He wants to convince Microsoft to hoard BTC

Source: Liu Jiaolian

BTC continued to oscillate around the 96k pivot point overnight, waiting to converge with the 30-day moving average. Many people say that the altcoin season has started. JiaoChain only noticed that the yield of its Uniswap Position is closely following that of Ethereum Position, only 10 points behind.

The approach of teaching chain to Holdings is basically based on the principle of "eat my own dog food": using Uniswap, so holding Uniswap; developing code on EVM, so holding Ethereum; hoarding BTC as a savings tool, so holding BTC.

So TeachChain is not interested in pure speculation. Cryptocurrency Trading, stock trading, real estate speculation, it's better to fry eggs, cucumbers, shredded potatoes, oil wheat vegetables, and mugwort stems... TeachChain even thinks that frying various ingredients and observing things in nature may be beneficial to speculation in front.

In fact, top chefs do not stir-fry.

Top chef, pancake master, institutional diamond hand representative, and founder of MicroStrategy, Michael Saylor recently visited the Microsoft board of directors and gave them a popular science lecture on BTC, mobilizing them to adopt BTC strategy, allocate some funds, and establish Microsoft's own BTC reserves.

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

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

2. If Microsoft converts the capital "wasted" on stock repurchases into BTC, it will effectively boost Microsoft's stock price.

3. Therefore, Microsoft should adopt the BTC strategy and hoard BTC.

So, in his speech, Michael Saylor positioned BTC as 'Digital Capital' instead of the commonly mentioned 'Digital Gold'.

Wonderful.

With this, he further opened up the growth space for BTC in the future. The ceiling is not the $16 trillion market capitalization of gold, but half of the approximately $90 trillion global total wealth.

What is capital? Capital is the surplus produced and used for reinvestment. Any society, regardless of its stage of civilization, culture, or system, relies on the accumulation and utilization of capital for its progress.

If the whole society is like a primitive society, consuming everything produced without any restraint, wasting everything, and leaving nothing behind, then everyone will be in the lowest state of survival all day long, without time, energy, or resources to further develop.

After measuring all kinds of surplus production with monetary tools (i.e. monetization), it becomes the so-called value. Marx called it surplus value in Capital.

Under the capitalist mode of production, workers work hard to produce surplus value, which is then controlled by the capitalists. It's important to note that the capitalists are strictly non-laboring individuals; a boss who works themselves can only be considered a half-capitalist. The capitalists consume a small portion of the surplus value themselves, and then invest half of the remaining portion back into production, while the other half is placed into secure capital storage tools as long-term capital for future production or to defend against economic cycle risks, etc.

The advancement of capitalism is reflected in the capitalist class. In the slave or feudal era, the non-laboring class that dominates surplus value only knows how to squander, which is very harmful to the accumulation of capital, thus hindering further improvement and advancement of productive forces. The capitalist class, although consuming a small part of the surplus value, is more frugal in its extravagance compared to the feudal emperors. A large amount of surplus value is preserved, becoming practical capital for reinvestment and long-term capital for temporary savings, thereby promoting the rapid advancement of social productive forces. This has enabled capitalism to create more wealth in the past three to four hundred years than the total wealth created in the entire civilized history of humanity for thousands of years prior to that.

Therefore, Michael Saylor believes that the current global total wealth is 90 trillion US dollars, roughly half of which, 45 trillion US dollars, is used for current reproduction of practical capital, while the other half, 45 trillion US dollars, is long-term capital temporarily saved and not used. This right half of 45 trillion US dollars in long-term capital needs to find a suitable "value storage" tool to be properly preserved and saved.

Why does Michael Saylor call BTC digital capital instead of digital gold? Because today, tools for 'value storage' have long surpassed just gold. Stocks, real estate, bonds, Fiat Currency, and even art are all used by people to store value.

However, these things, used as 'stores of value,' all have a major flaw. What is it? Please think about it, dear readers.

