In August 2020, Michael Saylor – CEO of American firm MicroStrategy – was sat with $425 million on his balance sheet. Like us in the UK, he was faced with circa 15% per annum value loss on his firms assets due to his government debasing its currency. 

Deciding on a commercial basis that crypto currency was the best value store, he made one of the biggest crypto purchases in history.

Purchasing over $400 million in Bitcoin took 5 days, and drove the price up by over 10%! 

If MicroStrategy still holds the Bitcoin it purchased, it will have been one of the smartest financial decisions any CEO has made in history. 

The real beauty though, is that neither ourselves, or the US government really knows whether Saylor still holds the Bitcoin or not. Once purchased, the value entered an inflation proof world without tax or tracking. It became a highly liquid, highly mobile world wide asset, that could be converted into any currency and commodity within a few minutes. 

What other value store is anywhere near comparable to that? 

Commercial businesses are a bit slow, some of the time, but we are not that slow all of the time. It will not be long before this type of business move becomes the norm, not too long before questions are asked when CEO’s are NOT leveraging the best shareholder value with cash on the balance sheets. 

The crypto horse has already bolted, making it difficult for people to purchase coins through UK banks will not be enough. 

The real question isn’t whether this new crypto will work, it’s what the government can do to try and retain as much control of it’s money supply as it can?

Perhaps here in the UK, we should be aiming to retain our position as a safe haven for worldwide wealth by embracing the disruption, rather than tinkling against the wind, at it!