not going To zero it's going to a million it's Either nothing right if it's nothing Then it's getting scrubbed out and Banned Uh and of course we now know that it's Not getting banned right there's no way That Fidelity Citadel Black Rock Charles Schwab Deutsche Bank credit agricole Banco Santander All decide they're interested in this Right then on endorsing a tulip bulb Right so once you go from zero to one Then the question is okay well it's an Asset class if it's not going away then What's it worth well it's worth one Percent Of the Assets in the world so one Percent drives it up by a factor of 10 To 20. right once you get to a one Percent exposure

So the recognition as an asset class is A big deal the recogna the availability Of a spot ETF is a big deal The um you know the normalization of Accounting via fair value accounting Which is the fasbi initiative It's another big deal And then the having right in less than a Year is a big deal so those are four Pretty serious Milestones that we're Staring at right now and I think you Know Wall Street and general and the General Community is is kind of just Internalizing this all in a short period Of time and that's why the bullish Outlook My question to you is about how Specifically the average regular person Can benefit from Bitcoin because we just Talked about institutions obviously You're a successful public company with Cash flow you put it on your balance Sheet I understand that I understand Institutions but the average the the the The normal person in us making sixty Thousand a year I like a good beer Saving up for a jet ski got a wife soon To be wife at home how can I best Benefit from Bitcoin Well I think the best way to uh to think About that question is consider the Alternatives people have so you're a Normal person and you want to save money For retirement or to give to your kids

So you put in a savings account you get Five percent interest The monetary inflation rate is seven or Eight or nine percent you've got a Negative real yield of three percent If you end up with a negative year real Yield of three and a half percent then Over a hundred years a million dollars Saved is worth thirty thousand dollars Okay it's and so for the average person Saving money in bonds with a three and a Half percent or four percent interest Rate when uh when the currency expands At seven or eight That's a losing proposition you lose 97 Of your wealth over the course of three Generations so clearly bonds don't they Don't work right that that and savings Accounts don't work so the next question Is do I just put all my excess money in The s p index Well traditionally the money supply in The US is expanding at seven percent and The s p index is going up at seven Percent So if you save a million dollars over The course of your life and you put it All in the s p index then in a hundred Years it'll be worth a million dollars So that's wealth preservation But you're not doing any better than That and that just kind of assumes that Um that the S P 500 is going to be Relevant for a hundred years and you can

Stick around the country but it's it's Like treading water The next issue is also what I put in Real estate If you buy real estate you're an average Person can you buy a building probably Not can you buy a warehouse not easy Maybe if you're a rich family you buy Warehouses right Rich families buy Warehouses city blocks and buildings but The middle class person doesn't So how do you buy Um four thousand dollars worth of a Building Can't Okay so the issue there is uh Your property rights are inferior when You're buying shares of stock or Security versus the underlying property If you own the building You can mortgage the building sell the Building upgrade the building you know Build 10 floors above the parking lot That the building has you can develop The building When you own a share and a Reit that Owns the building like you own 1 100th Of the building you don't have any of Those rights you can't do anything to The building you're just along for the Ride getting 1 100th of whatever cash Flow the general partner decides to Distribute to you and if they make Stupid decisions you're stuck with them

Right you don't have any property rights You're you're uh inferior in your Economic rights so so owning shares of a Reit to get property for 100 years not a Great idea that and that that leads us To the problem of Securities what is the Problem of security so you have some Money you invest it in Apple stock or Amazon or Facebook or Google or or read the Numbers building Um The dilutive problem with Securities is There there are risk factors first of All there's a management team they're Going to take one percent every year They're just gonna they're not doing it For free they're charging you to manage The company or the building right and if You're lucky that's only one percent you Want to see that in action just go look At any ETF the ETFs charge 90 basis Points you know if you want to put money Into a Bitcoin veto or whatever they'll Charge your 90 basis points just as the Management fees so about one percent What's the cost of one percent over the Course of um a lifetime The an infinite duration asset you would Basically multiply it by 20 25. so it Means that when I charge you one percent To manage your million bucks I'm taking 20 of your money Okay I'm taking 20 of all your wealth to

