WEBVTT - Michael Saylor

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<v Speaker 1>So, how's life in Miami. It's lovely here, all right,

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<v Speaker 1>you guys? Ready, okay, Hi everyone. I'm Emily Chang and

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<v Speaker 1>welcome to this edition of the Bloomberg Studio One Point podcast.

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<v Speaker 1>Today's guest is none other than one of the biggest

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<v Speaker 1>crypto bawls out there. He runs the company that owns

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<v Speaker 1>more bitcoin than any other company in the world, at

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<v Speaker 1>least as of the end. Also, he may well be

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<v Speaker 1>the longest running software CEO in history. Michael Sailor started

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<v Speaker 1>his career riding the dot com wave and saw that

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<v Speaker 1>bubble pop firsthand. Could crypto be another bubble waiting to burst?

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<v Speaker 1>Or is it the future? Joining me on this edition

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<v Speaker 1>of Bloomberg Studio at One Point, Oh, micro Strategy, Chairman

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<v Speaker 1>and CEO, Michael Sailor, micro Strategy. Holding all this bitcoin,

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<v Speaker 1>does it ever make you at all nervous? No, Actually,

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<v Speaker 1>it gives me great comfort. I don't really think we

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<v Speaker 1>could do anything better to position our company in an

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<v Speaker 1>inflationary environment than to convert our balance sheet to bitcoin,

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<v Speaker 1>because we basically built a balance sheet on a non

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<v Speaker 1>sovereign store of value that's not a currency derivative. Two

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<v Speaker 1>years ago, we were sitting on a bunch of cash,

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<v Speaker 1>and that cash was losing about ten percent of its

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<v Speaker 1>purchasing power a year. And then when COVID struck and

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<v Speaker 1>the FED took a more accommodated monetary policy, that cash

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<v Speaker 1>started losing of its purchasing power years. So my anxiety

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<v Speaker 1>was maximized around April May when we had the k

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<v Speaker 1>shape recovery and I realized that cash is trash. Everything's

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<v Speaker 1>about to get much more expensive, and we needed a strategy.

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<v Speaker 1>So we adopted a bitcoin strategy. It's driven up our

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<v Speaker 1>stock by a factor of five. You know, in my opinion,

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<v Speaker 1>it's saved the company from from a not very pleasant fate.

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<v Speaker 1>So I'm totally pleased with where we are today. Just Bitcoin,

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<v Speaker 1>none of those other thousands of cryptocurrencies. Look, bitcoin is

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<v Speaker 1>digital property. It's universally acknowledged as common property because that

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<v Speaker 1>at a fair distribution. No I c oh, no management team.

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<v Speaker 1>So Toshi disappeared. It's parap issue to a commodity, to land,

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<v Speaker 1>to gold, uh, and it's pretty important that that would

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<v Speaker 1>be deemed property. Um, the rest of the cryptos could

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<v Speaker 1>be securities. There's there's just a lot of of regulatory

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<v Speaker 1>overhanging question about whether their securities or not. And I

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<v Speaker 1>think that the great innovation is the creation of common

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<v Speaker 1>property in cyberspace. It took us thirteen years to get

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<v Speaker 1>to the point where that's universally acknowledged. So that makes

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<v Speaker 1>bitcoin the safe haven for a public investor or a

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<v Speaker 1>public company. Everything else feels more like either venture capital

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<v Speaker 1>or expect elation. Now you personally are and the Internet

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<v Speaker 1>can correct me if I'm wrong. The longest running software

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<v Speaker 1>CEO in history, you founded it in nine when you

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<v Speaker 1>were twenty four years old. What has this thirty two

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<v Speaker 1>year ride been like? You know, I learned a lot

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<v Speaker 1>of humility became public in so you know, now I've

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<v Speaker 1>been in public company CEO for many, many, many quarters.

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<v Speaker 1>I lived to see percent of my peers exit the business.

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<v Speaker 1>So I didn't really understand this at the time, but

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<v Speaker 1>now as I look back, what I realized is all

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<v Speaker 1>my peers exited the business because they're forced to grow

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<v Speaker 1>their top line in their cash flows at a frenetic rate,

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<v Speaker 1>and eventually they get undone by delutive acquisitions and then

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<v Speaker 1>they have to sell themselves. Micro strategy. We've been very fortunate,

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<v Speaker 1>We've been focused. We soldiered on and We've always had

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<v Speaker 1>a passion to make the best software we could and

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<v Speaker 1>uh and as our competitors disappeared, we found opportunities. You

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<v Speaker 1>grew up as an Air Force brat traveling around the world.

