Michael Saylor (CEO Microstrategy) x Mark Böschen (manager magazine) at BLOCKCHANCE 2021

mark will be moderating the chat with

co-founder and ceo of software company

microstrategy michael saylor i will ask

mark to introduce us to michael but

first please help me welcome to this

stage mark bushin

[Applause]

well hello

so um

i hope michael will be joining us

shortly i cannot see him here on the

monitor there he is hello michael good

to have you with us here

as far as i understand you cannot see

the room we've got several hundred

people here uh it's packed uh at least

as many as this morning and then we had

singing and dancing so expectations

clearly are high for our fireside shed

here now i think most of you will have

heard a lot from michael saylor for the

past 12 months because he's been

laying out his vision for bitcoin quite

vocally

um

but michael you've also founded a

software company microstrategy would you

just briefly for start tell us what

microstrategy does

sure

uh microstrategy is a multinational

business intelligence software company

so

we sell

enterprise software to large

organizations government agencies banks

corporations everywhere in the world

can whoever is managing the sound uh i'm

getting feedback in my line so

i'm not sure if anything you can do

about it but

i've got like a feedback issue i'll try

to work through it but it's a little bit

odd

um anyway so that's what microstrategy

does

enterprise software big agencies 27

different countries

yeah talking about that is better thank

you thanks talking about feedback and if

it's okay with you i would just after 30

minutes look into the room and open up

the discussion for questions from the

audience is it okay with you michael

yeah that's fine all right

so

you founded microstrategy already in

1998 and

in the dot-com boom you wrote that big

wave like many other companies and then

of course in 2000 it started to become a

lot tougher then you had the financial

crisis that you

steered your company through so these

experiences these events

how did that change the way you think

about money and markets and about how

you make sure that your company

does not run out of capital

yeah well i've been in business since

1989 and we've been a public company

since 1998 so

we had a lot of experience operating

i think what i realized is that in an

environment where the money supply is

expanding

sorry i just have feedback

i'm

trying to figure this out

so whoever's managing sound on your side

i think they're they're feeding back

into my system someone's got an extra

microphone open so it's a little bit

tricky for me

i think what i learned in business is

that if the money supply is expanding

too rapidly

then there's no point in saving money

because the money that you're saving in

your treasury is debasing faster than

the rate of of inflation or sorry it's

debating it's debasing faster than your

rate of operating income

so i think by uh

by 2020 we had about 10 years experience

where we'd seen that

cap

reason cash is a liability is that if

the money supply is expanding at seven

percent a year and you're getting one

percent or two percent yield on your

cash then you're losing five percent of

your value every single year now in 2020

what happened was the interest rates

went to zero and the monetary inflation

rate went to 20 to 25

so the negative real yield on cash and

credit instruments became minus 25

for a publicly traded company

and that means that if you're holding a

billion dollars of cash you're going to

lose 500 million dollars of shareholder

value in 36 months

so i i think that uh

what was uh the conventional treasury

strategy of a company is to convert all

your cash flows into crap into credit

and cash

i think that conventional treasury

strategy broke

in march of 2020

and now

you just have to assume that anything

you're carrying on your balance sheet is

debasing in value at something on the

range of

it's at least 15 a year if you're you

know and it may be as much as 20 to 25 a

year depending on where you are

certainly in

in nations like turkey and argentina

they've got currency collapses underway

and i think it's a multinational we've

lived through that i lived through a

currency collapse in argentina where our

money was forcibly converted from

dollars to pesos and devalued by 90

overnight in the bank

and uh in argentina right now where we

do business uh the peso is 20 pesos to

the dollar

36 months ago

the official exchange rates 100 pesos to

the dollar but the actual rate is 200

pesos to the dollar so the currency

again has collapsed by 90 percent in 36

months

it's collapsing in front of our eyes in

turkey this week

um in the western world like western

europe and the united states the

currency is collapsing at about 15 to 20

percent a year you could even make an

argument 25

based upon the s p index

so

i think the short of it is

my

what i learned after 30 years of

struggling is it's really hard to hold

shareholder value with any kind of

treasury assets

and

and the monetary inflation rate tripled

in march of 2020 and when it tripled uh

it went from being difficult to being

hopeless

and that's what actually shocked me out

of my conventional strategy and we

decided

that we needed to adopt a property

