Bitcoin, The Red Wave, and The Crypto Renaissance - Michael Saylor Speaks at Cantor Fitzgerald.

so the audience has grown uh certainly not for me uh just wanted to again thank everybody for being here uh excited uh to continue this uh this event uh during a very interesting time in the markets um obviously see a lot of people been glued to their phones over the last two hours with the volatility going on um the gentleman that I'm going to introduce needs no introduction obviously he's been at the uh Forefront of crypto though uh doing something quite frankly that's unprecedented uh using the company's uh balance sheet to continue to purchase uh

Bitcoin in the open market he's had a very strong view I've had the pleasure of listening to that view at a couple different occasions uh chairman of micro strategy uh a legend in the space uh and really a savant in terms of thinking about the world in a different way so with great pleasure Michael sailor [Music] [Applause] thank you um I title a presentation Bitcoin uh the Red Wave and the crypto Renaissance so today you're going to hear me talk about a few things you might have heard before but they're they're now uh refreshed and

then you're going to hear me speak about a few things I've never spoken about before which I think will be interesting to the group but I'll start with the problem that we all know um the economic problem is that very few asset classes outperform monetary inflation if you're trying to beat the cost of capital the SNP index it's very very challenging to do it and everybody in the world's looking for a solution to this problem the companies don't have a solution if the company can't grow 15% a year or more institutional investors lose interest liquidity

and the stock dries up there is no options market and companies are requ IR ired by uh by normal treasury rules uh to use us treasuries as a capital asset and if a company's sitting on top of treasury bills they're losing 10% of their capital A year they're underperforming the cost of capital by 10% a hundred billion dollar of capital is going to cost your shareholders 10 billion a year so companies are in essence type one diabetics every company with the treasury strategy is a diabetic you're less you're in essence bleeding Capital off your balance

sheet and of course intelligent CEOs or CFOs understand that so they solution of course is just give away all the money like we give away the capital we buy the stock back and we lever up 144 to1 or I dividend it out but the the solution of my wealth is toxic so I'm going to give it all away is in my opinion not a recipe for living happily ever after and that's what we do to most operating companies there's a political problem the political problem is how do we grow the economy of the United States

how do we deliver prosperity to our people and how do we overcome a deficit and all that while maintaining Global Leadership so everyone every institution every investor every company every politician struggling with these problems today bitcoin's the solution why is it the solution is it the solution a lot of people are wondering that well I'll put the Bitcoin return for the last four years on this chart I just showed you and you can see Bitcoin is just punching a hole in all the traditional Capital markets this isn't one year or two years this is four

years but you know it happens to be the four years since micro strategy decided Bitcoin was the solution and you might say well you Cherry Picked that number that's the low number I cherry-picked that number because the other numbers are better and I'll show you that in a second if we look at this entire set of asset classes they line up kind of elegantly if you're actually holding bonds for the last four years you lost 5% of your capital A year they're losers every Bank in the US is capitalized on bonds every operating company is

capitalized on bonds you wonder why the banks are sick you wonder why the operating companies are sick they're sitting on on those minus 5% instruments and that's their best idea Gold's plus 6% you might as well just hold gold real estate's plus 10% the S&P is 15% you can double it with the Magnificent s find the best companies in the S&P the nvidias the apples the Googles 29% and this little creature we call Bitcoin is doubling that 60% and when you look at that a lot of things become pretty clear but this is the past

14 years bitcoin's not just winning I mean it's up 78% in 8 years it's up 103% in 12 years it's up 168% in 14 years it's consistently winning and at some point if you look at the numbers you start to wonder well why is it winning and is this a fluke and the irony of course is that you still get questions from the normies every day like well when does The Run Stop is like like when do nuclear reactors stop producing more electricity than water wheels you know when does the airplane stop Flying faster than

the donkey cart the answer is it's not going to stop because it's structural and Technical everyone in the world is searching for an asset uncorrelated to the S&P 500 with higher returns uncorrelated and Performing it's the Holy Grail banks have conferences on this stuff well Bitcoin is that asset it's an asset without the counterparty risk that comes from competitors countries corporations creditors cultures or currencies everything else you own in your life has a counterparty risk to one of those items except Bitcoin Bitcoin is in essence orthogonal to the rest of the market that makes it