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<v Speaker 1>What kind of kid were you? Tell us about your

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<v Speaker 1>upbringing a young teenage, Michael, I read a lot of

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<v Speaker 1>science fiction. I read pretty much every science fiction book

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<v Speaker 1>by all the great science fiction writers. Probably two or

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<v Speaker 1>three times. I played Dungeons and Dragons. You know, before

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<v Speaker 1>we actually had these, UH, Wizard Warcraft and other games

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<v Speaker 1>on computers. We actually had to draw out the dragons,

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<v Speaker 1>and we had to write down what's in the dungeon,

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<v Speaker 1>and we had to construct our entire virtual world. So

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<v Speaker 1>so I think before computers, we used our imaginations to

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<v Speaker 1>create simulations and to exercise probability and distribution, and it

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<v Speaker 1>taught me a lot about practical statistics. My background led

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<v Speaker 1>me eventually to trip over a book by Robert heinel

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<v Speaker 1>and called Have Space Suit, Will Travel, where the protagonists

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<v Speaker 1>Gallivant's cross the universe, saves the human race from bug

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<v Speaker 1>eyed monsters, and for for his services to humanity, gets

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<v Speaker 1>a full tuition scholarship to m I T. And it's

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<v Speaker 1>stuck in my head that M I T was probably

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<v Speaker 1>a good place to go if you believed in engineering

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<v Speaker 1>and making the world a better place. You studied aeronautics,

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<v Speaker 1>I believe, and then you pivoted to tech and and

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<v Speaker 1>founded micro Strategy with one of your M I T

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<v Speaker 1>fraternity brothers. And the software basically provides business intelligence, helps

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<v Speaker 1>companies make sense of their data, so that, for example,

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<v Speaker 1>McDonald's could learn how many Big max it might sell

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<v Speaker 1>in a given night in Chicago. Is that right? Yeah.

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<v Speaker 1>The idea is to extract all of the data at

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<v Speaker 1>an atomic level, like every item sold, every every hour

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<v Speaker 1>of the day, and every store in the world, for

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<v Speaker 1>every McDonald's. What we discovered is the world's full of

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<v Speaker 1>companies that have billions of lines of data, and they're

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<v Speaker 1>trying to make sense of them. And they had to

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<v Speaker 1>extract those those sophisticated sets of data, compare them to

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<v Speaker 1>each other in order to make a decision about a

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<v Speaker 1>marketing campaign or a product launch, or even something as

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<v Speaker 1>simple as how many items should I have on each

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<v Speaker 1>store shelf. And it's worth a lot of money to

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<v Speaker 1>get it right, and if you get it wrong, you

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<v Speaker 1>find out that you don't have the products you need

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<v Speaker 1>when people want to buy those things, and it costs

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<v Speaker 1>you a lot of money. So we were in the

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<v Speaker 1>right place at the right time. There, you've witnessed some

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<v Speaker 1>serious roller coasters. You saw that dot com bubble blow

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<v Speaker 1>up and burst before your eyes. What lessons have you

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<v Speaker 1>taken away from that that informs your strategy today? I

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<v Speaker 1>would boil it down to this stoic observation. Right, you

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<v Speaker 1>can acquire a thing, but you know, can you maintain

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<v Speaker 1>the thing? And if you can maintain the thing, can

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<v Speaker 1>you enjoy the thing? And what I discovered is a

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<v Speaker 1>lot of people acquire things they can't maintain and a

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<v Speaker 1>lot of things people can maintain things, but they can't

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<v Speaker 1>ever enjoy. And so you want to boil it down

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<v Speaker 1>to another metaphor, it's laser focus. You have to figure

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<v Speaker 1>out what you are the best in the world at

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<v Speaker 1>and what you can continue to be the best at

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<v Speaker 1>the world at in the face of unrelenting, exponentially increasing competition.

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<v Speaker 1>And once you figure out what that is, focus on

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<v Speaker 1>it with all of your resolve. And if you do that,

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<v Speaker 1>then you can stay in business. Uh. You know that

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<v Speaker 1>That's the first thing I learned. That's why I have

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<v Speaker 1>laser eyes on Twitter. The whole point of laser eyes

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<v Speaker 1>is you've got to you've got a solution. Focus on

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<v Speaker 1>the solution. Don't get distracted by all of your good

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<v Speaker 1>ideas and allow it to dilute your focus on your

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<v Speaker 1>great idea. You're listening to the Bloomberg Studio At one

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<v Speaker 1>point o podcast with micro Strategies at Michael Sailor up

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<v Speaker 1>next about this crypto winter. Is he feeling the cold?

