Latest / Simply Bitcoin / Michael Saylor Explains Why All Money Flows Into Bitcoin | Beyond Bitcoin

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Michael Saylor Explains Why All Money Flows Into Bitcoin | Beyond Bitcoin · Simply Bitcoin

• 0:00
  Despite the recent pullback, Bitcoin's price continues to
• 0:03
  move higher and higher year after year, not because of
• 0:06
  height, but because the same forces keep pushing capital in
• 0:09
  One Direction. And right now, those forces are
• 0:11
  being discussed in all kinds of political and institutional
• 0:14
  forums across the world. It appears that strategy won't
• 0:17
  stop buying Bitcoin, Washington won't stop tweeting about
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  Bitcoin, and the world has come to a point where they have to
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  address the elephant in the room, Bitcoin.
• 0:26
  When heads of banks, governments and corporations start
• 0:29
  responding to those forces all at the same time, that's not a
• 0:32
  trend. That's well, as Michael Saylor
• 0:35
  puts it. The reason Bitcoin is going up,
• 0:37
  it's not an accident. It's because capital is is
• 0:42
  economic mass. It is flowing from a high energy
• 0:45
  state, the mountain top, to a lower energy state, to a more
• 0:50
  efficient state. Oceans.
• 0:52
  This is beyond. Bitcoin, let's go.
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  For years, Bitcoin was dismissed as speculative, too volatile, or
• 1:04
  too risky by all the biggest names in finance and politics,
• 1:08
  and we could all see that the writing is on the wall for that
• 1:10
  narrative to shift. During this entire behavioral
• 1:12
  shift, one company stopped waiting for permission and never
• 1:16
  stopped buying. Can you guess who that company
• 1:17
  is? Yes, that company is Micro
• 1:19
  Strategy. Strategy, strategy, strategy.
• 1:23
  It's strategy. Sorry, strategy.
• 1:25
  That's strategy. Go by Milton Bradley.
• 1:27
  Yes, yes it is. While critics keep asking when
• 1:31
  Strategy will stop purchasing Bitcoin, and by the way Strategy
• 1:34
  now owns over 700,000 in Bitcoin, the rest of the world's
• 1:38
  programming is starting to short circuit, asking a different
• 1:41
  question. Why don't we act sooner?
• 1:42
  Well, maybe it's because they've been secretly planning this all
• 1:45
  along, feeding you false information while they rake in
• 1:47
  the profit. At the center of this is a man
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  that needs no introduction in the Bitcoin space, Michael
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  Saylor. Saylor has a way of explaining
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  complex concepts as an engineer teacher would explain to a group
• 1:59
  of second graders. Just listen to this recent
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  explanation of his as to why capital behaves the way it does.
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  Watch this. But I think where people trip up
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  with your language is this idea of the inevitability of the 60%.
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  What would you say to that? So we're dealing with three
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  concepts, risk, volatility and performance.
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  OK. So I've, I've addressed the risk
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  issue by pointing out that there is existential risk in your
• 2:27
  given network or frame of reference.
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  And I just want to make that point that once you understand
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  that risk of being in that frame of reference, then you have to
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  figure out what's the source of the volatility in the
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  performance. And if you don't understand why
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  the asset does what it does, if you don't understand the
• 2:50
  economic physics involved, then you'll think it's random and
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  you'll and you'll feel like it's risk, the performance is risky.
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  But I want to give you an example of a physical metaphor.
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  I'm a hiker and I come across a mountain lake.
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  And the mountain lake has 500 trillion gallons of water in it.
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  And yeah, I don't know how it got there, but it's there.
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  The water's chilly. It's clear.
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  And I look down and there's a waterfall coming off the
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  mountain lake. And the waterfall, you know,
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  it's very beautiful and and it's very turbulent, right?
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  Water is turbulent in the waterfall.
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  Water is not turbulent. And a glassy lake.
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  So the the turbulence is volatility, right?
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  And the, and there's waterfall and then I look at it and now if
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  you look and you say, I don't know why that waterfalls
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  downhill, you know, I don't know if it'll keep falling downhill,
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  but I hate the volatility. Then I guess you can take a
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  selfie in front of the lake, go swimming, get cold and leave.
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  But if, let's say you're in not a tourist, but you're an
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  engineer. So you come across the same lake
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  and you see the waterfall and you see the 500 trillion gallons
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  and you think about gravity and you think about sunlight.
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  And now I know how the water got there.