Alpha but you don't have to believe it from first principles you don't have to study it you can just look at the data this is Fidelity data it's showing the lack of correlation and the sharp ratio it's got the highest sharp ratio it's got the lowest correlation so even if you haven't read the book the Bitcoin standard even if you haven't thought about it for 100 hours or a thousand hours or 10 hours all you have to do is just run the numbers uh the market is screaming at you that it's an uncorrelated high performing

asset but to truly understand it you have to go back to First principles and this is my all theer MIT and this is where I was taught to think from first principles and they taught you how to build things that had never been built before and solve problems that had never been solved before and it was an epiphany that you're actually expected and capable of solving problems no human being on the face of the Earth has ever solved before I mean Elon Musk keeps pointing this out and proving it and that's why he's the richest

man in the world the capital markets are full of people doing the same thing over and over again the same way because convention says to do it the same way I'm suggesting you apply basic physics and Engineering to Capital markets and see if you can solve the problem in a new way this is the wealth in the world it's distributed across real estate and bonds and equity and the little Block in the lower left corner is Bitcoin at 1.8 trillion when uh incidentally when micro strategy got into this Bitcoin was 100 0 billion so we

have 10x and um and that's just in four years but um here's another way to see that chart and this is the most profound Insight of the day I'm going to give you that I I think the majority of rich people and the majority of Corporations and the majority of money managers still don't get this one idea which is half of the wealth in the world is invested in Assets in in search of a long-term store value people just want to engage in long-term capital preservation another way to say it is I just want to

stay rich I want to keep my money there's no one you'll meet that doesn't want to keep their money right there's no government there's no Corporation there's no wealthy per there's no poor person nobody wants to lose their money so the circle on the right is 450 trillion dollar blob of long-term capital right next time you hear something someone say well what's the Bitcoin use case there's no use case the use case is the most valuable thing in the entire human race it's $450 trillion it's all the capital in the world the use Cas is

you get to keep your money right that's actually the Epiphany once you understand that people are using assets for two reasons long-term capital preservation or the second reason is utility your yacht your jet your bakery your Farm your Ranch your plane company that's utility value your piece of art you put on the wall it's utility half the stuff is for utility the other half is capital preservation and um the challenge with preserving capital is you either do with with financial assets and they degrade over time due to entropy everything you invest in is subject to

weather and War and tax and inheritance and income and excise and these are the risk factors in every 10K they degrade the capital and so people that want to get away from Financial assets they buy land and they buy buildings and they buy physical items but entropy uh decades them too uh there's a hurricane coming you know in Florida right now it's going to hit in the next few days you can't buy hurricane Insurance you're just living with this chaos in the real world and of course I could talk about the Litany of ways that

your physical capital breaks down but you all know it what's the cost of entropy what's the cost of chaos confusion and competition inflation politics and War well the cost is like 3% of $450 trillion the cost is 105 trillion dollars a year it's trillions of dollars a year someone says well what's the use case of Bitcoin it's like well it's not to we're not going to lose 10 trillion a year like you get to keep the 10 trillion right that's what's driving people to bitcoin when you live in a world without Bitcoin and you live

in a world of capital assets that are physical and financial you see your useful life is 10 20 30 years if you buy a Ferrari or yacht you're probably not going to preserve your Capital but most people buy 10 20 30 year useful life assets and they struggle and worry about them how many people worry about their stocks every day worry about their building worry about their business worry about currencies worry about bonds there's an entire industry of worry that's a constant struggle this guy Satoshi came along and discovered a method to transfer value without

a trusted intermediary and everybody repeats it at infin item Satoshi figured out how to send something of value between two people without a intermediary but that wasn't the brilliant idea the idea that's so profound it shakes the foundation of the economy is that Satoshi figured out a method to store value without a trusted intermediary because sending the value it's like a little bit better than Visa or the FED wire storing the value well that makes it the most useful thing for $450 trillion of capital that's worth 10 trillion a year that's the big idea and

it's a very poorly understood idea Bitcoin represents the transformation of our capital from financial and physical assets to digital what we've created is an asset without Financial Risk that's in a currency or stock and without physical risk that's in real estate or property and that makes it digital Capital not digital currency digital Capital everyone that's a hater everyone that's skeptic like oh it's a digital currency it won't work well that's because you decided to Define it as the wrong thing yes it's not a currency right it's Capital once you understand it as capital you realize

that you ought to compare it to a $100 million building in Miami and think about the benefits of building of owning a building versus owning a a digital building what if I could own a building that had no tax no traffic no tenants no torch no trouble no weather no corrosion and uh what if it was an invisible indestructible Immortal teleport building well I mean may I think I'd rather have it than the $100 million building in New York but I'm sure I'd rather have it than the $100 million building in Moscow digital capital is

global capital and uh and that means that if I gave you $100 million and I put you in Africa or I put you in Russia or I put you in China and I said Buy $100 million worth of stuff keep it for 30 years or buy 100 million of Bitcoin there's no doubt you'd rather have the 100 million in Bitcoin there's not a single thing you want to own in Africa that's better than Bitcoin and when people start to think of it that way you realize that this is the solution to Global capital and it's