strategy where we converted our cash and

credit

into a high quality property that would

appreciate in value faster than the rate

at which the money supply expanded and

that's how we discovered bitcoin now

since you've been doing this so since

2020 really um

well you also borrowed to buy more

bitcoin and

your share price really exploded

following that right i mean it went up

10 times at some point and now i think

it's still up six times compared to

before you announced your bitcoin

strategy

um how did this bitcoin strategy change

things at the company operationally how

is it different now

to be there working there

um you know the bitcoin strategy has

improved everything our brand has

exploded by a factor of 100x

our shareholder morale is not has never

our shareholders have never been happier

we generated billions

nearly 10 billion dollars in enterprise

value in 12 months

and uh

many many billions of dollars of

shareholder returns

we were able to issue a convertible bond

uh that doubled and nearly tripled in

value over the course of six months it's

the most uh it's the best performing

bond in the world last year

so our creditors are happy our

shareholders are happy

uh our employees are happy

all of our employees are either direct

or indirect shareholders in the company

and so

the stock had been stuck in a rut for a

decade and it had gone up and down fifty

dollars and wasn't going to move and

then when covid hit when the lockdowns

hit our stock at 90 a share and the

company was valued at half of revenue

plus its cash

and um

and we just been forsaken by wall street

uh when we announced the bitcoin

strategy the stock was 120 a share

in order to make it an easier decision

for our shareholders we offered to buy

them all out with a dutch auction and so

we offered to buy out 250 million

dollars worth of shares which was a

quarter of the company

at uh at a premium

we had some shares tender but most

people stuck with us and the stock

proceeded to go into the 200s the 300s

the 400s the 500s the 600s the 700s and

and of course now the stock is at a

20-year high

and it's uh and it's moving north so

it's been good for the employees good

for the sheriff's it's even good for the

customers because

now everybody hears about us

you know if uh if the ceo of uh sap or

the c if the ceo of sap went on cnbc

they would get five or ten thousand

views on twitter if the ceo of microsoft

goes on to cnbc they get 20 000 views

when i go on cnbc i get 400 or 500 000

views

so clearly this is uh it's an idea

that's captivating for hundreds of

millions of people around the world

bitcoin transcends a simple treasury

strategy it's an economic imperative for

anybody with money on the planet that

doesn't want to lose their money

it's a

you know it's a moral imperative if you

don't have a bank for billions of people

in the in the developing world

and it's a technology imperative because

it's pretty clear that 8 billion people

are going to move money at the speed of

light on their mobile phones in the next

10 years and this is the way they're

going to do it

so i i feel like we really touched a

nerve

we've used the phrase bitcoin as hope

and actually if you go to my website

hope.com you'll see everything about

bitcoin

and i think bitcoin uh bitcoin took us

from a hopeless situation to a hopeful

situation

one last point

the road to serfdom is working

exponentially harder for a currency

growing exponentially weaker

so if you're working in uh argentina

venezuela or turkey right now and the

currency is collapsing it's not going to

help you to get a 10 raise every year

when the currency is collapsing 40 a

year

if you're working in europe or the

united states and you've noticed the

prices are going up 15 a year or 10 a

year or 20 a year

i think the case-shiller index in the

u.s is up like 27

if you're a dentist or a doctor or a

laborer and your wages are going up two

percent a year or three percent a year

and the cost of assets like stocks and

properties

and and luxury assets or or aspirational

assets is going up faster then you can

work your entire life going backwards

and you'll never make it it's impossible

what i realized that microstrategy was 2

000 people doing a hundred thousand

things right every every day uh and

doing it for an entire year could make

about 75 million dollars in cash flow

and we were losing 100 to 150 million

dollars in shareholder value on our

balance sheet by doing nothing with that

with the assets

and uh and it became clear that life was

hopeless and there's no point in going

to work

and doing anything if you don't have the

right investment strategy so

i think when we switched from holding

cash and short dated treasuries to

holding bitcoin

all of a sudden our time horizon went

from very short being very being a short

time horizon of being a long time

horizon because

now we had an endowment

like today as we sit here instead of

having

you know 500 million dollars or a few

hundred million dollars of crumbling

cash and credit which is going to zero

we now have seven billion to eight

billion dollars

worth of assets that are appreciating in

value a hundred to two hundred percent a

year

so it's like being a well-endowed

university or a well-endowed family or a

