What Is Money?
According to Michael Saylor, money is a way to store your economic energy and protect it from being stolen by the government or bad investment decisions. He uses the example of gold, which loses half its value every 35 years due to the continuous creation of more gold. Saylor argues that creating sound money is difficult and that good money needs a cap to prevent excessive creation. He highlights Bitcoin as an example, with its 21-million-coin cap.
- Saylor defines money as a means to store economic energy and avoid theft.
- Gold is flawed as money because its value halves every 35 years due to continuous creation.
- Creating sound money, like Bitcoin, is difficult and requires a cap.
- Bitcoin has a cap of 21 million coins, making it a good form of money.
All Monetary Assets Have a Natural Frequency
Saylor explains that all monetary assets have a natural frequency, represented by their half-life or half-time. Bitcoin initially started with a high frequency but has become slower over time. Each new Bitcoin halving increases its frequency half-life. By 2024, the half-life will be 100 years, indicating that Bitcoin will retain its value for a longer period. By 2036, the half-life will be 1,000 years, and by 2048, it will be 10,000 years.
- All monetary assets have a natural frequency represented by half-life or half-time.
- Bitcoin’s frequency half-life increases with each halving event.
- In 2024, Bitcoin’s half-life will be 100 years, indicating its value will last longer.
- By 2048, Bitcoin’s half-life will be 10,000 years, making it a highly stable form of money.
Hot Take:
Saylor’s perspective on money and the future of Bitcoin highlights the importance of sound money that cannot be easily manipulated or devalued. He presents Bitcoin as a potential solution, with its capped supply and increasing frequency half-life. This suggests that Bitcoin has the potential to become a highly stable and reliable form of money, offering individuals protection against economic theft and uncertainty.
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