Do we have to define capital before we talk about Bitcoin? Or do we have to define Bitcoin before we talk about capital?
I think we're better to start with capital because capital and capitalism go back thousands of years.
The world is dominated by capital markets. We use the phrase capital markets all the time, but most times people don't think about the word.
Every stock trades on the capital markets, every bond trades on the capital markets, all the ETFs trade on the capital markets, and yet the people that will work their entire life in the capital markets oftentimes don't even think about the word capital.
The emphasis is on the world markets. So what is capital? Capital is economic energy.
Capital is literally pure economic energy. And if you do work and you're able to store your work, you have stored economic energy.
All of the things that trade on the capital markets are reflections of economic energy, but they're all imperfect capital assets.
So a bond like sovereign debt is a capital asset. Thousands of companies use sovereign debt as their primary treasury reserve asset or their primary capital asset.
If you use Argentine sovereign debt as your primary capital asset, then your economic energy would be draining out of the company at the rate of 30% or 40% a year.
Was this something that you experienced with your own company?
We never used Argentine debt as our capital asset. But we observed the pay so go from one peso to the dollar to 2,000 pesos to the dollar over 20 years.
So it doesn't take a rocket scientist to figure out that using weak sovereign debt as capital assets is a bad idea. Using strong sovereign debt, the strongest sovereign debt would be the US dollar debt.
So if you had a debt, right, T bills, three month T bills would be the strong sovereign debt. You would have a capital asset that leads to seven to 10% a year.
A lot of people give up on that and write the S&P index goes up 10 to 12% a year in dollar terms. And so that would be deemed as a stronger capital asset.
So the advantage with that is that a lot of laws, the SEC 40 act prohibits you from holding that security with more than 40% of your liquid assets.
Do you think that's smart because in the way it is a bit weird to hold other companies stock as your liquid asset, as your capital, right?
Okay, I want to find the word weird. I mean, we're at Bitcoin conference here. We're getting some strange places.
What I would say is coming back to the principle, right? What is capital capital is economic energy, but what is an asset, an asset, a representation of some kind of material or and or energy?
And Bitcoin is perfect capital, right? Bitcoin is digital capital. You know, we talk about Bitcoin being digital money, but money decomposes in the modern world into high frequency and low frequency money or one form of money is medium of exchange and the peso and the dollar and the euro are mediums of exchange.
But another form of money is store of value. So the portion of money that you intend to hold for more than a few months or a few years would be the store of value and that's capital.
So you have digital, you have capital and you have currency and the way I distinguish it is money is the superset of those things.
But if you go to Argentina and you need to buy an ice cream and the prices and pesos, then you need to be holding the local fiat currency, which is that high frequency money and you're probably going to hold it for a short period of time because it's melting and you're going to trade it for the ice cream cone, which is also melting.
And then you're going to consume the ice cream very fast, less than melt. And so that's an example of trading one asset that you can hold for a short period of time for another asset, which has a they both have short half lives, right?
Right, the half life of the money, the peso is short, the half life of the ice cream cone is even shorter. Right, and if you eat enough ice cream cones, your body will metabolize that into fat, which is actually organic energy, which is a lot of money.
It has a long half life too long. Okay, but but but that's what you're thinking about money and you're thinking, I'm on Argentina, I need the short half life money to buy the ice cream cone.
If I'm going to hold the money for three months in Argentina, I probably want to trade the peso for the tether or for the dollar, which is a medium half life money. That's probably that's got a half life of maybe 10 years under the best case, maybe seven years.
I mean, most people don't think more than seven to 10 years out. So if you think seven to 10 years out of that's your time horizon, then probably the dollar looks like really good money to you. Right, that's why tether's popular.
And if you're really smart or you're thinking institutionally for the corporation, the company or your children, then you trade to the long half life money, right, which is Bitcoin, which properly understood has a half life of infinity. Right, it's immortal money.