Charge you one percent so that's only The first problem Um it turns out that when you run a Company you also have you have the risk Of Labor right your company May unionize So you've got labor expenses and and What happens to the equity value when The company unionizes well the union Just takes all the profits and the Equity values of of those companies Start to Trend towards zero so Labor's Another risk the third risk is your Competitors right your competitor may Come up with a better product and you End up like Yahoo squeezed out or AOL Squeezed out by Google Well then your Stock's going to zero Right I mean how many companies actually Had a competitor Xerox Kodak world's full of great companies Where are they today they end up getting Squeezed by competition the fourth issue Is technology Right that you may just get obsolesced Right maybe you own natural gas Fields Or oil fields and someone creates Nuclear power plants and they don't need Your oil anymore Or maybe you sell the world's greatest Chemical cameras and people don't need Cameras anymore they have digital Cameras Right there's always that kind of risk From technology

And then there's execution maybe you Just don't ship the iPhone 47 to be that Good right maybe the iPhone 13 is good The iPhone 15 is not good right and you Know and the world's full of examples of That like Firestone tires or something And I ship a tire and the tire blows out And now people stop buying my tire or a New Coke remember New Coke is a product Launch that didn't work out well So when you're when you're investing in A company you're not just getting a pure Investment you're actually getting an Investment in an asset but you're Getting hammered and diluted by orsh Major by you know bad weather yeah you Might get a war you might get a tariff Or a trade War like we just decided to Put a tariff of 20 on all Chinese Imports oops if you had a factory in China what happened there and then maybe Get a real war Where someone just impounds your ship or Blows up your factory that happens too We have real Wars all the time So What's the uh what's the return on the S P index seven percent a year What's the monetary inflation rate seven Percent What's really happening well all these Companies they're just barely holding Their wealth and so what would happen if I got rid of all those risks

What if I had Um what if I could buy a product that Was never going to obsolesce that's good For a million years What if there was no management team and They work for free right what if the Product is run by computer programs that Don't charge a fee what if there's no Labor what if it's a digital product so There is no chance to to block it via a Trade war or destroy it by a real war What if it was an indestructible Immortal Incorruptible product well When you buy a Bitcoin you're buying 121 Millionth of all the money on the Network Or all the money in the world that's Ever going to be on that Network okay so Would you want to own 121 millionth of All the money in the world in 10 years 20 years 100 years a thousand years Ten Thousand Years The product's not obsolescing It's 121 Millionth of everything you see The iPhone will obsolesce one day you'll Be using Apple Vision or maybe they'll Put a telepathic implant in your brain And you won't need phones and you won't Need goggles maybe you won't need Televisions those things can obsolesce But will you want 121 millionth of all The energy in the human race Probably like the whole point of pure Energy right Einstein said energy can

Neither be destroyed nor created you can Just transform it Right it's a pure idea and it's and it's A it's an idea that doesn't have Competition because of the Immaculate Conception there's one Bitcoin there's One network that was created by uh a Nameless Anonymous figure Satoshi uh and Satoshi gave gifted a million coins to The universe never ran an Ico never did Never kept anything from a pre-mine And the network now is just owned by the People so How do you actually compete with that You know it's it's it's hard to see how You compete with a pure thing like that So it's a digital Monopoly with no labor Risk no war risk no product risk no Execution risk now there is execution Risk that that uh takes place so you Have to set up Bitcoin miners And if you set up a Bitcoin miner in China and they shut down Bitcoin mining The miners lose money But you don't lose money as the holder Right so it's like the perfect monetary Franchise all of the work to improve Bitcoin Is done by the miners by the Bitcoin Device Builders by the Bitcoin Banks Right you know block fine Celsius can Fail but if you're holding Bitcoin in Cold Storage you don't fail Right the hardware company can fail but

You don't fail and so if you study Business Uh what let's take McDonald's uh McDonald's is a great business but but The reason they're a great business is So they don't really take that much risk All the franchises take the risk and so It's possible for every restaurant to Lose money in the McDonald's chains and The McDonald's corporation still makes Money Because they've laid off that risk Downstream other people risk their Capital So Bitcoin is kind of like this viral Ultimate banking monetary franchise Where banks will take risk miners will Take risk individuals will take risks Companies will take risk when the risks Pay off The Bitcoin holders benefit And when the risks don't pay off The people that took the risk uh pay the Price but but Bitcoin just continues It's very anti-fragile So coming back to your to your question Right how's the the middle class family Benefit from this well Bitcoin Represents pure digital property Global Property it doesn't have the dilutive Elements of a security it doesn't have The dilutive elements of a currency or a Credit instrument or debt instrument It doesn't have the diluted elements of

