In an interview with Archie from Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. Archive Michael Saylor tells you how to think about money whether you live in the US, Venezuela or Argentina, how much money you should have in fiat/cash in the short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. term, and what kind of properties he suggests for the medium and long term if you want to preserve and grow your capital.
The following is a translated transcript of Michael Saylor’s response toBitcoin Archive about how you would advise thinking about money in different parts of the world in the midst of this inflationary environment in which we find ourselves after the excessive printing of money by all the world’s central banks.
These are his words:
“Determine how much you’re going to spend next month, and hold that in the local currency, in the unit used to pay your bills.”
“If I lived in Argentina and I have to pay rent in pesos, I would have maybe a month of pesos, a quarter or a few quarters to a year in dollars, and then all the money beyond that, a year to four years if you want to be really conservative, you have a hedged property [hedged, maybe here he means having futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. or insurance], like something that’s protected but can’t go to zero but it’s not going to go to infinity and beyond four years you want to have the best property in the world.”
Three types of long-term ownership
According to Saylor, you have three types of property that are reasonable and defensible. In his words:
- You have digital property in the form of Bitcoin, so a portion is in digital property.
- Then you have properties in the form of companies you want to own [hold shares] u operate [ being an entrepreneur ].
- You want to own a corporation, you want to own a digital monopoly como Apple o Google I’m sure that even if the government goes bankrupt, the company won’t go bankrupt.
“You can more easily imagine 100 governments in the world going bankrupt before you can imagine Google or Apple going bankrupt.” he adds.
He assures that “America could probably be bankrupted more easily than Apple and Google. It’s a very strange thing, you can imagine the US splitting into three parts but you couldn’t imagine all the people in the three different parts of the country giving up their iPhones, and if I gave you $500 billion and said ‘recreate Apple’ you couldn’t do it.”
“So Apple will probably last longer than Canada or Australia or Japan can last, they might go out of business before Apple does.” he says and adds:
So that’s the second form of ownership, you own a digital digital technologies are these electronic tools that have the ability to generate, store or even process data. monopoly that’s able to raise prices on something that everybody needs, something that nobody can get rid of, that’s close refers to the closing price; similar to the same term used in stock trading. to oxygen, and then the third form of ownership is real estate trophies like the house you should live in.
He said: “If you have a house where you’re going to live for the rest of your life, you’re always going to get value out of it, or super trophy real estate that are scarce, desirable, that a smart person with money will want to buy you in a decade”.
However, he emphasized this statement:
But if you’re a Bitcoin maximalist, then you’re 100% Bitcoin. I’m 100% Bitcoin, but I’m still going to need to have a house to live in and I can put debt against it, you can also own tech stocks. Everybody can decide what their mix is, but those are the 3 logical assets to hold for the long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. term.
In the short term
Saylor’s question for the short term is:
Do you need a year’s supply of cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. or do you need a month’s supply of cash?
Stresses that it is obvious that, if you want to be really extreme, “ if you live in Venezuela you only want to have one day of cash in bolivars if you are in Argentina you want to have a month of pesos, or reais if you are in Brazil, and you want to have a few months to a year in dollars and everything else has to be invested.” .
And of course, this is not easy because “ in Venezuela can’t buy the shares of big tech companies So if you can’t buy Apple, Google or Microsoft, which I consider monopolies,” he said.
To which he adds:
Microsoft va a estar por mucho despues que esten 82 países. Y si no puedes comprar eso lo que puedes comprar es Bitcoin . Bitcoin is the monopoly on monetary networks that anyone can buy.
Destaca que luego “ if you are committed to living in Argentina or Venezuela for the next 100 years then you want to own a finca or your beach house. or whatever if you trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. the government and you don’t have to run and you don’t want to worry about taxes.”
But the problem with all this, he says, is that it’s hard to get your hands on action. “ 70, 75, 80% of the world cannot buy stocks traded on the Nasdaq. y it’s hard to take your property with you if you have to go away. and it’s easy for the government to expropriate you or for someone to destroy them, or eliminate your ability to make money properly, they can put price controls on the rent on your house in California if it’s a second home, so Bitcoin is clearly my favorite form of ownership for the long term, and that’s how I would think about managing your portfolio.”
Source: Interview with Michael Saylor by Bitcoin Archive
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Illustration by Nicole León, exclusive to DiarioBitcoin.