In today’s Exponential Investor…
- El Salvadorian laser eyes
- The world’s global reserve?
Steve Ballmer was the CEO of Microsoft from 2000 to 2014. He also owns the Los Angeles Clippers basketball team and is worth almost $100 billion.
You may or may not know of Ballmer. If not, go and check out this video of him at a Microsoft event during his 14-year reign as CEO.
Ballmer was notorious for his over-the-top presentations. He would literally jump and run across the stage screaming at the audience.
If you’ve never seen Ballmer in full flight, you can watch that video via the link above, or just go to YouTube and search for “Steve Ballmer”.
Now, during this 14-year reign, Ballmer would often put on these (almost terrifying) presentations. He fast became the talk of the tech world for this style.
Interestingly no one called into question his sanity. No one described Microsoft as a “cult” even with the CEO performing such bizarre antics. Ballmer was simply a little “out there” as a CEO of one of the world’s largest and influential companies.
Interestingly over the weekend it seems that Max Keiser, a well-known bitcoin advocate, was channelling his, “inner Ballmer.”
At the world’s largest bitcoin conference held in Miami over the weekend, Keiser had a “fireside chat” with CEO of MicroStrategy Inc. (NASDAQ:MSTR).
The opening was, let’s just say, “Ballmeresque”. You can view it all here (just be prepared for some explicit language too).
Keiser is a divisive character in bitcoin circles as it is. But you can’t deny his long-standing view on it which has proven to be correct time and time again.
The chat itself is actually very interesting, none the least because of Michael Saylor being on it. If you don’t know Saylor, as mentioned, he’s the CEO of MicroStrategy. MicroStrategy hold billions of dollars’ worth of bitcoin on their company balance sheet.
In fact they’re also raising another $400 million of secured notes in MicroStrategy to buy more bitcoin.
It’s needless to say when you consider the route that bitcoin has taken, and the future with companies like MicroStrategy adding billions of dollars’ worth to their balance sheet, the future looks very strong for bitcoin.
El Salvador laser eyes
But it’s not only MicroStrategy making moves in bitcoin.
The President of El Salvador announced he would be introducing legislation that would make bitcoin legal tender in El Salvador. He also changed his profile pic to have “laser eyes” a popular meme for bitcoin believers.
This is a significant moment for the country and for crypto sceptics. You see there’s been no doubt in my mind that a country would adopt bitcoin as its reserve currency.
In Chapter 6 of my globally published book, Crypto Revolution: Bitcoin, Cryptocurrency and the Future of Money, I write about how crisis has become bitcoin’s best friend.
I write about how countries like Africa, India, South America countries with huge numbers of “unbanked” could look to, “…suddenly become crypto-friendly and adopt crypto to better the living standards of their people.”
So when the President of El Salvador tweeted,
Furthermore, 70% of El Salvador’s population doesn’t have a bank account and work in the informal economy. Financial inclusion is not only a moral imperative, but also a way to grow the country’s economy, providing access to credit, savings, investment and secure transactions.
It really wasn’t a huge shock to me. In fact I was expecting it. Not necessarily from El Salvador, by from a country like his. And more will follow.
Already there are talks that Paraguay may look to introduce similar legislation. And the dominos I believe will continue to fall after that.
These smaller nations that have been at the mercy of the US for so long now have a chance to emerge from the shadows.
The interesting part of this is also this coming at a time when Russia is divesting itself away from USD denominated assets and as China looks to increase their iron fist rule of their own domestic economy, including further restraints on bitcoin and cryptocurrency.
China’s Iron Fist
While progressive countries look to open their economies to crypto, others, like China are trying to wind it back.
This from the Guardian this week,
China blocks cryptocurrency Weibo accounts in ‘judgement day’ for bitcoin
China is already looking to crack down on mining of bitcoin. They already have bans in place from financial institutions from dealing with cryptocurrency transactions. They’ve banned it at least three times over the last decade and now it seems cryptocurrency Weibo accounts (Weibo a big Chinese social media site) are disappearing.
This kind of geopolitical competition is exactly what I expected would happen.
For every country like China looking to ban something like bitcoin, another like El Salvador or Paraguay will look to embrace it.
Sure, those are both tiny flecks of dust compared the economy of China. But it’s a sign of what’s to come. On their own El Salvador and Paraguay might not hold a candle to China, but over time, with more and more like them following suit, then it might just end up as I’ve predicted before…
Bitcoin as the world’s global reserve currency.
Editor, Exponential Investor