The ACTUAL Reason You NEED to Buy Bitcoin | Michael Saylor Interview

When you buy a Bitcoin you're buying 121 Millionth of all the money on the Network would you want to own 121 Millionth of all the money in the world In 10 years 20 years 100 years a Thousand years 10 000 years 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 U.S making 60 000 a Year I like a good beer save enough 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 to 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 100 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 uh 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 in a Reit that owns The building like you own one 100 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 you don't have any property Rights your your uh inferior in your Economic right so so owning shares of a REITs to get property for 100 years not A great idea 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 diluted 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 ETFs the ETFs charge 90 basis Points you know if you want to put money Into a Bitcoin veto or whatever they'll Charge you 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 is

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 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 And 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 Force 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 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 10 000 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 and 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 a 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 and 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 risks 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's 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 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 theoretically do with With real estate property is maybe a two Percent real yield if you're just really Good at it But there are just so many risks you Know well 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 a hundred Years later Would you want to own a building in Russia and Moscow in 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 Yeah 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 uh 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 that 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 could take a very long View And um How many how many banks will want your Bitcoin When you see what's going on right now Is it's a French bank that wants to Custody Bitcoin there's a German bank That wants to custody Bitcoin there's a Single quarterback 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

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