Property right you want to own you want To buy a second apartment an Airbnb okay We'll find you know someone may come Move into it and trash it you may have Um a renter that doesn't pay the bill You may get rent controlled by the city You may actually have a tornado hit it And trash it you'll probably get a Property tax on it from the city maybe From the county maybe from the state Maybe from the government if you ever Have to leave you can't take it with you And uh and at some point uh in a hundred Years the thing is probably going to Have to be completely rebuilt and Renovated to be usable again so property Is not a great long-term store of value Credit's not a great long term for Long-term store of value They're not scalable you can't buy 437 Dollars of an Airbnb apartment every two Weeks So Bitcoin offers you Apex Global Property Theoretically you know if the s p index Yields seven percent there's no reason Why Bitcoin shouldn't appreciate about 14 percent in that environment I think You get about a seven percent real yield Over the course of a hundred years Whereas s p index gives you zero percent Real yield The best you can you can theoretically Do with with real estate property as

Maybe a two percent real yield if you're Just really good at it But there are just so many risks you Know will your grandson or granddaughter Be able to run the family property Portfolio no matter what country they Live in And are you sure that any of ten Thousand politicians aren't going to Pass a law to destroy your property Values sometime in the next hundred Years Think back from 1900 to the year 2000 And now imagine that you own a bar of Gold In the bank in your city what's the Likelihood that you still have it 100 Years later Imagine you have um a building In a major city in the world Imagine you still have it 100 years Later Would you want to own a building in Russia and Moscow and Kiev In Tokyo In London in Paris and New York Where would you want to own the building Where would you want to own the bar of Gold It turns out that everywhere in the World the gold got seized Maybe you might have got by in Zurich Switzerland but everywhere else you lost All your money every Bank failed every

Currency failed You know so your best bet is maybe you Own property That they can't make more of if you're Lucky enough to own If you owned a a piece of property on The Gold Coast of Florida for a hundred Years It went from a hundred thousand dollars To 50 million dollars Good But the property taxes on it probably Offset the capital gain from it if it Was residential so the only way you Could have actually made money owning Property is if you own commercial real Estate and you generated a rent on it in Excess of the taxes And the insurance And the depreciation and the maintenance It's not easy not easy to do that Everywhere in the world so So Bitcoin represents property rights or The right to purchase perfect property That is maintainable Right it's low cost to maintain it's not It's indestructible you know the rain Doesn't melt it tornadoes don't destroy It And uh and it's scalable you can buy it With your weekly paycheck And if it's liquid you can sell it try Selling a 1 100th of a building not so Easy you want to mortgage the building

Well you can I'm building in Kansas City You could mortgage to a bank that deals In Kansas City real estate but if you're Turkish and you have a building in Istanbul There's only a just a small number of Banks in the world will give you Mortgage on that the mortgage will be in Lira the lira is losing 30 to 40 percent Of its value a year You got a problem so Bitcoin represents Global digital Property You can take it anywhere on Earth You can hold it for a hundred years In theory you can hold it for a thousand Years So you can take a very long View And um How many how many banks will want your Bitcoin We see what's going on right now is it's A French bank that wants the custody Bitcoin there's a German bank that wants To custody Bitcoin there's a single poor Bank that wants custody Bitcoin the Banks and the UAE are getting into the Business the banks in Spain are getting Into the business the banks in the US Are getting into the business Right and uh on the other hand none of Those Banks want to give you a mortgage On your house in Arkansas Only only a local Bank in Arkansas is

Going to get into that right so so Bitcoin represents pure a pure economic Asset it doesn't have the liabilities That come with Securities and other Forms of property and other Commodities And it's simple and that's why it Appeals to the middle class right I Don't I don't have a better solution for You if you're a working a working person On a salary and you want to take control Of your own uh economic destiny There's only one thing as an average American there's only one thing only one Hang up I have is that I feel like I'm a Little late to the party there's no way I can accumulate one whole Bitcoin I Mean at this point I'm shooting for 0.1 Bitcoin so I mean I guess my question is Is 0.1 Bitcoin of any significance You know New York was uh the greatest City In North America By about 1776. And you would have been late to the Party But the question is Would you buy a city block in New York In 1776 or if you waited till 1876 And you were really late to the party And New York was the greatest city in North America was it too late to buy a City block in New York City in 1876 or How about 1976 If you were 200 years late to New York

