Its the digital transformation of money, property and energy and Paradigm shifts are so profound that youre staring at them and you dont realize they took place because your world view is constructed based upon a bunch of assumptions that youve always taken for granted. You know you could be a brilliant person, but you wont embrace the Paradigm Shift while youre alive in the absence of a crisis, foreign Music, hey guys, welcome back to Library of wealth. Today we have the CEO of microstrategy, Michael Saylor, talking about the issues in the crypto industry today. Sailor feels that Bitcoin is the best option for anyone who lives in a nation where they cannot trust the bank or local currency. The problem with currency in the long run is that even the strongest coin will lose 99.9 percent of its value over the next hundred years. Money all over the world is losing up to 40 percent of its value now, and the only reason there is no Panic in the U.S is because the CPI is being manipulated to create the lowest possible inflation number. According to the CEO of microstrategy, Bitcoin has been negatively impacted by vulnerabilities and other assets in a market that is largely unregulated. Sailor has been under Fire many times in the past few months over falling prices, volatility and uncertainty lets get right into the interview with Michael Saylor, who will give us his take on the current state of the Bitcoin Market.

Dont forget to like And subscribe. If you enjoy the content, we do here on this channel lets get right into the video when you think of it as digital gold, then it should replace gold, Golds worth 10 trillion dollars and that takes Bitcoin to 500 000.. But when you think of it as digital property, like replacing buildings and and land and and other long storeholes of wealth, then you know youre up by a factor of 20 or 30 from there I mean it should not be its much better than digital gold, because I can move Bitcoin at the speed of light and I can program it to a million transactions an hour on an iPhone or a website. You cant do that with gold, so its got more utility than gold, which means its probably worth 20 or or 30 trillion. If it just replaces the gold, but instead of buying the fountain blow hotel, which is a nice hotel uh, you know worth whatever billions in Miami Beach instead of buying that, instead of buying the equivalent amount of Bitcoin, if you bought the Bitcoin, you can move that To any city in the world every hour of the day compose it decompose it recompose it dematerialize it, and you know when theres a nasty tax on it. You can just move yourself to a different jurisdiction where theres a better tax treatment – and I, if you think of it like that, then its a its a multi hundred trillion dollar asset class.

So a 10 trillion is 500 000 at 100. Trillion is five million. So I think you know were marching toward 10 trillion dollars, which is sorry, sorry, 10 million dollars a coin, which is why uh Bitcoin enthusiasts see its its just a very great long term, store of value and its a great investment idea. Financial assets were having the best year ever. People had great years. I mean a lot of these hedge fund managers. They had the best year of their life in 2020 or 2021, and Main Street assets were having the worst year in 30 years, and I had a company with 500 million dollars in in cash. There was dead money, it was idle, it was generating zero percent interest. The Federal Reserve said were not going to raise interest rates for four years. The companys stock was in the tank at one point. In essence, when we were going through this, our company was valued at sixty dollars, a share in cash and sixty dollars. A share in uh in the software business, and that was like one times, Revenue according to sailor. Raising interest rates is one strategy, but the real inflation rate, which they wont disclose, is two to three times higher. The money printing is just one of several variables that are contributing to the increase and the devaluation of currencies. I just give the 500 million dollars back to the shareholders in a dividend or a buyback. Now I knew that wasnt going to save the company because Id been buying back the stock for the last five years.

I bought 300 million dollars worth of stock back or something and the only thing what happened would be this. The stock would go from 120. A share to 60 a share and then all the stock options the employees be underwater. Then all the employees would get head hunted Away by Amazon and Google and Facebook. You know, and and then we wouldnt be able to compete with Microsoft and every company on Earth is their customer theyre more powerful than all, but about a handful of countries on this Earth and they can do whatever they want, wrap it into their product. Give it away for free if they want so so uh. The challenge of giving up the capital was first wed, lose our financial capital and then wed lose our human capital and then wed have no reason to exist and the company was going to zero. So so the second strategy is hold the cash, but the cash is, you know: cash trash, Ray dalio says that is generating zero percent interest and the money supply expanded by 20 a year for the past two years. You can see it in U.S single family homes which shot up forty percent in price, and so, if the moneys being devalued 20 a year and youre generating zero percent interest, youve got a negative, real yield of minus 20 percent and I did the math in my Head and I concluded that pretty much the 500 million dollars in purchasing power would be cut into 250 million dollars of purchasing power and 36 to 48 months, and so in that situation we decided we should do something transformational, so I kind of knew.

I tried everything for a decade. I knew it wasnt going to work from first print. You know from first observations, so I thought well what if I could find a digital gold which was better gold than gold, something that is better than gold, but also a big Tech Monopoly. And here are my three criteria. I want it to be a better golden gold. I wanted to be a big Tech Monopoly and I want no one else to appreciate it. I want it to be underappreciated and thats what Bitcoin was in the second quarter of 2020.. The incident, no one thought it was an Institutional asset, even though Amazon stock had doubled in the second quarter. Uh Bitcoin was trading about the same as it had been trading in 2018 or 2019.. You know, itd been it got up to ten thousand. It had smashed down to four thousand. It was back at ten thousand, so I looked at and I said well, you know, based on all the information, you would think that a digital property Network or a global digital Money Network is more valuable, knowing that people are losing confidence in currencies losing confidence in Central banks losing confidence in governments, and this is a non sovereign, open, decentralized system. So it should be with a few Dimensions, but it wasnt appreciated yeah, so were there and we have to take a risk we literally have to or we got to sell the company right were done, one way or the other, and I said well: this is a Reasonable risk because it looks like it looks like the Facebook of money or the Google of money in the year 2010 or 2011, while 98 of the world doesnt understand it its a bit too complicated, theyre afraid of it.

But just because you dont understand it, doesnt mean it isnt. True, it just means you know, and I had the experience of riding the mobile wave and Im the guy in 2011, that bought Amazon, Apple, Facebook and Google stock, and you know – and they all worked out well – and I thought the years 2020 were at the end Of the mobile wave so get off the mobile wave, get on the crypto wave and and think that through and and uh so that that kind of made the decision straightforward it wasnt without risk. But the alternative was pretty much throw in the towel, and so we got into this business at that time and of course, the last two years have been uh, I think fairly good ones in terms of commercialization institutionalization of digital assets. Sailor says even educated people that have been in the digital asset industry for over a decade. Dont understand the cryptocurrency is digital energy. They have such a strong bias towards their point of view that theyre unwilling to accept new ideas, especially when it comes to their financial portfolio. He says that most people dont have an idea of what money or property is, and if you call crypto digital property of money, they wouldnt be able to understand sailor adds that the best grounding to understand what crypto should be is Aeronautical Engineering because they must Master Computer science, mechanical engineering and much more which computer scientists find inconvenient.

What do you guys think about Michael Saylors opinion on where digital and Fiat money is currently heading in todays financial industry? Let us know in the comments below thanks so much for watching dont forget to like And subscribe. This is library of wealth.