Versus money that lasts for 10 years versus money that lasts for 10 months.
Can you talk a little bit about what makes Bitcoin perfect capital as opposed to government debt and and then maybe you think that regulations are in place right now that we can use Bitcoin as its perfect in its perfect form as capital or do we need still to change many things?
You know, we Satoshi did us a solid, right, it's all you got to lay it all on Satoshi that the first idea was let's create a digital commodity that exists in cyberspace without the intervention of a trusted intermediary. So it's not credit. It's a better instrument.
But you know the dogecoin people did that, but they kept printing more dogecoin. Right, and so the second idea was let's actually hard cop the commodity so it approaches 21 million asymptotically.
So the thing that makes it perfect capital as opposed to imperfect capital is the hard limit right people fixate upon the inflation rate, but but the near term inflation rate, this doesn't matter. Right, if you do calculus, you can do that.
You just calculate what is the number from now to infinity and in the limit to infinity, the number is 21 million. So so it's the 21 million hard cap that makes a perfect capital and makes a perfect money and as for the regulations today.
If you look at if you look at the law in every country in the world, right, every nation establishes a legal tender law. If you establish if you designate an asset is legal tender that gives it a massive tax advantage and trade.
So the US designates the dollar is legal tender. I can trade it a million times a month without incurring a tax liability, which makes my accounting simple and makes my transaction cheap.
The US designates gold, the S&P index, you're building your Bitcoin and your Picasso, it designates them as some form of property. Right, and that means every time they trade they trade, I generate a capital gains liability. I have to I have to offset I have to calculate the basis of the asset. What did I pay for it and what's it worth when I give it to you.
And that difference is the capital gain of the capital loss. I either took a loss and I get a tax benefit or I took a gain and I have a tax obligation. That's what keeps all the accountants in business. That's what keeps all the accounting companies in business. Right, and and at the end of the day, the conclusion is if something is designated legal tender, you're going to trade at high frequency.
And if something is designated as as property, you want to trade it low frequency. And that's why the rich people in the world, whether it's Bob Kraft or whether it's, you know, X family, they would buy a billion dollars worth of property.
They will hold it for 30 years and then they will borrow against it in dollars. Right, I take a billion dollars, I take a 200 million dollar loan, then I will spend, I will buy and sell things with the 200 million in cash. And then the and then the catch is, if I have a billion dollars, I don't want to hold 500 million in dollars and 500 million in property.
Because the property is a capital asset, which is not defective, right? Well, let's stack my capital assets, right? The worst capital asset is a weak currency, the peso. The second worst is a strong currency, the dollar.
The next best is a diversified portfolio, 6040 portfolio, the next worst is probably the S&P index. The best conventional capital asset is probably a building on Park Avenue or in Paris.
And, you know, the second best and then the best is Bitcoin, right? So we're stacking up our capital assets, rich would want to hold a mixture of those capital assets and then you don't want to hold 500 million of cash.
In fact, you don't even want to hold 1% like if you're really wealthy, you don't hold 1% in the currency or illegal tender in 99% in the capital. You really want to hold minus 40% in the, you want negative working capital, right?
So I have a billion dollars, I borrow 400 million against the billion, I have negative 400 million dollars of currency. Since the currency is losing 10% of its value a year, I'm making 40 million dollars a year to be negative 400 million, right?
So what you'll see is the Bob Crafts of the World borrow money against the Patriots, right? All these wealthy families will borrow money against their property. And the way that the world works is if you're smart, you designate certain assets as capital assets and other assets as currencies.
And then you have negative working capital in the currency and positive working capital in the capital asset. And that's how you navigate an inflationary environment and the greater the inflation rate, the more important it is to do that. And now what's the role of bankers and the capital markets?
The bankers are the ones that actually exist to give you the loan against the building so you can be negative working capital, which is why wealthy individuals will embrace the bankers because they need them in order to be negative in working capital and positive in real capital.