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<v Speaker 1>Sailor shares his predictions for where the bitcoin market or

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<v Speaker 1>roller coaster is going next. Stay with us. The decision

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<v Speaker 1>to bet on bitcoin to acquire the thing. Would you

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<v Speaker 1>say that's your phoenix moment? I would say it probably is.

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<v Speaker 1>I never said it like I thought about it like that,

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<v Speaker 1>but I feel like, uh, most of my life was

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<v Speaker 1>leading up to this point. And I understood the power

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<v Speaker 1>of dominant digital networks like Google and Facebook and Amazon

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<v Speaker 1>and Apple because I wrote that for a decade. I

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<v Speaker 1>also understood the detriment of not being that dominant network.

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<v Speaker 1>Micro strategy comp eats against Microsoft. We compete against companies

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<v Speaker 1>a hundred times as big as us. When we got

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<v Speaker 1>to what I saw was the winning strategy is digital

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<v Speaker 1>transformation a view of the dominant network. The losing strategy

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<v Speaker 1>is to continue to work, to work harder and exponentially

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<v Speaker 1>harder for a currency growing exponentially weaker. And I had

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<v Speaker 1>a sense of the consequences if we did nothing, because

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<v Speaker 1>I had seen the demise of of my competitors and

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<v Speaker 1>I could see where we were headed. If we stuck

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<v Speaker 1>with the status quo, we would have to either adopt

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<v Speaker 1>a bitcoin strategy or sell the company. And we uh,

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<v Speaker 1>and we elected to pursue bitcoin. What was the reaction

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<v Speaker 1>from from investors, from other CEO CFOs when you put

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<v Speaker 1>bitcoin on your balance sheet in such a big way

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<v Speaker 1>Compared to the way they're reacting now, you know, uh,

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<v Speaker 1>many people didn't really understand bitcoin very well. They haven't

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<v Speaker 1>taken the time to focus on it. Even today, I

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<v Speaker 1>would say that of the population hasn't spent ten hours

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<v Speaker 1>thinking hard about bitcoin, so so uh in the year,

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<v Speaker 1>I think most people are just ignoring it. Um they

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<v Speaker 1>really it wasn't really registering with them, maybe one per cent.

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<v Speaker 1>I think that when we talk to our investors, what

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<v Speaker 1>was interesting is privately, most investors were aware of bitcoin

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<v Speaker 1>and they thought it was a good idea publicly. Their

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<v Speaker 1>institutions that they're part of our have a three to

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<v Speaker 1>five year um time lag from the point at which

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<v Speaker 1>they can adopt new ideas. So about this possible winter,

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<v Speaker 1>are you really not feeling the cold? Um? Look, if

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<v Speaker 1>you're going to invest in bitcoin, a short time horizon

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<v Speaker 1>is four years, a midtime horizon is ten years. The

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<v Speaker 1>right time horizon is forever. You know, Warren Buffett said,

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<v Speaker 1>you know, if you wouldn't hold it for ten years,

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<v Speaker 1>you shouldn't hold it for ten minutes. So if you

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<v Speaker 1>look at the course of four years, no one's ever

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<v Speaker 1>lost money over four years holding bitcoin. And and if

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<v Speaker 1>you look at you know, our experience. We started buying

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<v Speaker 1>it at ten thousand dollars and now it's up by

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<v Speaker 1>a factor of four. So so given the right time horizon,

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<v Speaker 1>you're fine. So it's a blessing and a curse. The

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<v Speaker 1>blessing is it makes it the most exciting, interesting thing

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<v Speaker 1>in the financial universe everywhere in the world. And the

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<v Speaker 1>curses it can induce anxiety for people that have a

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<v Speaker 1>short attention span or or are focused on a narrow

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<v Speaker 1>time horizon. What do you think, then, is behind this

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<v Speaker 1>early crash. I think that UM. There's a lot of

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<v Speaker 1>dynamics here. If you look at the entire crypto ecosystem,

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<v Speaker 1>you have UM. You have a set of regulatory uncertainty,

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<v Speaker 1>especially regulatory uncertainty around stable coins and crypto tokens UH

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<v Speaker 1>and whether or not their securities, and that creates a

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<v Speaker 1>little bit of anxiety. You have a lot of leverage offshore,

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<v Speaker 1>right You have a lot of crypto exchanges that can