well-endowed company we can now take a

breath and focus on the long term and we

know that we're going to have the

financial means to do whatever we want

to do in the business and and to treat

our customers our employees and our

shareholders well well michael you just

explained why you think it's great for

the company for the employees and for

cnbc by the way

so that what you did to buy bitcoin with

the company now i might be an investor

who wants to buy a company let's say and

i'm interested in the company maybe i

also have a lot of bitcoin that i

invested in so isn't it a bit of an

issue that

if i now want to buy that company i also

buy a lot of bitcoin on top of that even

though i might not want to buy much more

bitcoin so isn't that a bit of a of a

problem that you have this mix-up of a

company with bitcoin right now why

should an investor have to buy the

package without being able to buy either

bitcoin directly without buying a

company or just saying i love this

company i want to buy a certain company

yeah well i mean there are thousands and

thousands of publicly traded companies

and so investors can choose which

companies they want to invest in

our approach with shareholder relations

was

we telegraphed that we were considering

doing this and then when we did it we

paired it with a dutch auction so that

any investor that didn't want to be

invested in a company where the bitcoin

strategy could sell their shares at a

profit

and so by the time we finished that

dutch auction we had rotated our

shareholder base to shareholders that

were long bitcoin that wanted the

exposure

there are trillions and trillions of

dollars uh locked up in public

investment vehicles where they need to

invest in securities and they can't

invest in property so we actually

provide a pretty a pretty important use

a utility for all those companies it

would take them

one to three to ten years before they

could ever buy the bitcoin but they can

buy microstrategy stock and get bitcoin

exposure in a matter of minutes uh with

security so so microstrategy is actually

a vehicle

for companies that want to own or and

investors that want to own bitcoin

you know as for as for it being an

option

look if if you were running a company in

zimbabwe

or in venezuela right now

and uh and well and you're an investor

in one of those companies and the ceo

said we've decided to keep all of our

profits in the bolivar and you said well

the boulevard is losing 98 of its value

this year

you wouldn't want to be invested in that

company anyway like

destroying your company or committing

economic suicide is not a good strategy

for keeping your shareholders happy

and so right now any company that's a

value stock

that's a low growth high cash flow

generating equity is in essence a

currency derivative

because you're like a bond you're valued

based upon fixed cash flows so

if your growth rate is slower than the

rate of economic expansion you can't

hold shareholder value

the stock price is going to deteriorate

as the inflation rate increases

and so so for any any investor that

understands this they would want the

company to convert its cash flows from a

depreciating currency into an

appreciating property

so

so we we think we're just acting

rationally and of course our

shareholders think the same way

and uh

everybody doesn't have to choose to

invest we're a public company right you

can choose what kind of companies you

want to be invested in it just turns out

that that every single year there's an

increasing number of investors that

realize they want to hold a

non-sovereign store of value and

again if i give you the example of

turkey or argentina it becomes pretty

obvious why you don't want to be

invested in value stocks that are

generating turkish lira or generating

pesos right now because the currency is

collapsing the balance sheets collapsing

your stock is going to collapse

many people in europe and the us they

think that their currency is stable but

if you look at the s p index this year

the s p index is up 25

or more the s p index is generally up 10

in the last 100 years it's obvious that

there's an extra 15 inflation in the

money supply on top of

the traditional inflation rate and the

traditional inflation rate was about 7

so if i add 7 to 15 percent you've got a

22

collapse in the purchasing power of the

currency and that means that every value

stock that isn't growing its cash flows

at 22 or more

is uh is actually diluting your

shareholder value well you know that's

that's also just innovation

those companies public company that's

why we make public uh announcements and

we're transparent about it but

but if you happen to be an investor and

you want that kind of exposure and you

understand uh the benefit of a

non-sovereign store of value and and the

reason

that bitcoin is appreciating 10 times

faster than equities

then of course it's the best thing that

the management team could have done for

you

people can choose between companies like

you said they can also choose which um

yeah crypto assets they buy now ethereum

already has half the market cap of

bitcoin um

the latest bitcoin a network update

increased in

introduced smart contracts to the

network well ethereum has been there for

