Ironically, replicating MicroStrategy’s strategy is not difficult; I have provided you with the script, achieving a 1300% growth over four years.
The bottom line is: establish a strong capital structure and avoid dilutive financial practices.
Institutional Bitcoin Strategy
What should you do if you have a non-profit organization like a church, charity, donor fund, or Harvard University?
Amend your charter to invest in Bitcoin, reallocate short-term assets into long-term assets, avoid investing in (soon-to-be-melted) ice cream or pesos, and do not hold financial instruments for 20 years or physical land for 50 years.
Purchase millennium assets, using Bitcoin as the cost of capital rather than the S&P index. The annual return of the S&P index is 133%, while Bitcoin is 55%.
Utilize smart leverage.
Assume you have a $1 billion portfolio and you want to be an ordinary investor, a Bitcoin maximalist, or a triple maximalist. A double maximalist would invest 100% of funds into Bitcoin, while a triple maximalist would use 10% leverage for investment.
What are the end results?
If you are an ordinary strategist, after 21 years you will have $4 billion.
If you are a triple Bitcoin maximalist, you will have $300 billion. A triple maximalist will see 100 times growth.
National Bitcoin Strategy
Now let’s discuss national wealth, which is an interesting topic.
What should a national Bitcoin strategy “do and not do”?
Fiscal resources should be reallocated from gold and bonds (which are short-term assets) to a 10,000-year asset (Bitcoin).
Issue currency to purchase Bitcoin, issue debt to purchase Bitcoin, encourage Bitcoin ownership through favorable legislation, protect individuals and companies that self-custody, and support integration with the national banking system.
These are what should be done.
What should not be done is: do not adopt hostile policies against Bitcoin and its holders. This is not complicated.
Debt-laden Nation
Now assume you are a heavily indebted nation, actually in debt and facing a deficit. I can list these countries, but I won’t; I’ll just say they owe a lot of money and are struggling, with high interest rates and not knowing what to do.
So what is your strategy? Ordinary strategist, 10% strategist, maximalist, double maximalist, or triple maximalist?
A maximalist’s strategy is to allocate 35% of finances to it; a double maximalist would allocate 65%; while a triple maximalist would invest all finances and begin issuing debt.
For those who can truly understand, the subtext is: the first country to issue its own currency to purchase Bitcoin will win.
It’s simple; you can print money. You know, two years after the American Civil War, the nation went bankrupt, millions died, the South was devastated, and the North was angry. A man named Seward came up with an idea—to buy a large amount of frozen tundra from a group of Russians who wanted paper money.
So even in worse situations, people have done such things.
You can see that the ordinary strategist is $30 trillion in debt; you will be of no help; the maximalist pays off the debt; the double maximalist makes you wealthy; and the triple maximalist makes you extremely wealthy.
Why? Because you are purchasing an asset that everyone will be vying for a century later. Buying Bitcoin now is like purchasing Alaska in 1867, when there was no Standard Oil, gasoline, cars, or diesel locomotives—nothing at all. We later invented all these things.
Common sense tells us, I can buy an asset the size of a nation for a few dollars—why not seize it?
Wealthy Nation
Now let’s talk about the Bitcoin strategy of wealthy nations.
Assume you have a lot of money, like Saudi Arabia or Norway, where you have made a lot of money and have a net fiscal surplus of $350 billion.
So what is your strategy? Do you want to be an ordinary strategist, a maximalist, a double maximalist, or a triple maximalist?
A maximalist would invest 25% of their funds into Bitcoin; a triple maximalist would convert 75% of their funds into Bitcoin and convert the surplus into Bitcoin.
What are the results? A triple maximalist will become extremely wealthy, $58 trillion.
Moreover, this also enhances your national security because you will possess $50 trillion or more in digital capital that no one can take away. If other nations bomb your country or invade your borders, they still cannot seize Bitcoin. Therefore, this is beneficial for both your financial security and national security.
But note, if you are Saudi Arabia or Norway and you adopt a triple maximalist strategy, it is very easy to achieve; in the end, you will have 4.2 million Bitcoins. This means that at the national level, there are not many slots for triple maximalists—perhaps only one or two.
This is an opportunity suited for radical activists. You can have many families and companies as triple maximalists, but not many at the national level.
U.S. Bitcoin Strategy
Now let’s take a look at the United States, which is a special case.
The rules remain the same: buy Bitcoin, sell paper currency, and get rid of gold for long-term holding. What should not be done remains: do not harass Bitcoin holders, do not shift industries overseas, and do not move capital abroad.
But our basic situation is as follows. $36 trillion in debt, 3.5% interest rate. We believe that artificial intelligence and new technologies will drive growth. I will assume that the United States will be led by capable executives who will leverage technology, and we will truly harness AI, create robotic cars and robots, and establish websites providing free accounting, legal, and medical advice for a billion people, all of which will allow our income growth rate to exceed our expenditure growth rate, ultimately leading us to lower interest rates.
So what is the Bitcoin strategy for the U.S.? We can be ordinary strategists; we can be 10% strategists, purchasing 500,000 Bitcoins; we can be maximalists, purchasing 1 million Bitcoins; double maximalists, purchasing 2 million Bitcoins; and triple maximalists, purchasing 4 million Bitcoins. Then we start to convert the national surplus into Bitcoin.
What are the results? If you are an ordinary strategist, even with tremendous productivity growth and excellent technology, and robots do all the work for us, you will still be in debt, just not worse off.
If you are a maximalist, you will pay off half the debt. If you are a double maximalist, you will have a surplus. If you are a triple maximalist, the nation will not only not owe $30 trillion, but will instead possess $30 trillion.
Bitcoin is not the solution to all our problems, but it is a solution to half of them. Importantly, the other half of the problems are very complex and require the attention and effort of many people, while this half is simple. It is a very straightforward way to address half of our issues.
Bitcoin is the Network Manhattan
So, Bitcoin is the Network Manhattan. Trillions of dollars of capital will flow here. We will go to monetize frozen land in Russia, real estate in China, everything in Africa, and all those dilapidated buildings that no one needs but were purchased.
You buy a Bitcoin building, a boulevard, or an entire community. There are only 276 cubed of them, as seen in the above image.
It is Necessary to Buy Some Bitcoin
Finally, I want to quote a statement.
Satoshi Nakamoto launched the Bitcoin network on January 3, 2009, and on January 17, 2009, Satoshi said, “It may be necessary to buy some, in case it becomes popular. If enough people think this way, it will become a self-fulfilling prophecy.” That was 16 months before the Pizza Day when Bitcoin was worthless and would remain so for another year. There has never been wiser words.
You see Bitcoin’s market value has now reached one trillion dollars, which proves Nakamoto’s foresight. Yet there is still a thousand times growth ahead. You have more information at hand; the future is destined to happen (the writing is on the wall).
Bitcoin is the future of capital and the future of currency.
It may be necessary to buy some Bitcoin because it has already become popular.