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<v Speaker 1>trade with up to twenty x leverage, and those crypto

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<v Speaker 1>exchanges have many many tokens that are cross collateralized, and

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<v Speaker 1>between them and the DeFi exchanges, you can get much

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<v Speaker 1>higher than twenty x leverage. So that's the second source

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<v Speaker 1>of volatility. The crypto markets are almost designed to encourage volatility,

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<v Speaker 1>and that creates kind of a love hate relationship between

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<v Speaker 1>the crypto ecosystem and the bitcoin hoddlers. The bitcoin hoddlers

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<v Speaker 1>are holding for you know, a decade, you know, and

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<v Speaker 1>and sometimes for a hundred years and sometimes for a

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<v Speaker 1>thousand years. And yet you've got fast money hedge funds

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<v Speaker 1>that have a tax incentive, a huge amount of leverage,

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<v Speaker 1>and massive volatility. But you have two totally different investment

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<v Speaker 1>mental at ease here and when they come together. The

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<v Speaker 1>result is you've got, in my opinion, the world's least

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<v Speaker 1>risky asset to hold over the next century called bitcoin,

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<v Speaker 1>and you've got the world's most volatile fast money market

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<v Speaker 1>you know, called crypto. And they're both conjoined, joined at

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<v Speaker 1>the hip for better for worse in the year. So

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<v Speaker 1>clearly our hold alert. But for the people who are terrified,

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<v Speaker 1>who have never been on this roller coaster before, shorter term,

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<v Speaker 1>what does the trajectory of bitcoin look like to you

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<v Speaker 1>this year? I feel like it's consolidated this level. This

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<v Speaker 1>is a great entry point for institutional investors I talked to.

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<v Speaker 1>I talked to high net worth individuals, family offices, public

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<v Speaker 1>company executives, private company owners, and they watch bitcoin run

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<v Speaker 1>up in one and there are a lot of people

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<v Speaker 1>that would be afraid to own it if it was

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<v Speaker 1>going up four percent a year, But if they're staring

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<v Speaker 1>at it and it's and off the all time high,

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<v Speaker 1>and it's consolidating, and they see that as being embraced

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<v Speaker 1>by people like Bill Miller, by very well respected investors.

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<v Speaker 1>It's being embraced by the regulators, it's being embraced by

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<v Speaker 1>senators and congressmen and public investors and public companies they're

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<v Speaker 1>looking at. This is like a good entry point I'd

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<v Speaker 1>ever miss, Emily not to make a more important point,

0:14:24.080 --> 0:14:27.160
<v Speaker 1>which is what's really going on here at the macro

0:14:27.360 --> 0:14:32.520
<v Speaker 1>level is inflation. The CPI headline inflation is seven percent.

0:14:32.840 --> 0:14:37.440
<v Speaker 1>Look at the Turkish lira, it's collapsing. The paco is collapsing.

0:14:37.960 --> 0:14:42.600
<v Speaker 1>So there's a volatility story. For a conventional investor in

0:14:42.760 --> 0:14:48.000
<v Speaker 1>Manhattan that's got a portfolio of equities, but the world

0:14:48.120 --> 0:14:54.600
<v Speaker 1>can't buy the SMP index there in Africa, Asia, South America,

0:14:55.280 --> 0:14:58.400
<v Speaker 1>and if they've got their assets and banks, they're going

0:14:58.440 --> 0:15:01.760
<v Speaker 1>to have them seized. I can't buy the equity. So

0:15:01.920 --> 0:15:05.680
<v Speaker 1>the real story here is digital property that solves a

0:15:05.760 --> 0:15:09.240
<v Speaker 1>problem that eight billion people face. The big question is

0:15:09.320 --> 0:15:12.960
<v Speaker 1>then are you going to buy more? Yes or no? Yeah,

0:15:13.080 --> 0:15:16.800
<v Speaker 1>we're gonna buy more. You know, we're buying more with

0:15:16.840 --> 0:15:20.960
<v Speaker 1>our cash flows. We've adopted a bitcoin standard, Emily. That

0:15:21.000 --> 0:15:24.320
<v Speaker 1>means that when we generate cash, we sweep it into bitcoin.

