Saylor's final warning to Bitcoin investors is that the AI boom strengthens rather than weakens the Bitcoin case: AI demonetizes labor-based equities and pushes capital into scarce assets, Bitcoin is the strongest-performing capital, and the past year's headwinds are turning into tailwinds, with Bitcoin at the beginning of a bull market heading back into six figures.
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00:00 there's going to be a rotation into scarce desirable capital whether that's Palm Beach real estate or gold or digital gold in the form of Bitcoin. So why haven't we seen that yet when it comes to the the AI trade? >> Bitcoin and crypto are on the brink of exploding higher. >> If the thesis that that you espouse comes true and that people will look for stuff with scarcity, why hasn't it materialized with Bitcoin yet?
00:24 Heated conversation today with Michael Sailor on CNBC. The hosts really push back. >> I feel like Michael, everyone is competing for capital against AI, >> but Sailor comes in with every single answer they ask. >> Capital investors are going to look for things that the robots can make more of. So, I actually sent this exact video to a friend, and this twominute explanation by Michael Sailor finally convinced him to buy Bitcoin.
00:55 >> We think we're at the beginning of a bull market. And >> this is the question that everyone is debating. Does the AI boom make the case for investing in Bitcoin even stronger? We know that Sailor says yes. Surprisingly, seems like CNBC is pushing back on this statement, but I love how Sailor takes 2 minutes to explain the connections that most people are missing.
01:23 I think his explanation started to convince them. Listen for yourself. Tell me what you think in the comments below. >> I feel like Michael, everyone is competing for capital against AI. um so much money flowing into it and we see it just kind of squeezing out investments elsewhere. How long do you think that continues and what kind of an impact are you guys feeling in the crypto space as a result?
01:50 >> Well, you can see that AI is going to demonetize a lot of equities that are based upon labor and talent. And so there's a lot of risk in the AI trade, especially across equities, either equities that are attempting to create the next magic product and they might miss or equities that are based upon tens of thousands of humans and they're getting demonetized and degraded.
02:09 On the other hand, um there's going to be a rotation into scarce desirable capital, whether that's Palm Beach real estate or gold or digital gold in the form of Bitcoin or some trophy asset. uh capital investors are going to look for things that the robots can make more of and certainly the king of commodities right now is Bitcoin because it's digital capital.
02:35 >> So why haven't we seen that yet when it comes to the the AI trade? If if if the thesis that that you espouse comes true and that people will look for stuff with scarcity, why hasn't it materialized with Bitcoin yet? Well, if you look at the Bitcoin standard error, which started when we bought our first Bitcoin in August of 2020, Bitcoin is up approximately 38% a year every year.
02:58 Uh MSTR, the digital equity that our company represents is up 52 or 53% every year. The only stock you know of that's outperforming that is Nvidia. Every other MAG 7 stock and every all the other major S&P stocks are underperforming that. Uh Bitcoin is outperforming gold. Gold is outperforming the S&P index and ultimately if you look at the entire complex, digital capital is the strongest performing capital and digital credit like STRC is paying double to triple other conventional credit instruments and the digital
03:33 equities like MSTR or Strive ASST they're outperforming most you know 98% of the other publicly traded stocks. So, the headwinds that Bitcoin has faced over the past year or so are now turning into tailwinds. Michael Sailor again here reiterates that Bitcoin is in a bull market from this point forward and I love how he takes the time to explain why things have changed and why crypto and Bitcoin are going to go up.
04:08 This is from a recent fireside chat Sailor did at the World Bank, joined by Chris Broomer, founder and CEO of Fintech Foundation. It was part of DC Fintech Week. Like the video and listen to the bull thesis for Bitcoin this year and next for yourself. The headwinds for Bitcoin for the past year have been uh restrictive foreign policy, restrictive trade policy, restrictive monetary policy, and uh a massive uh gravitational field which has been sucking capital into the AI trade, a trillion dollars of capital flow.
