Original author: The Pareto Investor
Original translation: TechFlow
Dear Investors,
Today, I want to share some thoughts on the transformative power of Bitcoin and explain why I believe it is not just an investment, but the foundation for a new economic model. I will discuss three key points:
Structural challenges facing traditional asset classes.
Why Bitcoin is uniquely positioned to address these challenges.
How MicroStrategy’s strategy demonstrates the leverage effect of Bitcoin support.
Challenges facing traditional assets
Most asset classes have difficulty keeping up with the pace of monetary inflation.
“Trillions of dollars are lost every year to inflation, mismanagement, and entropy. Bonds, the backbone of corporate finance, have lost 5% per year over the past four years. Even the most innovative companies may struggle to earn a return that exceeds their cost of capital.” — Michael Saylor
Traditional strategies such as stock buybacks or dividends fail to address the core problem: preserving wealth in an inflationary environment.
Bitcoin solves the fundamental problem of capital preservation. It is the first asset in history that is immune to both physical and financial entropy.
The advantages of Bitcoin are:
Remarkable Performance: Over the past four years, Bitcoin has outperformed all major asset classes, delivering an average annual return of 60%, double the performance of top stocks like Nvidia and Apple.
Uncorrelated Alpha: Bitcoin’s low correlation with traditional markets makes it an ideal hedge for portfolios seeking diversification and high returns.
Digital Capital: Unlike real estate or bonds, Bitcoin is not subject to risks such as property loss, taxation, or geopolitical instability. It is an “indestructible, immortal, and globally transportable form of capital.”
MicroStrategy: A model of intelligent leverage
I have always been a long-term hold investor.
For many years, I have invested primarily in index funds and Bitcoin.
However, as my understanding of options deepened, I began to explore leveraged strategies.
Due to the lack of quality options products on Bitcoin itself, I chose MicroStrategy, which is actually a leveraged investment in Bitcoin.
Why MicroStrategy?
Under the leadership of Bitcoin advocate CEO Michael Saylor, MicroStrategy shifted its corporate strategy to a bold bet on Bitcoin. The company acquired more than 150,000 Bitcoins, partially financed by debt, becoming one of the major institutional holders of Bitcoin.
The MicroStrategy Approach: Intelligent Levers in Action
Leverage without liquidation risk: Unlike traditional margin trading, where sudden market drops can lead to liquidation, MicroStrategys leverage strategy is enabled through its equity structure. This approach reduces liquidation risk, making it a safer way to gain leveraged exposure to Bitcoin.
Performance Amplification: Through strategic leverage, MicroStrategys equity has consistently outperformed Bitcoins incredible returns, demonstrating the power of its bold and focused strategy. When Bitcoin rises, MicroStrategy typically outperforms due to its leveraged exposure. In a bull market, with a 3x Net Asset Value (NAV) expansion as a realistic goal, the potential for amplified returns is significant.
Potential Opportunities in Options Trading: MicroStrategys shares are highly liquid in the options market, providing investors with a versatile platform to take advantage of Bitcoins volatility without having to directly hold the cryptocurrency.
Bitcoin-backed bonds: By issuing innovative bonds, MicroStrategy has created a financial product that yields more than Bitcoin itself, benefiting both bondholders and equity investors.
Continuous Accumulation: Michael Saylor’s philosophy is simple yet powerful: “We buy Bitcoin at the highs, the lows, and everything in between. The key is persistence.” This disciplined approach ensures a strong and growing Bitcoin stash.
MicroStrategy’s revolutionary financial strategy combines innovation, discipline, and intelligent leverage, making it ideal for investors seeking amplified exposure to Bitcoin’s potential.
2045: Bitcoin as a global reserve
Volatility is not the enemy, it is the price we pay for dynamism and opportunity. Wealth is built on assets with huge upside potential, and Bitcoin’s volatility is the engine that drives its unparalleled returns. Bitcoin’s adoption trend is turning in favor like a red tide, known as the Crypto Renaissance. As institutional and government acceptance of Bitcoin continues to grow, I foresee the following three milestones:
Widespread ETF Adoption: Bitcoin spot ETFs are expected to inject billions of dollars into the market.
Tokenization of Equity: Companies like Apple and Tesla may tokenize their stock and trade it 24/7 on a blockchain network.
Strategic Bitcoin Reserves: Governments led by the United States may hold Bitcoin as a reserve asset, further establishing its position as the foundation of the 21st century economy.
I have every confidence in Bitcoin, and MicroStrategy is the best choice to seize this opportunity.
ETF approvals, favorable macroeconomic conditions, and increased institutional adoption make this a great time to get involved.
For investors willing to take calculated risks, MSTR offers a great opportunity to ride the Bitcoin wave and enjoy higher earnings potential.
Half of the worlds $450 trillion in wealth is used to preserve value.
Bitcoin’s purpose is simple: it protects your wealth from inflation and loss of value.
In the next 21 years, Bitcoin could reach $13 million per coin, fundamentally reshaping wealth distribution.
MicroStrategy is making its strategic approach public.
By using Bitcoin intelligently, you can transform your balance sheet, outperform the market, and build lasting wealth. Bitcoin is more than just an investment; it is the cornerstone of a new era in capital markets.
Now is the time to act.
With Bitcoin ETFs gaining popularity, institutional adoption accelerating, and companies like MicroStrategy leading the way, the cryptocurrency renaissance is here and it’s unstoppable! Keep accumulating!
Sincerely,
Pareto Investor