That does actually mean that we do need to feed money in order to use Bitcoin as property and capital, am I correct?
Yeah, I mean, it means that if you're a Bitcoiner, you want to embrace Fiat currency, right? The most successful Bitcoin strategy would be to take your Bitcoin to Argentina.
Take it to a country which has a collapsing currency, hold the positive Bitcoin and then find a bank that will loan you money and the collapsing currency and spend the collapsing currency, hold the appreciating asset, right?
If you actually in Argentina and you're holding the dollar, then a million pesos over 20 years would become a billion pesos in dollar, you know, by flipping it to dollars.
But if you actually were in Argentina and you flipped to the million pesos not from the dollar, but to the Bitcoin, it would be like a trillion pesos, right?
So in fact, if you're funding in dollars or funding in the Fiat currency to pay your bills and you're saving in Bitcoin, then you get the arbitrage.
And the arbitrage right now, for example, for the last four years, Bitcoin's appreciating 50-55% a year in dollars, which means that if you could borrow money in dollars at less than 55%, and you could buy Bitcoin with it, right?
Say you borrowed money at 5%, and you bought Bitcoin, you got a 50% arbitrage which meant that if you borrowed a million dollars, you were getting a 50% yield on a million dollars for four years, you've doubled your money every 14 months.
And so, yeah, so banks aren't bad, and Fiat currency isn't bad. You know, it's kind of whether it's bad or not doesn't matter because it's above our pay grade. We don't get to decide whether the Chinese government or the US government issues Fiat currency, and we don't get to decide if they make it legal tender.
Right? That's a governmental decision. What you get to do is to decide how you will allocate your portfolio. Right? So, in the 20th century, if you came from a good family, they probably taught you take your money by a building, borrow as much as you can to buy the building, especially if you can borrow the money at an interest rate lower than the monetary inflation rate, and that's why all those rich New York families own a bunch of buildings.
Right? They did it. Now, in the 21st century, now you've got some new rules. The old rule still hold, but the new rules are, now there's this thing called digital capital which is global property, and that is evolving at a much more rapid rate than the 20th century property.
It seems to me that in order to have capitalism, we need capital. Right? We need good capital. Perfect capital would be ideal. So, is this a chance to, you know, reinvigorate the idea of, you know, markets and capitalism, and do you think that American banks, Wall Street, and in the end, the American government, you know, started to get this?
Yeah, I think right now what you have is, you have liquid capital, fungible capital with a short half-life. So, and then you have non-fundiable illiquid capital with a medium half-life.
So, put yourself in the place of a capitalist in the 20th century. I can hold sovereign debt, and it's got a half-life of 10 years, but I can move it. I can move a billion dollars of it from New York to London in a few minutes.
It's completely liquid. I can borrow against it. I can move it fast on Fiat rails. Or, but the problem is, it's got a half-life of 10 years. Or, I can buy the Rockefeller Center. I can buy a billion dollars of real estate. I can't move it from New York to London.
So, it's not really liquid. It's hard to let, you know, truthfully, I can't sell a 10% of it. So, it's a little bit challenging there. It's not fungible. It takes me a year to buy it. It takes me a year to sell it. The transaction fees to buy it and sell it are pretty high, right? They trade every 30 years.
So, it's not terribly liquid, but it has a half-life of 50 years. 50 years actually seems pretty good compared to 10 years. Maybe, you know, after 50 years you've got to rebuild, maybe 100 years, you've got to rebuild the Rockefeller Center, right?
I say 100-year-half-life to make it simple. But, you know, and what's my other choice? I can buy Apple stock, but will Apple be around 100 years? You know, what can I buy as an equity that'll be around 100 years? Or, I can buy a Picasso, but a Picasso is like a capital asset that's based on a cultural continuity.
What happened, you know, to people in China or Japan, steeped in that culture, did they appreciate the Picasso the same way that, you know, area die French or Brits would? So, all you, what you have there is, and by the way, which of those capital assets has the longest half-life? Probably the Picasso, but they've all got risk to them.
