He wants to convince Microsoft to hoard BTC

Source: Liu Jiaolian

Overnight, BTC continued to oscillate around the 96k center, waiting to converge with the 30-day line. Many people say that the cottage season has started. Jiaolian only sees that the yield of his Uniswap position is catching up with the Ethereum position, and it is only 10 points away.

Jiaolian treats holdings basically following the principle of "eat my own dog food": I use Uniswap myself, so I hold Uniswap; I develop code on EVM myself, so I hold Ethereum; I hoard BTC as a savings tool, so I hold BTC.

So Jiaolian has no interest in pure "speculation". Speculating in coins, stocks, and houses is not as good as frying eggs, cucumbers, shredded potatoes, lettuce, and mugwort stems... Jiaolian even thinks that frying the various ingredients well and studying things to gain knowledge may be of great benefit to the speculation in the front.

In fact, top chefs don't cook.

Top chef, pie hoarding master, institutional diamond hand representative, and founder of MicroStrategy, Michael Saylor, recently visited the Microsoft Board of Directors and gave the directors a popular science about BTC, mobilizing them to adopt the BTC strategy, take out some funds, and establish Microsoft's own BTC reserves.

His logical thinking is clear and rigorous. His PPT is long, and many people, if they don't understand "capital" well, may not fully understand it. Jiaolian briefly summarizes it here as a syllogism:

1. In the future, BTC will absorb all long-term capital.

Second, if Microsoft replaces the capital "wasted" by repurchasing stocks with BTC, it will more effectively push up Microsoft's stock price.

Third, therefore, Microsoft should adopt the BTC strategy and hoard BTC.

Therefore, Michael Saylor also used the term "Digital Capital" to position BTC in his speech, rather than the "Digital Gold" that everyone usually talks about.

Excellent.

With this, he further opened up the future growth space of BTC. The ceiling is not the market value of gold, which is 16 trillion US dollars, but half of the world's total wealth of about 900 trillion US dollars...

What is capital? Capital is the surplus of production, and it is the surplus used for investment in reproduction. The progress of any society, regardless of its civilization stage, culture, or system, depends on the accumulation and use of capital.

If the entire society is like a primitive society, eating and drinking everything produced, squandering everything, and leaving nothing behind, then everyone will be in the lowest state of struggling for survival all day long, with no time, energy, or resources to develop further.

After various production surpluses are measured (i.e. monetized) with monetary tools, they are turned into so-called value. Marx called it surplus value in "Capital".

Under capitalist production relations, workers work hard to produce surplus value, which is controlled by capitalists. Note that the capitalists here are strictly non-laboring people; bosses who work by themselves can only be considered half capitalists. The capitalists consume a small part of the surplus value themselves, and then half of the remaining part is invested in reproduction, and the other half is placed in a safe capital storage tool as long-term capital for future production purposes or to resist economic cycle risks.

The advancement of capitalism is reflected in the capitalist link. In the slave or feudal era, the unlaboring class that controlled the surplus value only knew how to squander, which was very harmful to the accumulation of capital, thus hindering the further improvement and enhancement of productivity. Although the capitalist class also consumed a small part of the surplus value, its squandering was frugal compared to the feudal emperors. A large amount of surplus value was preserved and became practical capital for reproduction and long-term capital that was temporarily saved, thus promoting the rapid progress of social productivity, allowing capitalism to create more wealth in the past three or four hundred years than the total wealth created by the entire human society in thousands of years of civilization before that.

Therefore, Michael Saylor believes that the current global total wealth is 900 trillion US dollars, and it is estimated that half, or 450 trillion US dollars, is practical capital for current reproduction, while the other half, or 450 trillion US dollars, is long-term capital that is temporarily saved. The right half of the 450 trillion US dollars of long-term capital needs to find a suitable "value storage" tool to properly preserve and save.

Why does Michael Saylor not call BTC electronic gold but electronic capital? Because today, the tools people use for "value storage" have long surpassed gold alone. Stocks, real estate, bonds, legal tender and even artworks, etc., are all used by people to store value.

But these things, when used as "value storage", have a huge flaw. What is it? Please think about it, readers.

Yes, this fatal flaw is that these things are often controlled by others, and the controller can dilute and dilute the value you store in them by continuously issuing (overissuing) their quantity.