inevitable that all the cap in the world is going to flow into this network because whereas you might think New York is good and Miami is good no one's arguing that any random City in Nairobi is better than New York or better than Miami right it's just not a question so when you put that on my map here you see Bitcoin solves a problem it's the Thousand-Year asset right what if you just wanted to be uh wealthy forever well I mean like there's an entire industry that's wrapped around wrapped up in that idea of how

do I keep my money Bitcoin is this digital Capital that has a useful life not of 30 years but maybe 30,000 years and that's the profound idea it's stretching your time Horizon to a different place and what backs it it's not backed by anything people say that it's not backed by anything it's backed by power the same thing that backs everything in the world raw power a lot of it is backed by digital power political power economic power 733 ex ahash is more power than Amazon or Apple or Google could muster or or or Microsoft

could muster to attack the network right now or any nation state it is the most digital power 18 gws is 18 fullon nuclear reactors it's more than the United States Navy runs on 850 billion of real Capital people have taken 850 B of real money deposited in the bank that we call Bitcoin you think those people aren't going to fight to defend the 850 billion there a lot of economic power 420 million crypto Advocates you just saw the impact on the on the election on Tuesday night 220 million holders it's the most powerful crypto Network

in the world it's 99% of the power in the crypto Network it is the dominant one it's 100x more powerful than the next best one that's why I say there isn't the second best is because this is all the power another way to say it all the smart money in the world ask the question how do I store my money in cyberspace and not lose it and they kick the tires on 10,000 crypto networks and a thousand other ideas and 100,000 other investment ideas and if they like the idea of put your money in cyberspace

in a crypto Network they pick Bitcoin it's the winner right if you're the smart money you go to where the smart network is if there's a bank with a 100 billion dollar in it in your town and another guy opens up dude's bank with $10 you don't say the bank with the 100 billion is overvalued and dude's bank is the best investment you put your money in the bank with all the rich people it's just a smart thing to do they have all the power Bitcoin is emerging as the dominant digital monetary Network now when

I I use the word emerging not because it isn't it already is I just use the word emerging because 95% of the people with the money in the world don't understand that there's a digital monetary Network yet when they understand that the class exists they'll realize the Bitcoin is the winner once they realize it exists it's like I said it's like it's like Facebook for money except when rert Murdoch shows up to bitcoin he'll bring billions and billions of dollars he won't just bring 27 friends and a few party invitations 12 out of the top

20 ETFs launch in 2024 are related to Bitcoin in some way it's it's obviously eating the ETF Market it's now the seventh largest asset by market cap seventh and it's the most widely recognized widely held compelling investment asset in the world right what's above it Alpha bet Amazon Microsoft Apple Nvidia they're all Securities in the US there's no way that a Chinese or a Russian company is going to capitalize on those things gold the best idea in the 19th century dead money right so what do I expect I think we actually chew through you know

one through six sometime soon spot ETFs have 90 billion of AUM black rocks ETF for Bitcoin is actually outstripped their gold ETF in less than a year Gold's been around for 5,000 years bitcoin's crawling into all the bond markets look at the yields you can have 64% from Bitcoin or you could have 2% 3% 4% or 5% for the bonds you know Bitcoin is going to take the take a place in the 60/40 portfolio right now people talk about 1 to 3% allocation that's going to move to 10 to 20% an allocation as soon as

people get their hands around this I don't I don't think it'll take very long Larry fank is has become the most prominent advocate of Bitcoin this is M1 CNBC no I I know you have been a leader not play this because willing to embrace crypto you because you can look it up but I want to stay on schedule lots of entities buying Bitcoin now 2 and a half million Bitcoin held by ETFs countries private companies public companies what's driving Bitcoin institutions are driving Bitcoin thousands the ETFs have actually purchased five billion do in the last

six days the last six days there's only $40 million of Bitcoin available for sale by natural sellers every day the a lot of companies are buying Bitcoin governments are buying Bitcoin here's the 21-year Bitcoin Outlook okay you can you can Google this Bitcoin 24 go you'll find it on GitHub download the model put in all your own forecast assumptions about inflation Innovation and the like I'm going to show you mine back to to our map of assets I'm looking out over the next 21 years what's going to happen well I assume technology is going to

continue to advance we're going to harness AI there's going to be a lot of incredibly valuable companies bitcoin's going to grow rapidly Gold's going to be gradually demonetized Equity is going to grow a bit faster real estate about the historic average basically the money supply is going to expand about 7% a year some assets are going to stay on that Glide slope some will slightly outperform it uh like Equity like Bitcoin some will slightly underperform it that gets us to this forecast which I presented in July of 2024 Bitcoin grows in a basea in my

