Understanding Bitcoin as Property

For a long time, my perspective on Bitcoin was fundamentally flawed. Initially, it appeared to be an odd Ponzi scheme wrapped in complicated tech jargon. However, after immersing myself in around 20 hours of Michael Saylor's insights, everything began to make sense.

Bitcoin should be conceptualized as property rather than merely a form of currency or a commodity. Just like tangible assets such as cars, houses, or artworks, Bitcoin qualifies as property. This may seem counterintuitive due to its intangible nature, but it is precisely this digital characteristic that makes Bitcoin exceptional.

1. Bitcoin’s Fixed Supply

   The most remarkable aspect of Bitcoin is its capped supply. We can confidently state that there will only ever be 21 million Bitcoins in existence. In contrast, the availability of other asset types remains uncertain. Bitcoin stands as the first and only property with a genuinely limited supply.

• Gold: Approximately 2% more is mined annually.

  • Dollars: The government has printed $6.2 trillion since 2020.
  • Stocks: Companies can issue additional shares.
  • Real Estate: New properties can easily be developed.
  • Rare Metals: We can discover or synthesize more.
  • Land: Innovations like artificial islands in Dubai highlight our ability to create more land.

2. Global Transferability

   Bitcoin's digital form offers significant advantages over physical assets when it comes to international transactions. Sending 100 gold bars to a friend in Indonesia would be prohibitively expensive and logistically complex. In contrast, transferring Bitcoin globally is efficient, inexpensive, and can be completed in just 10 to 60 minutes.

3. Security Against Theft

   One crucial point to note is that the security of your Bitcoin hinges on how you manage it. Storing Bitcoin on an exchange like Coinbase exposes you to potential theft. However, if you securely store your Bitcoin on a hardware wallet, safeguarded by a 12-word passphrase, it becomes nearly impossible for anyone to steal it without your consent. Unlike physical assets, where threats can lead to theft, Bitcoin's access is confined to your memory.

4. Independence from Government Protection

   Traditional property relies on governmental enforcement for protection, often involving physical force. Bitcoin, being purely digital, eliminates the need for such violence. Its protection rests on advanced technological systems, rather than armed authority.

5. Minimal Counterparty Risk

   Bitcoin's architecture ensures that no single entity—be it a government, corporation, or individual—can manipulate it. This independence from external influence contrasts sharply with stocks, currencies, and physical properties, all of which depend on varying degrees of third-party enforcement and reliability.

6. Fostering Global Collaboration

   Participants in the Bitcoin network share a common goal: to sustain and expand the ecosystem. The accessibility of Bitcoin allows anyone to invest in fractional amounts at any hour of the day. This alignment of financial incentives enhances cooperation among users, institutions, and governments alike. Notably, countries like El Salvador have already recognized Bitcoin as legal tender, reflecting a growing trend toward global collaboration.

Michael Saylor articulates why Bitcoin represents the best property in the world, highlighting its unique characteristics and potential.

Chapter 2: The Case for Bitcoin as the Ultimate Property

In this talk, Michael Saylor emphasizes that Bitcoin has no rival, reinforcing its position as an unparalleled digital asset.