Michael J. Saylor, co-founder of MicroStrategy, discusses the physics of money, wealth, and his philosophy of life. He shares insights into Bitcoin, mobile technology, and how technologies like blockchain and 5G can improve global prosperity. The chapter also explores the advantages of Bitcoin over gold and oil as a reliable store of value. Additionally, inflation, electric-powered hovercrafts, and the concept of asset value are briefly touched upon.
Bitcoin provides a solution to trust issues in traditional currencies through its mathematically pure and engineered monetary network.
The virtual wave, the next wave of software engineering, will virtualize products, services, and money, with Bitcoin playing a crucial role in virtualizing store of value.
Bitcoin is a decentralized and mathematically pure alternative to existing monetary systems that addresses issues of debasement, dilution, and inflation.
Skepticism surrounding blockchain and Bitcoin stems from resistance to change, despite Bitcoin's proven success and superiority over traditional monetary systems.
Deep dives
The Rise of Bitcoin and Blockchain Technology
Michael Saylor discusses the rise of Bitcoin and blockchain technology, emphasizing the technological superiority and efficiency of Bitcoin in comparison to traditional currencies. He highlights the flaws in fiat currencies, which have historically been subject to debasement and inflation. Saylor argues that Bitcoin's mathematically pure and engineered monetary network provides a solution to the trust issues associated with fiat currencies. He also dismisses criticisms of blockchain, stating that it enforces integrity and mathematical scarcity, adhering to the laws of thermodynamics and conservation of energy, unlike traditional monetary systems.
The Power of the Virtual Wave
Saylor explains the concept of the virtual wave, which he identifies as the sixth wave of software engineering. He describes how the mobile wave brought about a transformation in software usage, as it enabled software to be accessed anywhere and at any time, and it impacted various aspects of people's lives. He predicts that the next wave, the virtual wave, will witness the virtualization of products, services, and money, and will introduce radical changes in how value is created and consumed. Saylor highlights Bitcoin's role in the virtual wave, as it virtualizes store of value by capturing monetary energy from various assets. He highlights the advantages of Bitcoin, such as its digital scarcity and efficiency compared to traditional stores of value like gold.
Bitcoin as a Solution to Currency Collapse
Saylor discusses the intrinsic flaws in existing monetary systems and the unprecedented currency collapse happening globally. He emphasizes the need for a solution that addresses the problems of debasement, dilution, and inflation. According to Saylor, Bitcoin, with its decentralized and mathematically pure nature, provides the necessary alternative. He compares rejecting Bitcoin based on hypothetical risks to denying engineering principles or refusing to put on an oxygen mask in a dire situation. Saylor highlights the importance of understanding that Bitcoin is an engineered monetary network designed to adhere to the laws of thermodynamics, math, and science.
Addressing Doubts and Embracing the Future
Saylor challenges the doubts and skepticism surrounding blockchain and Bitcoin. He argues that these doubts stem from a resistance to change and a fear of venturing into the unknown. Saylor highlights the track record of Bitcoin's success over the past decade and urges people to acknowledge its superiority compared to traditional monetary systems. He emphasizes the urgency of moving away from failing currencies and embracing the solution provided by Bitcoin, particularly in the face of currency collapses and the financial risks associated with existing systems.
The Fundamental Reason behind the Protection of Bitcoin
The fundamental reason that gives Bitcoin its protection is its adherence to the laws of thermodynamics and the conservation of energy. Unlike traditional currencies, if a certain amount of monetary energy is put into the Bitcoin network, it will remain the same over time without any individual stealing from it. In contrast, other monetary systems, such as the dollar or gold, experience energy loss and theft through inflation or mining. Bitcoin offers individuals a technology to protect their monetary energy and avoid becoming impoverished in volatile economic situations.
The Purpose of Wealth and the Transformation of Education
Wealth, synonymous with monetary energy, can be channeled according to individual values and preferences. It can be used for personal enjoyment, such as flying a private jet, or to contribute to societal initiatives, such as endowing universities or supporting nonprofit organizations. As technology advances, education is also undergoing a transformation. Online automated education, particularly in disciplines like mathematics, computer science, and engineering, can dematerialize the high costs of traditional education. By making education freely accessible, individuals can pursue unlimited learning and achieve academic and intellectual goals.
The Collapse of Credentialism and the Potential of Synthetic Learning
Credentialism, the emphasis on diplomas and degrees, may collapse with the rise of artificial intelligence and online education. Instead of relying solely on degrees, individuals and employers can assess talent and skills through automated testing and evaluation. The increasing availability of original source material, lectures, and books from influential figures throughout history, like Galileo and Isaac Newton, allows for a more direct and immersive learning experience. Technology has the potential to democratize education, reducing the reliance on traditional institutions and empowering individuals to learn from the best minds in various fields.
Michael J. Saylor is an American entrepreneur and business executive, who co-founded & leads MicroStrategy, a company that provides business intelligence, mobile software, and cloud-based services. Saylor, an MIT trained engineer, authored the 2012 book The Mobile Wave: How Mobile Intelligence Will Change Everything.He is also the sole trustee of Saylor Academy ( www.saylor.org ), a provider of free online education. As of 2016, Saylor has been granted 31 patents and has 9 additional applications under review. We covered a ton of content in this interview including ‘the physics of money’, the purpose of wealth, and Michael’s philosophy of life. You won’t want to miss his philosophy of life. To get them, please join my mailing list; just click here http://briankeating.com/mailing_list.php
On MicroStrategy’s quarterly earnings conference call in July 2020, Saylor announced his intention for MicroStrategy to explore purchasing Bitcoin, gold, or other alternative assets instead of holding cash. The following month, MicroStrategy used $250 million from its cash stockpile to purchase 21,454 Bitcoin. MicroStrategy added $175 million of Bitcoin to its holdings in September 2020 and another $50 million in early December 2020. On December 11, 2020, MicroStrategy announced that it had sold $650 million in convertible senior notes, taking on debt to increase its Bitcoin holdings to over $1 billion worth. On December 21, 2020 MicroStrategy announced their total holdings include 70,470 bitcoins purchased for $1.125 billion at an average price of $15,964 per bitcoin.
Saylor, who controls 70% of MicroStrategy’s shares, dismissed concerns by observers that the move is turning MicroStrategy into a Bitcoin investment firm or exchange-traded fund (ETF). In 1999, Saylor established The Saylor Foundation (later named Saylor Academy), of which he is the sole trustee. To support his goal of making free education available to all students,
Saylor.org was launched in 2008 as the free education initiative of The Saylor Foundation. The site now offers roughly 100 college courses that are supported by free content from universities including MIT and Carnegie Mellon University, that students can access without having to pass through an admissions process
00:00:00 Introduction
00:04:00 The story of the book cover
00:07:35 What’s the next (6th?) technology wave?
00:10:55 The next megatrend: Virtualization
00:18:17 Why are there ridges on coins?
00:19:36 Where gold comes from, and can virtual currencies replace real ones?
00:22:22 Why gold as a currency standar? And what sets the price of oil?
00:36:20 Why is blockchain is so great now? 00:40:27 The Pandemic as a catalyst.
00:40:57 Risk management in science and all things.
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What is in his ethical will?
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What advice would he give to himself as a 20-year-old to have the courage to go ‘Into the Impossible’?
