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

Image from the author

For the last thousand years, humankind has never created a store of value 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. It’s 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, he made the most life-changing move in the financial world.

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

He said that the monetary expansion rate went from about 5% a year to 15%. They would lose 15% of their purchasing power every year for the next 4 or 5 years. A block of $500,000,000 in cash was starting to look like a melting cube. It was almost sure 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

Be Brave Enough To Start a Conversation That Matters

Some conversations have the power to change the world.

And as far as I know, Elon Musk has 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 Elon Musk’s final impressions of Saylor’s explanations were.

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 — the social networks. Apple — the mobile devices. Google — all kinds of libraries. Tesla — the auto and energy industry. Bitcoin — the monetary system.

Bitcoin becomes the first monetary network because it’s a synthetic safe-haven asset. It’s like all the gold’s right parts, and it’s sitting on a massive network.

It has a 21 million coin cap/limit. After that, miners can’t produce any more coins. And it’s been secure for the last 12 years. It’s adopted and regularized by congress and the monetary regulators as a legal asset.

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

There’s inflation in bonds and stocks. There’s inflation in real estate and gold. Inflation measure what the central bank tracks. It’s a market basket of consumer goods and services. It doesn’t include the higher volatile food and energy. These are two separate worlds right now.

If you have something like Bitcoin and can’t make any more of it, everybody wants it. It’s a simple concept, and it’s going to 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 in an era where all the established principles taught to us are being called into question.