Here is my take on Microstrategy ($MSTR), Bitcoin, along with Warren and Charlie! – June 29, 2023
This is Dan Fitzpatrick with a quick video about MicroStrategy ( NASDAQ: MSTR ).
Now, Michael Saylor is a super, super smart guy. He is very, very sharp when it comes to Bitcoin, he is a total Bitcoin bull. The reason I say that is, he hasn’t always been that way. When Bitcoin first came out and first started to get the public’s eye, he was really against it. He thought it was a Ponzi scheme, etcetera, etcetera. But then he looked into it a bit more, and really did some research, and totally changed his mind on it.
I was also skeptical of Bitcoin, and then I did the same thing and changed my mind about it, as well. For those of you that are Charlie Munger and Warren Buffett fans, that’s fine. They didn’t really invest in the Internet either because they didn’t understand that. The point is, if you look at something and you are skeptical, and then you look at it deeper and you say, Hmm, okay. That also means that you are really not gullible.
But when you look at somebody like Munger and Buffett and so many others, they say, Oh it’s “bull spit”, there is nothing to it. And so what are they suggesting? They are suggesting the dollar, you have got to invest in the dollar, it is regular currency. And what is their reason for not liking Bitcoin? Well, because it is not based on anything, it is subject to manipulation. Has anybody ever heard of the LIBOR thing? It is subject to manipulation, you don’t know who owns it.
It goes on and on about how Bitcoin is basically a Ponzi scheme. Okay, fine, so I will ask you this, what’s the dollar? What is any kind of paper currency? I hate to tell you, it’s a Ponzi scheme too. Oh, but it’s backed by the full faith and credit of the United States. Okay, whoop-de-do, that’s great. Bitcoin is backed by the full faith and credit of the market.
And so, when you really stop and think about it, virtually everything is a fiat currency. Here’s what it is based on, it is based on somebody’s willingness to buy it. What are you willing to pay for whatever it is, for a dollar? What interest rate are you going to pay in order to borrow somebody’s dollars?
Well, thanks to Ben “the Beard” Bernanke, for quite a while nobody was paying anything to borrow the dollar. And so you tell me, was the dollar worth anything? Is our currency truly worth anything? Now it is because the Fed has jacked up rates so much, so it does actually cost money to borrow money, to borrow dollars.
But when interest rates were zero, what was the dollar worth? The dollar was worth nothing intrinsically because nobody knows how many of them are out there, and they keep printing them all the time. So the dollars are literally infinite. You can print as many as you want and nobody says anything because everybody likes that free money.
So if that is the case, and it is, then what is the dollar truly worth? The dollar is truly worth whatever people are willing to pay for it. If I want to borrow dollars, how much am I willing to pay to get those dollars? You don’t buy dollars because what are you going to buy them with, other dollars?
So what is the price that you are going to pay in order to get dollars? How much interest are you going to pay the person who is selling them to you? And for the longest time, it was virtually zero. So in that case, what is the difference between a dollar and Bitcoin? Nothing. Both of them are worth exactly what people are willing to pay for them, with one essential difference, we do know how many Bitcoin are there. It is a finite definable amount.
As the dollar gets weaker and weaker, and inflation gets higher and higher, and by the way, oh, we are going to stop inflation. Dude, when is the last time prices have ever really come down? So you say, Oh, we are going to reverse inflation. No, we are going to stop the acceleration of price inflation. You are not going to see prices come down very much at all.
And why do I know that? Because I am 65 years old and I have been paying attention to what prices have been for most of my life. And the reason is, that I have had to exchange those dollar bills for stuff, and the price continues to go higher. So when I hear about how the dollar is going to be able to buy more, no it’s not. You are just going to get used to paying $60.00 for a little package of fillet.
So keep that in mind. I know I am ranting a bit, but I am ranting for a reason. Because I feel passionately about it and I am not saying, just rush out there and pile into Bitcoin. What I am saying is, you can rush out and pile into MicroStrategy ( NASDAQ: MSTR ). Because they actually have a business, that’s where they make most of their money.
But Saylor has just stuffed a bazillion dollars of Bitcoin into the company’s coffers as well. So this is actually kind of a twofer, you are betting on technology and software development. And then you are also betting on the fact that old Warren and Charlie, may, at some point in the future, but they may not, may at some point in the future say, Gosh, maybe we didn’t get Bitcoin.
So what I am telling you is, look at buying MicroStrategy ( NASDAQ: MSTR ). Keep a stop down here so you don’t lose your “asterisk” if it does happen to pull back. But I think this company is going higher, it is going appreciably higher. It is, by the way, one of the active trades that we have on our Active Trade List.
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