Recently, the Bitcoin2024 conference held in Nashville, USA, received high attention from the crypto community, especially speeches given by Trump and Snowden. However, according to feedback from attendees, MicroStrategy CEO Michael Saylor's speech was also excellent but was ignored by the Chinese crypto community. In order to fill the information gap in the Chinese crypto community, Jinse Caijing 0xjs specially compiled Michael Saylo's speech. The following is the full text:

It's great to see a group of Bitcoin enthusiasts come together. I'm happy to be in Nashville, a city known for music and freedom. I'm honored to speak after Senator Hagerty.

Today, I decided to use slides. those who have seen my speeches know that some are with slides and some are not. I received a lot of positive feedback about using slides, so I thought the best way to improve this speech is to use more slides.

Bitcoin Revolution: Rebuilding the Global Economy with Digital Capital

I want to talk about the Bitcoin Revolution, and I also want to talk about rebuilding our global economy with digital capital.

The world we know is based on 20th century ideas and technology. Stock trading runs from 9:30 am to 4:00 pm, banks are closed on holidays and weekends, everything is slow and everything is expensive.

If we want to prosper in the 21st century, we need new ideas and new methods based on new technology.

You've seen this chart before, $900 trillion of global wealth. It's spread across physical and financial assets, all based on 20th century ideas and technology.

In the upper left corner, there's a small orange dot, that's the orange asset we call Bitcoin, it's worth $1 trillion. It seems like a lot when you start from scratch, but when you put it into the larger context of the world, it's only 0.1%.

This is another way to look at the same chart. It's not $900 trillion of assets, it's a pile of assets used for utilitarian value and a pile of long-term capital assets used for storing value.

When I buy a house, I want to live in it; but when I buy a bond, I just put my money there because I don't know where else to put it.

When you start to see the world as one big long-term capital, with over $450 trillion or more of capital, you start to think about how we store that capital, and you'll see the engine of the revolution.

The global economic struggle is because we rely on imperfect assets and systems to store this capital, and it's eroding our capital preservation.

How do we design a better system?

Monetary physics

This is Tesla. He has a saying: "If you want to understand the Universe, think in terms of energy, frequency and vibration."

I translate it as "monetary physics".

Energy is money or capital or wealth. You can use them interchangeably in this speech.

Frequency is about duration or lifecycle, how long? One minute, one hour, one year, one century.

Every time we trade with each other or move from one place to another or convert one type of property to another type of asset, we're vibrating money.

This is an important equation, where the service life equals the value of the asset divided by the cost of maintaining that asset.

If you are looking for ways to maintain financial assets, the way to calculate their service life is to ask how much money you need to spend each year to keep the asset in good condition. How much will I need to spend to avoid depreciation or decline? This service life is very close to the stock-to-flow ratio we know in the Bitcoin community, which is very similar in terms of measurement in years.

Many individuals and most companies use financial assets to preserve capital. This is the root of the challenge we face.

Financial Assets

Let's talk about financial assets. I want to keep my money for the long term, starting with 1 billion dollars.

• If you put it on the Argentine Peso, your money will devalue in two years, and a 98% inflation rate will deprive you of your economic power or capital, which is not a good long-term asset.

• In Turkish Lira, your capital can last for three years.

• The US dollar may last for 14 years under traditional currency inflation in the past century, but it's not like you have 14 years, and your vitality during those years will be linearly drained away.

• Put your money in a hedge fund, with a 2% management fee and a 20% increase, about 4% cost per year. If you invest in ordinary assets, it means it is a 25-year asset.

• With government bonds, you will get a return, but the after-tax return of 3.5% compared to 7% currency inflation may last for 30 years.

• Invest in mutual funds, you will pay a 1% fee, which is the best result you can get. If you buy a diversified investment portfolio for 10 basis points, counterparty risk will make you pay a 1% cost.

These are your financial assets, we operate the world on a 20th-century concept and technology, on average, financial assets will last for 30 years.

We all know that inflation will dilute the value of financial assets, but inflation is just the tip of the iceberg.

You will also be diluted by tariffs, tolls, litigation, and transfer taxes, we have various taxes: income tax, capital gains tax, every time you oscillate and transfer money, you will be destroyed by taxes.

If taxes haven't knocked you down and litigation hasn't broken you, you still have weather, competition, obsolescence, and political disasters that will dilute the value of your capital.

If you want to maintain your economic power, you must fight against these frictions. Most people realize that this is a frustrating task, an unwinnable task, so they give up financial assets and start turning to tangible assets to preserve capital.