For example: for artworks, artists can continuously create new works; for stocks, listed companies can legally issue additional stocks; for real estate, new houses can be continuously built; for bonds, governments and institutions can legally issue more; for legal tender, central banks can legally continue to print money; and so on.

They have one thing in common: no deposit, but unlimited withdrawal.

Obviously, they are not your companions, but your opponents.

You use these tools to store value, but the existence of these opponents is a big or even the biggest risk.

There is a term in finance called "counterparty risk".

Therefore, Michael Saylor said that BTC is a better value storage tool than these tools, because BTC has no "counterparty risk". Fundamentally, because BTC has been decentralized from the beginning. In the process of launching it, Satoshi Nakamoto never introduced any "counterparty" to the BTC system. Retire after success, and dissipate this potential risk in the mist of history.

In this way, BTC will eventually become a historical choice, and will be unanimously favored and chosen by all those who have the opportunity to control long-term capital and need to find the safest value storage tool without counterparty risk to store these long-term capital.

In the end, other capital tools will gradually degenerate into practical capital (for example, houses are not for speculation, and can only be used for self-occupation (consumption) or rental (practical capital)), and the demand for long-term value storage will fall entirely on BTC.

This infers Michael Saylor's first conclusion: In the future, BTC will absorb all long-term capital. This scale is half of the world's total wealth.

His conclusion is similar to the article "The End of Bitcoin: It May Be Equal to the Total Value of All Human Surplus! " published by the Teaching Chain on March 4, 2024, but it is more specific and accurate.

This is also what the Teaching Chain has said many times, the true meaning of hoarding BTC is to absorb the surplus value of the world. The more you hoard, the more you absorb. The less you hoard, the less you absorb.

Based on this inference, Michael Saylor proposed that BTC is expected to grow 140 times from a market value of 2 trillion US dollars to a market value of 280 trillion US dollars in the next 21 years.

This provides Microsoft, as a controller of surplus value, with a better strategic choice on how to more reasonably control and use the surplus value it controls.

In the past, Microsoft made a lot of profits and had nowhere to invest, so it used it to buy back its own stocks, thereby raising the stock price.

Raising the stock price is a way to give back to shareholders, company executives (most high-tech company executives have a lot of stock or options in their salary packages) and even some shareholding employees.

Michael Saylor is an excellent salesperson.

Remember: the first principle of sales is to appeal to interests, not emotions.

It may seem grand to paint a big picture, but if you can't bring tangible benefits to the audience, then you can't impress them and make them pay.

Who is here at Michael Saylor's speech? Microsoft's board of directors, directors, and shareholders.

They did not directly resonate with the grand vision of BTC. But they resonated with the rising share price of Microsoft's stock in their pockets.

So Michael Saylor changed the subject and began to talk about how if Microsoft changed its disposal strategy for surplus capital, it would bring considerable stock price returns.

He gave four strategies: BTC minimization, BTC maximization, double maximization, and triple maximization. They represent different investment strengths. The teaching chain will not be expanded here.

Then he kindly helped everyone in the conference room calculate how much the excess increase of stocks under various strategies was. Subtext: You can secretly calculate in your mind how much your worth can be increased.

According to his calculations, the adoption of the BTC strategy can generate an excess increase of $155 to $584 per share for Microsoft's stock in the next ten years - that is, an additional increase in addition to the regular increase brought by ordinary business growth.

For reference, Microsoft's current stock price is $430 per share.

What is the logic? The logic is that using the money earned by the company's own business to buy back its own stocks is to make money to support its own stock price; while using this money to hoard BTC is to use the money earned by the world to support its own stock price.

Obviously, absorbing the world's surplus capital to support its own stock price is definitely much better than working alone.

Michael Saylor is the most qualified to say this. Because MicroStrategy's stock price is almost all supported by BTC, not its pitiful little software business.

So he showed off his big thing - the big pillar of 3045%.

That's all.

Dear board friends, do you want to get rich and increase your net worth? Please increase the company's stock price. Don't use the old method of buyback to increase the stock price. Please use the BTC strategy to significantly increase the company's stock price.

This is Michael Saylor's "sales" logic.

Why did he convince the Microsoft board of directors at this point in time? Friends may still remember that in December, that is, on the 10th of this month, Microsoft will hold a shareholder vote to consider whether to adopt the proposal to reserve BTC.

Do you think Michael Saylor's remarks can convince Microsoft's directors and shareholders to finally vote in favor of adopting the BTC reserve strategy?