City if you look at the property values Of New York in 1976 what you'll find is You would be rich if you had actually Bought real estate in New York in 1976. So the answer to the issue is in in Every economic system Every economic Empire there's always one City one place that every one network Where people gravitate to in ancient uh And in the ancient Med it was Carthage For a while and then it was Rome And then it was Venice And eventually the French Empire Terminated in Paris And the British Empire terminated in London And then eventually the uh the American Uh economic Empire terminated in New York And there are reasons why it's just Everybody comes together in that place Even today New York is still the Economic epicenter of the United States And so Bitcoin represents the economic Epicenter of cyberspace It is it is the one place where if I Want to create a digital application if I want to move money at the speed of Light And I live in Singapore I'm using Bitcoin if I live in Paris I'm using Bitcoin if I live in Moscow I'm using Bitcoin if I live in China I'm using Bitcoin so you see everybody in the

World that actually believes in the idea Of a digital asset that once uh that Wants to build this is a treasury Reserve asset they're going to gravitate Toward the most powerful Network Why because everybody else is Gravitating that why do people go to New York because the smart money is in New York I could go to New York 20 years ago I could take 10 meetings I could raise a Billion dollars in two days So why would you be so stupid is to go To New York well because that's where The money is the money is in New York so I went and what did I bring with me I Brought my brain power and I built my Business there and and so I then Reinforced that Network effect Today the smart money is in Bitcoin uh Bitcoins about a 500 billion dollar Network How big can it get Well 500 trillion A thousand X bigger In today's dollars there's a there's About 950 trillion dollars worth of Wealth out there 350 trillion worth of Real estate half of it is just capital Or monetary premium 300 trillion dollars worth of bonds half Of it is just a monetary premium a Hundred trillion worth of equity half of It is a monetary premium 11 12 train worth of gold 80 percent of

It is a monetary premium So as the world gets smarter People are going to sell those things Because they don't make good money gold Is awful money right it's just awful Money if you store your money in Gold You're losing half of your wealth every 35 years So why would you do that right it's not Working in the last two and a half years Gold is down five percent Bitcoin is up 150 percent the only people that are Buying or holding gold are people that Aren't paying attention right the smart Money is clearly running away from it And in time people will dump their gold And when they dump their goal Bitcoin Will jump by a factor of 10. so The answer to the question of why you Should buy a Bitcoin is a Bitcoin Represents one block In in cyber New York which has got 21 Million blocks for all of eternity And in the year 2500 People are going to be moving to cyber New York Right I mean New York was founded a long Time ago right the only thing that keeps People from continuing to come into the The great City whether it's the New York Or the London or the Paris is when the Economic flows move from the physical Domain to the digital domain As long as you did business in an analog

World where you had to like put on a Suit and walk into a building and meet With people then you're going to see London and Paris and Tokyo and Hong Kong Be great cities When the the economy moves to the Digital realm and you don't have to put On a suit and walk into a building and You can have a zoom meeting of 20 people In 20 places and raise a billion dollars In a day Right then some of the economic energy Drains out of the city networks and it Drains into the crypto Network and so Buying buying um a Bitcoin whether it's Uh one Bitcoin or or a million satoshi's Or a hundred thousand satoshi's or one Satoshi is just like buying into New York City 250 years ago Yeah sure you're late people got there 100 years before you Okay Well in this case someone got there 14 Years before you when I well you know I Once tweeted you know very famously I Said I think Bitcoin is uh you know go In the way of online gambling and I Think Bitcoin is like 100 coin then okay And I was wrong but I didn't need it I Was wrong when I needed Bitcoin Bitcoin Was 9 500 10 000 a coin and so I bought It at ten thousand dollars instead of One hundred dollars People will buy it at a hundred thousand