And now, how do I program any of them? None of them are programmable. And now we've got this issue, right? I keep coming back to this issue, the Tesla said, if you want to understand the universe thinking in terms of energy, frequency, vibration.
So, capital is energy. How do I vibrate it? Vibration is changing energy from kinetic to potential energy. A pendulum, this is potential energy, high kinetic energy, right? Fast, static, but with potential. And I'm vibrating at this rate.
Capital is energy. Vibration, I moved the capital, I turned the capital from a Bitcoin to a dollar to a peso to an ice cream cone, right? Vibration, vibration, vibration, I changed the form of it.
Now, how do I actually store a billion dollars of capital, vibrated a million times a day? Like, how do I move it to a million places? And how do I maintain it for a thousand years?
How do I find something with a half-life of a thousand years, right? Electricity was the breakthrough in physics, where it, you know, used to be human labor. We worked, and then we had donkey power,
and then we had steam power, and we had mechanical power, and water wheel power. But the big breakthrough with electricity was we actually could capture that much power, and then we could move it over 100 miles or 50 miles on a power line, and we could pump it into your kitchen.
Okay, if you ever looked at the early gunpowder mills, they put them next to creeks, because they needed to actually capture the water power, and turn a wheel, and you can't move the energy from the water 20 miles, and you can't pump it into someone's bathroom or kitchen.
So electricity gave us this liquid programmable energy, it was a breakthrough, but the problem with electricity is, how do you store the electricity for ten years?
The best battery is going to lose 2% of its electricity every month. So electricity doesn't last a hundred years. So if electricity was our electric money, if it was really electricity, it's very flexible, I can vibrate it fast, you know,
and I can move it with any frequency, and I can program it, but what I can't do is I can't store it, the half life is too short. So Bitcoin, people like all the physicists that make fun of me, when I point out, Bitcoin is digital energy, but it really is digital energy, because as soon as we convert, we take capital, and we create a digital capital, and then we put it on a network that we can,
and we can move from one person to another person without a trusted intermediary, that means we manifest the capital on the network, and if it doesn't need a trusted intermediary, that means it can last forever.
And if it can last forever, I've solved the problem of how do I preserve capital with a half life of infinity that I can vibrate with a frequency of any frequency, and I can program it.
So, you know, does capitalism need this? Well, obviously, if you want 300 million companies to be able to trade with each other at high frequency using computers, then you need digital capital, and if you want all of these organizations to be able to manifest themselves, to capitalize themselves forever.
I give you the best company in Argentina, and I create a law that forces you to capitalize the company with sovereign debt of Argentina. What's the life expectancy of the company?
And so here's the big idea, which is the life expectancy of 300 million companies is 10 years.
Okay, and we all take it for granted, the companies have to fail in 10 years. If I actually inject the toxin into your blood that is poisonous, you will be dead in 10 years, right?
I can kill you in 10 years. Remember the guy, the supersized me guy, the eight McDonald's every day.
I read about it, he just died, right?
He just died. Well, if I inject out enough alcohol, sugar, or toxin, or whatever it is into you, I will kill, I will shorten your life expectancy.
So, capital is the lifeblood of the civilization, the lifeblood of every institution, every corporation, you know, every family, every individual.
Capitalist understood that we need capital, and in this particular case, we've built a Fiat system where the capital asset is a liquid asset, but it's regulated.
It's regulated, it is not programmable, it's not pure digital, and it's toxic. And so people hate capitalists, maybe they hate capitalists because they use a defective capital asset.
And people that don't like capitalism, maybe they don't like capitalism because the capital asset is regulated and is defective.
But Bitcoin is digital capital, which means that any computer, any AI, can trade at any frequency, and capture economic energy that has a half-life of forever.
So, it really opens up the possibility that we can reinvigorate the capital markets, reinvigorate capitalism, reinvigorate the family, the corporation, etc.
