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  • I worked in banking for 15 years.

  • I'll be honest Michael, I personally want to mow them down as well because I saw from the inside, the way they stopped innovation, they stop people having access and there's no need.

  • 30 years ago I was doing some of the things that now the kids are doing on these D apps right now.

  • Why did it take so long and why can't these people, you talk about these two billion people around the world have access to these complex instruments?

  • So I'm on this.

  • Maybe I'm a rebel anyways, maybe that's why you know fought against freedom of speech last year and ran for mayor this year in London but I want to wreck wreck it.

  • But I think your sense of the fact that that comes with it regulation issues and they're going to be real and defy is gonna have to go through those hurdles and meanwhile Bitcoin is a property might not and that's the way you see that, Is that correct?

  • Yeah, I mean, I think that uh, innovation, like we're all in favor of innovation that the question of who can do what like Uber was illegal and half the jurisdictions that do business in, but I still like Uber, but you know, they fought, you know, Airbnb in Miami Beach Airbnb is illegal, but people are doing Airbnb and like, so if you ask me, how do I feel about that their most successful unicorns, they're making the world a better place, but the restriction, but I also can see the point of view of the taxi cab drivers have, you know, I bought a medallion in new york city and I paid hundreds of thousands of you bankrupted me, you know, by coming into my town like what about me?

  • And maybe the guy that's got the apartment next to the party house that's got 100,000 parties going on.

  • Maybe that guy thinks I had I bought the apartment and the condo association rules already not supposed to do this.

  • And you know, Airbnb is making my life difficult.

  • This friction with innovation.

  • I think that just like the magic quadrant model is useful with crypto is like figure out what what you're investing in and then start to work through the competition issues and work through your ambition and work through the regulatory issues.

  • I think there's another quadrant or another segmentation, which is which is the investors segmentation.

  • Are you a saver?

  • Are you an investor?

  • Are you a traitor or are you a speculator?

  • And the way I think of it as a saver is someone that simply wants to keep their money for 100 years.

  • You want to preserve your property, right brian?

  • If you if you would like to give your money to your grandchildren and you want to put away some bucket of money for your grandchildren and not think about it.

  • The traditional technique is is I buy some gold and I bury it or I buy land or I or II by uh something which is stable like and I buy Bitcoin I swap a week asset for a strong asset If you live in Argentina and I told you the currency is going to go from one peso to the dollar to 155 pesos to the dollar.

  • So what's your strategy?

  • Well I just sell pastries and buy dollars.

  • Okay but what what what's your mix of real estate versus stock versus script to like now you're over thinking I just sell the pay so I buy the dollar Because that way I'll have 155 million pesos instead of one million pesos in 20 years.

  • That's the idea.

  • Okay, that's a saving strategy by the strong asset, sell the weak asset.

  • That's 100 year timeframe, 10 Year time.

  • But I'm an investor.

  • An investor is I buy Apple Amazon Facebook Google because I think it would go up by a factor of 10 and they may be cut in half.

  • If you show me a company that would go up by a factor of 10 where I might lose half my money, I would say if I believe in that company, that's an investment proposition, I can get behind that.

  • I'm buying a business.

  • It's much riskier than saving.

  • See the thing about Bitcoin is Bitcoin is if I took Big Tech and I ripped off if I took away the product and the Ceo and the board of directors of the company and all the employees and I just left the big tech and it didn't ship anything and nobody worked for it.

  • Can you see how that is?

  • Less risky, less moving parts.

  • Then when I give it, when you give Apple amazon a million employees, you can unionize them And when you give Apple 10 products, they have to upgrade them and then when you give google headquarters while you can regulate them and you know, so when you give the company stuff people, you create more attack surfaces.

  • So that's why With Bitcoin, I can imagine, I just, if I buy 100,000 Bitcoin and it is whatever 0.5% of the network, Maybe I'm holding out 1000 years.

  • Well, mike what has to happen for that to be valuable in 1000 years.

  • Nothing different than what's happening now.

  • Right.

  • So, so savers have a view, they just want the land, the investors, they're taking a different risk proposition.

  • Um, the traders, well, they're red betting on risk derivatives like to be right on Apple stock, you just have to hold it for a decade.

  • But if you're a traitor and you're trying to guess whether the quarterly results will be well, so you can buy the call or sell the point.

  • You have to actually not only do you have to guess whether they print a good quarter in number, but you also have to guess whether the market is already assumed that they're going to print a good quarterly number and you have to trade against the sentiment of the market.

  • So you're trading the shape of the yield curve and your trading dynamic, we risk derivatives, the first and the second derivative of risk.

  • If you're a good trader, you know, you are.

  • And then the last thing is speculator, I, you know, I don't even know what Apple's gonna print, whatever he's talking about it.

  • So I just bought the stock to see if it will go up.

  • Alright, I bought dog point before Ellen Moscow's onto saturday night live to see if it goes up.

  • That's that's a different thing.

  • I think that if you have a bucket of money that you just want to save, low risk, you do a savings strategy and if you didn't like the coin, I would say by a stack of market basket of scarce assets that are going to hold their value in an inflationary monetary environment that nobody can screw up.