They will buy it at a million they will Probably buy it at 10 million Right because You know how much does it cost for an Apartment in Manhattan people pay 10 Million dollars For four thousand square feet 10 million dollars right all of Manhattan was purchased for what like 29 In beads or something if you roll the Clock back Some some nothing and so You can't really get caught up in what The unit price is you have to ask the Question What is uh the dominant Network In cyberspace And Bitcoin is the dominant Network and The reason is the dominant network is a Bunch of things one all the smart money Arrived there right if all the smart People that wanted a decentralized Non-sovereign store of value crypto Network if they all showed up looked at 10 000 choices and picked this one and Put all their money on it right that's Like all the smart people they showed up In America and they picked New York you Know why they pick New York New York is sitting on 200 million year Old Granite schist right it's Indestructible as an island Manhattan It's sitting between a bunch of rivers It's sitting in front of one of the

World's great harbors and it's sitting At the mouth of the Hudson river which Is a mile wide deep and it goes straight Right into the heart of the country so If you were picking a Port City It was the most uh Rock Solid Geographically sound logistically sound You know well engineered Port you could Possibly imagine you know and so it Matters and Bitcoin represents the same Thing Bitcoin is backed by 400x a hash of Digital energy and 400 extra House of Digital energy makes it the most Powerful computer network in the world And so if I'm going to put a billion Dollars on it I would want the Indestructible nation-state resistant Fault tolerant most powerful computer Network in the world I wouldn't want the Second most powerful Network And I wouldn't want to network a hundred Times less powerful I want a network where you would need Every computer in the world to slow it Down 10 and you would need all the Electricity in the world to slow it down 10 percent And that's what Bitcoin represents Because the way it's engineered it Represents an indestructible Unstoppable Most powerful computer network And so Anybody is looking to If you're looking

Right now You shouldn't look at it as well I Wanted to buy something cheap and wait For it to go up 100x so I better buy Something that's a penny stock Like it you know there is a meme we call Penny stocks right the whole joke of a Penny stock is if you really wanted a Penny stock we can manufacture thousands Of them that's that's the theme of the Room of the movie Boiler Room you know The Wolf of Wall Street did that it's Been going on for hundreds of years People manufacture a penny stock and They tell you buy it for a penny it's Going to go up to five bucks you're Going to make 500 extra money That's not what you want you want you Want a cheap apartment I'll sell you a Four million dollar apartment in New York which looks expensive or I'll sell You a forty two thousand dollar Apartment you know in some random suburb You know in a third world country But the point really is which is the Better real estate investment it's not a Matter of the the cost to buy the thing It's a question of how secure is is uh The network you're buying into And everybody will tell you you buy the Beachfront property in Palm Beach or Miami Beach you're better off to buy a House on land than to buy the apartment You're better off to buy the apartment

And the good building than the bad Building and you're better off to buy The apartment a good neighborhood the Bad neighborhood And uh you're better off to buy the real Estate in the capital city of Rome or London or Paris or New York than to buy The real estate in the 13th biggest city In the country When the inflation comes So that that would be my answer to that Question Honey I think we got to return the jet Skis All right this guy Um Michael I want to ask you a question That uh maybe not you don't get to Answer a lot maybe people don't ask you A lot but Um what scares you the most about Bitcoin adoption because if there was no Opportunity if there's no risk there Wouldn't be an opportunity and vice Versa what scares you the most I don't really see anything that scares Me I think Bitcoin is has crossed the Event Horizon two or three years ago I Would have been concerned that ignorance In the political sphere would cause some Powerful politician to want to ban it Right I mean if you look at the at the Ladder of uh Bitcoin Um appreciation People start at the bottom the Bottom

Rung which is the Bitcoin uh denier And they think Bitcoin is tulip bulbs or Bitcoin is a Ponzi scheme you know and It's and that's like the Peter Schiff Denial and um we're Way Beyond that uh And then they move to the next level Which is a Bitcoin skeptic uh Bitcoin is A digital commodity it works you can Send value between two parties without a Trusted intermediary it's an innovation But It's too good to be true and the Government's going to ban it right lots Of people said that about two years ago I mean Ray dalio said that you know Jamie dimon said that you know Larry Fink kind of implied that you know it Used to be that there were a lot of very Powerful Successful uh either politicians or Powerful successful money managers that Were Skeptics And in the last 24 months those Skeptics Have been largely silenced when the when The head of the cftc says bitcoin's a Digital commodity And we're going to support it and when The head of the SEC says Bitcoin is a Digital commodity we're going to support It And when the head of the Central Bank of Europe and the Central Bank of the United States say yeah it's a digital Asset we recognize it

