Michael Saylor

The second step is adoption by the banking system.

Right now, the Basel rules heavily penalize a bank from holding Bitcoin.

I think if they normalize that so that banks aren't penalized for holding Bitcoin as collateral, I think that would be a big step forward.

I think the securitization of the asset, the formation of all these ETFs and the amount of capital flows into it is a third step.

I think the formation of bank credit networks, like, you know, there's about, call 450 Bitcoin a day at 70,000 a coin, 30 million a day, about $10 billion a year in organic supply available for sale from the miners.

So call that 10 billion a year is one year supply.

That's going to get cut in half in two years.

Every time someone creates $10 billion of credit, they buy the entire year supply.

So for example, my company sold about $10 billion worth of digital credit.

We bought an entire year supply on that digital credit.

And that's something we created in the past 12 months.

But if a bank like JP Morgan starts to extend credit on Bitcoin as collateral,

Someone posts $100 billion or $50 billion of Bitcoin.

JP Morgan offers $10 billion of credit.

That $10 billion of credit is one year's supply of Bitcoin.

So every $10 billion of credit that's created is one turn on the network.

So I would be looking at the formation of bank credit networks and how big they get, like how much credit will Schwab or Citi or Morgan Stanley or JP Morgan extend on the underlying capital asset?

Because the thing that holds the price back

is the need to rehypothecate the Bitcoin in order to generate a loan or get yield.

So a lot of people, you know, you've got more than a trillion dollars worth of Bitcoin out there that's unbanked in the shadow banking system.