some time now and with 1 500

projects software projects on the on the

network at least and bitcoin

probably a lot less so um isn't that

really something that's that's going

strong for ethereum a big advantage this

all this developer activity and ethereum

it's already been around for a couple of

years too so until now it's stable um

isn't that yeah how do you see the

competition between different crypto

assets for example bitcoin and ethereum

i think that the entire crypto universe

could be divided into two

classifications

you have uh bitcoin

which is a universally acknowledged

common property it's an institutional

great asset

it's not controlled by any entity

and is not regulated by the sec as a

security and because it's common

property it makes a digital property and

you can build a multi a hundred trillion

dollar or multi hundred trillion dollar

economy on top of that one token

that is an innovation and that's

universally acknowledged as property

and if you're a public official

it would be unethical

to promote a security and may be illegal

to unpromote a security so a public

investor a public official in a public

company can't safely legally and

ethically

engage with anything other than a

property if you're if you're

pursuing true

digital economy strategy so bitcoin is

the safe haven

and there are thousands of things you

can do with it but the obvious use cases

store a value and a digital asset

the rest of the crypto economy all of

those tokens are very uncertain very

competitive

uh very insecure

and i think that if you look at the

testimony and all of the

publications coming out of the uh

regulators in the us out of the white

house administration from treasury from

the sec from the cftc

if you look at the testimony of the

chair of the sec uh in front of congress

and and public speeches even as late as

just yesterday

when gensler was talking to jay clayton

what they've made clear is

there might be a handful of other

properties or commodity tokens in the

crypto world but just about everything

else is a security

so that means the stable coins are

securities and they're going to be

regulated and they need to be issued by

fdic-insured banks

it means that most tokens are security

tokens which means they're being issued

without proper disclosures

and that would make it unethical for a

public figure to support them or promote

them and may be illegal

and i think most decentralized finance

is all uh not compliant with either

treasury guidelines anti-money lawn

laundering guidelines cft guidelines or

securities exchange guidelines

ethereum is used primarily as a

decentralized finance

you know exchange and also it's a it's a

token which is probably a security so

i i don't really

if you're a venture capitalist or a

speculator

and you're not concerned about those

things and if you can move rapidly

then perhaps you can invest in this but

i think it's quite it's pretty obvious

that they're nearly all securities and

if they're all securities none of them

are compliant with the public policy

framework of the western world which

means

in most of the crypto industry there's

going to be a lot of uncertainty there's

going to be regulatory crackdowns

there's going to be a massive shakeout

and uh and if you're a speculator maybe

you can figure that out but i think it's

a massive distraction

uh

gary gensler was asked point blank in

congressional testimony and he's the

chair of the sec he was asked point

blank

by a congressman

his ethereum of property

he refused to answer

he immediately said

if a token is issued pursuant to an ico

probably a security

ethereum was issued pursuant to an ico

so i think that i think it's pretty

clear what they're trying to tell you so

bitcoin

is property

everything else is a is a venture

capital speculation

it's pretty obvious that ship coin

and dogecoin elon musk coin

and sailor moon coin are speculative

entities

and so if you're a speculator a gambler

or a venture capitalist and you want to

delve in that area you probably can

but

but uh the only real safe haven for

institutional investor is bitcoin now

there were a lot of news here for people

in this room at this conference who

might like ethereum or decentralized

finance you basically say what you hear

from gary gensler and other regulators

in the us that it's maybe becoming a lot

tougher if you issue a security you have

to have a security prospectus a lot of

lawyers involved

and i mean what do you think this means

for the centralist finance we had this

defy summer with this big boom of

development of decentralized exchanges

do you really think all of this will

have to be closed down or is there a way

to make this compliant with what you've

just been describing this regulatory

push

the the chair of the sec has said on no

less than five occasions in

congressional testimony and public

speech that decentralized finance for

the most part is decentralized in name

only

and he uses quotes it's not

decentralized

yesterday

to jay clayton the existing chair of the

sec said to the former chair of the sec

he said

there are components of every

decentralized finance exchange that are

actually centralized and they're doing

the same thing as centralized exchanges

they need to be regulated the same way