Tangible Assets

• A Ferrari in tangible assets is not a good way to keep your money long-term, because your expenses on insurance and maintenance will be as much as the depreciation after five years.

• A yacht is not much better than a Ferrari, if you spend 10% of the money to operate it every year, you will still be hit by depreciation, so don't put your money on a yacht.

• A house in Miami Beach, if you buy a $10 million house, you better be able to spend $10 million to maintain the house for 17 years, and then you will run out of money.

• Silver, 22 years;

• Warehouse, 40 years;

• Gold bars, 62 years;

• A painting, 72 years;

• Land, in the United States the average property tax is 1.1%, which means your money will last 91 years unless the government reassesses the value of your property, then it will be less than 91 years.

• The oldest family-owned ranch in the United States is King Ranch, which has lasted for 173 years. Every other family in the United States has failed.

• The longest-held property is the Royal Estate of the United Kingdom, which has been held for 958 years. You could say that the British royal family has held it since 1066, but on the other hand, it passed from the Plantagenets to the Stuarts, through the Lancasters and Yorks, and ultimately to the Hanoverian dynasty. So maybe seven different families have divided it, and no one family has ever been able to hold it completely.

So tangible assets may seem like they can last for a thousand years, but realistically about 50 to 75 years is the best you can hope for.

Entropy is diluting the value of your tangible assets, it is sucking away their capital energy.

It's called Earth and not paradise for a reason, because politicians are very creative, they have city taxes, county taxes, state taxes, federal taxes, transfer taxes, property usage taxes, and if those don't knock you down there's rent control, price controls, or cultural shocks.

Then there's competition, you may face discrimination, as well as recessions, currency collapses, tenants not paying, someone slipping on your sidewalk and then suing you, as well as weather, war, crime and disasters. If energy prices skyrocket, it's hard to sustain.

Tangible capital is not a simple solution.

Digital Capital: Bitcoin

The three laws of thermodynamics I learned at MIT are: you can't win it, you can't break even, and you can't leave the game.

You can stop here and feel a little frustrated, but we don't want to lose, so you start to think, if we find a way to leave the game, then we can break even, and then you can win.

Satoshi Nakamoto found a way, he created Bitcoin.

Bitcoin is digital capital, that's what he created.

Bitcoin is immortal, immutable, and intangible capital.

By which I mean it has an infinite lifespan, it's not subject to weather, entropy and inflation attacks. It's intangible because it's not in the physical world and it's not subject to all those terrible problems of finance and tangible assets.

It's our solution to economic distress, the transition from financial and tangible assets to digital assets solves the problems we face.

What is the lifespan of Bitcoin?

Place your Bitcoin with an institutional custodian, paying a fee of 10 basis points, which means your assets will last for a thousand years. The custodian may not last for a thousand years, but that doesn't matter because you can move your Bitcoin every year or decade and stay ahead. You can't teleport a building, you can't teleport King Ranch, so Bitcoin is a movable asset.

You can self-custody your Bitcoin at a cost of one basis point per year, assuming you purchase good hardware wallets and signing devices and spend a day each year tracking it, which gives you a ten thousand year asset.

If you give your Bitcoin to AI or computer program, they can maintain those private keys at the cost of electrical utilities, and you have a hundred-thousand-year asset. AI will want Bitcoin. If they can choose between Bitcoin, owning a ranch in Texas, owning gold bars, or owning Argentinian pesos, clearly, what they would choose.

You can see why they want Bitcoin.

Digital assets are a unique category in capital preservation. When you compare them to all the other assets used for capital preservation, you'll find they're extraordinary.

The lifespan of other assets is thirty, forty, or fifty years, while the lifespan of digital assets is a thousand to a hundred thousand years.

This is a breakthrough in capital preservation that makes it an economic revolution.

Great trades in history.

If you want to be rich, trade smart.

It's a very simple principle:

• Swap a temporary thing for a permanent thing. Swap your (soon-to-be melted) ice cream for pesos, and swap pesos for dollars, and swap dollars for land, and then swap land for Bitcoin.

• Swap currency for capital;

• Swap fragile things for things with resilience;

• Swap local things for global things;

• Swap physical things for digital things;

• Swap securities for commodities;

• Swap commodities for scarce assets.

If you go in this direction, you can't go wrong.

Now let's talk about some of the great trades in history, some trillion-dollar trades.

Dutch understand naval power, they understand ships, and they have thousands of ships. They bought the best port (New York) in the new world with hundreds of dollars in plastics, textiles, and trinkets.

Now the port is worth $2.5 trillion. It is an investment that has grown at a rate of 6% with an ROI of 1.05 billion times over 398 years.