And this is one last point I'll make. This is the point that I made over and over again, or I'm attempting to make, is there's 45,000, 50,000 publicly traded companies, there's 2,000 companies in the Russell 2000.
And then, they have the zombie companies, they have capital structures which are defective, they're holding cash which is toxic, or they have no capital, they have no volatility, no one wants to trade their stock, they have a useful life expectancy of 10 years.
And if you want to fix them all, you need to recapitalize them. And the way you would normally fix a company that's a zombie company if you're an investment banker, is you would go buy a digital monopoly that's growing 20% a year forever with your cash or with your stock.
And if you bolted that, that's VMware, that actually fixed the company. If you can buy a digital monopoly growing 20% forever and bolted on to a sleepy zombie company which is growing 0%, you reinvigorate the stock, reinvigorate the company, save the company, and the life expectancy of the company goes from 7 years to forever.
So Bitcoin is the universal merger partner of every zombie company because Bitcoin is the digital monopoly is growing 20% forever.
And if you look at what similar scientific just did a few weeks ago, they said, well, we're a small company with 70 million in cash, the markets forsaken us, maybe we'll just go into the adopt a Bitcoin standard.
They bought 40 million of Bitcoin, the market reacted, they bought 16, 17 million more Bitcoin, the market reacted again, all of a sudden, similar scientific has a future.
Well, they're the first of a thousand of those Russell 1000 bottom companies, right? And that is an example of reinvigorating a company by recapitalizing it and then reinvigorating the capital markets.
And really changing everybody's view toward what is Bitcoin.
This global paradigm shift is global, obviously, that's why we call it global. So is there a race going on for what capital market gets reinvigorated first?
I mean, we talk about the US and I guess the US has the best chances. Obviously, but any company in the world could theoretically do this.
Everybody gets Bitcoin at the price they deserve.
You know, micro strategy just borrowed $700 million for the next eight years at 2.25% interest.
I just told you what what Bitcoin's going up 50% a year.
When you back it down and be conservative, I'm like, I don't know why I won't go up 20, 25% a year.
You know, it's like, could you do it? Yeah, you could do it. What do you need? You need clarity and you need courage.
Similar scientific just did it. Right? You know, it's going to happen more and more. But, but you know, the world's full of, I mean, you know, we taught, we went to Harvard Business School and they taught the micro strategy case study.
And the professor calls me and says, well, you know, the students are really excited. They studied the micro strategy study. This is after we done it and after it worked.
He said, we study the micro strategy story. He said, we'd like you to come in and talk to the class. This is the greatest business school in the United States. Maybe the most famous business school in America, the best in the brightest. You have to be the best students.
So this is what happens. I go to the class. You know, I zoom in. I said, yeah, well, I mean, the company was at the end of the year.
At the end of the line, we were going to have to sell the company. It was the enterprise was worth $600 million. And we were a witson. We tried everything we could possibly do for a decade. It didn't work. So finally, we adopted the Bitcoin standard.
And we quadrupled the stock price and the shareholders made billions of dollars and the employees all made millions of dollars and everyone's delighted and happy and is good for Bitcoin and good for the company and good for the employees and the customers are happy.
And now, you know, and this is back when micro strategy had a market cap of maybe $5 billion or something today or market cap is more than $30 billion.
A few months later.
The professor goes, okay, you've heard, you've heard the CEO, what do you guys think? Would you do it? And he takes a survey. First student.
I don't know. It seems kind of risky.
Second student. It seems like an inappropriate use of shareholder funds.
Third student. This isn't normally done for a student. It kind of violates, you know, convention and corporate finance. Fifth student.
We really can't see, you know, any major company doing it. I swear. I watched ten students.
Expose facto. Expose facto. You could say, the facts are we ran out of options. The only alternative was sell the company right and close up shop and we're done corporate death or we do this.