We're not going to block it we're not Moving against it when the government Says well you know we need to embrace it When you have four political candidates Four do you know in the history in the History of the United States I don't think there's ever been an Example where you had four political Candidates running for president Endorsing a new asset I mean I it would be similar to I guess If you had the leading Republican and The leading Democratic candidate saying We think every American deserves to own Their own home And we're going to sponsor legislation To make it cheap and easy for them to Own their own home Maybe something like that right uh but It's it's sort of up there so at this Point it's kind of hard to say that Skeptics are winning the day right the Skeptics are being shouted down they're They're out of the mainstream The Wall Street Journal Bloomberg New York Times CNBC A bunch of senators a bunch of Congress Persons the head of the Senate finance Company this or the house finance Committee I think they all acknowledge That Bitcoin is here to stay in fact Jerome Powell just yesterday right was Asked this point blank and Congressional Testimony and said yeah I think it's not

Going away So I don't worry about the Skeptics now We're just now we're just at the stage Where you're either an investor where You think oh it's an asset maybe I'll Buy it maybe I'll short it maybe it's Overvalued undervalued I'll just trade It I'm a Trader Or you're a technocrat that's like it's The dominant digital monetary Network It's a hundred times more powerful than The next proof of work Network It's indestructible it's like the Apple Of money or the Google Of digital money So I think I'll just get on this one on For the ride because it's it's destined To 10x from here and nobody can stop it And then uh the final layer you get to If you spend enough time studying this Is you become a maximalist and to be Query here's what a Maximus means it Doesn't mean that every nation state Will fail it doesn't mean that we won't Have currencies like the Yen and the Dollar and the peso and the Yuan and the Euro it doesn't mean that people won't Invest in real estate or an Apple stock Or Google Or in natural gas fields It doesn't mean that that there won't be Other companies creating new stuff it Doesn't mean there won't be art it Doesn't mean there won't be digital art

It doesn't mean all these other what it Means is you think that Bitcoin is an Instrument of economic empowerment to The world it means that you believe it's Not just the dominant digital monetary Network or the dominant digital property Network if you want You can call it digital money you can Call it digital property you can call it Digital scarcity you can call it a Digital commodity all those are true and It's the dominant one because you would Need three Earths full of electricity And every computer on Earth to interfere And you still wouldn't beat it that's Why it's dominant it's it wasn't always Dominant you know 10 years ago it wasn't You could have stopped it but once it Gets to 400x Hash it's pretty clear that It's past the Event Horizon because Those Bitcoin miners are two thousand to One more efficient than a CPU from Amazon and so you've when you've got a Silicon ratchet that's 2000 x more Powerful than the commodity compute Power that's what makes it you know an Un an indestructible wall of digital Energy so when you're a maximalist you Say okay well it's the dominant digital Network or a dominant digital money Network but you would also say 8 billion people are deprived of Property rights And um they don't have a bank they can

Trust and they don't have scarce Desirable property and people in Indonesia or Africa or South America They don't have the option to buy city Blocks in New York City they can't even Buy a square foot in New York City New York City is a decent investment Idea lots of rich people got rich by Investing in New York City but it's not The best idea the best idea is cyber Manhattan for everybody So Bitcoin in that way is ethically Superior to Google Apple Facebook Amazon Microsoft Alibaba WeChat Those are all great companies and as a Technocrat You can invest in those because you say They're going to 10x Right I did I made a lot of money Invested in apple invested in Amazon I Said well you know they're obviously Going to stomp everybody 25 000 retailers fail Amazon succeeds Walmart and Target barely keep up right That that's the story of retail in the Past 20 years so yeah that's I'm a Technocrat but you know I I don't Pretend that Amazon you know is the Ethical solution to the problems of People in Indonesia or Nigeria I don't Even think Amazon pretends right Right and and apple clearly is not the Solution to people in China and nor is Googled you know Google's banned in