0:15:24.400 --> 0:15:27.800
<v Speaker 1>We've been generating you know, anywhere from seventy to a

0:15:27.880 --> 0:15:31.400
<v Speaker 1>hundred million dollars of cash flow. So we will also

0:15:32.040 --> 0:15:35.560
<v Speaker 1>buy bitcoin with debt. We bought bitcoin with one point

0:15:35.600 --> 0:15:39.840
<v Speaker 1>seven billion dollars worth a convertible debt. We bought bitcoin

0:15:39.880 --> 0:15:43.760
<v Speaker 1>with a five hundred million dollar senior secured note that

0:15:43.880 --> 0:15:46.560
<v Speaker 1>we pay six and an eight percent interest on. We

0:15:46.680 --> 0:15:49.720
<v Speaker 1>also issued a billion dollars worth of equity at the

0:15:49.800 --> 0:15:52.680
<v Speaker 1>market and we converted it all in the bitcoin. So

0:15:52.800 --> 0:15:58.160
<v Speaker 1>combinations of cash flow, equity, debt, potentially through other partnerships.

0:16:08.000 --> 0:16:09.840
<v Speaker 1>This is Bloomberg Studio. At one point, oh with micro

0:16:09.880 --> 0:16:13.680
<v Speaker 1>Strategy founder and CEO Michael Sailor, he promised to host

0:16:13.720 --> 0:16:17.120
<v Speaker 1>a yacht party when bitcoin hit one thousand dollars. When

0:16:17.120 --> 0:16:19.120
<v Speaker 1>does he think that will be? And what kind of

0:16:19.160 --> 0:16:23.040
<v Speaker 1>regulation is he planning for ahead? That's next. This is

0:16:23.040 --> 0:16:39.840
<v Speaker 1>Bloomberg Studio. At one point out you promised to host

0:16:39.920 --> 0:16:42.680
<v Speaker 1>a yacht party when bitcoin got to a hundred thousand.

0:16:42.920 --> 0:16:46.320
<v Speaker 1>When do you think that will be the hundred k party?

0:16:47.080 --> 0:16:50.480
<v Speaker 1>You know, when I did that interview, it was the

0:16:50.680 --> 0:16:55.120
<v Speaker 1>fall like of and I think bitcoin is training at

0:16:55.120 --> 0:16:59.480
<v Speaker 1>fifteen thousand and and uh, you know, John Vallez wrope

0:16:59.520 --> 0:17:01.560
<v Speaker 1>me and he said will you host the hunter k party?

0:17:01.560 --> 0:17:03.880
<v Speaker 1>And I said, well, sure I will. There was no

0:17:03.920 --> 0:17:06.399
<v Speaker 1>doubt in their mind the party is coming quite soon.

0:17:06.680 --> 0:17:10.960
<v Speaker 1>I was just amazed at the confidence of bitcoiners. Um,

0:17:11.000 --> 0:17:14.399
<v Speaker 1>I don't have a price target for when it's gonna happen.

0:17:15.240 --> 0:17:19.800
<v Speaker 1>What I learned is laser focus stuff takes time. I'm

0:17:19.840 --> 0:17:23.280
<v Speaker 1>comfortable with us working through this year over year. I

0:17:23.280 --> 0:17:26.840
<v Speaker 1>don't I don't need instant overnight success. What kind of

0:17:26.880 --> 0:17:29.520
<v Speaker 1>regulation are you anticipating? Which way do you think the

0:17:29.560 --> 0:17:37.440
<v Speaker 1>Washington winds are blowing. There's a profound shared appreciation that uh,

0:17:37.640 --> 0:17:41.480
<v Speaker 1>digital assets are the future of the financial industry in

0:17:41.520 --> 0:17:44.919
<v Speaker 1>the United States needs to lead and I've been pretty

0:17:44.960 --> 0:17:48.440
<v Speaker 1>impressed at the support in the Senate, in Congress, from

0:17:48.440 --> 0:17:51.960
<v Speaker 1>the administration, and from regulators all around the world for

0:17:52.359 --> 0:17:55.760
<v Speaker 1>this entire crypto economy and in the use case as

0:17:55.840 --> 0:17:59.480
<v Speaker 1>digital property. I think that the regulatory treatment is pretty clear.

0:18:00.560 --> 0:18:02.880
<v Speaker 1>If you sell it at a profit, you lower capital

0:18:02.920 --> 0:18:06.159
<v Speaker 1>games on it, just like if you sold any other property.

