Michael J. Saylor is an American entrepreneur and business executive who co-founded and leads MicroStrategy, a company that provides business intelligence, mobile software, and cloud-based services. He played a big role in Tesla’s Bitcoin purchase as he asked Elon Musk in a Twitter interaction in December 2020 to convert Tesla’s balance sheet from USD into BTC, and Tesla bought Bitcoin after two months. In an interview on U-Related’s channel, a YouTube channel, Michael said that Bitcoin is digital gold and it’s sitting on the world’s first digital monetary network. He also spoke about Tesla’s Bitcoin purchase.
Host: “What does Elon Musk going into Bitcoin mean for investors and for the future of the digital currency?”
Michael: “Well, I think in the current macroeconomic environment, most corporations are beginning to realize that their cash is going to be a depreciating asset, and they need to turn their balance sheet into an appreciating asset, so the obvious thing to do is to convert dollars that are being inflated it you know expanded 15% a year into a scarce digital asset that’s what Bitcoin is. So Elon musk is very progressive, and Tesla is very progressive, I think this is part of a trend toward the digital transformation of balance sheet as people move from analog traditional treasury assets like cash and bonds into Bitcoin.”
Host: “I want to kind of elaborate a bit more on the pitch that you’re giving to executives on this and what is kind of the hurdle that must be overcome for them to get comfortable with adding this digital asset to their balance sheets?”
Michael: “Well, I mean the pitch is Bitcoin is digital gold, and it’s sitting on the world’s first digital monetary network. That network does the job of gold a million times better than gold. You can move it at the speed of light, you can program it a million times a second. And it’s been appreciating versus the US dollar more than 200 percent a year on average for a decade, so I think, at this point, Bitcoin has emerged as the institutional safe haven asset. If you’re a corporation and you generate a billion in cash flow, and you buy back your stock, you’re a billion closer to insolvency. If you borrow a billion dollars to buy back your stock, you’re two billion dollars closer to insolvency. If you want to run your company to the benefit of your shareholders, of your customers, of your employees, and of your local community over the long run, you can’t decapitalize the company. And in the modern era, cash is becoming a liability because the money supply is expanding at 15 percent and the purchasing power of the cash keeps degrading. Holding a 15 percent degrading asset for eight years means you lose 75 percent of shareholder value. So the pitch is to convert your balance sheet from a liability into an asset to the benefit of your stakeholders and use the world’s first digital monetary network to do it; Bitcoin was engineered to do this.”
Host: “So what do you think of regulations in this space and when you see more publicly-traded companies add it to their balance sheet and how they can kind of talk about it on social media, do you think we’ll see regulations come in and if so, what should those look like?”
Michael: “Well, I think there’s been a great advance in regulatory clarity over the past few years. I think the IRS and the SEC have both designated Bitcoin as property, and I think that’s been very good for the asset class. I think that we can expect a few more regulatory advances that’ll provide more clarity, and as Bitcoin approaches regulatory parity with other types of assets like stocks and bonds, and gold, I think it’s going to remove the few remaining barriers that have given institutions pause I think a thousand institutions a thousand corporations started adopting Bitcoin as an asset for investment in the past 12 months. I think there’ll be an avalanche of thousands more that’ll be coming as they start to see that this is a very high-quality treasury reserve asset on parity with other assets.”