how big of a victory was when you talked about the Red Wave when Trump won and how different would the climate be today Bitcoin right now is at what 90 91,000 92,000 89,000 whatever the number is how 90,000 711 7-Eleven how different would it have been if it was a Kamala Victory I think if you look at um the difference between a red wave and a Blue Wave uh I'll take the Blue Wave first if it had been a Blue Wave Bitcoin would grind up plus 20 20 25% 30% against resistance and the rest of the digital assets industry would degrade down 20% okay like every digital exchanges digital tokens digital Securities digital currencies they would degrade and Bitcoin would grind up and uh there would be that tension that you see right now for the last four years where Bitcoin is grudgingly accepted you know under protest but and the other ones are are being attacked all the time but I think uh the Red Wave was the the headwind becomes a Tailwind Bitcoin surges up not plus 20 but maybe plus 50 or plus 60 I think you know we go we go from that to this and then the digital assets industry goes from degrading down to surging up you know it goes from minus 20 to now it's coming back now there's a little bit more uncertainty with digital assets because we got to wait till next year to figure out what the the framework will be but basically the polarity got switched from negatively polarized on the entire digital assets economy to positive with the red wave and I think you just got to have a much more bullish view toward growth and prosperity and innovation in the next four years than you would have had in a Blue Wave okay so what do you think it's going to be by the end of trump give or take H if you're saying in by in 21 years it would be 13 million you're saying it would be at 100,000 by the end of the year what do you think it'll be by 202 you know I got I got a Bitcoin 24 model that's actually published on GitHub you can Google it and if you Google it you can download it and then you can crank in your assumptions and see our base case assumptions and I think my base case assumptions and and it actually spits out the price of Bitcoin every year and to tell you the truth I don't have the top of my off the top of my head I don't have the exact number for the end of 28 but I could tell you basically the model says it's like 55 growth to 52 to 50% a year got it so it's like 50 to 45% growth a year for the next four years and that's like doubling every 18 months or less than 18 months in that range I got it I got it so roughly 350 is you know if we were to say 3 to $400,000 that's about the number I I wouldn't be surprised you wouldn't be surprised if it it'sit a number like that but because you're long-term you really don't care what it is you're you're con you're you're playing 21 years you're not playing four years no I'm like I'm in it forever and all your clients how do you sell them on being in it forever how do you sell them if you're talking to me on the phone I'm like Michael you want me to do what you mean my customers are my investors customers yeah well the the the customers of the software company they're getting micro strategy software they're delighted inv software let me rephrase that investors investors yeah okay well the investors are investing in the company because they want uh more Bitcoin they don't want Bitcoin performance they want to invest in a stock to outperform Bitcoin so we are a Bitcoin treasury company and the way to think about us is if you just want straight Bitcoin exposure you buy ibit from Black Rock and and that's like overnight deposits I'm putting I'm buying you know a million dollars of Bitcoin and if Bitcoin goes at 50% a year I'm getting 50% a year and I'm getting the downside and the upside um micro strategy will sell you bonds we're basically the leading issuer Bitcoin back Bonds in the market so what if you wanted the upside of Bitcoin without the downside I you know I want like 75% of The Upside but but no downside or or something like that you buy the convertible Bond and so a lot of investors of ours are Bond holders and what they want is low risk low volatility Bitcoin and you can do that through those fixed income instruments and then the equity holders they want high voltage Bitcoin they want 1. 5x or 2x Bitcoin and so you can imagine when I give someone half to return a Bitcoin in the bond I can give the I can give the difference to the equity holder so I'm stripping the risk and the ball and the performance off of the bonds I'm handing it to the equity holder and um then you've got derivatives and the options guys they want 10x leverage and they want 10x long and 10x short so ultimately you've got different classes of in investors you've got the 10x short the 10x long the 3x there's actually two uh two interesting ETFs mstu and mstx okay I think mstu went from like nothing to2 billion dollar in AUM in three weeks and mstx last I checked out a billion so imagine an ETF that siphons up two to three billion dollars of capital in like a few weeks no marketing and what they offer you is 2x micro strategy exposure so when I think about it I'm like well if we're hitting if mstr is 1. 