  • You know, you just want to, I'm just going to buy a trophy asset, I'm gonna buy beachfront property, I'm gonna live in the rest of my life, I'm going to buy something which you can't mess up.

  • Very simple an investor, You have to you have to Cherry pick from 500 different stocks in the S&P 500 to pick the right one.

  • Okay?

  • And then but then if you're Warren Buffett investor, you buy it, you hold it forever.

  • He's still holding coca Cola 40 years later.

  • Okay, that's fine.

  • The traders, you better have proprietary liquidity or proprietary algorithms or you better be in between two inefficient markets if you are, you know, you are and if you're if you don't know that you're the best in the world at this, you probably aren't, you should probably stay out of it.

  • And I don't begrudge anybody being a speculator.

  • That's you're right.

  • I mean if you want to go to Vegas and bet money, go do it.

  • If you want to bet on yo yo coin, go do it right?

  • But but only about where you can afford to lose and call it you know, call it that's your that's your gambling entertainment bucket.

  • And maybe you make money and I mean people make money in Vegas that maybe maybe on the margin your odds might be better, you know in certain places, in other places, if I could just stand with 11 geographic metaphor.

  • Coming back to this new york analogy.

  • If Bitcoin is a block in new york city, then then the currency is a bunch of dollars in new york city.

  • The platform is 100 story building.

  • The Rockefeller center in new york city.

  • Right?

  • And the applications are companies in the Rockefeller center, roll the clock back 100 years.

  • Do you would you rather own the land underneath Rockefeller center?

  • Would you rather own the Rockefeller center?

  • Would you rather own the banks, the insurance companies, the restaurants, the disco text, the retailer is the condos and Rockefeller Center.

  • Or whether it would you rather own a billion dollars worth of money in a bolt in Rockefeller Center and that's your four different things.

  • Figure it out.

  • I would say you can make, you can make money in any of the four.

  • If you're gonna own the dollars, you better be a traitor because you can't hold him that long, you better be trading.

  • If you're gonna own the platform, you're going to be a landlord and you're gonna have some tenants go bankrupt and other tenants hit it big and you know, figure it out.

  • I think that the, that the block in Manhattan is good for 1000 years.

  • I think the building is good for one or 200 years before you have to rebuild it.

  • That's okay.

  • I mean, Rockefeller center still there.

  • They put it up in 1930 something.

  • But you have to, you know, you got to renovate it.

  • If you want to own the company.

  • Man companies, they can last Name A Company That's 100 Years Old.

  • They could last 10 years.

  • They could last 20, they could last 30.

  • They could also last 30 months.

  • Well on the other hand brian if I had infinite capital, if you have a billion dollars and you want to put the money to work in a brainless way, you buy the property.

  • But if you don't have a billion and you want to make a billion dollars, if you start with $1 million $5,000 furniture alone at age 24 in order to in order to create a multi billion dollar company with $5,000 of capital, you better start a company, you need to invent something.

  • So if you don't have any capital, but you have, if you have intellect and passion, ambition, you start on the application area and then you move backwards.

  • If you have a decent amount of capital, maybe you can have a building a platform and your heads in the middle.

  • And if you have a lot of capital, you buy property.

  • And I think they all appeal to different pools of capital and and and they all there's a there's the marketplace will sort it all out.

  • But it's important to keep in mind that There's a lot of uh $400 trillion C5.

  • It's traditional finance.

  • And so if you want to see this thing really explode, what you want is for the insurance companies.

  • The mass mutuals, the new york lives the eggs.

  • You want them to rotate $100 billion portfolio.

  • That's all bonds into 30 or 40 or 50 or $100 billion of Bitcoin.

  • And then is that as they rotate their traditional bond assets into digital property, the entire ecosystem will expand and then you can start to use that digital property as collateral for the next thing and the next thing, right?

  • Well there's a place for for both, right?

  • And some people think the only innovation is in the defi apps.

  • Well I mean there is you need to do defy acts to bring innovation to certain parts of the economy.

  • Like if you want to bring, when we wanted to bring stable coin to el Salvador, you needed lightning on Bitcoin.

  • and it was defying you couldn't do a Visa.

  • But on the other hand, there's also massive opportunities for Apple pay and google pay.

  • You can, you know, you can also convert Apple into the world's biggest bank.

  • Right.

  • Right.

  • I mean, Bitcoin means that Apple could become a bank with $10 trillion 36 months or 60 months.

  • Okay, that's a different thing.

  • But it's also possible you could have a defi network that spends up with hundreds of billions.

  • I think it's more likely that you'll see mega capital flows as the big tech players like facebook and Apple and google come in because they have incredible, incredible leverage they can bring to bear if they start to embrace even a piece of the crypto ecosystem.

  • Mhm.

I worked in banking for 15 years.

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B1 rockefeller buy apple innovation property capital

How To Make A Billion From A Million ? Michael Saylor on Innovation and Banks With Brian Rose

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    林宜悉 posted on 2021/07/27
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