Michael Saylor’s Take on Bitcoin as a Strategic Reserve

Michael Saylor dropped some breadcrumbs on Fox News ahead of the roundtable organized by the White House to discuss the strategic reserve of bitcoins.

The countdown has begun

We already got a sneak peek yesterday of what is being prepared behind the scenes through the U.S. Secretary of Commerce. Howard Lutnick stated that bitcoin will have a unique status:

The president is interested in a strategic reserve of bitcoins. He talked about it during his campaign, and I think it will be enacted this Friday. […] There is bitcoin, and then there are other cryptos that I think will be treated differently. Positively, but differently.

Michael Saylor said nothing different last night. He believes that “the consensus emerging is to make bitcoin an element of a long-term strategic reserve for the country. But if you wanted to make various investments in a sovereign fund, it is up to the executive to decide.”

As for how the U.S. government will finance its bitcoin purchases, Michael Saylor deflected the question. His personal position is to sell gold to amass millions of bitcoins, which would allow for two birds with one stone by devaluing the value of gold stocks around the world.

His response on the TV set was, however, more measured:

“A six-month reflection process is underway. The presidential task force has 12 members. The industry will participate. The Senate and House of Representatives will also participate. It is not for me to decide how things will be determined. But the bill proposed by Senator Cynthia Lummis suggests gradually purchasing a million bitcoins over a four-year period.”

Matt Hougan, CEO of Bitwise, states that the reserve will be “almost entirely composed of bitcoins, and it will be larger than we think.”

“Bitcoin, the alternative to the stock market”

For Michael Saylor, bitcoin is a digital asset. It allows everyone to preserve their wealth over time, unlike bank accounts where dollars, euros, or yuan are eroded by monetary inflation averaging 7% per year.

The wish of the CEO of Strategy is for the government to clarify this asset class so that “American citizens know they have an alternative to the Lottery or the stock market.” It will be essential to distinguish well between currencies, tokens, commodities, and securities.

For him, bitcoin falls into the “commodity” category, which includes oil, gold, cocoa, etc. The reason being that it is “an asset without an issuer.” Digital currencies are stablecoins like Tether. And then, there are the tokens issued by companies like Ripple (XRP).

Like the CEO of BlackRock, Mr. Saylor believes that stocks, bonds, and other financial assets will eventually be tokenized.

When asked about the fact that some early bitcoiners view the arrival of states with suspicion, Saylor was pragmatic:

“Satoshi gave us a protocol for prosperity open to eight billion people. But there are also 400 million businesses that need it, as well as every country on the planet. It makes sense for a country wanting to be prosperous to adopt bitcoin.”

For him, China, Russia, and the rest of the world will eventually place their reserves in bitcoin. “Being first will allow for profit”, he stated, certainly thinking of the 10 trillion that the United States owes the rest of the world…

Don’t miss our article: The hidden objectives of Donald Trump…