By the way, the fatal flaw is that these things are often controlled by others, and the controller can dilute and dilute the value stored in them by constantly issuing (overissuing) their quantity.

For example: artworks, artists can continuously create new works; stocks, listed companies can legally issue more shares; real estate, new houses can be continuously built; bonds, governments and institutions can legally conduct continuous issuance of more; Fiat Currency, Central Bank can legally continuously print money; and so on.

They have a common feature: no deposit, but unlimited withdrawals.

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

The purpose of using these tools is to store value, but the presence of these opponents is a significant, even the biggest, risk.

In finance, there is a term called "counterparty risk".

Therefore, Michael Saylor said that BTC is a better store of value than these tools because BTC has no "counterparty risk". Fundamentally, this is because BTC is decentralized. Satoshi Nakamoto never introduced any "counterparty" to the BTC system during its launch. He successfully left and dissipated this potential risk into the annals of history.

In this way, BTC will become a historical choice and will be 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 this long-term capital.

Ultimately, other capital tools will gradually degenerate into practical capital (such as housing for living, only for self-occupation (consumption) or rental (practical capital)), and the demand for long-term value storage will all fall 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 total global wealth.

His conclusion is similar to the article 'BTC Endgame: Could Equal the Sum Total of All Remaining Human Value!' by Jiao Chain on March 4, 2024, but more specific and accurate.

This is also what Jiao Chain has repeatedly stated: 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 rise 140 times from a market capitalization of $2 trillion to a market capitalization of $280 trillion in the next 21 years.

This provides Microsoft, as a controller of surplus value, with better strategic choices for how to more reasonably dispose of and utilize the surplus value it controls.

In the past, Microsoft made a lot of profit, had nowhere to invest, so it bought back its own stock to boost the stock price.

Raising stock prices is a way to reward shareholders, company executives (most of whom have a lot of stocks or incentives such as options in their salary packages, especially in high-tech companies), and even some employee shareholders.

Michael Saylor is an excellent salesman.

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

Painting BTC may seem grand, but if it cannot bring tangible benefits to the audience present, then you cannot impress them and make them pay the bill.

Who is in the audience for Michael Saylor's speech? Microsoft's board of directors, directors, shareholders.

They do not have a direct resonance with the grand vision of BTC. But they have a resonance with the pump of Microsoft's stock price in their pockets.

So Michael Saylor changed his tune and started talking about how if Microsoft changes its approach to capital allocation, it could result in significant returns for shareholders.

He gave four strategies: minimize BTC, maximize BTC, double maximize, triple maximize. Each represents different investment intensities. Here, Jiao Chain will not be further elaborated.

Then he thoughtfully calculated the excess increase in stock prices under various strategies for everyone present in the meeting room. Implicit meaning: you can secretly calculate how much your own worth can appreciate.

According to his calculation, adopting the BTC strategy can generate an excess gain of $155 to $584 per share of Microsoft stock in the next decade, that is, an additional gain in addition to the regular increase brought by the normal business rise.

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

What is logic? Logic is, using the money earned by the company to repurchase its own stocks, supporting its own stock price; while using this money to hoard BTC, it is using the money earned from around the world to support its own stock price.

Obviously, absorbing the remaining capital from around the world to support its own stock price is definitely much better than going it alone.

Michael Saylor is most qualified to say this. Because the stock price of MicroStrategy is almost supported by BTC, not its small and poor software business support.

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

And that's the end of the story.

Dear directors and 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 buybacks to boost the stock price anymore, please use the BTC strategy to significantly increase the company's stock price.

This is Michael Saylor's "sales" logic.

Why did he go to persuade the Microsoft board at this time? Fren may also remember that on December 10th of this month, Microsoft is going to have a shareholder vote to consider whether to adopt the proposal to reserve BTC.

Do you think Michael Saylor's argument can persuade Microsoft's directors and shareholders to vote in favor of adopting BTC as a reserve strategy?