- Michael Saylor called gold a shiny obsolete rock
- He proposed several drastic strategies for U.S. leadership
- He suggests selling gold and buying Bitcoin
MicroStrategy Founder and Chairman Michael Saylor called gold a shiny obsolete stone and advised the U.S. to sell it and use the money to buy Bitcoin.
In his opinion, this will allow the U.S. to strengthen its economic and political position and ensure future global economic leadership and Bitcoin network dominance.
More About Michael Saylor’s Strategies
Specifically, Michael Saylor offers two strategies and adds one he believes is necessary for the completeness of the methods to ensure U.S. leadership.
“Gold is just a shiny obsolete rock – sell it. If you want to strengthen US economic leadership in the world – there are two very simple strategies. Sell gold and buy Bitcoin, so you simultaneously devalue the asset held by your enemies and gain 20 – 25% of the Bitcoin network – whoever owns gold will suffer greatly from this. Just sell all the gold and once and for all remove its status as a monetary asset, drive a stake through its heart, and buy Bitcoin you get 20 to 25% of the Bitcoin network absolutely free.”
This is a pretty drastic strategy, and as we mentioned earlier, it requires a few notes because first of all, it violates one of the fundamental rules, namely risk diversification.
Also, it may not only hurt U.S. adversaries but also turn away allies who also hold and rely on gold – they may not be happy about such a move either, especially if they are not prepared for it.
To be fair, Michael Saylor offers a less-than-drastic strategy but still believes that selling gold to buy Bitcoin is the “best” for the US.
“You can just print money to buy Bitcoin and continue to hold gold, but it is much smarter to devalue the assets of your enemies. You can reduce the capitalization of gold from $20T to $4T, and by devaluing gold assets that are not held by all non-US companies. Also, you inflate those Bitcoin prices to the sky and then you will have 25% of the bitcoin network left forever.”
Also, he adds the need to create a favorable environment for American companies and financial institutions, and it seems that in one sense or another, Donald Trump is oriented to this.
“My second proposal is that we need to create a normal system for issuing digital currency backed by U.S. Treasuries. The US should develop such a structure e.g. Tether could move its operations to New York is what we need. Then we could allow JP Morgan or Goldman Sachs to issue their own stablecoin.”
Conclusion
Michael Saylor deserves to be listened to, his company’s growth figures in line with his strategy make it worth paying attention to.
But that doesn’t mean that any of his proposals should be accepted unconditionally, especially when it comes to such fundamental changes.
