Podcast Summary: The "What is Money?" Show – Episode 8: The Saylor Series | Bitcoin and Immortal Sovereignty

Host: Robert Breedlove
Guest: Michael Saylor
Release Date: January 5, 2021

Introduction and Overview

In Episode 8 of "The What is Money?" Show, host Robert Breedlove engages in a profound dialogue with Michael Saylor, CEO of MicroStrategy and a prominent Bitcoin advocate. The episode delves deep into Bitcoin's theoretical foundations, its role in shaping the future of humanity, and introduces the intriguing concept of "immortal sovereignty." Building upon discussions from previous episodes, this conversation explores the intersection of engineering, economics, and ideology within the Bitcoin ecosystem.

The Divinity of Engineering

Key Points:

• Engineering as a Divine Human Trait: The conversation begins with the affirmation of engineering as a fundamental quality that defines and fulfills humanity. Michael Saylor emphasizes that engineering harnesses human ingenuity to transform chaos into order, much like the beaver, the mascot of MIT, reshapes its environment.

• Bitcoin as the Pinnacle of Engineering: Bitcoin is portrayed as the most advanced monetary system ever engineered, channeling human intellect to create a resilient and efficient structure for storing and transferring value.

Notable Quotes:

• Michael Saylor [00:02]:

  "Bitcoin is channeling human ingenuity into making it better. And every commodity is channeling human energy into making it worse."

• Robert Breedlove [05:48]:

  "Humans are divine when they engineer a better habitat for themselves and those they love through their intellect."

Bitcoin as a Medium of Exchange

Key Points:

• Low Frequency vs. High Frequency Transactions: Saylor argues that Bitcoin is best utilized as a high-frequency store of value rather than a medium for daily transactions. He critiques the notion of using Bitcoin for small, frequent payments, labeling it inefficient and tax-impeding.

• Tax Implications: Compensating employees or conducting regular transactions in Bitcoin can trigger complex tax obligations. Every transaction would require marking Bitcoin to market, leading to significant capital gains taxes and increased accounting burdens.

• Optimal Strategy for Businesses: Instead of using Bitcoin for operational transactions, businesses should adopt a strategy of holding Bitcoin as a treasury reserve asset, converting excess fiat into Bitcoin and maintaining it in self-sovereign custody.

Notable Quotes:

• Michael Saylor [08:06]:

  "Bitcoin is the first well-engineered monetary energy system that we build."

• Michael Saylor [20:13]:

  "If you have savings, you have excess currency or excess assets, you would sweep them into your savings or your treasury for long-term storage."

Crypto vs. Digital Networks

Key Points:

• Decentralized vs. Centralized Systems: The discussion differentiates between crypto networks (decentralized, consensus-driven) and digital networks (centralized, controlled by single entities). Bitcoin epitomizes a decentralized network optimized for security and survivability, albeit at the cost of transaction speed and efficiency.

• Trade-offs: While digital networks offer economy, performance, and functionality, crypto networks provide trust, security, and duration. The inherent redundancy in decentralized networks ensures resilience against attacks but requires more energy and resources.

• Market Dynamics: Michael Saylor likens the crypto asset ecosystem to a small pond next to a vast ocean of traditional assets, suggesting that efforts should focus on attracting substantial capital into Bitcoin rather than competing within the fragmented crypto space.

Notable Quotes:

• Michael Saylor [38:03]:

  "Bitcoin is 93, 94% of all the assets. And the other ones are probably going to zero."

• Robert Breedlove [44:18]:

  "In a free market, you know that your customers have options. They can go to other providers... Whereas on the other end is the monopolist."

The Concept of Immortal Sovereignty

Key Points:

• Transcending Time and Space: "Immortal sovereignty" refers to the ability to project one's preferences and wills beyond their own lifespan, enabled by decentralized crypto networks like Bitcoin.