base case 29% ARR up to 13 million a coin I think it grows faster in the first four or five years it's growing 50 50 to 60% it's going to decelerate from 60 % at some point down toward two times the S&P index but you can see every Bitcoin you don't buy today is going to cost you $13 million a lot of people think well you know the world's going to turn upside down uh no it's not the world is not going to turn upside down in 21 years the world's going to look pretty much

the same as it looks right now they'll be a lot of real estate a lot of bonds a lot of currency a lot of equity there'll be a ton of trillion dollar companies there'll be1 trillion do companies the only difference is if you didn't buy Bitcoin you won't have made that money right there'll be a whole class of people that use Bitcoin as a capital asset and the big Winners should be Bitcoin and Equity is you know AI makes all the cars drive themsel and someone produces a billion robots and they get and the robots

make the robots if the robots make the robots then presumably the company that owns the robots that make the robots is going to make a lot of money right so the I mean it's going to be a good a good future for high tech for the people that can harness that uh okay micro strategy what are we um we're the first and largest Bitcoin treasury company what does that mean it means we basically Buy and Hold Bitcoin exclusively and we focus upon issuing Innovative fixed income instruments to create intelligent leverage to give our Equity holders

performance that's better than Bitcoin in a very precise consistent way just buy Bitcoin raise money to buy Bitcoin rinse and repeat what happens if you have such a monotonic simple idea and have laser focus on it well every Green Dot is a purchase of Bitcoin by micro strategy we buy the lows we buy the highs we buy the middle we buy we buy we don't sell you know at some point people are making fun of us for having lost a billion ion or two billion on this trade we're up 135 billion right now I think

we made three and a half or four billion in the past five days the point is leverage right like once you get the right asset position bitcoin's going to have $220,000 up dayss you're just going to want to own it you're never going to want to not own it so this is what happens if you what if you lever Bitcoin what's better than Bitcoin the only only thing better than Bitcoin is more Bitcoin okay and then and then the question is did I pay 14% interest to get the more Bitcoin 7% interest to get the

more Bitcoin or did I pay in micro strategies case 82 basis points to get the more Bitcoin if you borrow money for free for five years and buy a billion dollars of Bitcoin with it and if Bitcoin goes up 60% your return will be higher micro strategy is buying Bitcoin but we're doing it as a public company with intelligent leverage okay well how does that compare to all the S&P 500 okay Nvidia is the number one and you can see that it's we used to be proud We were slightly beating them but now we're crushing

them right this is not even funny anymore now here's the thing if you guys can if you can copy nvidia's business model I encourage you to do so I don't think Apple and Google and Microsoft and Amazon believe they can copy nvidia's business model but I'm inviting all of you to copy my business model I'm telling everybody I'm singing it I'm yelling it from the Treetops I'm showing you how I'm publishing The Playbook it's the simplest thing possible any company can copy that right and that's what you get if you copy that business model This

Is How We compare to all these assets what's the secret well it's intelligent leverage intelligent leverage the capital markets are unhealthy and and Fiat capital is toxic I just showed you what's wrong with the us treasuries if you Arbitrage between something that's minus 5% and something that's plus 60% with leverage you can create a monster company okay how do we perform well we beat 100% of the P 500 Bitcoin look at Bitcoin you don't have to be micro strategy you could be the most brainless person imaginable and you could have just bought Bitcoin you would

have beat every single company magnificent 7 they beat 95% 60% of the S&P can't beat the index right that's the challenge so I say volatility is Vitality conventional wisdom is run away from it it turns out that the smart thing to do is run toward it volatility is not a problem if you rich if you're Bernard Arno and you go from being worth 150 billion and $250 billion do that wasn't painful volatility when Elon Musk made hundred billion dollar this week that was not painful volatility for him that's the volatility you want you want to

own assets with massive Leverage What does that get you well what happens is if you if you're if you're basically spinning at high frequency a bunch of assets you get massive liquidity and massive open interest in your options market and what this illustrates is that micro strategy is one of the top 10 uh companies in the S&P 500 for liquidity and for open interest and it also illustrates that on a market cap basis we're number one right we're the literally the hottest most radioactive stock you know and and if you're afraid of fire and if

you're afraid of nuclear power hot and radioactive or dirty words but you know the human civilization was built on the one of them and the future is based on the other one and so I don't think they're dirty I think this is opportunity this is just a schematic of our of our business what are we doing you ever see a ship well half of the weight of the ship is above the water line the other half is below the water line if you want to have 500 tons above the water line you got to have