5x Bitcoin then those things are 3x Bitcoin and then the other bonds are like 7 75% of Bitcoin what we're really doing is we're refining uh this crude capital I use the analogy of a of Standard Oil or Refinery you put crude oil in one side of the refinery and out comes kerosene gasoline you know and and and asphalt and of course you put kerosene in the jet engine but you don't put crude oil in and so what people want is they want refined petrochemical products or you could think of us as a Transformer I want high voltage power and I also want low voltage power for my daughter's hairdryer and you're like well you know you're losing a you know if I put low voltage in a battery and I put it in my little kids toy it's very inefficient there's a massive markup in it but the point is the family wants batteries for the kids toys they don't want to electrocute Junior right so what we're doing is providing low voltage Bitcoin high voltage Bitcoin and the only way to do that is to have a 100% Bitcoin balance sheet because I have to have the 30 billion of Bitcoin to sell you the $3 billion of bonds that are 10x over collateralized that also give you the return of Bitcoin and the and the frequency of Bitcoin you know half of this is the return but the other half is the volatility the reason those instruments have value is because they're volatile because I can Arbitrage them and sell the volatility so a lot of times people think volatility is a bad thing but I but I would say it's like radioactivity and heat and a lot of people are afraid of a fire and they're afraid of radioactivity but you can't have nuclear power without radioactivity and you can't have an internal combustion engine without a fire and so micro strategies put this crypto reactor in the middle of the company and because we have that high volatility high energy reactor and we're it's like people are like aren't you going to diversify it that's like taking this water and pouring it on the fire of course I'm not going to diversify it like I give you fire you're freezing to death and the first thing you could think to do is throw water on it right so we're actually uh running the reactor and that's our that is really our unique value proposition to all those investors and they can't get it and except from a public company that's 100% committed to bitcoin let me ask uh there's rumors going on that the CEO of xrp met with uh uh Trump right a ripple I think there's a rumor Rob if you want to pull it up if there's something like that I thought I saw something did Ripple Co meet with Trump critics remark fuel xrp Surge and speculation Co Brad Garling house remarks amid xrp Surge and a fuel speculation Trump talk so if musk is in there musk you know my you I may be wrong musk Is MeMe coins musk is Doge musk is crypto musk is Bitcoin for the most part he's open to the idea he's not specific to one thing the the community with xrp right now in Ripple has anything with your position with ripple change since the last time you and I were together yeah what I say today is it's clear we have a pro crypto president they're all in on crypto they're all in on bitcoin they're Progressive they're all about freedom and and freedom means you know the 20th Century Security regime was you got to spend $40 million on compliance to bring a company public but what if I only want to raise 4 million in capital how does it make sense that I got to spend 40 million on insurance in order to take a $4 million risk so I I think actually when we come come January uh depending upon who runs the SEC I think you'll have a pro a pro- digital ass SEC a pro digital assets treasury a pro digital assets White House a pro digital House and Senate now if you want the crypto industry to grow and prosper in the United States you need a digital assets framework that is ethically sound technically sound economically sound and that means this is a digital commodity this is a digital security this is a digital token this is a digital currency this is a digital nft this is a digital ABT asset back token if you define all those and and I did by the way in my keynote at caner Fitz jeral last Thursday which has gone viral I said here is your digital asset classes now we need The Regulators to to give us that framework tell us how I issue how I operate how I own how I trade and and if they do that well I think actually um we're going to see a mass massive explosion in digital Assets in this country there's no reason why half the equity on the NASDAQ can't start trading digitally why not Apple stock trade digitally 247 365 why not you know why not Katy Perry issue a ktie Perry token if she wants it's not an it's not an or how about Joe or how about your company pbd why can't you actually go public and issue your own digital security or digital token there ought to be ethical way to do it you're not I think that the law ought to be simpler it ought to be just don't lie cheat and steal right like if we go back to this right if if you believe in free markets the free market view would be I'm going to give people a way to do these things and just remind them don't lie cheat and steal I'm going to give them uh um a practical legal framework if you do that I think you've got there's 400,000 big companies that are private there's 400 million companies and I think the note that I made last week is .