the caroline crenshaw memo

was issued about a week and a half ago

it's online it's online

you can actually read it i tweeted it if

you go to my twitter sailor s-a-y-l-o-r

you'll see it

caroline crenshaw is a commissioner of

the sec in the u.s she wrote a fairly

detailed piece and published it

the summary of the piece is nothing

nothing in the d5 area is compliant with

existing law

all the d5 exchange projects need to

come talk to the sec

fin hub is waiting for them to call

that fin hub which is which is managing

this it has never denied a meeting

and uh and they're expressing a bit of

surprise that the d5 projects have not

yet consulted with them

and they're noting that uh

that there are probably all sorts of

ethical and moral and regulatory

quandaries that are brought up by the

existence of define its present form

so i think it's pretty clear

and i think that regulators are trying

to say it's pretty clear defy can't go

on in his current form

as well as certain trading restrictions

on securities tokens

probably as well as other other

restrictions anything that's a staking

token that's generating yield is a

security

and that means it falls under the

guidance of the regulator so so i i

think that if i was in the d5 space it's

a hundred percent certain that there's

regulation coming it's it's reasonably

certain that it will not continue in its

present form

and they're going to be a lot of rails

and a lot of constraints put on it

so

you know

use that information as you like i

wouldn't invest in it but again if

you're a speculator or a venture

capitalist a lot of people are making a

lot of money right now in the market

doing it right right that's true

message is quite clear which is they

think it's non-compliant and it needs to

end all those guys who are making 300

percent on their pancake spot now might

think okay it's just michael sailor he

loves bitcoin but you know this week the

new crypto team bank of america

published a note saying stable coins are

the wild west and now the sheriff is

coming

so that fits that chimes in with what

you've been saying about stable coins

too so what's what's the view on stable

coins how's that going to develop with

the sheriff coming in and maybe saying

to teva it's not enough to just publish

something with stuff that you supposedly

own without even naming your banks that

you do business with so what's going to

happen there and how is it going to

change stable coins

well i mean first why does the world

want stable coins right we we need them

to run a 24 7 365 crypto economy with

with high speed low friction

but the world also wants stable coins in

places like lebanon and turkey and

argentina and afghanistan where in

africa where the banks are either

seizing the dollars

or the banks don't offer dollars

or you don't trust the banks to not to

not freeze your assets

so

stable coins are are pretty useful i

think they're critical to the future of

the economy

and

i think the regulatory view

and this is expressed in the president's

working

group report there was a report on

stable coins that came out about a month

ago and it was jointly authored by the

sec the cftc treasury with uh with the

cooperation of the justice department

the irs and other parts of the white

house it's it was pretty cross

departmental

what they said was

stable coins have a use in the economy

but the but the present situation is

such that

the organization's issuing them are not

transparent and they're not sure they're

backed one-to-one and they don't comply

with current aml kyc

anti-terrorism and i'm under a money

laundering act

so if it's going to continue it needs to

come into that public policy framework

what they did was say

they pretty much said congress and

senate should pass a law

that mandate that banks that are fdic

insured issue stable coins and if you're

going to issue a stable coin you need to

uh you need to comply with aml kyc rules

and then you need to be an fdic insured

institution

and then they said until congress passes

that law they're going to regulate

stable coins as at that same standard

so

conclusion

um that the industry is moving from an

entrepreneurial state to an

institutional state the first decade

were entrepreneurs they were moving very

fast

and they didn't have the licenses

they're not public companies they're not

public banks they're not fdic insured

institutions they're not in the public

policy framework they're not regulated

and in that world tether circle and

others they reached about 30 billion in

stable coins a year ago and then demand

exploded and now they're 130 billion

but having said it all you know they're

not in the public policy framework i

think the regulators realize that stable

coins are either going to 10 trillion or

they're going to zero

and if stable coins or the stable us

dollar is going to go to 10 trillion we

need to actually rotate from

entrepreneurs to institutions

so this is a crossing of the chasm and a

maturing of the asset class

all of the companies that are currently

issuing stable coins will either need to

become banks or publicly traded

companies or regulated exchanges

or they're going to get squeezed out of

the market

and i think the regulators were kind of

saying two things they were saying if

