special guest today on Bloomberg HD. Michael's sailor is the micro strategy founder and chairman.
Michael, welcome. Yeah, thanks for having me. Bitcoin destined for an extended period of market
dominance, potentially doubling its current level. How do you see the future of Bitcoin under global
economical challenges, especially now fed signals that it might restart rate hikes? Well,
Bitcoin represents the only universally acknowledged form of digital property or in the world. So if
you're looking to own a piece of property that you can move to a hundred different countries where
everybody in every country is going to want it. And if you want a piece of property that people will
want in a hundred years, Bitcoin represents that universal global asset. There's no building,
there's no stock, there's no company, there's no commodity that will last a hundred years that you
can move from country to country. So so for global citizens that are looking for wealth preservation
over the next hundred years and they're not quite sure about the economic policy of any country
or about where they'll be and they want something scarce desirable that some affluent person is
going to want to buy from them no matter where they end up. Bitcoin represents that asset.
And as you know, there are some discussion on the crypto regulations, especially security and
exchange commission is taking some actions on some cryptocurrency exchanges. What's your opinion
on the digital assets regulations? Well, I think that there's universal acknowledgement that Bitcoin
is the king digital commodity is an asset without an issuer. And so for that reason, the regulators
in the US aren't bothering it. There are two other classes of assets, digital currencies like
stablecoins and there are also digital securities that are issued by entrepreneurs and companies.
The regulators are going to shut down the digital securities. There's not really any support for
them and there's not any support for digital currencies either. They don't want large amounts of
dollars to circulate outside the control of the US banking system. So of the three asset classes,
the one safe haven for institutional investors that has the most regulatory support
is Bitcoin as that king digital commodity. I expect that the rest of the crypto industry will
continue to rationalize and these other assets will gradually be decaptalized over time.
And you have expressed that point represents the best solution for those struggling
in an economy with the collapsing, including the Turkish lira. How the Bitcoin can help
some currencies internationally? Well, I think the key to keep in mind is over the past two, four,
six, eight years. Bitcoin is outperforming gold, silver, bonds, all currencies as a monetary
inflation hedge. So if you live in a United States, the US dollar has been losing 7% of its value
every year for 100 years. And over 100 years, you lose 99.8% of your value if you don't switch to
a scarce, desirable asset. But if you live in another country, Turkey, Argentina, etc.
in many cases, I think the Turkish lira's lost 96% of its value against the US dollar in just 20 years.
So the real key is to switch out of the weak currencies, whether it's the lira, the Lebanese,
pound, the Argentine peso. But switching to the dollar is only a short term solution because holding
the dollar more than a few years will cause you to suffer monetary debasement at the hands of that
currency. So Bitcoin represents a way to buy a property that's going to go up in value. It's going
to appreciate faster than the monetary inflation rate of either the dollar or local currency. And the
other thing that's really appealing about it is you can take custody of it or place it with any
number of international custodians. And of course, you can't really easily take custody of any other
asset. So if you want to, if you want to eliminate counterparty risk that comes from having all of your
assets with a bank or having all your assets in a single country or all your assets denominated in
a single currency, Bitcoin is a way for you to, for you to exit economically from that system and from
those counterparty risks. So that wouldn't be any fundamental structural problems.
Yeah, the thing that backs Bitcoin is 400 exa hash of digital power. To put that in perspective,
that's as much power energy as the entire US Navy uses and it's fleet, about 12 and a half gigawatts.
And also, it's a fleet of 5 million Bitcoin ASIC miners spread everywhere in the world.
They generate so much hash rate that if an AI took over every computer on earth, all the smart
phones, all the computers that Amazon, Google and Microsoft, all of those computers couldn't
dent the Bitcoin network. It's an extremely powerful digital energy network. And because of that,
you don't have to put a billion dollars in a bank that's run in Lebanon or Argentina or the US
or Turkey, you can put the billion dollars onto the Bitcoin network. And the Bitcoin network is
nation state resistant. If all of China turned every computer against the Bitcoin network,
they couldn't stop it. And so Bitcoin represents a new way to store your assets. And in fact,
the most secure computer network in the world.
And Bitcoin has to prove itself as a stable means of payment. So the price is very volatile.
So moreover, how can a commodity price in US sellers solve the current problems?
I think the key to keep in mind is that every citizen of the world needs three types of money.
They need local currency, like you need the Turkish lira in order to pay your taxes and buy
things locally. They want the world currency, the US dollar to buy things internationally.
And then they want a property that they can give to their children and their children's
children that will last 30 years or 60 years or 100 years. Bitcoin represents the property.
The US dollar represents the world reserve currency. And then your local currency is determined by
the jurisdiction you live in and what your local taxes and your local expenses are denominated in.
You don't need to replace the local currency nor will you. And it's not going to replace the
dollar either. What it's replacing is that building or that farm you're going to buy or that
company you're going to invest in or a bar of gold. And compared to the bar of gold, which
is not going up in value in dollar terms, Bitcoin is actually outperforming by a factor of
of a hundred or more. So Bitcoin represents that long term asset, not your checking account
or your near term local payments.
I see. And my last question, Michael, Bitcoin's potential,
boost cyber security, how is it possible?
We live in a world today where AI could spend up a hundred million fake Michael
sale accounts. And there's no cost to create a Twitter account or create another fake account
or create an email account. So it's important that we actually have some way to
to anchor your account into cyber space such that you have some substance. And the approach with
Bitcoin is to take your credential, say your identity, your public and private key,
burn the public key onto the Bitcoin blockchain, which is the most immutable, incorruptible,
indestructible, immortal database in the world. And then use your private key in order to
sign your transaction. So if I wanted to digitally sign this video interview to prove that it was me,
or if I wanted to digitally sign my Twitter account or my WhatsApp account or an iMessage account
or my email to prove it's me, I could use a private key that's linked to the public key on
the Bitcoin base layer. And as I said before, if you wanted to corrupt that database,
you would need an entire nation and you would still fail. And so whatever's on the Bitcoin
base layer will be there in hundreds of years, even long after nations and companies fail. That's
that's why Bitcoin represents this immutable form of truth. And it's more important than ever to
have that veracity because an AI could actually be a better version of me. It'll work a million
times harder and there'll be a million versions of them. And you're not going to be able to tell
the difference unless you've somehow registered your cyber credentials on an indestructible
immortal, incorruptible database. Michael, thank you so much for your time.