500 tons below the water line the Baseline for Bitcoin is the spot ETFs that's 50 55 Vol 55 AR or 60 Vol 60 AR micro strategy strips the ball and strips the performance off of that asset and sells it into the fixed income market and into the capital markets to people that are more risk adverse and then we actually layer that ball and that performance on the equity so our Equity can be 2x Bitcoin and our bonds can be 1X Bitcoin with much less risk and the entire thing uh is self- sustaining as long as

we're stripping risk and volatility off one set of instruments we can uh add it to the equity and the options market and the other set and uh you know this is again it's just how how most things work in nature next um a lot of times people say well you know the company's valued a premium to its uh to its net assets and um I think that's the wrong way to think of it it's like saying Standard Oil you know has a few billion dollars of reserves so it seems to be valued at a premium

to the reserves well the point is standard oil does something more than just have St own stuff by the way M Microsoft is valued something like 50x its reserves because it does stuff and so there's an operating company that does stuff so what does our operating company do we're refining crude Capital we're refining like you refine crude oil and you pull in crude oil on one side and out comes kerosene which goes into your jet engine or out comes gasoline goes into your car Jets and cars don't run on crude oil there's value added to

refine it and make it into a product that runs Jets and cars and trains and you can burn in your house and asphalt you lay down on the road so petrochemical product are valuable that's why oil refineries are worth a sum of their operations and their reserves well there's a there's $300 trillion dollars of capital in the capital markets they can't buy Bitcoin they don't want Bitcoin they want Bitcoin with no risk they want Bitcoin upside with no Vault they want double Bitcoin they want 10x Bitcoin they want something different than Bitcoin so if you

were to say I think the oil company is only worth its reserves okay fine we'll just like blow up the refineries and we'll all freeze to death okay what we're doing is we're refining crude Capital well this is an interesting slide micro strategy is the leader in issuing Bitcoin back bonds okay what's interesting about them if you bought our bonds you get 134% return if you bought Bitcoin the same day you get 70% return we actually gave you all the upside of Bitcoin with no risk stripped of all stripped the risk stri the downside gave

you double the upside why wouldn't you want that right if you like Bitcoin why wouldn't you like Bitcoin without the risk of Bitcoin how do you do that you have to actually issue the bond senior in a capital structure which is all Bitcoin if I diversify the capital structure if I dilute it if I put a 100 billion of treasuries on it you lose the Vall you lose the return you lose the performance you have to be all in on bitcoin to do this but once you're all in you can do this over and over

and over again this is infinitely scalable we've got uh a primary kpi we use we call it uh BTC yield and um BTC yield is the rate of increase in Bitcoin per share since the beginning of the year we've increased Bitcoin per share for our shareholders by 26.4% um what does that translate to it translates to like almost 50,000 Bitcoin and what are we doing well we just launched the biggest ATM offering in the history of capital markets 21 billion we thought Satoshi would be proud of us to raise 21 billion of capital and it's

out part of a$ 42 billion Capital plan and so we're actually raising 10 14 18 billion that's our Target over the next three years and of course all of that is going into buying Bitcoin if Bitcoin trades at $40 million a day of natural if there's natural sellers of 40 million a day you can divide 40 million into 42 billion and figure out how many days we're buying right this is one way to look at it we're about uh 27 279,000 generated a yield of 7.3% that works out to 18,41 bitcoin that means that we

we created 18,000 Bitcoin at no cost and no dilution it's like a Bitcoin miner if you had a Bitcoin miner and you Min 18,41 Bitcoin in 10 days for free that's what we did there right that's what that is multiply that by the price of Bitcoin and you can figure out what's that Worth to our shareholders years to date we we actually uh generated a 4 49,93321 Bitcoin every single day for free no dilution that would be onethird of all the Supply right it's like we're onethird of the hash rate but we managed to do

it with no electricity no Capital cost and keep scaling it and the difference is we're enriching every Bitcoin minor we're actually not decreasing their profitability they're getting wealthier while we're doing this this is a very virtuous thing okay now let's switch to the fun topic the Red Wave the Red Wave you know we didn't know what was going to happen but you know as of this morning I'm reading the Republicans have taken the house they've taken the Senate they've taken the White House and what's the Red Wave about well I think I'd boil it down

this phrase Elon Musk kind of the the heart the soul the Zeitgeist of the moment has that quote give people their freedom back this entire Red Wave is about getting Freedom back and this is the guy that's going to give you your freedom back and he is all in on bitcoin all in on crypto all in on freedom he's in favor of business he's America first he wants to unleash entrepreneurial Spirit from the clutches of bureaucracy he has these words for you better do that again never sell your Bitcoin right I don't know where I

got that from implications end into the war on crypto it's one of the planks of of the entire election lay out a digital assets framework accelerate institutional adoption modify the tax laws make them much more favorable to crypto to bitcoin to Industry to everybody can you go back and uh a strategic Bitcoin Reserve all these things I think are implications of the Red Wave they're all coming big milestones for Bitcoin institutional adoption a repeal of sa 121 the ability to uh create inine create Redemption of Bitcoin ETFs options on bitcoin ETFs approval for solicited sales

