Saylor: "We need three currencies"

Michael Saylor made statements on Bloomberg that contrast greatly with what one can hear from the mouths of “Austrian” economists.

Saylor doesn’t see bitcoin replacing fiat currency

Question from the journalist:

Bitcoin needs to prove itself as a stable means of payment. Its price is therefore very volatile. How could a commodity priced in US dollars solve today’s problems?

Response from Michael Saylor:

“I think you have to keep in mind that all citizens of the world need three types of currency. They need a local currency, like the Turkish lira, to pay their taxes and buy local products. From a global currency, the US dollar, to buy products internationally. And of a good that they will be able to offer to their descendants and which will last 30 years, 60 years, or a hundred years.

Bitcoin represents this good. The US dollar is the world’s reserve currency, and your local currency is determined by the jurisdiction you live in and in which your local taxes and expenses are denominated.

There is no need to replace the local currency, it will not happen. [Le bitcoin] will not replace the dollar either. What it replaces is that real estate, stock, or gold bar that you were going to invest in.

And compared to a gold bar, the value of which does not increase in real dollars, bitcoin performs a hundred times better, if not more. Bitcoin is therefore a long-term asset, not your everyday checking account or local payment method. »

These statements should be compared to those made at the Bitcoin conference in Prague: No country can stop inflation. No one can stop inflation. I can put you at the head of the world, you couldn’t stop the inflation”.

Bitcoin as the one and only currency?

Michael Saylor does not seem to think that a world with a single currency in absolutely fixed quantities is the best formula.

Your servant is also of this opinion, for two main reasons:

-How to finance projects that cost billions without the tool of debt?
-How to pay interest?

An advanced civilization needs the tool of debt to finance its much more complex infrastructure than in the past.

France plans to build four nuclear reactors soon. It will cost 50 billion euros. Without the tool of debt, we would have to find 5 million French people ready to lend 10,000 euros each for 10 years. Good luck.

Moreover, it is impossible to collect interest on a fixed money supply. This is mathematically impossible. For what ? Because interest money is not initially in circulation in the economy.

Paying interest on the entire money supply is only accountably possible by increasing the money supply. Banks make sure of this by lending a little more each year than the previous year (lower rates and longer loan terms).

It is a Ponzian process, but essential from an accounting point of view. Except that in the absence of productivity gains (increase in production per hour of work), this monetary inflation translates into a drop in the standard of living.

The fiat system is neither good nor bad. It is simply the best system to grow as quickly as possible. All is well as long as we can produce ever more energy and thus supply ever more machines on which our productivity depends.

Inflation will be all the stronger as the energy descent is rapid. Peak Oil (potentially reached in November 2018) will be the most inflationary event of our generation.

Bitcoin offers an absolute store of value for anyone not wealthy enough to invest in real estate, art, etc.

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