you're in the business you need to

become regulated and transparent and you

need to back your stable coins one for

one for one you can't like put fifty

percent of the assets into

unknown credit instruments that we don't

understand and you you can't be private

offshore they were saying that the

second thing they're saying is they're

giving a green light to jp morgan and

citigroup and bank of america to issue a

trillion dollars worth of stable coins

each

and so i think

if you look at the industry right what

you have is 500 trillion dollars of

money in the hands of public companies

public banks

chartered banks and public investors

and they're staring at the crypto

economy and they're afraid to come in

because they're not sure

whether stable coins are are kosher to

issue if it's okay to issue them and

whether and whether uh crypto is

property or it's a security that's why

they didn't want to come in you've got

the entrepreneurs that are under no such

compunction they're going fast and

breaking things because they're making

billions or tens of billions or hundreds

of billions of dollars there's a lot of

money there

they've been moving rapidly

now you've got uh the regulators led by

the sec

and and chair gensler and gensler is

probably the most informed regulator on

crypto in the world he said he he

studied it and he taught it for three

years at mit he knows it he knows crypto

probably better than any of the crypto

entrepreneurs

and he also knows the law and he also uh

knows trade finance and

and uh and banking financing he

understands commodities and securities

probably better than anybody in the

industry so what he's saying is

it's time for the industry to grow up

and bitcoin is good

digital property is good if it was

issued fairly

right satoshi's innovation was to create

a token

with no pre mine that traded for a year

without any market price where there is

no central control that is fair and

equitable and decentralized that's the

end that's the innovation

she says if you've got digital property

that's a common property and it's fair

then that's an innovation

and stable coins that are issued by

banks

that could that can move currency at the

speed of light for free 24 7 365 that's

useful

and if those two things come into the

public policy framework then we can grow

the industry from a two trillion dollar

industry to a 200 trillion dollar

industry

but if those things stay outside of the

public policy framework

if you try to move security tokens

around with 100x leverage with no kyc

offshore

then you're tripping over

treasury restrictions commodities

restrictions securities restrictions

that's not going to last

they're going to shut it down

and what what they said yesterday and

what they've been saying and testimony

but i hear it i hear it getting more

intense

what they said is is if these security

tokens and these defy exchanges don't

come into the sec and come into

compliance they're going to launch

enforcement actions and they're going to

begin to use enforcement as a tool more

uh more generally there are already a

lot of enforcement cases but there'll be

more yeah michael let's let's go

it's a good thing for the world

uh if if your goal is you want to see

the industry grow by a factor of 100

but it's going to put more regulatory

constraints on people in the industry if

they want to actually issue these tokens

and move them around

yeah i mean you describe a lot of

changes coming to the whole crypto

environment

so um from now on if anybody would like

to ask a question

please go ahead raise your arm and

somebody is going to come to you with a

microphone we have a gentleman here in

the front

would like to ask a question to michael

sailor here over here over here

okay coming up the microphone

could you please state your your name

and uh and your question

yes hi my name is marty faryan

i'm a fan of yours and my question is

you are a genius in

corporate finance among other

areas and you have been advising

mainly

on mainstream

the

other

publicly listed companies to also follow

your strategy

now

what do you would advise

on another level

to other companies like you or like

yourself

in regard to the

step that

mr zuckerberg did

in rebranding his company to enter the

metaverse

potential

and how would you

either for yourself or for other

companies or for other companies that

are not in your same

bracket

how would you do such a great marketing

rebranding

step

to combine bitcoin and the

publicly listed companies and

grabbing the monopoly there

thanks

um you know i think every company's got

a balance sheet strategy and they've got

an operating strategy

so your operating strategy is whatever

you generate revenue with and generate

cash flows and profits with

and your balance sheet strategy is is

how much capital you hold on your

balance sheet how you invested

i think that the easiest thing any

company can do

is simply adopt a bitcoin standard where

instead of holding capital on their

balance sheet in euros or dollars or in

in sovereign debt

uh which means they're holding credit uh

they're they're holding credit or cash

or currency derivatives

um they should just switch to a bitcoin

standard where they start holding

bitcoin as the primary treasury reserve