by Banks and acceptance of BTC as collateral for credit crypto Renaissance this is going to usher in a crypto Renaissance what is it and why the traditional Capital markets they're failing the public they're crippled by Antiquated structures and they're based on those structures are based on 20th century techniques they're all obsolete right we're living in a world that was defined in the 1930s and if you read rothbard he'll tell you that the 33 SEC Act was meant to create a cartel and limit access to the Capital Market to just a few people it was already

a Restraint of trade and an encroachment on freedom in 1933 under the Roosevelt administration it's just gotten progressively worse traditional Capital markets just too expensive it's like too many lawyer you want to go public too many lawyers too many accountants too much money too many employees too many years too much revenue too much of everything it's just too hard and and if you manage to get public if you're one of the 4,000 companies that goes through that and spends four years and $40 million and you get public there's no liquidity in your options there's no

liquidity in the spot you can't beat the S&P you can't retain earnings you're limited in the Investments you can make by the SEC 40 Act and the SEC 33 act you're you're basically hamstrung you can't take risk you live in fear of missing the quarter capital is toxic volatility is toxic inflation is killing you that's the problem that's why 2,000 companies in the Russell 2000 are all struggling don't take my word for it though here's the chart number of publicly listed companies in the US over the past 20 years 25 years now I invite you

to put anything on that chart if I if I put that chart up and I said number of basketball players number of number of public schools number of planes Yachts trains Apartments number of televisions number of computers number of wealthy people number of I don't care what you put it's a sick chart right it's a it's a chart of a Dying economy that's not working in a healthy bu healthy economy you shouldn't have charts going down and to the right that is a chart of like Xerox copy machines right or typewriters or buggy whips except

American public companies shouldn't be an Antiquated rapidly obsessing product of the civilization the traditional markets they're exclusionary they're elitist there's 4,000 publicly traded companies in the US they're the crela crop there's 400 million small businesses in the world there's 40,000 list companies there 400,000 big companies okay 0.016% of the United States businesses are served by the capital markets like like in what world you know is 0.06% of the people having access to water electricity power mobile phones computers internet in what world is 0.006% winning right that's anemic and we have been beaten in a submission

to think that there's something healthy about that that is not healthy that's not normal our current regulations they require four years and $40 million to create a traditional security but you could do something smarter faster strong or in a digital token in four hours with 40 bucks and so the Millennials the genz are looking at this they're like I don't get it I could do something better and cooler in four hours why do I need armies of lawyers and accountants in order to do something which is worse right and that is the driver behind the

crypto Renaissance now the industry needs a digital assets framework in order to grow and prosper that's very clear without a framework we're not going anywhere but this is not a complicated thing I think I think the previous administration acted like it's complicated a lot of people think it's comp okay it's not that hard it's three steps Define the asset classes set sound ethical e economic and Technical guidelines and provide a practical legal method to issue own and operate digital assets one two three very straightforward has not been done the industry will not go forward until

we've done those three things it would take like 10 10 pieces of paper to Define 95% of this decently so what are the assets a digital commodity an asset with without an issuer backed by digital power that's what Bitcoin is a digital commodity a digital security an asset with an issuer backed by a security not complicated Equity debt derivative something tokenized a digital security a digital currency an asset with an issuer backed by a fiat currency stable coin tether Circle straightforward a digital token a fungible asset with an issuer offering digital utility something useful in

cyberspace an nft a non-fungible asset with an issuer offering utility in cyberspace again not complicated abts asset back tokens an asset with an issuer backed by a physical asset like gold or oil or corn there you go those are the asset classes those asset classes could be hundreds of trillions of dollars now the framework what are the rules well digital currency rules H H this is what our um our government is going to need to do over the next year they need to lay out the um the rules of the road for this so here's

a simple question how does a corporation issue and operate a stable coin back by USD reserves that could be transferred freely and instantly between humans and machines worldwide what's the asset test it's very simple when tether relocates to the us we will have solve the problem why wouldn't you want them to relocate to the US create a simple a simple strategy or a simple guideline they move their digital currency operation to the US they buy hundreds of billions and trillions of dollars of US currency everybody's happy very simple we won't have succeeded till we solve

that digital Securities how does Apple make its shares available for trading 247 365 on a digital exchange how does an Apple shareholder take POS possession of their shares on their own iPhone um it seems kind of ridiculous that you can't hold a share of Apple stock on an iPhone why not somehow the entire rhetoric became it's like unethical to do how is it unethical to hold a share of Apple stock on an iPhone it's not unethical it's like so logically obvious if I can hold my photos my books my communications on an iPhone on a