6% of the businesses in America are able to tap the capital markets and so we we have a crushing over regulated Capital Market regulatory regime that started in 1933 and I think that uh you need an alignment of the White House the Senate and the house to put in place a freedom Innovation oriented digital economy so I would say right now I'm I'm fairly bullish it'll happen I think they want to do it and I think that you know again I wouldn't I don't recommend any particular security or any particular investment other than Bitcoin but I do think that it's better for the world if we have hundreds of thousands of digital assets created launched and I I'd like to see the industry go from a trillion dollars of digital assets to$ 500 trillion dollar of digital assets that tokenized could there come a time where you're Pro rippled and maybe even to the point that you recommend clients to it is there a possibility I I'm Bitcoin only 100% like the truth is I wouldn't even recommend Apple stock like I there's no there's no security I'm not going to recommend 0% chance yeah like I wouldn't recommend a security because that's there's a counterparty to a security but but the the position is like it's if you came public and you had your own security or token or whatever you had I wouldn't recommend you either but it's not because I'm not in favor of your business I just think that I think that uh you have to stay in your lane right I'm not going to give you recommendations on diet or politics or any particular investment other than to say I think Bitcoin is digital capital and it's a long-term store of value and so so having said it though I'm very much in favor of digital I would like to see digital currencies digital tokens digital nfts digital abts that are commercialized in an ethically sound economically sound technically sound fashion I think that's reasonable for store for storing purposes Bitcoin but how about transaction when it comes on to because the argument typically will be made for the transaction on how it is with Bitcoin I I think that um there's a massive opportunity for digital currencies and that would be like stable coins tether Circle uh if you look at how people want to transact in the world they all want to move digital dollars at the speed of light and the challenge is in the US there is no regulatory regime for a company or a bank or anyone to issue that stable coin and I mean there's two issues they got to resolve like how do I back it presumably with treasuries and then how much Freedom do I have with regard to the transference that's an ml kyc issue and I think that under you know a red Administration you probably get a lot more freedom but ultimately it's above my pay grade to decide that I would just say that right now it's about 150 billion dollar asset class and it's very obvious the people have spoken they want it they need it it's a humanitarian thing if you live in Venezuela or Cuba to have or have access to digital dollars but I think that with a uh digital framework for digital currency that's endorsed by the administration I think it goes from 150 to a trillion to two trillion to 10 trillion and I actually think that that would create1 trillion dollars of demand for us sovereign debt it would create it would be good for the dollar but I also think that that would Ripple through to China to Russia to South America to Africa the biggest geopolitical issue is our enemies and our friends May complain because nobody wants to use any currency other than the dollar look no one wants to use the euro in Europe they want to use the dollar in Europe so you're going to actually have all sorts of politicians complaining to the state department that our citizens are using the dollar but if you want to spread the dollar to the world you got to do it digitally and I I think it would be good for American values and ultimately it would be good for the world if we did support it I don't know if you see it or not but a lot of big moves are being made in business right now specifically since Trump won the election musk's just crossed $300 billion micro strategy Co Michael sailor who just pulled up right now to the building I'm about to do a podcast with him just announced today you ready he bought $4. 6 billion of Bitcoin today you think he's making a statement everything right now behind closed doors people know the next four years is going to go quickly you either capitalize or you're going to be left behind your next 5 10 15 moves in 2020 when Biden became a president everybody was panicking we had a major meeting identified our next 15 moves we knew what we wanted to do the next four years between 2020 and 2024 we capitalize off of it tomorrow night Tuesday night at 600 p. m.
Eastern Standard Time I'm hosting a free webinar to share with you what we did and what we're doing now between 2024 and 2028 if you want to join us go to VT webinar. com VT like value tainment VT webinar.