asset because if you're holding

sovereign debt or cash on your balance

sheet in the current environment you

have a negative real yield of minus 25

if you have a hundred billion dollars of

cash and credit you're losing 25 billion

dollars a year in shareholder value

right if you took the same 100 billion

and you invested in the s p index you

would have had 125 billion within 12

months so you see what you're doing is

you're diluting shareholder value by

holding any cash any euros

if you're lucky you're holding uh euros

and dollars on your balance sheet if

you're unlucky you're holding argentine

pesos

venezuelan boulevards turkish lira and

if you happen to hold any of those

weaker currencies on your balance sheet

you've got a negative real yield of 50

or minus 60

so the obvious thing to do for any

company is simply flip from

a fiat standard to a bitcoin standard

for treasury it's easy to do three

people and your finance department can

do it

if apple were to do it

they would generate

you know they would generate something

like 200 billion dollars in shareholder

value in the following 12 to 24 weeks

they would probably drive up their stock

by three 400 billion dollars and over

time they'd probably generate a trillion

dollars

so three people at apple computer could

generate a 50 billion or 100 billion

dollar a year benefit to their

shareholders it's very easy you would

obviously rebrand the company

because everybody would know that you're

on a bitcoin standard and there's 250

million people

that are interested in this

so that's the simple low risk easy thing

to do

the harder thing to do is to is to tie

some of your operations to bitcoin

if you're uh if you're a finance company

like fidelity or pimco and you sell

fixed income funds if you have a you

know most of bonds in europe have a

negative real yield so if you're selling

uh fixed income funds with a one percent

yield or a zero percent yield if you

simply put five or ten percent of that

money into bitcoin

bitcoin had a 200 percent yield so you

could put five percent of a bond fund

and you could allocate five percent of

your bond fund bitcoin and juice the

yield and you would end up converting a

zero percent yield fixed income fund to

a ten percent yield fixed income fund

while only risking five percent of the

overall assets

and so low volatility high upside

so finance companies can start issuing

instruments backed by bitcoin

if you're a tech company like apple you

can build bitcoin into the iphone if

you're google you can build it into

android's operating system

if you have hardware you can build it

into your hardware

so these are a little bit harder if you

want to build products and services

around digital property you can do it

if you're a bank you should probably

start to offer digital property custody

and sale and then banking

there's a trillion dollars worth of uh

digital asset in the form of bitcoin

which is not banked very well

so if you're a bank and you start to

take bitcoin as collateral you'll have

trillion or trillions of dollars coming

to your bank where people want to

finance it so i think that there are

lots of product and service

opportunities where you can tie your p l

to the crypto economy but um

that requires obviously a hundred x or a

thousand x more effort

than uh tying your balance sheet

there are some companies that can't tie

their p l to the to bitcoin for example

if you're a restaurant or a cruise line

or you're an ice cream shop or you're a

dentist or a doctor i'm not suggesting

you get into the

digital property

what i would say is you ought to focus

on that business and and generate as

much cash flow as you can

you should just convert the cash flow

into digital property as fast as you can

because if you're holding it in fiat

currency or some other form of property

it's debasing at a much more rapid rate

so i think that would be the summary

there yeah great we have another

question here so also sailor boomcoin is

the new name of your company right i

think that was the scoop we got here

today

that's what you mentioned earlier right

so but now the next question

i have a mic here i'm gonna have to

speak into my mic

you have to speak it in my mind okay

okay uh yeah sorry big respect for your

decision um my name is vit i'm running a

small country in balkans we went full in

bitcoin six years ago it's called

cleveland my question is i was actually

in salvador during the announcement of

bitcoin city and the site announcement

was bitcoin bond i think it's pretty

revolutionary it will create similar

similar effect

like you're going in fully in bitcoin

now for the countries they expect it

will create a fomo among the nation

states what's your take on on the

bitcoin bond that was announced by

salvador

um i think it's too soon to have any

comment on it because i don't know the

details of it and

i think i'd have to wait until after the

bond was issued and then if i read the

details of the bond i'd have an opinion

my view generally uh with regard to

bitcoin is whatever you do you should

focus upon doing that better

and not get distracted

and i think that uh that with regard to

bitcoin financing

it makes sense to borrow money against

bitcoin so for example if you're a city