Michael Saylor’s Controversial Take: Bitcoin Isn’t Currency

On a recent episode of the Galaxy Brains podcast, Michael Saylor, co-founder of MicroStrategy, stirred the crypto community by claiming that Bitcoin is not a currency but “capital and capital only.”

“You just have to come to grips with it,” Saylor stated. “It is not digital currency. It is digital capital.”

This statement contradicts Bitcoin’s original vision as described in its whitepaper, which defines it as “electronic cash.” By reducing Bitcoin solely to “capital,” Saylor seems to overlook its fundamental properties, such as its ability to enable global, permissionless transactions.

The Stablecoin Pivot

Saylor also suggested that the real digital currencies are stablecoins like Tether (USDT) and Circle’s USD Coin (USDC), which he described as the true “digital currency.”

This claim dismisses Bitcoin’s origins as a decentralized alternative to fiat currencies, created in response to the 2008 financial crisis and the mass debasement of the U.S. dollar.

Saylor’s “Evil Genius” Strategy

During the podcast, Saylor laid out an ambitious plan to merge Bitcoin adoption with U.S. dollar stablecoins:

1. Dump Gold: Diminish gold’s role as a store of value.
2. Monetize Bitcoin: Encourage global adoption of Bitcoin as the premier capital asset.
3. Promote Stablecoins: Normalize U.S. dollar stablecoins backed by sovereign debt, replacing global currencies like the euro, yuan, and ruble.

According to Saylor, this approach would generate trillions in demand for U.S. debt while reinforcing the dollar’s status as the world’s reserve currency.

Criticisms of Saylor’s Argument

Saylor’s remarks have drawn sharp criticism for:

• Ignoring Bitcoin’s Utility: By denying Bitcoin’s role as a currency, he diminishes its ability to facilitate censorship-resistant, decentralized transactions.
• Pushing Centralized Stablecoins: His endorsement of U.S. dollar stablecoins, potentially controlled by institutions like JPMorgan or Goldman Sachs, aligns more with centralized finance than the principles of Bitcoin.

Matt Taibbi’s famous description of Goldman Sachs as “a great vampire squid wrapped around the face of humanity” highlights why many Bitcoiners resist centralized financial control.

Why Bitcoin Is More Than Capital

Bitcoin’s value proposition lies in its dual role as both a Store of Value (SoV) and a Medium of Exchange (MoE):

• SoV: Bitcoin’s fixed supply and resistance to inflation make it a premier store of value.
• MoE: Its borderless, permissionless nature enables transactions independent of centralized intermediaries.

To reduce Bitcoin to “capital” is to ignore its transformative potential as a decentralized global currency.

While Saylor’s advocacy for Bitcoin has historically benefited the cryptocurrency’s adoption, his latest comments risk undermining its broader value. Bitcoin is not just capital; it’s a revolutionary form of money designed to empower individuals and challenge centralized financial systems.

As the Bitcoin space evolves, it’s crucial to resist narratives that align too closely with the systems Bitcoin was designed to disrupt. Bitcoin is money, and its value lies in its ability to remain uncensorable, decentralized, and independent of legacy financial institutions.