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  The water got there because the sun shone on the ocean.
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  The the water evaporated from the ocean.
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  It rose up in the clouds. The wind blew it against the
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  mountain. It condensed and it rained into
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  the mountain. And the, and the water ran off
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  the mountain into the mountain lake.
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  I know how it got there. And then I think, well, if I
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  create a dam near that waterfall, I build myself a dam.
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  I put a turbine on the dam and then I drop a billion gallons of
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  water. I channel a billion gallons of
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  water through the dam, drop at 60 feet, and then I plug that
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  into a hydroelectric power plant.
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  I spin the Dynamo. I make electricity.
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  And then if I'm really smart, I run the electric power line to a
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  village down in the valley. And I light up the village or I
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  light up the city. Now, someone can come along that
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  doesn't understand physics and they can say, good idea, junior,
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  but what are you going to do when the water stops flowing
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  downhill? Well, I'm like, well, I actually
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  think the water's flowing downhill because of gravity.
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  Newton, Newton solved that for me.
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  And then someone else comes along and says, good idea,
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  junior, but what are you going to do when you run out of water
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  in the lake? I'm like, well, there's 500
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  trillion gallons and I take on my calculator and a billion
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  gallons or whatever. It's going to last a long time.
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  Like, well, it's eventually going to run out.
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  I say, well, you know, the sun keeps shining on the ocean and
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  the ocean keeps lifting the, you know, the water out of the ocean
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  and it drops it on this mountain.
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  And that's why there's water in the mountain.
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  But you're right, there's some kind of natural limit.
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  And I suppose there's a limit to the amount of energy I can pull
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  off of this dam. But it's a large number.
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  It's a lot more than your donkey cart and it's a lot more than
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  your steam, you know, wood stove.
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  And it's a lot more than your coal power plant.
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  And maybe it's a lot cleaner than burning, you know,
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  gasoline. So I'm an engineer and you're
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  seeing, you're seeing performance thinking it's random
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  and that's why it's going to stop.
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  And you're seeing volatility and you're thinking it's random and
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  maybe it'll stop. And, and, and here with Bitcoin,
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  the reason Bitcoin's performing is, is a, it's volatile, but B,
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  it's more, it's a more energy efficient state.
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  The water is flowing down 5000 feet because it's more, it's a
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  lower energy state, 1000 feet below the mountain.
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  You know, it's a, it's a low energy state.
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  You've got potential energy in the water and it wants to go to
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  ground. And that's just physics.
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  The 500 trillion gallons of water is $500 trillion and the
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  $500 trillion of assets are sitting in real estate and
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  currency and and sovereign bonds and corporate bonds and artwork
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  and equity. And they're they're invested in
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  the stock of a company in Africa that's going bankrupt.
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  Here's what matters. Sailor isn't predicting price,
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  he's explaining direction. Capital moves from weak to
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  strong, unstable to stable, politically managed to
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  structurally fixed. And as he explains, volatility
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  is not failure, it's just the result of this moving waterfall
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  of his. And MicroStrategy understood
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  that very early, earlier than most, which is probably why they
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  don't time their entries and why they don't stop buying.
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  They identified the lowest energy monetary state and they
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  aligned with it. I think at some point you know
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  the the general sentiment will flip from being short to being
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  long and we'll have a face ripping rally.
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  NI just can't tell you when. Now here's where this stops
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  being a Bitcoin only conversation.
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  Did you know that during the time of this recording, the
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  World Economic Forum is meeting this week in Davos?
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  The World Economic Forum, Yes. In Davos, Yes.
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  Is that like the annual meeting featuring all the world's
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  prominent thought leaders in finance and economics that takes
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  place in Davos, Switzerland? Yes, this week at the World
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  Economic Forum, the tone wasn't optimistic.
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  It was defensive. And one of the clearest
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  admissions came from Bridgewater Capital's Ray Dalia.
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  Take a look. The monetary order is breaking
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  down OK. What I mean by the monetary
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  order is that Fiat currencies as and and debt as a store hold of
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  wealth is not being held by central banks in the same way.
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  And that there was a change. The biggest market to move last
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  year was the gold market, far better than the tech markets and
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  so and so on. And the US markets
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  underperformed foreign markets because of the fact you could
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  see it in the numbers of the central banks and so on.
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  So let's just look at the fact that on the other side of trade
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  deficits and trade wars, our capital and capital wars.
