For the last thousand years, humankind has never created a store of value that could be owned by ordinary people without the hand of the powerful ones.
Bitcoin is a savings account in cyberspace that it’s available to 7.8 billion people where no politician can steal your money. That’s a simple idea everybody on earth needs to have. This is the first truly engineered monetary network in the history of the world. It’s a closed thermodynamic system that doesn’t lose power. If you put a hundred million dollars in the system, it’s like you have a battery with no power loss.- Michael Saylor
Michael Saylor is the CEO of a company called Microstrategy. A couple of weeks ago, he probably made the most life-changing move in the financial world.
Saylor was in his board meeting, having a courageous conversation with his staff, and concluded that having $500,000,000 in cash in the bank or in 3-month treasuries was a liability: it was worthless.
He said to them that the monetary expansion rate went from about 5% a year to 15%. They were gonna lose 15% of their purchasing power every year for the next 4 or 5 years. A block of $500,000,000 in cash was starting to look like a melting cube. It was almost certain that they would lose at least half of that money in 36 to 48 months if they did nothing.
So, they did it. They bought Bitcoin.
500 million of it.
Be Brave Enough To Start a Conversation That Matters
Some conversations have the power to change the world.
And as far as I know, Elon Musk has an invitation to a real conversation with Michael Saylor. From one rocket scientist to another.
For now, they just tweeted to each other.
Image by the author
I wonder if this conversation has already happened?
And more importantly, I wonder what Elon Musk’s final impressions of Saylor’s explanations were.
And these are the top issues I’ve learned from Saylor:
- Amazon dematerialized the storefronts; Facebook dematerialized our social network; Apple dematerialized mobile devices; Google dematerialized all kinds of libraries; Tesla is dematerializing the auto and energy industry; Bitcoin is dematerializing the monetary system.
- Bitcoin becomes the first monetary network because it’s a synthetic safe-haven asset. It’s like all the good parts of the Gold, and it’s sitting on a gigantic network.
- It has a 21 million coin cap/limit. After that, no more coins can be made. And it’s been secure for the last 12 years. It’s been adopted and regularized by congress and the monetary regulators as a legal asset.
- Bitcoin is a savings account in cyberspace that’s available to 7.8 billion people where no politician can steal your money.
- There’s inflation in bonds and stocks. There’s inflation in real estate and gold. The inflation measure that the central bank tracks are a market basket of consumer goods and services that not include the higher volatile food and energy. These are two separate worlds right now.
- If you have something like Bitcoin and you can’t make any more of it, everybody wants it. It’s a simple concept, and it’s gonna double its value as central banks double their supply of money.
- You can move one hundred million dollars of Bitcoin from New York to London in a few minutes and it’ll cost you $3. It would cost you one million dollars to do that with Gold.
We’re going through an era in which all the ancestral principles that have been taught to us are being called into question.
We notice things that match our view and we dismiss things that do not. As we build our narrow knowledge on top of that foundation, we might not even realize when the foundation itself is weak. And so, as we go on with our lives, filtering a massive amount of information, we can easily become blind to important information, caught in our own bubbles, disregarding some information or alternative views, even when it might be helpful to us. Our decisions are shaped by what we regard as the facts, and if new information emerges that belies what we believe, it often hardens us to our original view.- Jeff Booth, The Price of Tomorrow: Why Deflation is the Key to an Abundant Future
Is the war for space dominance about to escalate? It’s been seven years since the first SpaceX Falcon 9 rocket lifted…
It’s Harder to Talk, It’s Easier to Fight
Elon Musk has the same weapon Michael Jordan had when he was a god.
It’s called trash talk.
Elon gets a kick out of messing with people’s heads. He loves to shake the system and trashes talk all the time.
Meanwhile, in the silence of his home, he is creating the next technological breakthrough that will cause one more slip of another tectonic plate.
So, I repeat the question:
I wonder if this conversation from rocket scientist to rocket scientist has already happened?
Elon is changing the world as we know it, by disrupting two entire sectors. The auto and the energy sectors.
Is he gonna give a hand to disrupt the monetary system? Is Tesla gonna be the first big company to break the mold?
Why the hell not?
Really, the only thing that makes sense is to strive for greater collective enlightenment.- Elon Musk
Elon Musk has the advantage of being an outsider. He is an outsider in the auto industry and in the energy industry. Outsiders can observe the environment from an inverse perspective because they aren’t locked into accepted belief systems or the accepted biases.
In their geniality, these special human beings have this disruptive power when they interfere with a disintegrated system, causing changes that tear across without asking permission, without being well educated, because they believe more than anyone that that is the fairest way for humanity.
If you look at the smartphone, it is about 13 years old. It now replaces so many things: It’s a map, music player, video player, tape measure, personal assistant, personal diary, camera, tape recorder, and the apps are free or very low cost. If you imagine that same type of pace happening within every industry sector — then the deflationary effects of technology are massive and growing exponentially.- Jeff Booth
A century ago, we watched a brutal disruptive technology when electricity, the telephone, and the internal combustion engine were invented.
In 13 years, New York dramatically shifted from carriages with horses to cars. It profoundly transformed the landscape of the big apple, and also its functionality and mobility.
So, if you want to believe nothing is happening, do so.
I believe enormous changes are taking place right now. From deep learning to artificial intelligence. From electric vehicles to genomics. From streaming to robotics.
What about the monetary system?
Are these huge changes gonna catch the big guys? Are they gonna catch the central banks and governments, politics, and big banks?
I am an eternal optimist.
I still believe that there are people, like Satoshi Nakamoto, who were born to change the world for the better.
Justice is something that conquers us for its purity.
Lust is something that eats away at the root.
In this war between good and evil, I continue to bet my chips on good.
All in humanity.
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