If you think about it, you might ask yourself why someone would exchange the best American port for a bunch of textiles, plastics, and glass products? The people who sold Manhattan didn't understand the importance of naval power.

If you do not understand the reason for having certain property, you will not value it.

Napoleon wanted to travel around the Old World, while Jefferson wanted to expand in the new world. So France sold Louisiana to the United States for $15 million in 1803.

The $15 million may have only covered the cost of maintaining the French army for a few months, but Jefferson acquired 27% of the United States' territory.

This was a trade with an ROI of 0.8 million times, which is now worth 12 trillion dollars, or even more, and its value will continue to grow.

Jefferson had foresight, just like this Seward. Two years after the Civil War, he bought Alaska for $7 million.

At the time, Rockefeller was founding an oil company. There is now trillions of dollars of oil underground in Alaska. This is a huge return from a single contract.

Bitcoin total value prediction

What is the value of digital capital?

Assuming that global wealth is $450 trillion and the inflation rate is 3%, this means that $1.35 trillion is needed each year to counter all these financial problems.

If you value it like a company or long-term bond and give it a PE ratio of 20, its value would be $270 trillion.

So the annual ROI value of digital capital is between $10 trillion to $15 trillion, with a total value of millions of trillions of dollars.

In fact, the annual ROI of digital capital has been 55% over the past four years, while financial capital (the best capital in the world) is bonds, with an annual ROI of -5%.

Imagine capitalizing your company or country at a -5% ROI instead of +55%. Obviously, digital capital is playing a role.

Now back to my "global wealth" chart, we can see it like this, and we see a small Bitcoin in the upper left corner. What will happen?

Bitcoin price prediction

This is my Bitcoin prediction for prices from 2021 to 2045.

What is my prediction? I think the annual ROI will gradually decline from 55% to 50%, 45%, 40%, 35%, 30%, 25%, 20%, and finally stabilize at around 20%, which is about twice as fast as the growth rate of the S&P index.

At this rate, by 2045, the price of bitcoin is expected to reach $13 million per coin under the benchmark scenario, and bitcoin will account for 7% of global assets. The bearish forecast may be $3 million and the bullish forecast may be $49 million.

What about other assets? I actually believe that AI and technology will completely transform the technology industry. There were no trillion-dollar companies before, and then we had some trillion-dollar companies. You will see more because there will be companies with 100,000 AIs and no employees that will do the work previously requiring 100,000 employees. You will see large companies developing, such as robot transportation, self-driving cars, and a company that can provide private doctors for a billion people without doctors on staff. Therefore, equity will clearly grow rapidly, gold will be demonetized, and the monetization of land will decrease.

But the future in 2045 doesn't look so revolutionary. It looks pretty much the same as today. It's just that bitcoin is becoming more apparent on the charts. When bitcoin becomes more apparent, that will be the benchmark scenario.

Your personal bitcoin strategy

Let's talk about your personal bitcoin strategy.

What should you do?

• Make bitcoin your main reserve asset,

• Convert your surplus into bitcoin,

• Use low-interest loans to buy bitcoin if the government lends you money,

• Find a tax-efficient way to invest in bitcoin.

What should you not do?

• Don't quit your day job,

• Don't lose sight of bitcoin,

• Don't use margin loans and leveraged trading, otherwise you may be liquidated while sleeping on a Saturday night, which is not good. A 30-year government-backed loan at 3% is good, while overnight 10x leverage is not.

What about a typical person? We modeled a person.

Assuming you have a net worth of $750,000, an annual income of $200,000, growing at 5% per year, a savings rate of 25%, and can invest $50,000 per year.

There are many strategies:

• You can be an ordinary person and adopt a diversified portfolio strategy;

• You can be a 10% person and invest 10% of your assets in bitcoin;

• You can be a bitcoin maximalist and invest 80% of your assets and income in bitcoin;

• You can be a double maximalist, in which case you would actually mortgage your house to borrow an additional $0.25 million;

• Triple maximalists finance their houses to buy Bitcoin, convert all assets into Bitcoin, and then move to a low-tax area to invest an additional $0.05 million in Bitcoin, such as Singapore or the United Arab Emirates.

Here's the result:

Regular people will have $7 million in assets after 21 years, 10% will double, Bitcoin maximalists will have $0.1 billion, double maximalists will have $0.15 billion, and triple maximalists will have $0.214 billion.

You can see the power of leverage, the choice is in your hands. You can also see that becoming a triple maximalist requires 15.9 Bitcoin. Just 6.25 Bitcoin can make you rich.

