We are in the middle of great monetary inflation. Period.
Paul Tudor Jones said this publicly in a letter to his investors in early May 2020. He explained then why in the race for profits he chose Bitcoin instead of gold, which has been the favorite store of value for centuries.
For Paul Tudor Jones, it was clear that Bitcoin was the fastest horse in the race for profits. The months that followed proved him absolutely right. In the last few months, Paul Tudor Jones has backed up his words a bit more by explaining that he was increasing the Bitcoin allocation in his portfolio from 1% to just over 5%.
The flaws of the current system have been highlighted more than ever for more than eighteen months
Anyone can easily see the current problem. All you have to do is go to the Fed's website and look at the evolution of the US dollar money supply over the last few months. You will be shocked to see that more than 30% of all U.S. dollars currently in circulation have been printed out of thin air in recent months:
USD M2 Money Stock - Source: The Fed
If you look a little deeper into the data published by the Fed, you will also see that the Fed has been conducting a massive asset purchase program since March 2020. The Fed's balance sheet has totally exploded and is now well over $8 trillion.
To this, you must add a parabolic increase of the US public debt which is on its way to reaching $30T by the end of 2021. The situation on a global scale is not much better, since America is exporting its debt anyway, by setting the pace.
If everyone agrees on the diagnosis, very few dare to embrace the only effective remedy
One would have to be a fool not to diagnose the problem with the current system. Even the most staunch opponents of Bitcoin believe that this system no longer works. The current very high inflation in America is more of a systemic issue for the CEO of BlackRock who confesses that there is a major problem to be solved.
Peter Schiff, a fierce defender of gold, is constantly pointing out the flaws in the current system.
While I often say that to solve a problem, you must first be able to identify it clearly, this does not mean that you will be able to apply the right methods to solve your problem. The nuance is subtle but essential to understand.
Of those who have understood that the current system is going to the wall, very few have finally dared to make the only choice that was necessary: Bitcoin. The current system is inexorably dying from the possibility given to central banks to print more and more money fiat out of thin air.
To solve the problems of this system, the central banks keep printing more and more fiat money to continuously postpone the resolution of the real structural problems of the system. This solution will only make it harder and more dangerous for the system to collapse.
Because sooner or later this system will collapse. Unfortunately, it cannot be otherwise.
Michael J. Saylor was among the first to have the courage to embrace the Bitcoin revolution at the corporate level, and MicroStrategy is a big winner
Bitcoin proposes a system owned by the people. A system with a programmatic monetary policy that removes the arbitrariness of humans. A system whose monetary supply is limited to 21 million units no matter what. This is something essential that allows those who buy Bitcoin to have the guarantee that 1 BTC in 2021 will always be equal to 1 BTC in 21 million in 10, 20, or 50 years.
Bitcoin is hard money. Something that people have not been used to having for decades.
Founder and CEO of MicroStrategy, Michael J. Saylor opened his eyes in the year 2020 before embracing the Bitcoin revolution in August 2020. He embraced this revolution in the best way possible: by implementing a DCA buying strategy. So no matter what the price of Bitcoin is, Michael J. Saylor continues to accumulate it.
As of this writing, MicroStrategy holds over 108K BTC!
That's the equivalent of over $5.5 billion. A recent tweet from Michael J. Saylor highlights once again why his choice of Bitcoin has been so relevant to his company:
Michael J. Saylor Tweet
Here Michael J. Saylor compares the one-year returns between Bitcoin and gold. If MicroStrategy had opted for gold as a hedge against the current great monetary inflation, Michael J. Saylor would have made a multi-billion dollar mistake as he so aptly puts it.
I'm not the only one who thinks his strategy is the right one as MicroStrategy's stock value has been steadily increasing since August 2020. Judge for yourself:
MicroStrategy Stock Price evolution
Bitcoin naysayers will argue that the stock market is in the middle of a tech bubble. They're not afraid, but the main point is that MicroStrategy's strategy has been welcomed by investors. More and more people are believing in the incredible potential of Bitcoin for the future and are looking for indirect exposure.
MicroStrategy is becoming an excellent opportunity for these investors.
Final Thoughts
As El Salvador officially moves to implement its Bitcoin standard, Michael J. Saylor will be recognized in the years to come as a trailblazer who saw the need to embrace the Bitcoin revolution before any other CEO of a major company.
A CEO who not only diagnosed the problem with the current system but also had the courage to embrace the right solution with Bitcoin. El Salvador's President Nayib Bukele will probably be recognized as Michael J. Saylor's counterpart at the state level.
A man who was also able to seize the unique opportunity that Bitcoin represents for his country before anyone else.
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