04:43 So those are the headwinds, the tailwinds and the and now uh the evolving fundamentals that are helping it. Um as um you know a as the Treasury and the Fed has to support the bond market, we're going to have to see an expansion of the money supply. And so expanding money supply is always good for Bitcoin. Is very sensitive to that. Um banking adoption is a big uh a big uh uh tailwind.
05:15 As right now you have $1 and a half trillion dollars of this asset and most of it is unbanked which means you can't borrow money against it. So as city or JP Morgan or Morgan Stanley or Schwab start to custody Bitcoin they will issue credit against it. Okay, there's only $10 billion a year worth of Bitcoin available for sale. That's the organic supply.
05:38 Every time you create 10 billion dollars of credit, you buy one year supply. And so the banking networks could generate a hundred billion dollars of credit on top of Bitcoin, it would be 10 turns. And so that's just going to drive the price up in the same way that mortgages drive up the price of houses. If you had a if you had a neighborhood and no one could borrow money to buy a house, the price of the houses would fall.
06:02 And the more uh accommodating the credit terms, the higher the price goes. So bank credit formation is a big driver. Digital credit um what we're doing we we've sold $10 billion or more of digital credit in a year. So so a company like ours could buy the entire natural supply uh and then a company Strive uh which um is a smaller uh company similar to us a digital credit issuer.
06:31 They bought every bitcoin produced last week. They bought 3,000 Bitcoin and they're they're in hyperrowth. They're growing 10% week over week. >> Make sure you subscribe to Altcoin Daily. We keep you informed on everything going on in the crypto market on a daily basis. And again, I show you that Tradfi is adopting crypto in such a huge way. Today, the SNP executes its first onchain crypto derivatives swap using the Canton network.
07:03 Huge. Canton has been on our list of top altcoins for a while now. If you subscribe to us, you know about the leading players in the space. So when Bitcoin was at 5859, low60s, Michael Sailor said Bitcoin was in a bull market and Bitcoin moved up 40% from here. In the past 2 hours, Michael Sailor has reaffirmed his belief and says Bitcoin is still in a bull market.
07:34 We're in the beginning of a bull market. You can tell because everybody is still so bearish on Bitcoin. But make no mistake about it, this is his warning to traditional finance. >> Bitcoin had a great summer. Still though, about 30% below last year's all-time highs. What is your view on where Bitcoin goes from here? >> Well, we think we're at the beginning of a bull market.
07:59 Um, we uh we normally look at where Bitcoin is versus 200 week moving average and we bounced slightly below it. Now we're moving up uh 25% premium. So, uh the the headwinds were restrictive trade policy, restrictive foreign policy, restrictive currency or monetary policy. And now we're rotating into some tailwinds. We've got a very favorable regulatory environment.
08:26 We've got banking adoption accelerating. We've got uh tokenized securities and the digital asset space accelerating. We've got the formation of and the strengthening of digital credit networks and of course banking credit coming online and all these things are very auspicious for the asset. to go further. This means that Bitcoin can easily hit $100,000 again.
08:51 Now, he plays a little koi as to when he believes this is going to happen, but this is a refreshing take considering that the CNBC hosts and most people you talk to today say the Bitcoin trade is over. To me, getting back to 100K, it's obvious. >> You've said twice during this conversation that we're in a bull market when it comes to Bitcoin right now.
09:13 How high in this cycle do you see it going? >> Yeah, I think that it should definitely move back into the six figures, back beyond $100,000. And our long-term forecast is Bitcoin grows 20 to 30% a year over the next 20 years. So, um, clearly the last 12 months have been, uh, a contraction. I think we hit the bottom around slightly below 60,000. I think we bounced off it.
09:41 Now we're moving up into the 80s. Uh I think we'll continue to march forward from here. >> 100,000 by when? Michael, >> I'm not a short-term trader. We make plans, you know, in centuries. >> And remember, if you trade crypto, you can make more money whether the market goes up or down. If you trade on WEX, they regularly send their users a $500 bonus, 100 winners every time they do this, which is regularly.
10:10 $100,000 plus for new users on their platform and a 50% deposit bonus on anything above $100 on your first. My name is Aaron. This is Altcoin Daily. See you tomorrow, my friends. turning into a very exciting fourth quarter.