Can you be as cool as the Giga Chad Saylor?
MicroStrategy recently announced that over the course of July, they have acquired almost 500 Bitcoin bringing their overall holding up to 152,800 BTC($4.5B). My man Saylor is stacking. But, what is more interesting is how he is stacking and the impact this will have on MicroStrategy in the future.
This piece is a look at "The MicroStrategy Bitcoin Flywheel" to understand it and see what can be applied to the lives of individuals. I believe much can be gleaned from the mechanics of the different types of entities. Just like a company can learn from a government, an individual can learn from a company - or in this case, basically a Bitcoin ETF with a small software business on the side. jokes.
What is a Flywheel in simple terms?
I googled it. "A flywheel is a heavy wheel that makes an engine move smoothly by storing kinetic energy and keeping the engine at a constant speed throughout its cycle. Without a flywheel, car engines would be very jerky. The flywheel stores energy and makes the pistons move at a constant speed.
So, a flywheel keeps an 'engine' running smoothly by 'storing' energy.
Engine = MicroStrategy the entity
Energy being stored = Bitcoin
Now that we have a working definition of a flywheel and where MSTR fits into this, let's talk about the Bitcoin Flywheel and how it analogues. You will see that each step in the wheel plays a part in keeping the whole turning. But, not only turning - but improving, making the entity more valuable in real terms over time.
Step #1: MicroStrategy buys and holds BTC with cash flows
To start off, the move that is made is one of accumulation. BUT, not accumulation using debt, proceeds from selling other assets, or any other weird financial method - they use actual cash flow from the business they run, a SaaS suite of products that their customers use to improve their organizations.
You see MicroStrategy runs a business, a real business that provides value to society. This is the hinge that this whole flywheel depends on, which brings us to our first point in how individuals can participate in this wonderful process:
PRODUCE CASH FLOW!
Take a step back, maybe even open up your bank account and look at the money coming in. Hopefully it's a good amount & hopefully it's way more than the money coming in. Also, hopefully this has been the case for a sustained period of time. Your first step is to ensure you are able to secure consistent income by providing a valuable product or service to the world. The next step is making sure your expenses are also just as consistently low. I'll probably speak more on this another time, because this is key for Bitcoiners who plan on being around for the long term. Anyway, that takes care of step 1. You're making profitable income and converting them to sats swiftly (if you're getting paid in Bitcoin even better.)
Remember, a flywheel is suppose to STORE energy, make sure you give it a significant amount of energy...Bitcoin to store.
Step #2: Bitcoin price goes up (it always will)
If you're reading this, then you probably already know this one and have strong belief that this is true. So, I won't belabor the point. There is only 21 million Bitcoin. Over time for many reasons the amount of purchasing power accrued to your Sats will go up forever, Laura. Secure your Bitcoin safely in cold storage.
Step #3: MicroStrategy stock price goes up with Bitcoin
Ok, now we are getting into the more fun part of the Flywheel.
Ever since MicroStrategy adopted this...strategy -.- their stock price has appreciated quite a bit.
You've been fiat mining & stacking, seen some NGU action in the Bitcoin price...but you don't have a stock ticker on the NASDAQ, cool no problem.
This step is a bit more abstract, but ask yourself:
what happens to me psychologically when my assets appreciate in purchasing power?
You value yourself more. You start to see yourself as the owner of valuable things and that means the most valuable thing you own is yourself! So, if that's the case you begin to treat yourself differently now that your stock has risen in your own eyes, you start to do things the old unproductive, non-sat-having you use to never do. Like...
- Go to the gym
- Eat Healthy
- Purchase better, higher quality clothes
- Reading useful books & blogs...ahem, you subscribed here yet anon?
- Building new & valuable skills
Because you realize you actually want to be around as your best self in the future to enjoy the fruits of your labor to the max. And as you do the above things your value in the world begins to rise just like $MSTR!
Peep what Bitcoin does for you if you let it...
Step #4: Stock price allows MicroStrategy to recruit the most talented people
Before Saylor got into Bitcoin, I'll be honest - I never heard of the guy. I do have a cloudy memory of knowing about MicroStrategy, but that's only because I have a background in SaaS enterprise tools.
BUT NOW. I am fully aware of both him and MicroStrategy. If I were in the job market and was offered a job there, would I accept? YES. That is the power of an elevated brand due to an elite strategy + more capital to deploy.
Cool for them. Now onto you. You won't be hiring anyone to be apart of your friend circle but like attracts like. Now that your 'stock price is "up" you'll find yourself around people of a similar caliber. This will happen naturally.
People will find themselves "recruited" to you by your energy, value, and overall brand. Your network will begin to expand in a positive direction.
Let your network flourish. your network will be the prime source of opportunities in your life both personally and professionally.
Bitcoiners will probably play a big part in this network expansion, so don't shy away from making more pleb friends.
This also affords you the ability to "fire" the people in your circle who are a drain on your energy, time, and overall wellbeing. Don't underestimate this.
Step 5#: MicroStrategy makes better products/services, cash flows increase
MicroStrategy has the Bitcoin bug. They want more and more sats. In order to keep the sats flowing onto their balance sheet they are incentivized and now have more resources to provide more value to their customers and investors. This will be in the form of better customer service, efficient operations, and better & new products!
They have candidly spoke on their plans to devout energy towards building out useful tools on the lightning network. Who knows what they have cooking ready to bring to market.
Back to YOU though.
So now you've been investing in your skills, environment and network.
If you work a 9-5 you can leverage these hard earned assets to get better at your job leading to getting promoted or a new and better job position altogether. If you run a small business you can improve your offering to the marketplace. You also will have a wider and higher quality network to reach out to or tell about your products.
So what happens if you create more value in the world that people recognize as being valuable? You receive more value in return. AKA Money. Currently money in our society means "dollars", so as you make more of that, what happens next?
Step #6: MSTR buys even more BTC
The wheel keeps turning, as long as you keep stacking.
Buy Bitcoin. Shut the fuck up. Get fabulously wealthy. - British HODL
That's all I got homies. Hopefully you found this piece useful. If so, please consider subscribing so you can stay in the loop on whenever I drop any more hot fire.