Storing money in banks is a mistake, Michael Saylor says

MicroStrategy co-founder and executive chairman Michael Saylor shares his thoughts on banking sector upheaval.

in one Interview Along with Valuation, Saylor said that it is a mistake to store money in banks today, noting that banks are “stealing” from their customers. Saylor, of which MicroStrategy is the largest holder Bitcoin Among publicly traded companies, there is a belief that people are losing faith in banks, paper currencies, and governments.

“If you’re trying to access money that requires banks, you can’t trust banks, right? You certainly can’t trust banks in Africa, South America, and most of Asia. Earlier Americans thought they could trust American banks, now they are realizing that they cannot trust American banks. So the first effect of the banking crisis is that people think “maybe the money I have What was in the bank is gone and so I must keep it in cyberspace in a bank that is not controlled by the government or the bankers” and that is bitcoin.

You Can Trust Bitcoin, Saylor Says

According to Saylor, one possible solution the government could look into amid the banking crisis is printing more dollars. This, he notes, could only result in monetary inflation rising to 10%, 15% or even 20%. This is why paper currencies like the Zimbabwean dollar have crashed and are “leaving.”

Saylor is one of bitcoin’s biggest bulls and has reiterated the flagship cryptocurrency’s store of value strength, as well as the fact that it can’t be controlled by governments or overprinted so it can compete with fiat currencies, or Better than oil or land.

“You can trust bitcoin because you can monitor your own assets, you can run your own node, and at the end of the day even if the Chinese want to shut it down, they can’t. If a nation state wants to shut it down they can’t; if a nation state wants to shut it down they can’t.

The past three months have seen three of the four largest US banks go out of business – Silicon Valley Bank, Signature Bank and First Republic Bank, The outlook for the sector is that things could turn from bad to worse, with the banking turmoil likely to be more profound than that seen during the 2008 financial crisis.

You will lose 99% of your US dollar value

On what goes wrong with putting money in banks, Saylor points to some of the worst money in the world today. He says that while “money is a store of value,” many pennies around the world “are not created equal.”

In forex area, the worst rated today are the Argentine peso, Venezuelan bolívar and Zimbabwean dollar. He says that the Nigerian naira is also weak money, as shown by the official inflation rates in these countries and that depositing money in banks tends to lose value over the years.

For example, the Argentine peso, which is down 50% this year, is seeing a 105% inflation rate, meaning that having the money in the bank will lose it all to inflation within 10 years. The damage in Venezuela would happen in just 36 months. It is the same with the so-called strongest currency in the world – the US dollar.

“The only difference between the US dollar and the peso is that it takes 20 years to lose your family fortune in pesos, it takes about 90 years to lose your family fortune in dollars. My house in Miami Beach was worth $100,000 in 1930 It was worth – a few years ago it was valued at $46 million. Do the math; it’s on its way to being worth $100 million, which means the US dollar will have lost 99.9% of its value in 100 years.”

Currently, keeping money in the bank in the US costs people 7% of it each year, and can be as high as 15% in a bad year. paper money has been greatly devalued and even Sleep That was fine the money is not there anymore.

According to the MicroStrategy boss, bitcoin is the strongest money in the world because no one can print it with BTC completely limited at 21 million. The cryptocurrency is also global money that “no government can interfere with” or inflate, he noted, echoing previous sentiment that bitcoin belongs to the world. most transformative force,

Saylor says Warren Buffett, the Oracle of Omaha, knows this as a fact. Charlie Munger, the billionaire businessman and vice chairman of Berkshire Hathaway, knows this too, he said.