0:18:06.359 --> 0:18:10.160
<v Speaker 1>I think that with regard to the cryptocurrencies, the stable

0:18:10.240 --> 0:18:14.040
<v Speaker 1>coins like tether and circle, they're going to be regulated

0:18:14.080 --> 0:18:17.520
<v Speaker 1>as currencies. Clearly, the administration wants to see f d

0:18:17.680 --> 0:18:21.040
<v Speaker 1>i C approved and ensured banks issue them, so I

0:18:21.080 --> 0:18:24.840
<v Speaker 1>think that they we're gonna see the banking sector enter

0:18:24.880 --> 0:18:28.480
<v Speaker 1>into the stable coin market. UM. I think that many

0:18:28.520 --> 0:18:31.600
<v Speaker 1>other cryptos are deemed as securities and will be deemed

0:18:31.600 --> 0:18:34.760
<v Speaker 1>as securities, and they're gonna be regulated as securities. I

0:18:34.800 --> 0:18:37.600
<v Speaker 1>think that the marketplace is waiting to see what those

0:18:37.640 --> 0:18:42.000
<v Speaker 1>expectations will be. And I think it's pretty clear that, um,

0:18:42.040 --> 0:18:44.520
<v Speaker 1>the writing is on the wall with regard to crypto exchanges,

0:18:44.640 --> 0:18:47.159
<v Speaker 1>right the SEC wants them to be to abide by

0:18:47.240 --> 0:18:51.119
<v Speaker 1>the principles and the rules of national securities exchanges, and

0:18:51.160 --> 0:18:54.879
<v Speaker 1>they've said that in the spot et F denial letter

0:18:55.080 --> 0:18:58.400
<v Speaker 1>that they wrote and on several occasions. So I think

0:18:58.440 --> 0:19:01.800
<v Speaker 1>the regulation is coming to exchanges. I think regulation is

0:19:01.840 --> 0:19:06.560
<v Speaker 1>coming to security token, to the crypto security tokens. I

0:19:06.600 --> 0:19:09.240
<v Speaker 1>think it's I think that with regard to stable coins,

0:19:09.240 --> 0:19:11.600
<v Speaker 1>this is gonna be a good thing. Right now, the

0:19:12.600 --> 0:19:15.640
<v Speaker 1>stable coin market is maybe a hundred and seventy billion

0:19:15.680 --> 0:19:19.720
<v Speaker 1>dollars all in. It's grown dramatically, but the truth is

0:19:19.760 --> 0:19:22.720
<v Speaker 1>there's a demand for trillions of dollars of US dollar

0:19:22.800 --> 0:19:26.639
<v Speaker 1>stable coins, and the reason that that entire market hasn't

0:19:26.640 --> 0:19:30.000
<v Speaker 1>grown by an order of magnitude is because companies like

0:19:30.080 --> 0:19:35.200
<v Speaker 1>Amazon and Microsoft and government agencies aren't going to move

0:19:35.359 --> 0:19:39.040
<v Speaker 1>billions of dollars of stable coins around unless they feel

0:19:39.040 --> 0:19:43.679
<v Speaker 1>comfortable that Treasury and Administration endorses them. And when we

0:19:43.760 --> 0:19:46.240
<v Speaker 1>see f d i S approved banks, when you see

0:19:46.240 --> 0:19:48.520
<v Speaker 1>a JP Morgan issue a stable coin, you may see

0:19:48.520 --> 0:19:51.679
<v Speaker 1>a trillion dollars worth of that. And let me just

0:19:51.760 --> 0:19:56.120
<v Speaker 1>characterize the entire movement. This is a rotation from an

0:19:56.440 --> 0:20:02.399
<v Speaker 1>entrepreneurial driven industry to an institution to really driven industry.

0:20:02.520 --> 0:20:06.200
<v Speaker 1>And we're sitting at this point where we're crossing the chasm.

0:20:06.240 --> 0:20:09.280
<v Speaker 1>And the question is which and which entrepreneurs will be

0:20:09.359 --> 0:20:15.160
<v Speaker 1>institutionalized income public and and get the appropriate regulatory licenses,

0:20:15.680 --> 0:20:19.600
<v Speaker 1>Which existing institutions will choose to enter the market, Which

0:20:19.640 --> 0:20:22.280
<v Speaker 1>banks like the silver Gate banks of the world will

0:20:22.359 --> 0:20:26.200
<v Speaker 1>enter the market, and then um, there will be a shakeout.

0:20:26.400 --> 0:20:31.480
<v Speaker 1>And obviously crypto currencies are not going to be around

0:20:31.520 --> 0:20:33.439
<v Speaker 1>here in a decade. You're going to see many of

0:20:33.480 --> 0:20:36.399
<v Speaker 1>these things go away as the industry shakes out and

0:20:36.440 --> 0:20:39.120
<v Speaker 1>as it matures. All right, well, you let me write

0:20:39.119 --> 0:20:41.159
<v Speaker 1>to our lightning round. So I want to do some

0:20:41.280 --> 0:20:44.240
<v Speaker 1>rapid fire questions here, just looking for quick short answers.