And by the way, it works and everybody billions of their happy. Every one of them said, no, we would never do this.
And so you want to answer your question. It's the world's full of conventional wisdom and conventional thinkers and conventional institutions.
And you can give them the answer. You can even take the risk. You can even prove it works. They will still stare at it and not do it.
But that just explains why 99% of the people won't do it. Similar scientific did it. Everybody in this room probably did it.
I think there's a high chance.
In 2021 or I don't know like a few years ago, when the 30 year mortgage rate was 2.75%. And when Bitcoin was 45,000, a Bitcoin.
I went on a podcast and someone said, well, what you do, I said, you should mortgage. We were talking to Argentina and the Argentine peso was 180 pesos to the dollar.
I said, well, you should convert your pesos to Bitcoin. And if you have a business, you should mortgage the business and buy Bitcoin and you should mortgage your house and you should buy Bitcoin.
And you know, and two weeks later, four weeks later, Bitcoin traded from 45,000 to 35,000. And all the talking heads on Twitter, gleefully chopped that video.
They're like, there's sailor idiot told everybody to mortgage their house. Ha ha ha. He's lost all their money. You know, and all they could do is fixate on the fact that over the course of four weeks, it's possible that maybe the trade wouldn't work.
Two years later, the 30 year mortgage rate went from 2.75% to 6.5% or something. The peso went from 180 to 1,000 of the dollar. And Bitcoin went from 45,000 down to 16,000 up to 65,000. All the people that thought that was a stupid idea, they all disappear. No one's reposted.
Right? I mean, the troll disappear, but no one says, you know, I guess in retrospect, probably if I could have borrowed money at 2.75% and invested in an asset going up at 55%.
Maybe it would have been a good trade, but the entire world is conventional and they're constructed so that 99% of their bandwidth is focused upon criticizing the unconventional.
And they will fixate upon that as opposed to step back and look at the deeper issue. So, you know, I said at some point, the best investment idea is something everybody needs. Nobody can stop.
And just about everybody disagrees with you on. Right? If 99% of the people disagree with you, the reason MicroStrategy can borrow $700 million for 2% for 8 years is because the other 1,000 companies still don't quite get it.
But having said it all, I'm happy to live in a world where we go from 1% to 3% to 4% to 8% to 16%. And at the point that 16% of the corporations agree with us, Bitcoin won't be growing at 50% a year, it'll be growing at 20% a year.
Right? And it won't be a trillion dollar asset class, it'll be a 50 trillion dollar asset class and a lot of large numbers will kick in. But it'll still be better than every other idea.
Right? And it'll still be better than loaning your money to the S&P index at 11%. You know, you're still going to rather, you'd rather loan it to Bitcoin at 22% at that point.
So, you know, this is a capital revolution. Everybody's going to get it at different rate and whether it'll be the UAE that'll figure it out or whether it'll be Brazil.
The one thing that I've concluded is, you know, is you can't really say who's going to get it. Sometimes people you think wouldn't get it, get it immediately. And some people you think they ought to get it.
I mean, they don't get it at all. But what I do think is true is Bitcoin insight is limited to those with a need to know.
It's like you look at it, it's right in front of your face. But if you don't feel like you need to find a solution to your problem, if you're not, when the doctor says, you know, you've got a fatal disease.
You'll be dead next Tuesday. All of a sudden, you start Googling other ideas and you get a second opinion, a third opinion, a fourth opinion.
Right? So, when your company is looking at going over the edge of the cliff, when you're at a mortality point, when the bank freezes your assets and you've lost everything in the bank, all of a sudden you get an open mind.
So, everybody needs to have that shock, that near death experience or maybe, unfortunately, that corporate death experience where, you know, my family lost all its wealth, my bank seized my assets.
My company, you know, realized, you know, we're dead money when no one's, we used to have investor calls with 20 people on the call. 19 of them worked for me.