• Endowing Institutions through Bitcoin: Traditional methods of creating lasting institutions require immense resources and trust in centralized entities. Bitcoin allows individuals to endow digital institutions in a cost-effective manner, reducing counterparty risks and enhancing adaptability over time.

• Practical Applications: Examples include funding a family endowment to sustain initiatives like delivering flowers on birthdays for generations or maintaining public spaces indefinitely without relying on governmental support.

Notable Quotes:

• Robert Breedlove [70:18]:

  "You can lock up the base layer money and then appoint this multisig schema as almost a decentralized organization... allowing your will and testament to be carried out in a more dynamic way across geopolitical changes."

• Michael Saylor [73:48]:

  "Bitcoin gives us an interesting thing which is a monetary layer that enables us to dematerialize these institutions but still achieve something similar... immortal sovereignty."

Money as Power and Technology as Magic

Key Points:

• Intersection of Money and Advanced Technology: Combining the concepts of money being power and advanced technology being akin to magic, Bitcoin emerges as a tool of profound influence. It empowers individuals to enact lasting change ("cast spells") or disrupt systems ("cast curses") across time.

• Creating Lasting Impact: Bitcoin enables the creation of digital monuments—endowed institutions or initiatives that persist beyond the lifespan of their founders, ensuring the continuity of their missions and values.

• Ideological Commitment: True Bitcoin proponents are driven by a principled ideology that transcends mere financial gains. This ideological commitment fosters a community willing to defend Bitcoin's principles passionately, akin to a modern-day religion or crusade.

Notable Quotes:

• Michael Saylor [75:55]:

  "The magic spell I would cast were I a magician is I'd go to that park in Naples and I would wave my hand and it would become a beautiful paradise... forever."

• Michael Saylor [84:46]:

  "Bitcoin, by being a monetary base layer that maximizes the sovereignty of individuals and being optimized for survivability, actually gives us a whole new way of establishing this immortal sovereignty across time."

Bitcoin as a Principled Ideology

Key Points:

• Pure and Principled Ideology: Bitcoin embodies a set of pure principles centered around fairness, equality, natural law, thermodynamics, mathematics, and freedom. This purity makes it a compelling ideology that attracts and retains passionate advocates.

• Enduring Community Commitment: Unlike alternative cryptocurrencies, Bitcoin's community is driven by foundational principles that inspire long-term commitment and resilience against external pressures and internal conflicts.

• Role as a Foundational Tool: Bitcoin serves as the base operating system for higher-order systems such as nation-states and religious institutions. Its principles influence broader societal structures, reshaping trust and power dynamics.

Notable Quotes:

• Robert Breedlove [90:59]:

  "Bitcoin is going to be a store of value and that's the direction we think it'll keep going."

• Michael Saylor [111:03]:

  "If you respect fairness, equality, natural law, thermodynamics, mathematics, freedom, that's what Bitcoin positively embodies."

Conclusions and Final Thoughts

The episode culminates in a robust affirmation of Bitcoin's unique position as both a technological marvel and a principled ideology. Michael Saylor and Robert Breedlove underscore Bitcoin's role in enabling "immortal sovereignty," allowing individuals to project their wills and values beyond their lifetimes in a secure, decentralized manner. They argue that Bitcoin's design prioritizes security and longevity over transactional efficiency, aligning with its primary function as a store of value.

Saylor critiques the fragmented nature of the crypto asset market, advocating for a unified focus on Bitcoin to attract substantial capital and maximize its transformative potential. Breedlove echoes this sentiment, emphasizing Bitcoin's resilience and its ability to serve as a foundational monetary layer that redefines institutional trust and power.

Ultimately, the conversation positions Bitcoin not merely as digital currency but as a catalyst for profound societal and ideological shifts, offering individuals unprecedented control over their economic sovereignty and the legacy of their values.

Acknowledgements: Special thanks to Michael Saylor for his insights and to all listeners who engage with "The What is Money?" Show in pursuit of understanding the essence of money and its impact on the world.