movie why can't I hold a share of stock on an iPhone is it possible of course it's possible in fact all the crypto Bros figure it out we just put them in jail for figuring it out you know it's like it's not hard um but that's the question and what's the asset test well when micro strategy stock trades 247 on coinbase we'll have solved this problem why can't why can't they right by the way I can't under the previous administration without the framework but it's very obvious you'd want to how's a European living in Japan

send a share of Apple stock to an American in Argentina using an Android phone on Saturday afternoon by the way substitute apple stock for uh photo for message it works with photos it works with messages it just doesn't work with a share of Apple stock is there something unethical about moving Apple stock instead of a message or a photo it's very straightforward is it hard not hard you just need the framework what's the acid test when you sell that share for USD and you can convert that to to Argentine pesos and pay the rent with

it then you will have solved the problem how about small businesses right how does a small business issue Securities where $3 million to fund uh their expansion when they've got a few hours and a few thousand doll to spend and they don't employ any lawyers is it unethical to want to do that no is it is it good for the economy of course it is how many people want to do it well maybe like 400 million want to do it is it possible yeah what's the asset test when you can invest in Joe Rogan when

Rogan releases Rogan token and yeah then you've solved that problem would he could you in time token rules how does a celebrity issue a digital token to their followers that offers Super Fan privileges to the holder and what are the obligations of the issuer the owner and the exchange it's very simple question not that hard I mean you can you could answer the question in in two paragraphs or three paragraphs if you wanted to write it what's the asset test it's when you own Katy Perry coin right then you'll know it worked when Katie Perry

issues the token and someone's got it or your daughter's got it then that works how many people want to do that oh like millions and millions and millions of people want to do it like I you know just about every celebrity I've ever met would probably want to do it exchanges how does a corporation offer crypto exchange services allowing the public to issue Buy sell transfer digital assets well that's the question right what's the asset test well when binance moves its headquarter to the US you'll know you've solved the problem would we want them to

of course we want them to right why wouldn't you want every company that does something that people want to buy or want to use why wouldn't you want them all to come to the US right like why don't we want them well they won't act ethically well just make the rules give them some meth I don't think anybody in business wants to cheat their customers right they're just they're just caught in a in in a obsolete you know Antiquated oligopoly situation where there it's illegal for them to actually solve the problem so the crypto Renaissance

is going to revitalize the capital markets right and what would happen well you can see here coming back to my chart well a big chunk of equity when Apple and Google and meta can actually tokenize their Equity you think they will of course they will of course they will right you know you think that Tesla will tokenize Tesla stock of course they will right so you'll see a lot of equity get tokenized you'll see bonds get tokenized we used to have you know we had bearer bonds like we've gone backwards the Rothchild sold beer Bonds

in the 19th century well how about going forward to bearer bonds again we'll have tokenized bonds tokenized currency token we'll even have tokenized real estate I think someone will sell you 100 acres of farmland or timber land in Canada or whatever and you'll have fungible real estate you'll have non-fungible real estate tokens I suspect and um let's what does that look like that transformation will will probably transform $500 trillion of assets from the analog world to the digital world and that's going to bring extraordinary Prosperity right you're going from a trillion to 500 trillion in

digital assets you're going from 1.8 trillion of digital Capital to 280 trillion in digital Capital right like what's the secret well everything goes smarter faster stronger at the speed of light right a million times a second do you think we'll be more efficient if the robots make a million times a second decisions between eight billion other robots probably or we can do it the oldfashioned way put your book on a wooden ship and sail it for three months across the ocean and then seize half of the book at the border because it violates customs and

that's another way to send information I'm gonna I'm I'm at the end of my presentation so I save the best for last these are my comments on the United States strategic Bitcoin Reserve the Strategic Bitcoin Reserve was introduced by Senator lumus at Bitcoin Nashville at that point the outcome of the election was uncertain if it had been a split Congress if it had not been a red wave it would have been a challenge this was this was unclear 10 days ago but today you have a you have a pro Bitcoin White House Pro Bitcoin House

of reps and pro Bitcoin Senate and a pro Bitcoin Senator that is made her mission to accomplish this and her Bill calls for a million Bitcoin to be purchased by the United States government over five years let's talk about the geopolitical logic why will it happen why should it happen well first of all it establishes a fair Equitable and peaceful system to resolve political differences we know that Donald Trump's in favor of ending endless Wars it's better to have a business outcome than a military outcome to solve problems go back and um this supports prosperity

and Lusher and aox Americana in the 21st century right this establishes pox Americana 21 this is a chance to own the 21st century like the US can own it you address the deficit with an Innovative economic idea and an Innovative technical idea you you extract trillions of dollars of capital from the 20th century physical and financial economy but as the money flows out of physical and financial assets it flows into Bitcoin and the United States going to own all the Bitcoin so the United States is the beneficiary of the passage from the 20th to the