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  And so as we're looking at that and you reported what the stock
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  market and so on, but you didn't report that the gold market is
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  also up three we. Did say that earlier this
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  morning. It's up the record level.
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  Again. And over.
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  If you look at the what is happening and why it's happening
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  and who's buying it. So let's let's just take a
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  moment on that capital war issue, OK?
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  We know that both the holders of U.S. dollar denominated debt at
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  which is money and the those who need it, the United States are
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  worried about each other, right? So if you have other countries
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  who are holding it and they're worried about each other and
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  we're producing a lot of it, that's a big issue, right?
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  So you have to explain what is going on with Fiat currencies,
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  generally speaking. And now if you take the
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  conflicts, you can't ignore the possibility that capital wars,
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  in other words, maybe there's not the same inclination to buy
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  U.S. debt. And So what we at least need to
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  talk about those possibilities and find out who is buying and
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  selling what that is behind these market movements.
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  And what capital wars? This is critical, and I know
• 10:30
  Dollar wasn't endorsing Bitcoin in this clip, but he's
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  explaining why Fiat credibility is eroding when monetary trust
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  breaks, trade wars turn into capital wars, reserves shift and
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  debt becomes weaponized and capital starts searching for
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  something outside that system. That doesn't that sound like the
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  same waterfall, if not very similar to the waterfall that
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  Sailor describes, just viewed from the top instead of the
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  bottom. You know, from Davos, because
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  Davos is up in the mountains and it's still has waterfall coming
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  down from the mountains, you know, anyway, also happening at
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  Davos, BlackRock CEO Larry Fink highlights how trust is breaking
• 11:07
  down from traditional outlets like the World Economic Forum.
• 11:12
  Just take a look. We believe that outside the
• 11:14
  United Nations this is the largest gathering of global
• 11:18
  leadership of the post COVID period of time.
• 11:24
  For many people, this feeding feels out of step with the
• 11:28
  moment. We hear all about the the
• 11:31
  elites. And how does that play out in
• 11:34
  the age of populism? How does an established
• 11:37
  institution make a difference in a era of deep institutional
• 11:42
  mistrust? And there's some truth to the
• 11:47
  critique. I believe in this forum for a
• 11:51
  long time. I certainly wouldn't be leading
• 11:55
  this if I didn't believe that we can change and make the world
• 12:00
  better. But it's also obvious that the
• 12:03
  world now places far less trust in us to help shape what comes
• 12:09
  next. If the World Economic Forum is
• 12:14
  going to be useful going forward, it has to regain that
• 12:17
  trust. And to add more fuel to the
• 12:19
  economic fire, here's Coinbase's CEO Brian Armstrong speaking in
• 12:25
  Is It Davos? Oh yes, it's Davos about how
• 12:28
  banks are going to need to compete for their customers
• 12:30
  going forward. Take a look.
• 12:32
  Banks should have to compete on a level playing field, and if
• 12:35
  the American people feel like the banks are not paying high
• 12:37
  enough interest rates and stablecoin rewards can offer
• 12:40
  them more than maybe the bank should have to pay higher
• 12:42
  interest rates to compete, right?
• 12:43
  I don't think there should be any protectionism, do you?
• 12:45
  Think that that was put in directly for the banks, that was
• 12:47
  lobbied by the banks and put in. Yes.
• 12:49
  So in the wake of our institutions breaking down, what
• 12:51
  happens if some real world wars happen, or sanctions or
• 12:55
  blackouts start to occur? Will you be prepared?
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• 13:13
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  makes me think of? Backups.
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  Accidental lost seed phrases and clumsy backups are how people
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  get wiped out. And if you are serious about
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  fear, you got to check out the bitcoinway.com.
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  consultation. Because if you're going to take
• 14:14
  self custody of your Bitcoin, you need to do it with
• 14:17
  confidence and not with fear. So let's zoom out.
• 14:19
  This isn't just one or two voices from economic
• 14:22
  powerhouses. This is kind of like alignment.
• 14:25
  Here's another clip from Rick Worster of Charles Schwab, the
• 14:28
  CEO of Charles Schwab. You know, they managed $12
• 14:31
  trillion assets under management.
• 14:33
  Talking about what kind of adoption he sees with his
• 14:36
  clients currently. Take a look.
• 14:38
  Yes, we've been active in both. So in crypto, we, we do offer
• 14:42
  crypto ETFs, Bitcoin futures, closed end funds.
