The Perfect Bloody Storm Is Coming: Tesla Buying Bitcoin
Elon’s bitcoin tweetstorm is moving tectonic plates
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.
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.
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.
We notice things that match our view, and we dismiss things that do not. As we build our limited knowledge on top of that foundation, we might not even realize when the foundation itself is weak. And so, as we go on with our lives, filtering a massive amount of information, we can quickly become blind to essential details, caught in our bubbles, disregarding some information or alternative views, even when it might be helpful to us. Our decisions are shaped by what we regard as the facts, and if new information emerges that belies what we believe, it often hardens us to our original view.- Jeff Booth, The Price of Tomorrow: Why Deflation is the Key to an Abundant Future
It’s Harder to Talk, It’s Easier to Fight
Elon Musk has the same weapon Michael Jordan had when he was a god.
It’s called trash talk.
Elon gets a kick out of messing with people’s heads. He loves to shake the system and trashes talk all the time.
Meanwhile, in the silence of his home, he is creating the next technological breakthrough. One more slip of another tectonic plate.
So,
I wonder if this conversation from rocket scientist to rocket scientist has already happened?
Elon is changing the world as we know it by disrupting two entire sectors. The auto and the energy sectors.
Is he going to give a hand to disrupt the monetary system? Is Tesla going to be the first big company to break the mold?
Why the hell not?
The only thing that makes sense is to strive for greater collective enlightenment.- Elon Musk
Elon Musk has the advantage of being an outsider. He is an outsider in the auto industry and the energy industry. Outsiders can observe the environment from an inverse perspective. They’re un-locked into accepted belief systems or the accepted biases.
In their geniality, these extraordinary human beings have this disruptive power. They interfere with a disintegrated system without asking permission. Without being well educated. Because they believe more than anyone fairest way for humanity.
If you look at the smartphone, it is about 13 years old. It now replaces many things: A map, music player, video player, tape measure, personal assistant, personal diary, camera, tape recorder, and the apps are free or meager cost. If you imagine that same pace happening within every industry sector — then the deflationary effects of technology are massive and growing exponentially.- Jeff Booth
A century ago, we watched a brutal disruptive technology. The invention of electricity, the telephone, and the internal combustion engine.
In 13 years, New York dramatically shifted from carriages with horses to cars. It transformed the landscape of the big apple. And also its functionality and mobility.
So, if you want to believe nothing is happening, do so.
Enormous changes are taking place right now. From deep learning to artificial intelligence. From electric vehicles to genomics. From streaming to robotics.
What about the monetary system?
Are these profound changes going to catch the big guys? Are they going to catch up with the central banks and governments, politics, and big banks?
Final Thoughts
I am an eternal optimist.
I still believe that people like Satoshi Nakamoto were born to change the world for the better.
Justice is something that conquers us for its purity.
Lust is something that eats away at the root.
In this war between good and evil, I continue to bet my chips on the right.
All in humanity.
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