China So Bitcoin is special because it's not a Company right when we talk about an Asset without an issuer there's an Economic implication it's Superior to a Company that's a digital Monopoly Because there's no attack surface The Chinese and the Europeans can Target Google Apple and Facebook because They're not Chinese and they're not European But You can't Target a non-company that's Everywhere in nowhere there is no Headquarters there is no management team There's no CEO to subpoena Right so when when a government in Central Africa decides to deprive all of Their citizens of property rights and Say you're not allowed to have Bitcoin Well there's no Bitcoin CEO to arrest Right or subpoena or put on an Interpol Notice warrant on our red notice on so Bitcoin is nation state resistant and it Is profoundly ethical Because I can start a company in China That offers Bitcoin services to the Chinese And I don't have to be apple to do it And I can start a company in Nigeria and A different one in Argentina and a Different one in Russia and a different One in Ukraine and a different one in

Siberia and a different one and fill in The blank and the politics are going to Lurch back and forth But but ultimately The conclusion is Life is pretty hopeless for billions and Billions of people around the world uh Without Bitcoin And with Bitcoin a poor Uber driver or Tour guide in central Africa has the Same property rights as a billionaire on The Upper East Side of New York City With an army of lawyers whose brother is The governor And you can't say that about anything Else and you're not going to be able to Hold out okay shares of Apple stock as The moral equivalent for the next Hundred years I don't even think look I I'm see I have been the CEO of a Publicly traded company I'm an officer Republican traded company I can't Promise you what the management of my Company will be like in 100 years Or 50 years I don't know so So Bitcoin uh in that regard is special What what do I worry about I don't Really worry about anything at this Point it's just it's just a matter of Who's winning and who's losing and how Fast is this entire story going to play Out Right if you if you want to help your Family and your friends then you go and

You Advocate Bitcoin to them Like you want to help your country Let's take turkey Okay well turkey's got a problem their Currency is collapsing And as the currency collapses all the People of turkey are being impoverished They've lost 96 percent of their wealth Against the dollar in 20 years They have a 20 to 40 billion dollar Balance of payments problem every year They have 50 billion dollars of gold You want to solve the problems of Turkey What worries me well if I was Turkish This would worry me right Sell the 50 billion dollars of gold Buy 50 billion dollars worth of bitcoin Bitcoin will go up by a factor of four To five Turkey the turkey Central Bank will have 250 billion dollars of Bitcoin Bitcoin Will appreciate anywhere from 15 to 20 a Year or thereafter They will end up with a 40 billion Dollar Surplus from their Bitcoin Position offsetting a 20 to 40 billion Dollar deficit from their balance of Trade problem The Turkish lira will will actually turn Around and strengthen Everybody in Turkey gets rich or it gets Richer they stop getting poor the Country is saved the currency is saved The people are saved

They start an avalanche what would I Worry about I worry about holding gold That's you know if you're asking me what Do I fear I don't fear anything if I Actually have the superior asset if I Was a gold holder I would fear That one person in Turkey would have the Clarity The conviction And the courage To sell all the gold and buy Bitcoin Because if that one person does that Then everybody else is going to start to Copy them the price of gold is going to Crash from nineteen hundred dollars an Ounce down to two hundred dollars an Ounce over time Goal will approach its utility value The monetary premium gets stripped off Of it Other nations will start to do the same Thing The Nations that move first will have Their currencies benefit because instead Of having your currency backed by gold Your currency be backed by Bitcoin your Nation is backed by Bitcoin your nation Goes on the Bitcoin standard What happened to the African nations That kept the glass bead standard when The Europeans showed up on the gold Standard Right the Europeans basically printed a Bunch of glass beads used it to buy

Everything in the African nation Enslaved everybody in Africa owned Everything and impoverished everyone That stayed on the glass bead standard So Is the gold standard working in Turkey No if it was working the layer wouldn't Be crashing right is the gold standard Working in China no they're not on the Gold standard the CNY is weak how do you Know it's weak because they have Capital Controls if they drop the capital Controls everybody would take their Money out of the CNY and and the CNY Would crash so It's not really a question of worrying About Bitcoin you ought to worry about Everything else If you have any money in anything other Than Bitcoin You should be worrying that someone's Going to get rational and start to short Or sell that asset you're holding as a Store of value And they're going to start to buy Bitcoin with it because when that Happens gold goes from 11 trillion Dollars market cap to two trillion Dollars market cap Bitcoin goes from 500 Billion dollar market cap to 5 trillion Dollar market cap Right you're by the way I I just laid This out for a nation The same thing works for a company

