Michael Saylor: Nobody understands this, This ONE MOVE will Change EVERYTHING! – Bitcoin News Today

Michael Saylor: Nobody understands this, This ONE MOVE will Change EVERYTHING! – Bitcoin News Today

bitcoin is one of the most if not the most disruptive technology of the decade and it’s it’s disrupting the energy industry it’s disrupting the investment community it’s disrupting the technology community [Music] you know what i mean i think if we look at the last decade bitcoin’s up about 120 a year on average for 10 years it’s up about 250 percent for the past 12 months um over any last four year time frame i don’t think anybody’s ever lost money holding it for four years so a pretty simple rule of thumb would be if i could borrow money for less than the expected return and if it comes due more than four years out then i think i’m pretty safe so if you’re gonna loan me money at six percent interest um for six days and i bought bitcoin it might be some risk six months maybe somewhere six years well i took a survey on twitter of all my followers and i said you know over the course of seven years do you think bitcoin will go up on average six and eight percent interest or more it turns out that was our last secure debt financing we borrowed money at six and eight percent interest so it’s like ninety percent of them said yes okay so if you’re long bitcoin you think it’s gonna go up more than six percent a year then would you borrow money at six percent sure would you borrow money at two percent i mean the truth of the matter is if you went to anybody in any business in the world and you asked them would you borrow a billion dollars at zero percent interest to invest in the business you’re in if the answer is no then they must not believe in the bit they probably should get out of the business right if you’re not willing to invest a billion dollars at zero percent interest in the business that you’re currently in you’re short right you’re short to business right so in that case the right answer is you ought to borrow the billion dollars and short the thing right but if you don’t have an opinion one way or the other you probably shouldn’t be in that business and there’s 10 000 businesses dana i don’t have an opinion on like you know biomechanical engineering or nuclear engineering i don’t really know i don’t purport to be an expert in the 99.9 of the things in the world that i’m not an expert in i just feel like you should focus upon the thing that you’re going to work on if you if you know that thing and someone is willing to give you favorable financing and if you have a use of the proceeds look there’s a lot of if i’m running a um a diner down the street and it’s a nice diner and i got six employees and i’m really good at and i love it and you offered me a billion dollars maybe i don’t need a billion dollars of capital to upgrade my diner is not capital intensive so there are some businesses where you can’t use the capital but um bitcoin is a business where you can use the capital it’s either going up or it’s going down if it’s if it works it’s going up and if it’s going up then you would like to own as much of it as you can possibly own so my view of the capital markets is if you can if you can acquire capital at a reasonable cost to funds under the right conditions without onerous covenants then yeah you should go ahead and acquire that capital you know i think the the bitcoin decision increased our brand awareness by a factor of 100. okay so that helps us enormously with recruiting it helps us enormously with retention it helps us enormously if we go to a cfo or a ceo and we’re showing microstrategy software now they know who we are right i mean i think i’ve got 20 25 million youtube views so people have heard of us now so it’s always useful if people know who you are and of course bitcoin is one of the most if not the most disruptive technology of the decade and it’s it’s disrupting the energy industry it’s disrupting the investment community it’s disrupting the technology community that means it’s uh it’s something it’s disrupting politics and economics in general it’s disrupting the definition of assets and property rights so that being the case uh it gets people’s attention and it gets and it’s progressive and it gets people focused so i think it’s been great for morale it’s been great for retention it’s been great for acquisition of new employees and it’s helping us to deliver our our corporate message microstrategy’s uh microstrategy software business was up ten percent in the first quarter year-over-year our business is up thirteen percent in the second quarter so when you get to double digit growth that’s that’s a good thing and and we’ve been seeing strengthening of that business subsequent to our decision to embrace bitcoin first of all as a publicly traded company it would it takes the typical publicly traded company three to six months to get through the compliance and the regulatory and the accounting and the due diligence issues to just simply trust the counterparties to acquire in custody bitcoin okay so that’s a big deal and what do you get for that well the last decade you got 120 annualized return in the last year you got 250 percent annualized return so i i would say you get a pretty good return by going through the motions of acquiring and holding the bitcoin the offers with regard to yield are four percent five percent eight percent okay so you’re talking about an order of magnitude less and you’re at least going to double the amount of effort but you’ve got counterparty risk so you know what if you what if you loan out a billion dollars of the bitcoin and somebody loses it all right so uh i think the counterparty risk is large there’s already complexity right there’s there’s defy complexity am i gonna do a defy well that that’s got a regulatory overhang right maybe it’s illegal maybe it’s a secure you know security problem so no not gonna do that there’s a security problem so what if i put it on a on a d5 blockchain and there’s a rug pull and you lose it all okay so there’s security issue there’s a regulatory issue there’s an audit and there’s a legal and accounting issue okay so well what if i do c5 well you know what if i put it with you know one of the yield generating c5 uh players block fi etc well there’s regulatory overhang there too there’s a question of of uh compliance my auditors would have to get comfortable with their auditors right my lawyers have to get comfortable that i’ve gone through the due diligence okay how does one go through the due diligence process of trusting a counterparty right now okay so i think the right way to think of it dan is like we’re in year one or year two of commercial bitcoin banking okay we haven’t even like what’s the date it’s like the early part of august you know our first our first bitcoin acquisition was august 11th or something like that so we’re not even one year into it and i think when you get to three to five years into the world of bitcoin banking the security issues the regulatory issues the due diligence issues can you show me a bitcoin bank that’s taken a billion dollars of bitcoin and generated yield consistently for 10 years in a row without any kind of mishap no about five years how about three years sounds like somebody with experience right you’ve been on both sides right so i get it yeah um so the point really is you’re taking a hundred times as much risk and it’s ten times as complicated to get five percent more so let me turn it around a different way if i’m going to go ahead like like i wouldn’t take 100x more risk okay to start with right that like as a fiduciary that doesn’t make sense let’s assume that it wasn’t any risk it was just 10 times harder well why would i divert the time of my legal team and my finance team to go jump through 10 times as many compliance accounting security regulatory and process hoops when i have other things i could do at the time why don’t i just go and raise another billion dollars and buy bitcoin that’s been yielding 120 a year for a decade wouldn’t it make a lot more sense to leverage up or to acquire more of the thing that’s going up 120 percent a year than it is to divert everybody in order to get it to go up 123 percent a year with a hundred times as much risk and ten times much complexity is that so it’s a quiet let me offer a different example it’s like do you want to buy a hundred thousand acres in vegas and just own it and you could do it overnight or do you want to carefully huddle with a hundred architects and plan a hundred and fifty hotels and the septic systems and all the traffic light systems and all the elevator systems of all the casinos and hotels and restaurants in vegas you’re the king of analogies i love it complicated and risky and distracting and deluded you
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Michael Saylor: Nobody understands this, This ONE MOVE will Change EVERYTHING! - Bitcoin News Today

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