0:20:44.720 --> 0:20:46.760
<v Speaker 1>Top three tips for people who want to get into

0:20:46.760 --> 0:20:49.800
<v Speaker 1>crypto but don't know where to start. You know, you

0:20:49.840 --> 0:20:54.640
<v Speaker 1>should educate yourself first and uh, and you shouldn't really

0:20:54.680 --> 0:20:58.920
<v Speaker 1>do anything. And until you have a firm conviction, then

0:20:59.240 --> 0:21:03.840
<v Speaker 1>do your dilage ends, be very thoughtful about which vendors

0:21:03.840 --> 0:21:06.879
<v Speaker 1>that you work with and and how you move forward.

0:21:06.880 --> 0:21:11.080
<v Speaker 1>And then third, take a long, a long time arizon.

0:21:11.320 --> 0:21:16.000
<v Speaker 1>Bitcoin is digital property, digital energy, or digital gold. You

0:21:16.040 --> 0:21:19.639
<v Speaker 1>have to pick one. Bitcoin is digital energy and it

0:21:19.720 --> 0:21:23.160
<v Speaker 1>is the future of the Internet Web two point oh

0:21:23.359 --> 0:21:26.960
<v Speaker 1>or three point oh? What do you think? I think?

0:21:27.520 --> 0:21:31.360
<v Speaker 1>You know? They're all marketing phrases. If you actually put

0:21:31.359 --> 0:21:34.520
<v Speaker 1>a layer of digital energy or in this case, wraps

0:21:34.560 --> 0:21:38.879
<v Speaker 1>stoss around your persona as you navigate through cyberspace, you

0:21:38.920 --> 0:21:42.000
<v Speaker 1>can completely eliminate all the things that plague us in

0:21:42.040 --> 0:21:45.359
<v Speaker 1>the Internet. The next Internet, the next version the Internet

0:21:45.840 --> 0:21:50.080
<v Speaker 1>is a layer of digital energy wrapped around digital information.

0:21:50.480 --> 0:21:56.800
<v Speaker 1>Quick one m favorite chess move? What is it? Um?

0:21:56.880 --> 0:22:01.280
<v Speaker 1>I guess the queen's gambit as an opening? Okay, um,

0:22:01.320 --> 0:22:05.040
<v Speaker 1>I hear you like routines. What is your daily routine?

0:22:04.800 --> 0:22:11.119
<v Speaker 1>I scan the news, I tweet, hopefully something inspirational and

0:22:11.200 --> 0:22:16.600
<v Speaker 1>constructive and cheerful to the entire bitcoin community. I hit

0:22:16.640 --> 0:22:21.119
<v Speaker 1>the gym, get in some daily exercise, and then I

0:22:21.200 --> 0:22:27.200
<v Speaker 1>take a round of meetings, either business meetings or podcast

0:22:27.400 --> 0:22:31.320
<v Speaker 1>or something, work through a bunch of business issues. When

0:22:31.320 --> 0:22:32.720
<v Speaker 1>do you look at the price? Is that the first

0:22:32.800 --> 0:22:35.800
<v Speaker 1>or second thing? Sometimes? Some days I don't look at

0:22:35.840 --> 0:22:38.359
<v Speaker 1>the price, some days I do. Mostly I just I

0:22:38.520 --> 0:22:41.520
<v Speaker 1>just look to see the mood so I so I

0:22:41.560 --> 0:22:44.399
<v Speaker 1>can read the room and figure out what's appropriate and

0:22:44.440 --> 0:22:50.520
<v Speaker 1>constructive to say in order to drive the narrative forward.

0:22:50.800 --> 0:22:53.840
<v Speaker 1>You mentioned Twitter, Your Twitter evolution is kind of epic,

0:22:53.880 --> 0:22:55.520
<v Speaker 1>and I've got a recent tweet. We've just got a

0:22:55.520 --> 0:22:57.480
<v Speaker 1>minute left I want to read back to you. Um.

