The Perfect Bloody Storm Is Coming: Tesla Buying Bitcoin
By: Nuno Fabiao
Tags: Money, Technology, Tesla, Disruptive Innovation, Bitcoin

Image from the author

For the last thousand years, humankind has never created a store of value that could be owned by ordinary people without the hand of the powerful ones.

Bitcoin is a savings account in cyberspace that it’s available to 7.8 billion people where no politician can steal your money. That’s a simple idea everybody on earth needs to have. This is the first truly engineered monetary network in the history of the world. It’s a closed thermodynamic system that doesn’t lose power. If you put a hundred million dollars in the system, it’s like you have a battery with no power loss.- Michael Saylor

Michael Saylor is the CEO of a company called Microstrategy. A couple of weeks ago, this engineer who wanted to be an astronaut made probably the most life-changing move in the financial world.

Saylor was in his board meeting, having an objective and courageous conversation with his staff, and concluded that having $500,000,000 in cash in the bank or in 3-month treasuries was a liability, it was worthless.

He said to them that the monetary expansion rate went from about 5% a year to 15%. They will gonna lose 15% of their purchasing power every year for the next 4 or 5 years. A block of $500,000,000 in cash looking like a melting ice cube. It was almost certain that they would lose at least half of that money in 36 to 48 months if they did nothing.

So, they did it. They bought Bitcoin.

500 million of it.

Photo by Dmitry Demidko on Unsplash

You Know What’s Sexy? A Real Conversation.

A conversation can be sexy, but can also change the world.

And as far as I know, Elon Musk has on his desk an invitation to a real conversation with Michael Saylor. From one rocket scientist to another.

For now, they just tweeted to each other.

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I wonder if this conversation has already happened?

And more importantly, I wonder what was Elon Musk’s final impressions about the explanation Saylor gave him.

Michael Saylor gave a bunch of interviews in the last weeks, as you can imagine. I did analyze two of them. One from Real Vision with Raoul Pal. The other one with Galileo Rush from Hyperchange.

And these are the top issues I’ve learned from Saylor:

Amazon dematerialized the storefronts; Facebook dematerialized our social network; Apple dematerialized mobile devices; Google dematerialized all kind of libraries; Tesla is dematerializing the auto and energy industry; Bitcoin is dematerializing the monetary system;

Bitcoin becomes the first monetary network because it’s a synthetic safe-haven asset. It’s like all the good parts of the Gold, and it’s sitting on a gigantic network;

You can’t make any more than the 21 million Bitcoins from the protocol, you can’t program it. And it’s been secure for the last 12 years. It’s been adopted and regularized by congress and the monetary regulators as a legal asset;

Bitcoin is a savings account in cyberspace that it’s available to 7.8 billion people where no politician can steal your money;

About inflation: there’s inflation in assets. There’s inflation in bonds and stocks. There’s inflation in real estate and gold. The inflation measure that the central bank tracks are a market basket of consumer goods and services that not include the higher volatile food and energy. They are two separate worlds right now;

If you have something and you can’t make any more of it and everybody wants it, like Bitcoin. It’s a simple concept. And it’s gonna double its value as central banks double their supply of money;

You can move one hundred million dollars of Bitcoin from New York to London in a few minutes and it’ll cost you $3. It would cost you one million dollars to do that with Gold;

We’re going through an era in which all the ancestral principles that have been taught to us are being called into question.