One of them was a retiree with 20 shares of micro strategy stock. Right? And after you've worked for 30 years in your life, and that's where you are, you finally like, okay, well, I know I'm not stupid.
And I know I worked myself to death, but this is the, this is where I end up. And obviously, something's not working.
And so, if you get to that point and the world locks down and the central bankers set the interest rate is zero, and everybody basically says, your worthless, roll over and die.
And your choice is, roll over and die. Right? Or embrace a new idea. You may, not saying you will, you may decide to break embrace a new idea.
That's what it takes to embrace a paradigm shift. And everybody, you know, everybody comes to that in their own way. And, you know, I think there's a certain equity and fairness to it all.
Right? Bitcoin gives a solution to those that will actually grasp a solution. And the sooner you grab the solution, the greater your economic benefit will be. And I find there's a certain universal beauty in that asymmetry.
Michael, one final very short question. There was a famous Wall Street Journal article. I think it was the Wall Street Journal that said Michael said, but, but his company on Bitcoin and lost.
There was a picture of you with a Bitcoin sign. I just want to know when you saw that, did you buy more Bitcoin?
Here's the joke. When they wrote that article, we'd already made billions of dollars on the bet. Right? Right?
Micro strategy stock was 120. And we had, and we were 60 dollars in cash. So the company's enterprise value was 60 dollars when we embarked on the Bitcoin strategy.
The first negative article in the Wall Street Journal was when the stock was $190 a share. And it was already up 50% in four weeks or 12 weeks. It was already a screaming win.
So the first article was, this is irresponsible and crazy and will blow up. The next article was when the stock was $253.00.
We'd already made another screaming home run. That was like company bet billions on Bitcoin and lost.
In between that article and today, the company's market cap increased $25 billion. They still have had written a third article.
And the answer to your question is we bought Bitcoin every single quarter since we started on the journey. And we bought Bitcoin at nearly 12,000. And then it crashed 20%.
So we bought it at 10,000. And then it screamed up to the old time high. And we bought it again. It went all the way to 6,000. We bought above 60,000. It crashed down to 45,000. We bought it. It crashed. It ran up to 66,000. And we bought it again above 60,000.
And we bought it below 20,000. I think we bought it at 16,000. We were buying it there. And it went up again. And we people just don't get it. But we're going to keep buying. We're not going to be selling.
So it's a very straightforward thing. But when you look at those articles, you just pair that article, you know, like with the Harvard B School example. And you want to look at those two things and say, this is why I'm getting Bitcoin cheap.
Right. The reason that you have the chance to buy Bitcoin with a 66 handle or whatever is because conventional wisdom is still in denial of digital capital.
But then in the day, you know, the digital transformation will not be denied. You know, we had digital information, digital photos, digital communication. You know, we now have digital intelligence.
And we have digital capital. And the digital transformation of capital and the digital transformation of intelligence are going to dwarf the digital transformation of your photos, your videos, your entertainment, your books.
And the same people that were in denial about those things, right, the conventional wisdom 10 years ago or 15 years ago, don't buy Amazon. Don't make it money. Don't, you know, don't buy Apple.
The iPhone is going to be priced at 60 bucks, right. It's always the conventional wisdom. And it's always written by some snarky, you know, comfortable, you know, opinionated critic.
And again, the insight here is they don't have a need to know, right. They make a living writing critical articles. They don't make a living by, you know, investing their capital.
And they're not presently at risk of losing their family's livelihood, you know, and everything. And so it's not until you're faced with, you know, that mortality event that you actually open your mind and you embrace the idea.
You know, I never saw anybody on a sinking ship argue against the lifeboat. Right. It's only the people that are walking through the boat show that look at the look at the yacht sitting, you know, in the middle of a boat show on a sunny day that go, wow, that life raft is an ugly orange thing on the side of the ship. It impairs the view. And can you remove it now? Right.
That's the way people think.
Michael Seller, thank you for giving us your time. Thank you for being with us in Prague. Please give it up one more time.