The company's Bitcoin strategy

Let's talk about what the company should do:

• Convert your capital to Bitcoin,

• Convert your cash flow to Bitcoin,

• When stock prices are overvalued, issue stock buybacks to buy Bitcoin,

• When the interest rate on debt is low, issue debt to buy Bitcoin.

• Don't use tax dividends to exhaust your capital,

• Don't use stock buybacks to give up your capital,

• Don't use high-risk, overvalued mergers and acquisitions to dilute your shareholders' equity.

Let's take a typical company with $0.1 billion cash flow, $1 billion enterprise value, and a stock price of $100.

What's your strategy? Regular strategy, Bitcoin maximalist strategy, double maximalist strategy, or triple maximalist strategy?

The regular strategy will give you a stock price of $1200, but just a 10% allocation will double it, the Bitcoin maximalist strategy will bring it close to an 8-fold increase, the double maximalist strategy will bring it to a stock price of $177,000, and the triple maximalist strategy will bring it to a stock price of $28,000.

What kind of company do you want to run?

This is a reality check.

This is MicroStrategy, which is currently implementing a triple maximalist strategy. August 10, 2024 will be the 48th month since we embarked on this path.

If you think you can operate like Microsoft, Apple, and Google in the company's management team, then congratulations, you can achieve an annual return of 20% to 25%. If you want to emulate Nvidia, you will surpass everyone. But I think that now, in the boardrooms of Microsoft, Apple, Google, and Tesla, they are anxious to emulate Nvidia.

Ironically, copying MicroStrategy's strategy is not difficult. I have provided you with the script, and you can achieve a growth of 1300% in four years.

The bottom line is to establish a strong capital structure and avoid dilutive financial practices.

Institutions' Bitcoin strategy

What should you do if you have a non-profit organization such as a church, charity, donation fund, or Harvard University?

• Amend the bylaws to allow for bitcoin investment.

• Reallocate short-term assets to long-term assets, do not invest in (melting) ice cream or peso, do not hold financial instruments for 20 years or physical land for 50 years.

• Buy millennial assets using Bitcoin as a capital cost, not the S&P Index. The S&P Index has an annual return of 133%, while Bitcoin has a return of 55%.

• Use intelligent leverage.

Suppose you have a $1 billion investment portfolio. Do you want to be an ordinary person, a Bitcoin maximalist, or a triple maximalist? Triple maximalists will invest 100% of their funds in Bitcoin, while Bitcoin maximalists will use 10% leverage.

What is the end result?

• If you are a regular strategist, you will have $4 billion after 21 years.

• If you are a triple Bitcoin maximalist, you will have $300 billion. Triple extremists will grow 100 times.

National Bitcoin strategy

Now let's talk about the country's wealth, which is an interesting topic.

What is the country's Bitcoin strategy for "doing or not doing"?

• Assets should be reallocated from gold and bonds (which are short-term assets) to a 10,000-year asset (Bitcoin).

• Issue currency to buy Bitcoin.

• Issue debt to buy Bitcoin.

• Encourage Bitcoin ownership through favorable laws.

• Protecting personal and company self-custody, and supporting integration with the national bank system. These are things that must be done. What should not be done is to adopt policies hostile to bitcoin and its holders. These are not complicated.

• And debt country. Now, assume you are a heavily indebted country, actually in debt, facing deficits. I can list these countries, but I won't, I just say owe a lot of money, and are struggling, high interest rates, don't know what to do. Then what is your strategy? Regular strategists, 10% strategists, maximalist strategists, double maximalist strategists, or triple maximalist strategists?

These are things that must be done. What should not be done is to adopt policies hostile to bitcoin and its holders. These are not complicated.

What should not be done is to adopt policies hostile to bitcoin and its holders. These are not complicated. Do not hold any hostile policies towards bitcoin holders.

Debt countries.

Now, assume you are a heavily indebted country, actually in debt, facing deficits. I can list these countries, but I won't, I just say owe a lot of money, and are struggling, high interest rates, don't know what to do. Then what is your strategy? Regular strategists, 10% strategists, maximalist strategists, double maximalist strategists, or triple maximalist strategists?

So what's your strategy? Regular strategists, 10% strategists, maximalist strategists, double maximalist strategists, or triple maximalist strategists?

Maximalists strategy is to invest 35% of the finance into it, double maximalist is 65%, and triple maximalist is to invest all finances into it and start issuing debt.

The subtext for those who truly understand is that the first country to buy bitcoin by issuing its own currency will win.

It's simple, you can print money. You know, in the two years after the American Civil War, the country went bankrupt and millions died. The South was in ruins, and the North was furious. A man named Seward came up with an idea-buy a lot of frozen tundra from a bunch of Russians who wanted paper money.

