Bitcoin Revolution and Digital Capital Rebuilding the Global Economy
Bitcoin Conference 2024 in Nashville attracted many Bitcoin enthusiasts to discuss Bitcoin’s impact on the global economy. MicroStrategy CEO Michael Saylor emphasized: "Bitcoin is the key to solving modern economic problems."
He pointed out that existing financial and physical assets are eroded by inflation, taxes, competition and other aspects, and it is difficult to maintain their value for a long time. As digital capital, Bitcoin has unlimited lifespan and is not affected by natural or man-made disasters. It is the best choice for preserving capital.
Saylor mentioned: “The total value of global assets is approximately US$900 trillion, of which only US$1 trillion is Bitcoin, accounting for only 0.1%.” He emphasized that if we want to prosper in the 21st century, we need new technologies based on new technologies. Concept, and Bitcoin is such a technology.
He also quoted Tesla's famous saying: "If you want to understand the universe, you must think in terms of energy, frequency and vibration." He also pointed out that Bitcoin can effectively solve the problem of capital preservation.
Advantages and Returns of Bitcoin
Saylor emphasized that Bitcoin has unlimited lifespan and intangible characteristics, is not affected by external factors such as inflation and taxes, and has extremely low storage costs, making it the best choice for long-term capital preservation. He pointed out that hosting Bitcoin in an institutional-level custodian only costs 0.1% per year in management fees, while self-custody only costs 0.01% per year, allowing its capital life to reach 10,000 years, and it can even be managed by artificial intelligence. Lifespan reaches 100,000 years.
Source: Bitcoin Magazine Youtube channel screenshot Michael Saylor said that Bitcoin will be managed by artificial intelligence and its lifespan will reach 100,000 years
Saylor further noted that Bitcoin returns significantly higher than traditional financial assets, returning 55% over the past four years, while the best financial asset, bonds, returned -5%. He predicts that by 2045, the price of Bitcoin will reach $13 million per coin, and even in the most conservative scenario, it will reach $3 million.
Source: Bitcoin Magazine Youtube channel screenshot Michael Saylor said that Bitcoin’s return rate is significantly higher than that of traditional financial assets, with a return rate of 55% in the past four years.
Bitcoin Strategies for Individuals, Businesses and Countries
As for what strategies different units should implement when facing Bitcoin, Saylor suggested:
For individuals: Treat Bitcoin as your primary financial asset, take advantage of government-subsidized low-interest loans to buy Bitcoin, and invest with tax benefits. He emphasized not to use margin loans or leveraged trading to avoid losses in market fluctuations.
Source: Bitcoin Magazine Youtube channel screenshot Michael Saylor’s personal advice
For businesses: He recommends converting capital into Bitcoin, converting cash flow into Bitcoin, and issuing shares to buy Bitcoin when the stock price is right. He gave an example that if a company can adopt such a strategy, its stock price will significantly increase, thereby significantly increasing the value of the enterprise.
Source: Bitcoin Magazine Youtube channel screenshot Michael Saylor’s advice to businesses
Saylor also called on governments, especially the United States, to include Bitcoin in national fiscal reserves, reallocate gold and bonds in the treasury, instead hold Bitcoin, and issue currency to purchase Bitcoin. He emphasized that the first country to adopt Bitcoin as a reserve asset on a large scale will occupy a leading position in the global economy.
Source: Bitcoin Magazine Youtube channel screenshot Michael Saylor’s advice to the US government
In addition, Saylor specifically pointed out that countries with serious debt should consider allocating one-third of their national treasury to Bitcoin, or even more, and start issuing bonds to purchase Bitcoin. He believes this will help these countries repay their debts and even make them richer.
The History and Future Impact of Bitcoin Strategy
In his speech, Saylor compared Bitcoin to the territorial expansion of the United States in history, believing that Bitcoin can bring huge benefits to the U.S. economy and international trade like the Louisiana Purchase and Alaska Purchase, and strengthen the role of the U.S. dollar in the global economy. status to enable the United States to remain competitive in the digital era.
The U.S. government has accumulated a large amount of Bitcoin through multiple confiscation actions, becoming one of the countries with the largest sovereign holdings of Bitcoin in the world, triggering discussions about using Bitcoin as a reserve asset. In addition to the United States, other countries are also handling large amounts of Bitcoin. For example, German authorities recently sold a large batch of Bitcoins, a move that was criticized by Saylor and several industry leaders as a strategic error in selling their Bitcoin holdings. Saylor believes that Bitcoin represents the capital of the future and is a precious asset that should not be sold off easily.
Source: Bitcoin Magazine Youtube channel screenshot Michael Saylor said Bitcoin is an eternal asset
Under Saylor's leadership, MicroStrategy has been investing in Bitcoin since 2020, amassing more than $8.3 billion in Bitcoin holdings. Despite fluctuations in Bitcoin's market value, Saylor's company currently has more than $6.2 billion in unrealized profits. Saylor said that as more businesses and governments realize the potential of Bitcoin, Bitcoin will become an important global reserve asset, further driving its value upward.
The speech at this Bitcoin conference will undoubtedly trigger more discussions about Bitcoin as a reserve asset and have a profound impact on future economic policies.
Missed the first day of Bitcoin 2024? It doesn’t matter, you can read the summary made by “CryptoCity”:
Bitcoin Conference 2024" Summary of the first day: Huge Trump advertisement, MicroStrategy founder's speech, what other big news is coming?
If you want to watch the content of the Bitcoin 2024 conference, you can go to the Youtube channel of Bitcoin Magazine. There are currently live broadcasts of the first and second days. "Crypto City" will also continue to track news related to the conference and provide more complete information in real time.
