How one man will cause the next financial crisis

Why Michael Saylor Could Trigger the Next Financial Crisis

Have you been watching what's happening with MicroStrategy and its Bitcoin accumulation strategy? I've been following this situation closely, and after watching Patrick Kenny's recent video on the topic, I felt compelled to dig even deeper into what might be one of the most precarious financial situations developing right before our eyes.

Michael Saylor, the CEO of MicroStrategy, has positioned his company as one of the largest corporate holders of BTC. But this isn't Saylor's first rodeo with volatile market valuations. Back in the late 1990s, MicroStrategy was valued at $6-7 billion before losing 99% of its value virtually overnight. This historical context is crucial to understanding the potential risks in his current strategy.

What's particularly concerning is Saylor's mantra of "never sell" BTC, encouraging others to hold indefinitely while MicroStrategy continues to accumulate. This creates a Ponzi-like structure where constant new investment is needed to maintain price levels. The strategy works brilliantly on the way up but could be catastrophic when the tide turns.

Recently, we've seen something remarkable happen: approximately 80,000 BTC from Satoshi-era wallets have moved and been liquidated. In a true free market, this should have caused a significant price correction. Instead, we've seen Tether print additional funds to maintain market stability. This artificial support can't continue indefinitely.

There are two regulatory developments that I believe will force this situation to a head within the next 24 months:

First, the Genius Act has already passed, requiring stablecoins like Tether to prove legitimate backing. The New York Attorney General's previous case against Tether established that they didn't have the assets they claimed. They now have about 24 months to become legitimate or cease operations.

Second, the upcoming Clarity Act (not yet passed) will establish standards for "mature blockchains" that aren't controlled by a single entity or group. I predict many cryptocurrencies, including BTC and Ethereum, won't qualify under these standards.

When these regulatory changes take full effect, and Tether can no longer print unbacked currency to prop up the market, what happens to MicroStrategy's BTC holdings? If Saylor starts selling, it could trigger a cascade effect that collapses the entire market.

This is why I've taken the controversial position that BSV (which I consider the original Bitcoin protocol) should be removed from all exchanges within this timeframe. Instead, it should only be available through direct onboarding platforms where users maintain control of their keys. This would protect it from the market manipulation and eventual crash that I see coming.

I understand the appeal of get-rich-quick schemes. At 27, I became a millionaire through hard work in business, but I lost it all through lack of discipline and poor financial management. This experience taught me the value of long-term thinking over short-term gains.

The coming years will bring a paradigm shift as blockchain technology integrates with advancing AI capabilities. Those focused on building sustainable value rather than speculative gains will be positioned to thrive through this transition.

What do you think about Saylor's strategy? Are you concerned about Tether's influence on the market? I'd love to hear your thoughts in the comments.

Check out the full video here.