- Michael Saylor believes Bitcoin is the best way to store and protect wealth.
- Saylor thinks consumer inflation is the amount of money a person needs to stay poor.
- According to Saylor, asset inflation is the rate of creating wealth to stay wealthy.
Michael Saylor, the executive chairman of the board at MicroStrategy, believes Bitcoin is the best way to store wealth and protect it from the dangers of inflation and political risks. Saylor said this during a discussion with Stephen Gardner, a Safe Money Specialist in the United States.
The MicroStrategy Chief began the discussion by explaining the dynamics involved in monetary inflation. Saylor defined inflation as a vector and described consumer inflation as a metric that provides information on the price of products whose qualities are continually deteriorating.
According to Saylor, consumer inflation is the amount of money a person needs to stay poor and live a lower middle-class lifestyle, while asset inflation is the rate of creating wealth to stay wealthy or beat if you want to become wealthy.
The MicroStrategy executive noted that asset inflation in the US has been around 7-8% for about 100 years, while consumer inflation remained around 2% during the same period. Saylor noted that asset inflation has exploded recently, creating what he described as an interesting scenario.
Saylor observed that the asset inflation rates outside the US, especially in weaker countries, are often double and in the region of 14% a year. He noted that those figures skyrocketed since the COVID-19 pandemic because those countries run large deficits and often print money they can’t pay back. As a result, the prices of many scarce and resellable assets increased faster than 2%, and the money supply expanded by 40% or more over a couple of years.
The MicroStrategy founder compared the rate at which fiat currencies lose value using the inflation dynamics. He revealed how individuals could lose their wealth if stored in traditional currencies. Using a typical example, Saylor showed that wealth stored in the US dollar over the last 100 years would have lost about 99% of its value. Others could lose them within the economies of unstable governments, where they could become victims of policy somersaults.
Saylor believes Bitcoin is designed to check these risks, following its inbuilt attributes. According to him, Bitcoin represents a breakthrough technology with numerous benefits, including a 21 million coin cap. Hence, it is a conservative monetary network without leakages, or inflation. He noted that Bitcoin is a way to freeze your economic energy so it does not dissipate.
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