0:22:57.800 --> 0:23:00.600
<v Speaker 1>Bitcoin is a swarm of cyber horn. It's serving the

0:23:00.600 --> 0:23:04.560
<v Speaker 1>Goddess of wisdom, feeding on the fire of truth, exponentially

0:23:04.600 --> 0:23:08.679
<v Speaker 1>growing ever, smarter, faster, and stronger behind a wall of

0:23:08.840 --> 0:23:13.000
<v Speaker 1>encrypted energy. What's the goal here with these tweets? Where

0:23:13.000 --> 0:23:16.439
<v Speaker 1>are you going with that? I tweeted that once I

0:23:16.640 --> 0:23:20.159
<v Speaker 1>fully grasp what's going on with bitcoin. Bitcoin is a descent.

0:23:20.520 --> 0:23:25.000
<v Speaker 1>Is a decentralized network, which means that there are hundred

0:23:25.119 --> 0:23:28.400
<v Speaker 1>million plus people out there that are supporters of bitcoin.

0:23:28.800 --> 0:23:31.919
<v Speaker 1>There are millions and millions of nodes. It is a

0:23:32.040 --> 0:23:37.320
<v Speaker 1>swarm creature right, It's a chain reaction in cyberspace. And

0:23:37.359 --> 0:23:41.880
<v Speaker 1>once you understand that that bitcoin is a chain reaction

0:23:41.920 --> 0:23:46.600
<v Speaker 1>in cyberspace, it changes your view of the asset and

0:23:46.680 --> 0:23:48.439
<v Speaker 1>your view of the world, in your view of the future.

0:23:49.359 --> 0:23:52.400
<v Speaker 1>So what does keep you up at night, Michael, I mean,

0:23:52.720 --> 0:23:54.959
<v Speaker 1>you have to think about the risks. What do you

0:23:55.000 --> 0:23:58.480
<v Speaker 1>worry about? It can't be bitcoin sunshine and rainbows in

0:23:58.520 --> 0:24:02.760
<v Speaker 1>Miami every day. The truth is, I'm much more comfortable

0:24:02.800 --> 0:24:05.480
<v Speaker 1>today than any point in my business career because I

0:24:05.520 --> 0:24:10.280
<v Speaker 1>feel like we have found the right strategy at micro Strategy, right,

0:24:10.640 --> 0:24:16.080
<v Speaker 1>the Bitcoin standard strategy. And you know, I'm I'm happier

0:24:16.960 --> 0:24:19.040
<v Speaker 1>going to bed every night than ever have been because

0:24:19.040 --> 0:24:21.200
<v Speaker 1>I have a mission and my mission is to educate

0:24:21.240 --> 0:24:23.679
<v Speaker 1>the world on bitcoin and I think I can do

0:24:23.720 --> 0:24:27.120
<v Speaker 1>a lot of good doing that and the world has

0:24:27.119 --> 0:24:30.280
<v Speaker 1>a need. So nothing really keeps me up at night.

0:24:30.760 --> 0:24:33.600
<v Speaker 1>I'm more motivated than ever. I think that's a great

0:24:33.960 --> 0:24:37.080
<v Speaker 1>place to end it. Michael Saylor, founder and CEO of

0:24:37.160 --> 0:24:39.960
<v Speaker 1>micro Strategy, Thank you for joining us. I'm so glad

0:24:39.960 --> 0:24:42.880
<v Speaker 1>we had some extended time today. I appreciate you taking

0:24:42.920 --> 0:24:56.080
<v Speaker 1>the time. Thank you. Emily Bloomberg Studio at One Point

0:24:56.080 --> 0:24:58.960
<v Speaker 1>I was produced and edited by Lauren Ellis and Matt Soto,

0:24:59.160 --> 0:25:03.480
<v Speaker 1>with special help Mallory Abelhausen, Tiffany Perez, and Margarite Gallerini.

0:25:03.960 --> 0:25:07.280
<v Speaker 1>I'm Emily Chang, your host and executive producer. We've got

0:25:07.359 --> 0:25:10.080
<v Speaker 1>a great year of shows coming up, so please subscribe

0:25:10.080 --> 0:25:12.359
<v Speaker 1>and leave us a review and check out some of

0:25:12.400 --> 0:25:15.399
<v Speaker 1>our recent episodes, including my chat with Alphabet and Google

0:25:15.480 --> 0:25:19.760
<v Speaker 1>CEO Sundar Pichai and YouTube CEO Susan Wijetski. And from

0:25:19.800 --> 0:25:23.760
<v Speaker 1>the crypto world Ethereum creator Vitalic Bututerin and coin Based

0:25:23.760 --> 0:25:26.800
<v Speaker 1>co founder fred Urson. Find it all in the Studio

0:25:26.880 --> 0:25:43.720
<v Speaker 1>one Point Oh Library