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<p><strong>Michael Saylor regularly takes the microphone to explain his vision of Bitcoin from a new angle. His two latest speeches did not disappoint.</strong></p> 
<h2 id="h-bitcoin-is-capital">Bitcoin is Capital</h2> 
<p>The CEO of Microstrategy answered Niko Jilch’s questions about the concept of “capital.” <a href="https://www.cointribune.com/en/m-saylor-bitcoin-does-not-need-to-replace-fiat-currency/" target="_blank" rel="noreferrer noopener">Michael Saylor</a> reiterated that it is madness for an individual, a nation, or a company to keep its reserves in fiat currency.</p>
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<p>Again, Mr. Saylor reiterated that he does not reject the fiat system. <em>“Banks are not inherently bad, fiat currency is not inherently bad”</em>, he said. This will give Austrian School economists, who see Bitcoin as the realization of the prophecy, food for thought. This latter claims that an economy functions much better with an absolutely fixed money supply.</p> 
<p>For non-English speakers, here is the translation of some statements, as always intertwined with physics and vivid imagery.</p> 
<p>Here is his distinction between capital and money:</p> 
<p><em>“We talk about Bitcoin as digital money, but in the modern world, money breaks down into two types. High-frequency money and low-frequency money. One form of money is the medium of exchange, like the euro, the peso, or the dollar. Another form is the store of value. The portion of money you intend to keep for more than a few years is the store of value. That’s your capital. There is capital and exchange money.</em></p> 
<p><em>If you are in Argentina and you want to buy an ice cream, the price will be in pesos. You need to have the local currency, pesos, which is high-frequency money. And you are probably going to keep it for a short period because it is melting. You are going to exchange it for an ice cream cone that is also melting. You are then going to consume the ice cream very quickly, before it melts. This is an example of exchanging an asset that you cannot store for a short period for another asset, which also has a short lifespan.</em></p> 
<p><em>The half-life of the peso is short. The half-life of ice cream is even shorter. If you eat enough ice cream, your body will turn it into fat, which is an organic energy with a long lifespan (too long, haha). So when you think about money, if you are in Argentina, you need money with a short half-life to buy an ice cream cone. If you need to keep money for three months, you should probably exchange your pesos for tether (a stablecoin) or dollars, which is a medium half-life currency.</em></p> 
<p><em>The half-life of the dollar is about 10 years at best. If your time horizon is 10 years, you might think the dollar is good money. But if you are really smart, or if you are planning for an institution, a company, or your children, then you go for money with a long half-life. You opt for Bitcoin, whose half-life is infinite. It’s immortal money versus money that lasts 10 years. What makes Bitcoin perfect capital, as opposed to imperfect capital, is the absolute limit of 21 million.” </em></p> 
<p>So? Bitcoin, medium of exchange or store of value?…</p>
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     <p lang="en" dir="ltr">Exploring capital vs. currency, <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> as the ideal capital asset, and revitalizing our corporations and capital markets with <a href="https://twitter.com/NikoJilch?ref_src=twsrc%5Etfw">@NikoJilch</a>.<a href="https://t.co/sctTdXUs6I">pic.twitter.com/sctTdXUs6I</a></p>— Michael Saylor
     <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/26a1.png" alt="⚡" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@saylor) <a href="https://twitter.com/saylor/status/1803412716893147539?ref_src=twsrc%5Etfw">June 19, 2024</a>
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<h2 id="8-million">8 million $…</h2> 
<p>Michael Saylor then went on to explain why Bitcoin, for reasons of government regulations, cannot replace fiat currency:</p> 
<p><em>“Designating an asset as legal tender confers a significant tax advantage in exchanges. The United States designates the dollar as legal tender. I can exchange it a million times a month without having to pay taxes, which simplifies my accounting and makes my transactions cheap. The United States has designated gold, the S&amp;P 500, your building, your Bitcoin, and your Picasso as forms of property. That means whenever they are exchanged, they generate a capital gain. This keeps all accountants in business. If something is designated as legal tender, you will exchange it at high frequency. If it is property, it will be exchanged at low frequency.</em></p> 
<p><em>Banks are not inherently bad, and fiat currency is not inherently bad. Whether it is good or bad does not matter, it is a question beyond our pay grade. We do not decide if the Chinese government or the U.S. government can issue fiat money. We do not decide if they give it legal tender status. That’s a government decision. What you can decide is how you allocate your portfolio.”</em></p> 
<p>Another noteworthy speech in recent days was at the Bitcoin Conference in Prague. One of the <a href="https://x.com/saylor/status/1803042104517513666" target="_blank" rel="noreferrer noopener">21 rules of Bitcoin</a> was: <em>“Don’t be against the fiat system, but for Bitcoin”</em>.</p> 
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     <p lang="en" dir="ltr">21 Rules of <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://t.co/lhKPqtPOmc">pic.twitter.com/lhKPqtPOmc</a></p>— Michael Saylor
     <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/26a1.png" alt="⚡" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@saylor) <a href="https://twitter.com/saylor/status/1803042104517513666?ref_src=twsrc%5Etfw">June 18, 2024</a>
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<p>Here are some perspectives for those who are here for the NGU:</p> 
<p><em>“I am happy there are still 1%, then 2%, 4%, 8%, and 16% of people to convince that Bitcoin is the best capital. When 16% of companies agree with us, Bitcoin will no longer increase by 50% per year, but by 20% per year. It will no longer be a $1 trillion asset class, but a $50 trillion one. That said, it will still be better than lending your money to the S&amp;P 500 at 11%. Bitcoin is a revolution for capital. Everyone will understand it at their own pace. Who will be the next to understand it? The United Arab Emirates, Brazil? We can’t know. But the sooner we understand it, the greater the economic advantage.”</em></p> 
<p><em>“I bought it at $9,500,</em> <em>I’ll buy it at $95,000, and I’ll buy it again at $950,000.</em> <em>When it is at $950,000, there will obviously be some television star to say, ‘It seems a bit overbought right now, we think it will drop back to $700,000’… And they will miss the mark, and Bitcoin will soar to $8 million.”</em></p> 
<p>Yes, you read that right. Eight million dollars for a single Bitcoin. Hodl! For more, don’t miss our article: <a href="https://www.cointribune.com/bitcoin-vs-fiat/" target="_blank" rel="noreferrer noopener">Bitcoin vs Fiat</a>.</p>

Michael Saylor does not hold grudges against fiat currency

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