MicroStrategy CEO Michael Saylor on his expectations for bitcoin's trajectory

hey michael i i read a really

interesting piece yesterday just in

terms of how

we might be looking at this a little bit

um

wrong those of us who follow stocks and

know about reversions to the mean

that this is different because the mean

that you're going to be reverting to is

constantly growing it's happening

as all of these new companies new

investors are kind of buying into that

so the

the mean itself the the line is is one

that's moving pretty sharply higher

you agree with that theory the most

important thing i'm saying about bitcoin

is

bitcoin is a bank in cyberspace

for people that don't have the ability

to run their own hedge fund

it's not a stock it's an asset class

and so you know if i put a billion

dollars into a bank

and then i came back a year later and i

put another 10 billion dollars in the

bank

the bank is not overvalued by a factor

of 10. the bank is just 10 times bigger

people are using bitcoin to store their

monetary energy

for the long term and so uh the price is

a reflection

of the monetary energy in this bank in

cyberspace

michael i just wanted to go back to a

question about your holdings of bitcoin

personally

and and potentially the the holdings of

members of the board or

or executive uh executives in the

management team

and the reason i i raise this is i think

there's a lot of companies now that are

thinking about buying into bitcoin

and yet there are their employees uh and

or board members who are either

uh own bitcoin already or buying in

knowing perhaps that their company is

going to buy uh

buy bitcoin how you think about that

from a legal perspective

because historically if one company was

going to effectively buy another company

it would actually be considered either

illegal uh insider trading

or just a breach of the fiduciary duty

because effectively you'd be

taking advantage of corporate

information

okay well the first thing to note is

that bitcoin is property

it's not a security and that's a very

critical idea

property means you can own a house or

you can own land and your company can

also buy land

with regard to public companies the key

is to make sure that you have adequate

disclosure

of all your holdings that might be

viewed as as a conflict of interest

and so you can be sure that i went to

great lengths to adequately disclose to

every member of the board

the exact extent of my bitcoin holdings

before we even started to deliberate

this

uh you see bitcoin is bitcoin is the

most widely

held investment asset in the world right

now we have congressmen we have senators

we have members of government we have

ceos we have hundreds

plus million dollar 100 plus 100 million

individuals out there that have it

you're going to find that lots and lots

of people have this property

i think that whenever you're running an

institution be it a

a charity an endowment a government

institution a corporation

the key is to make sure that you're very

transparent

in your holdings before you enter into

deliberation

that might impact that company

right it's a trillion dollars so i i

mean there's stocks that are a trillion

dollars i'm trying to figure out what

type of

of total market cap you'd need until you

wouldn't ask that question anymore

michael i mean people

with gold if a company decides it wants

to put its treasuries in gold i don't

think they'd ask the ceo

oh did you buy some you know you're

going to move the entire gold market but

it's a much bigger mark but i'm

wondering if there's a if there's a

number

where you don't ask that question where

it becomes actually you know what would

you worry about

would you worry if you went out the

yield curve on bonds

or if you went into corporates on your

treasury would you have to

make sure that that people on the that

were at the company weren't buying

corporates in the meantime i don't i

don't know

what what do you think the number is at

a trillion you could still almost make

the case you can move that

there's a 500 trillion dollar monetary

planet and the outer layer is

currency then you've got stocks bonds

real estate

there's 10 billion 10 trillion dollars

worth of gold in there 1 trillion in

bitcoin

the bitcoin is going to flip gold and

it's going to subsume

the entire gold market cap then it's

going to subsume

negative yielding sovereign debt and

other monetary indexes until it grows to

100 trillion dollars

once it gets to 10 trillion it'll its

volatility will be dramatically less

and as it marches toward a hundred

trillion you're going to see the growth

rates fall the volatility

fall and it's going to be a stabilizing

influence and the entire financial

system of the 21st century shepard smith

here

thanks for watching cnbc on youtube