21st century own the 21st century this is where all the money is going you might as well buy it before it gets there this cements the US dollar as the world Reserve currency and it also establishes a world Reserve Capital Network that the US also owns and controls right the best way to protect the dollar is make sure that we retire the debt and we become rich the next best way to protect the dollar is to make sure that if anybody ever considers a different Capital asset other than treasury bill you own it well there's

only two Capital assets that make any sense the 20th century asset was the treasury bill the 21st century asset is Bitcoin if you own both of them you can't lose you can only win any movement away from treasuries is going to go toward Bitcoin the obvious thing to do is just buy it before everybody gets there they either won't go and you won't it won't matter or they will go and you'll be you'll be uh beneficiary then too the other geopolitical Brilliance of this is that you're attracting foreign Capital to the us from our enemies

people are selling Chinese real estate Russian real estate African real estate South American Real Estate everything in the world they're selling it their Capital the Securities the bonds they're selling that in order to buy Bitcoin and so everybody in the world if you had a billion dollars and you lived in Mexico would you trade it for a billion in the US yes would you trade all your money in Cuba or Venezuela or China or Russia for a US real estate yes you would but you can't you can't uh do that right it's impossible for Russian

oligarchs to sell their Russian real estate and Buy Manhattan real estate but what they can do by Bitcoin when they do if we own it we benefit from it so this is about attracting capital from everywhere else in the world bringing it to the US where it creates a US jobs us prosper enriches us corporations us institutions US citizens and the United States Municipal state and federal government right you want all the money in the world to come to you and I and if they wanted to buy the land it's like well I don't know

if I can sell them the land but they can just buy Bitcoin and then our Bitcoin goes up by a factor of 100 this is the impact of the lumus bill if you crank in the assumptions if we implement the lumus bill well we're going to overcome and and we're going to get the debt under control via good tax policy good technology policy good industrial policy Innovation AI robots the like but as we build the Bitcoin position to17 trillion do we're going to we're going to retire and convert the net debt position to be something

which is very di Minimus so yeah is this a good idea yeah why cuz if I'm wrong it costs nothing if I'm wrong it costs nothing you're paying for it with money you printed which cost nothing it's like it's literally like it's like a penny on $100 it's like one two 3% if I'm wrong it cost nothing if I'm right you solve all your problems like that's an asymmetric bet like I'm giving you a thousand to one payoff and you're betting with free money and you're going to tell me you don't want to take the

bet because you're risk adverse you have free money it's a,1 payoff that's the lus bill there are historic precedents for this right Once Upon a Time the Dutch paid 60 gilders for Manhattan they generated a multi-trillion dollar payoff 60 gilders once upon a time we bought the Louisiana Territory for $15 million it's like a third of the country it's worth trillions we bought California from the Mexicans under duress all not but we still paid them they didn't want to sell because they were smart you shouldn't have sold California but nonetheless we paid 18 million we

had a chance to do the deal by the way I don't want to sell you my Bitcoin either right we paid him 18 million we got California Nevada Vegas it's worth quite a lot 8 trillion and then we bought Alaska from the Russians we paid them a few million it's worth trillions okay it's been done before it's a very simple idea figure out where the value is going to be go buy it cheap and hold it you're a nation that's what nations do this is manifest destiny Bitcoin is Manifest Destiny for the United States I

think the Trump Administration understands it I think Senator lumus understands it I think everybody that's behind her understands it that's why it will happen this is my last slide this is the greatest deal of the 21st century the Strategic Reserve if we don't do the lumus deal if we don't pass that bill and all we do is just hold the existing Bitcoin on the balance sheet it's worth $3 trillion to the people if the lumus bill passes as currently drafted it's a 16 trillion doll benefit to the United States over 21 years if they decide

to go double Max and they double that it's a $0 trillion benefit if they assume a triple Max position and they purchase 4 million Bitcoin is 56 trillion and of course the deal of the century maybe the greatest deal of all time would be the Trump deal if we go Trump Max which is the rational thing buy the Bitcoin it's worth 81 trillion dollar we'll retire all the debt will be the richest company in country in the world for hundreds of years right it's very straightforward and the beauty is the more aggressively you pursue this

the less risky it gets this is one of those things where if the US does this every other country has to follow the Saudis the Emirates the Europeans the Chinese the Russians everybody follows every company follows the 20th century gets put away the 21st century comes into into view the capital comes out of the rest of the world flows into the Bitcoin Network which rest and floats right above the United States of America so will this happen yeah I think it's going to happen the only question is is it going to be a double Max

a lumus bill a triple Max or a trump Max and that's what we're going to find out in the political process in the coming 12 months and with that I want to thank all of you for your time