TLDR;
This YouTube video features a conversation with British Hodl, a prominent figure in the Bitcoin community. The discussion covers a wide range of topics, including Michael Saylor and MicroStrategy, Bitcoin treasury strategies, market cycles, and the potential impact of government policies. British Hodl shares his unique perspectives, investment strategies, and insights on the current state of the Bitcoin market.
- Michael Saylor's intelligence and MicroStrategy's potential growth.
- The role of Bitcoin as a store of value and its impact on traditional finance.
- The importance of individual responsibility in securing one's financial future through Bitcoin.
Thoughts On Michael Saylor [0:00]
British Hodl expresses immense respect for Michael Saylor, describing him as one of the smartest people he has ever met, highlighting his ability to adapt and think across different fields. He recalls having dinner with Saylor in 2021, before Saylor's rise to fame, and being struck by his intellect. British Hodl's confidence in Saylor's vision is so strong that a significant portion of his net worth is allocated to MicroStrategy (MSTR) stock.
Will MicroStrategy (MSTR) Be Included In The S&P500? Implications For Bitcoin & Treasury Companies [2:21]
British Hodl believes there's a greater than 50% chance of MicroStrategy being added to the S&P 500, potentially unlocking inflows of £7.8-11.8 billion into the stock. He views MSTR's inclusion as a signal that using Bitcoin as a productive asset is viable, challenging traditional capitalist notions. This could encourage other companies to consider Bitcoin treasury strategies and force credit rating agencies to assess MSTR's debt, opening it up to retirement and income funds.
Why MicroStrategy (MSTR) Could Become A $10 Trillion Company [4:32]
British Hodl predicts that MicroStrategy could become a £7.8 trillion company, driven by the expansion of the stock market and Bitcoin's market saturation. He anticipates a tenfold increase from its current value, with the ultimate size depending on how widely Bitcoin is adopted.
MicroStrategy’s ATM Usage & Guidance [5:20]
British Hodl suggests that MicroStrategy should focus on demonstrating the performance difference between its common stock and Bitcoin. He proposes launching a preferred income product that buys MSTR stock based on its performance, expanding the company's portfolio. He believes that the potential for financial engineering with MSTR is vast, given the size of the US market. British Hodl suggests that if MSTR's Market Value to Net Asset Value (MNAV) ratio falls below one, the company should halt Bitcoin purchases and buy back its stock. He emphasises the importance of financial engineering, drawing parallels to Apple's stock buybacks and their impact on the company's valuation.
MicroStrategy’s Fixed Income Products [14:05]
British Hodl expresses strong support for MicroStrategy's fixed income products, viewing them as an arbitrage opportunity between the promised dividend and the growth rate of Bitcoin and MSTR. He believes that as long as Bitcoin and MSTR grow faster than the dividend rate, these products are a sound investment. He notes that while other companies have attempted to mimic MicroStrategy's strategies, none have achieved the same success.
Bitcoin As The New Hurdle Rate [23:51]
British Hodl discusses how investors are increasingly using Bitcoin as a benchmark for investment performance. This has led him to invest in other Bitcoin treasury companies like MetaPlanet and Smarter Web Company, aiming for better risk-adjusted returns. He expresses a desire to see a British company become the second-largest Bitcoin holder globally, fostering competition in the market. He cautions against blindly following influencers who may be paid to promote specific treasury companies, emphasising the importance of individual research and understanding.
Thoughts On The Nakamoto (NAKA) Bitcoin Treasury Strategy [28:50]
British Hodl reveals that he is an investor in Nakamoto, highlighting its unique value proposition: the ability to access trapped capital in various countries through its media engine and conference capabilities. He believes Nakamoto has a distinct advantage over other treasury companies that primarily focus on ATM offerings.
Bitcoin’s 4-Year Cycle & Structural Differences This Time Around [31:36]
British Hodl acknowledges the traditional four-year Bitcoin cycle but notes that the current cycle is structurally different due to corporate and institutional adoption. He observes that smart money is entering the market, creating a bed of buy orders that trail the price. He suggests that a bare market would only occur if these buy orders disappear, but the game theory of Bitcoin makes this unlikely. He believes that large players like BlackRock and MicroStrategy have incentives to maintain a stable and growing Bitcoin price.
Upcoming Fed Interest Rate Cuts & The Impact On Bitcoin & The Broader Stock Market [37:19]
British Hodl believes that the impact of Federal Reserve rate cuts on Bitcoin and the stock market depends on whether they lead to liquidity expansion. He suggests that the White House and Treasury could play a more significant role in causing liquidity expansion through measures like treasury buybacks. He expresses a preference for the Federal Reserve not to lower rates, as this would force the government to find more effective ways to expand liquidity.
Thoughts On Tom Lee’s Comments About The U.S. Government Using MicroStrategy (MSTR) To Acquire Bitcoin [41:00]
British Hodl agrees with Tom Lee's argument that the US government could use MicroStrategy as a vehicle to acquire Bitcoin. He points out that MicroStrategy is under US jurisdiction, giving the government control over its Bitcoin holdings. He believes that the US government should consider buying MSTR stock to gain exposure to Bitcoin.
Will The U.S. Government Start To Purchase Bitcoin In The Near Future? [42:52]
British Hodl expresses concern about the slow progress of Cynthia Loomis' bill, which aims to integrate Bitcoin into the US financial system. However, he remains optimistic about the long-term prospects, citing the work of the Bitcoin Policy Institute. He suggests that government adoption of Bitcoin could be a catalyst for the next bull cycle.
Speaking With BlackRock & Bitcoiners In New York City (NYC) [45:10]
British Hodl recounts his experience in New York City, highlighting his meeting with Robert Mitchnik, the director of Bitcoin at BlackRock. He was impressed by BlackRock's bullish stance on Bitcoin and the rapid growth of its IBIT product. He also enjoyed seeing the openness of Wall Street to Bitcoin and the diverse group of people interested in it.
How British Hodl’s Time In Bitcoin Changed Him Beyond Finances [50:06]
British Hodl shares a darker perspective on how Bitcoin has changed him. He reveals that after BlackRock filed for a Bitcoin ETF, he felt a sense of urgency and dedicated himself to spreading the message of getting to one Bitcoin. However, after Bitcoin reached £78,000, he realised that it was too late for most people to achieve this goal. This realisation led him to shift his focus inward, concentrating on helping those who already own Bitcoin.
Why British Hodl Thinks It’s So Important To Get To 1 Bitcoin [59:10]
British Hodl explains that the fundamental problem humanity faces is storing and protecting energy. He argues that the fiat system has led to financial subjugation, as people are taught to believe that currency is money. He emphasises that wealthy people understand the difference between currency and money, converting their earnings into assets that store value. Bitcoin fixes this by providing a finite and controlled supply of money, eliminating the need for individuals to become financial analysts to protect their wealth.
How Bitcoin Managed To Succeed Against All Odds & Who Created This Transformational Technology [1:04:05]
British Hodl shares his belief that Bitcoin is a creation of the US government, designed to demonetise gold and maintain the dominance of the US dollar. He argues that Bitcoin's emergence in 2009 was perfectly timed to counter the growing trend of countries moving towards gold.
A Day In The Life Of British Hodl [1:07:22]
British Hodl describes his life as one where he can do whatever he wants, whenever he wants. He emphasises the importance of having a purpose and relentlessly pursuing it. He reveals that his purpose has been to get as many people to one Bitcoin as possible, engineering his life around this goal. He values routine and believes that travel has become overly manicured and lacks authenticity. He concludes by stating that one should go to sleep proud and wake up hungry, dedicating themselves to their purpose.