ichael Sailor currently holds 17, 732 Bitcoin valued at $822M, and his publicly traded company MicroStrategy has acquired 125,051 Bitcoin valued at 5.8 Billion as we speak. He's undoubtedly one of the most influential individuals when it comes to crypto investing, especially Bitcoin.
After hours of research and going through Michael's materials, I've condensed everything into this single video so you can get a deeper understanding about Bitcoin and blockchain technology.
Facts about Michael Saylor
Here are some facts about Michael Sailor:
- Saylor was born in Lincoln, Nebraska on February 4, 1965
- Saylor has never been married
- He cofounded a company MicroStrategy in 1989 with his MIT roommate
- Sailor was only 24 when he cofounded Microstrategy
- Microstrategy is a business intelligence company that uses computer software to collect and sell consumer insights to their customers
- They currently employ 2000 staff within the company and over 40 patents have been registered under MicroStrategy
Losing $125M Per Year
Out of all the assets class Michael could have been invested into, why would he choose crypto and why specifically Bitcoin?
Let's trace back to the year 2020 when Pandemic happened, MicroStrategy generated 500 million cashflow sitting in a treasury. When FED announced the interest rate was going down to 0% and meanwhile the dollar supply was expanding at a rate of 25% a year.
Sailor was going to lose $125M a year of his shareholders money in terms of the dollar value. By the year 2023, he is going to lose half of his wealth on that treasury just by holding an inflationary assets like cash.
The US dollar is the strongest currency in the world, but it's losing 15% to 20% of its value a year. If you look at the last 80 to 100 years, the US dollar had lost 99. 5% of its value. Remember in 2020 when the stock market crashed, it almost recovered immediately.
Some people thought that was a good sign. My question to you is did our economy actually recover or there's something else going on?
It was the value of the dollar collapsing in real time in front of us against any other scarce assets.
For the last decade, the dollar supply had been expanding at seven to 10% a year. And here is another catch. The S&P500, which is an index or a basket of the top 500 companies that represent the US economy, also had an eight to 10% return a year for the last decade.
Holding money at 0% interest when the money supply is expanding at 10% rate means you are going to lose 10% of your wealth each year. Keep that in mind. The money supply is not expanding at a 10% rate. It's about 25% a year since the pandemic.
Now the key to store your wealth is to invest into a property or an asset that will go faster than the rate. The dollar is collapsing. Here's Michael sharing his personal experience on losing 90% of a million dollar he had in Argentina.
"I put a million dollars into bank of America in Argentina when the dollar was worth one peso because I didn't trust the peso. What do you think happened? The government basically shut down for one day. They sent an edict to the bank saying all dollars must be converted back into pesos. Then they went off the dollar peg and they divided the peso ten to one and I lost 90% of my money." - Michael Saylor, co-founder of MicroStrategy
Bitcoin vs Gold
When we talk about Bitcoin, we have to compare it with gold. Gold has been around for over 50 years and it was here during the formation of the planet Earth. Throughout history, gold has always been a great vehicle in times to battle with inflation or hyperinflation. In August 1971 the US went off the gold standard which means the central bank now can print unlimited amount of paper money.
"I have directed Secretary committee to suspend temporarily the convertibility of the dollar in the gold or other reserve assets except in accounts and conditions determined to be in the interest of monetary stability and in the best interests of the United States." - Richard Nixon, 37th U.S. President
Gold mining produces 2% more gold each year. So technically gold is inflating at 2% a year. If you choose to store all your gold at your local bank, there is a counterparty risk meaning you are relying on your trust on your local bank.
The other problem is that you can conveniently move money through time and space with gold. Think about moving 100 million worth of gold from New York to Tokyo. It will cost you some time and it will also cost you a lot of money to move it. And never mind, there is a chance your gold will get seized when you import into a different country.
So overall gold is an old technology and this is where Bitcoin stands out.
Bitcoin is a digital property that you can teleport anywhere in space instantly. It's also perfected property with the lowest maintenance cost. Unlike gold real estate stock soybeans Bitcoin supply is capped at 21 million and it's weightless.
You can move it with the speed of light. You can break it down into 1000 pieces within a second and send it over to a thousand different places around the world and recompose it all using a single computer program. Which means for the first time in history of mankind you can actually take possess of your wealth or take it anywhere else with you on the planet. On top of that, you can carry a billion dollars worth of digital assets such as Bitcoin in your head by simply memorizing your Bitcoin wallet private key.
Now think about Bitcoin as a bank in the cyberspace running by incorruptible software. The problem with the running of software is that you can't just trust a single computer to run the software there is a chance the computer could get seized or any third party can manipulate and reprogram the software to prevent any human being from corrupting it. Satoshi Nakamoto designed it in a way that there will be hundreds and thousands of identical copies running across all computers around the globe and all the copies or the ledger keep track of each other and when one of them is corrupted it gets kicked off the network.
This is a revolutionary concept because we have encrypted money and this is also the reason one single country or state cannot shut down Bitcoin. When I was first introduced to Bitcoin back in 2016 after all my research one of my major concerns has always been because Bitcoin network relies on electricity. What if the entire Globe's electricity shuts down overnight? Will Bitcoin still survive? And here is Michael Taylor's answer to that.
"If all of the electricity got shut off everywhere on Earth and every computer failed everywhere on Earth for ten years the protocol just goes dormant for ten years and as soon as one person turns one node back on the entire protocol comes back to life again." - Michael Saylor, co-founder of MicroStrategy
And what do you think about Michael's strategy on investing millions and millions into Bitcoin or how would you invest that much money? If you enjoyed this video subscribe to the Channel for future content. Share this video among your friends Harris Sultan signing out I will see you guys in the next one cheers.