Like Mike my company Stock was you know uh a hundred twenty Dollars a share We had 250 million dollars of assets we Bought Bitcoin with it Today the stock is quadrupled almost and We have four and a quarter billion Dollars of assets our assets are up by a Factor of 20. You know we've made billions of dollars For our shareholders Our stock is up 150 percent Which outperforms Apple Amazon Facebook Google every one of the big tech Companies every asset class So what do you fear If we bought gold gold would have been Down four percent if we had bought gold We would have 220 million dollars of Gold right now instead of 4.2 billion Dollars worth of bitcoin right now That's what you fear So The big idea is you can be on a Bitcoin Standard Your company can be on a Bitcoin Standard your country can be on a Bitcoin standard You don't have the option to not be on a Bitcoin standard the decision to not be On a Bitcoin standard is the decision to Be on a gold standard or Um an Airbnb apartment standard or an s P standard

Or silver standard or Bond standard or The you know you want to be on the peso Standard the peso has gone from one peso To the dollar to 485 pesos to the dollar In 20 years That that's losing 99.8 percent of your Wealth in 20 years against a dollar the Dollars lost 75 percent of its wealth in The same time frame against scarce Assets so you want to be on a peso Standard you're going to lose 99.95 of your wealth In 20 years So the fear The fear really is Somebody does it to you right a good Idea is an idea that you wouldn't want Your competitor to pursue to your Detriment So I'm I'm beyond the fearing of Bitcoin I think I think we're past the Event Horizon it's it's pretty clear it's Winning it's been accepted it's accepted In China the Chinese acknowledge it as a Digital asset if the Chinese the Europeans the middle easterners the Singaporeans the South the South the Africans the South Americans the North Americans all acknowledge Bitcoin what Am I worried about Really it's your worries are all about Your own business your own family your Own country your own City You can execute poorly

You can take your Bitcoin and put it With block fi or Celsius or FTX And have the counterparty fail You can worry about that I I guess I Would say I worry about Counterparties right we all worry about All the counterparties we deal with and Who do you trust and you should always You know you get a hardware wallet does It have a hole in it yeah when people Send me a hardware wallet they're like This is just for you like I'm giving it To you for free I'm like yeah I'm not Using this one right Uh Right so so there are things to worry About but they're Common Sense things to Worry about As opposed to bitcoin itself The whole principle of Bitcoin is We've created an asset on a network to Eliminate counterparty risk in the asset And counterparty risk in the network When you actually own a commodity you Have counterparty risk to the other Commodity manufacturers and the physical Jurisdictions you custody the commodity In And when you when you have a commodity You have to you can't self-custody then You have counterparty risk the custodian And that gets you gold seized or that Gets your oil embargoed or whatever so Bitcoin is all about a limiting

Counterparty risk So I think probably just don't f it up Right like don't like Don't try to fix it right don't try to Fix Bitcoin like that you wonder why the Bitcoin Maxi is so hostile to people With their ideas like Like we just want to double the block Size or we want to change this pool or That rule they're hostile to that Because because it's already perfect And it's a bunch of a bunch of imperfect People with a large ego that think that They can improve it and they want to Basically eff it up so So I I would probably be a bit Worried about that if there was any Threat but but Bitcoin I think has Stabilized the protocol has stabilized The community is very is very committed To the current conservative principles Of Bitcoin so I don't see that as a Threat I I think now we're just in an Expansion adoption stage And as William Gibson said The future's already here it's just not Evenly distributed So you know you just think about where If you have perfect money and perfect Economic energy And a perfect Network The issue is how do you want to Distribute it

And that's where you guys come in Whenever it becomes in right we're all Educators and we're just educating the World so they can figure out A figure out that it is a useful Technology that can make their life Better and then B figure out how to Harness it Mm-hmm you know like I give you two lost Examples fire and electricity They're both good for the human race But you can get burned by fire and you Can get shocked by electricity So even though I'm an electricity Maximalist and I'm a fire maximalist if I worry about things I worry about Burning the house down or electrocuting Myself As you should Be appropriate with the technology But otherwise I'm a Bitcoin maximalist

Coinbase
OUR TAKE

Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

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