So even in worse situations, people have done things like this.

You can see that a regular strategist owes $3 trillion, which is of no use to you; a maximalist strategist will clear the debt; a double maximalist strategist will make you rich; and a triple maximalist strategist will make you extremely rich. Why? Because you are buying an asset that everyone will fight for 100 years from now. Buying bitcoin now is like buying Alaska in 1867, when there was no standard oil company, no gasoline, cars, or diesel locomotives, and nothing. We later invented all of these things.

Common sense tells us that I can buy an asset equivalent to the size of a country for a few dollars, why not seize it?

Rich countries. Now let's talk about bitcoin strategies for wealthy countries.

Assume you have a lot of money, like Saudi Arabia or Norway, you have made a lot of money, and have $350 billion in net fiscal surplus.

So what's your strategy? Do you want to be a regular strategist, a maximalist strategist, a double maximalist strategist, or a triple maximalist strategist?

Maximalist strategists invest 25% of the money into bitcoin, and triple maximalist strategists convert 75% of the money into bitcoin and convert the surplus into bitcoin. What's the result? Triple maximalists will become extremely rich, with $58 trillion.

So what is your strategy? Do you want to be a normal strategist, a maximalist strategist, a double maximalist strategist, or a triple maximalist strategist?

The result is this: a triple maximalist will become extremely wealthy, with 58 trillion dollars.

What is the result? The triple maximalist will become extremely rich, with $58 trillion in assets.

Moreover, this enhances your national security, because you will have $50 trillion or more in digital capital that no one can take away. If other countries bombard your country, invade your borders, they won't get the bitcoin. Therefore, this is beneficial for your financial and national security.

But be aware that if you are Saudi Arabia or Norway and you adopt the triple maximalist strategy, which is easy to do, you will end up with 4.2 million bitcoins. This means that at the national level, there are not many spots for triple maximalists, possibly only one or two.

This is an opportunity for activists. You can have many triple maximalist families and companies but there aren't many triple maximalists at the national level.

Bitcoin Strategy for the United States

Let's take a look at the United States, which is a special case.

The rules remain the same: buy bitcoin, sell paper currency, get rid of gold, hold for the long term. What you shouldn't do is harass bitcoin holders, transfer industries offshore, or move capital offshore.

But here's our baseline: $36 trillion in debt, 3.5% interest rate. We believe AI and new technologies will drive growth. I'm going to assume that the United States will be led by capable executives who will leverage technology, we will really use AI, create robot cars and robots, and build a billion-person website that will provide free accounting, legal and medical advice, all of which will increase our income growth rate faster than our expenditure growth, and eventually we will reach the level of interest rate reduction.

So, what's the bitcoin strategy for the United States? We can be ordinary strategists, 10% strategists, buying 0.5 million bitcoins, maximalists buying 1 million bitcoins, double maximalist strategists buying 2 million bitcoins, triple maximalist strategists buying 4 million bitcoins. Then start converting the country's surplus into bitcoin.

What's the result? If you're an ordinary strategist, even with huge productivity growth and excellent technology, and robots doing all our work, you'll still be in debt, just not worse off.

If you're a maximalist strategist, you'll pay back half the debt. If you're a double maximalist strategist, you'll have a surplus. If you're a triple maximalist strategist, the country won't owe $30 trillion but will instead have $30 trillion.

Bitcoin is not the solution to all our problems, but it is the solution to half of our problems. The important thing is that the other half is very complex and requires a lot of people's energy and effort, whereas this half is simple. This is a very simple way to solve half of our problems.

Bitcoin is the Network Manhattan

So, bitcoin is the Network Manhattan. Trillions of dollars in capital will flow here. We will go devalue the Russian permafrost, Chinese real estate, everything in Africa, and all the dilapidated buildings that nobody needs but bought.

You can buy a bitcoin building, a street, or an entire community. It only has 2.76^3 units, as shown above.

It is necessary to buy some bitcoin.

Finally, I want to quote a phrase. Satoshi Nakamoto launched the bitcoin network on January 3, 2009. On January 17, 2009, he said, "It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self-fulfilling prophecy." That was 16 months before pizza day, when bitcoin was worth nothing and would not be worth much in the next year. Never has a wiser sentence been spoken.

You see bitcoin now has a market cap of a trillion dollars, which proves Satoshi Nakamoto's foresight. But there are still a thousand-fold growth in the future. You have more information at your fingertips, and the future is bound to happen (the writing is on the wall).

Bitcoin is the future of capital and the future of currency.

Bitcoin is the future of capital, the future of currency.

It may be necessary to buy some bitcoin because it has become popular.