• 14:45
  In fact our clients own 20% of all the crypto exchange traded
• 14:49
  products in our country. So they've been very active.
• 14:51
  We've seen visits to our crypto site go up 90% in the last year.
• 14:56
  It's it's a topic that's of high engagement.
• 14:58
  And for privates, we have made private investments available to
• 15:02
  our clients. We've done through through third
• 15:04
  party managers like KKR and Apollo and folks like that.
• 15:08
  And we've also stood up a team of alternative experts.
• 15:11
  If you want to invest in alternatives at Schwab, you're
• 15:14
  going to need to talk to a professional, make sure they're
• 15:16
  right for you, and to make sure you find the right strategy for
• 15:19
  for. You you even have Vice President
• 15:21
  JD Vance going on national television and stating how
• 15:24
  digital assets are now a permanent part of our economy.
• 15:27
  The consistent fear that I hear is that there's still this
• 15:30
  perception that digital assets are not welcome in the
• 15:33
  mainstream economy. And let me promise you that our
• 15:37
  effort to change the policy is purely about changing that.
• 15:41
  We want our fellow Americans to know that crypto and digital
• 15:46
  assets, and particularly Bitcoin, are part of the
• 15:49
  mainstream economy and are here to stay.
• 15:55
  So let me just point out these are not Bitcoin maximalists.
• 15:58
  These are institutions adjusting under pressure.
• 16:01
  So let's bring it back to strategy and why their purchase
• 16:03
  of yet again more Bitcoin matters so much.
• 16:06
  It seems that while everyone else debated narratives, Sailor
• 16:09
  tapped into the future and understood very early where this
• 16:13
  was all headed. Now he's told this $500 million
• 16:16
  melting ice cube story many times on many podcasts, and for
• 16:19
  good reason. It shouldn't be forgotten.
• 16:21
  This is the reason why Strategy will likely be one of the most
• 16:23
  successful companies for the foreseeable future because
• 16:26
  Sailor saw in Bitcoin a solution to his problem and now Strategy
• 16:30
  owns over 700,000 Bitcoin 700,000.
• 16:34
  Can you believe that banks are preparing for custody?
• 16:36
  Governments are reframing policy with the upcoming Clarity Act
• 16:40
  Corporations are experimenting with all kinds of different
• 16:42
  rails. MicroStrategy didn't front run
• 16:44
  the markets with Bitcoin. It escaped A failing system.
• 16:47
  So here's the clip notes of what might push you over the edge to
• 16:50
  start studying Bitcoin if you haven't already.
• 16:52
  If institutions are repositioning and banks are
• 16:55
  preparing, governments are reframing and capital keeps
• 16:59
  flowing in, then zero Bitcoin exposure is no longer neutral.
• 17:04
  It's freaking dangerous, man. The way to de risk this and the
• 17:08
  way to promote progress and growth is to go out and act on
• 17:12
  your principles. Don't be afraid.
• 17:14
  Listen, everyone's afraid of risk, but there's risk
• 17:17
  everywhere. You know what's riskier than
• 17:21
  buying Bitcoin? Not buying Bitcoin.
• 17:26
  What's riskier than buying Bitcoin is not buying Bitcoin.
• 17:30
  Right. It's a bet that this entire
• 17:32
  convergence reverses, and history doesn't really favor
• 17:37
  that bet. This isn't about Bitcoin
• 17:38
  winning, it's about the old system losing coherence.
• 17:41
  Saylor explained the mechanism. Dalio confirmed the fracture
• 17:44
  institutions are following the flow.
• 17:46
  The waterfall doesn't announce itself, it just keeps moving.
• 17:49
  Now, if you were to go beyond the headlines, price charts, and
• 17:52
  surface level Bitcoin takes that I just love to do, then you need
• 17:55
  to check out Club Orange, formerly the Orange Pill app.
• 17:58
  It's a Bitcoin only social network built to help you find
• 18:01
  real Bitcoiners near you, discover events and connect with
• 18:04
  merchants and communities that actually live this stuff Go to
• 18:08
  club orange today, download the app and DM me at Oceans Oshin.
• 18:12
  I read all my messages there and I look forward to hearing from
• 18:16
  you. Thank you very much for watching
• 18:17
  these videos and connecting with me on Club orange.
• 18:19
  Thank you so much for watching this video.
• 18:20
  If you like what you see and you want to see more, make sure you
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  hit that like button below or you could just leave a comment
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• 18:34
  This is beyond Bitcoin. Until next time.