Michael Saylor, founding father of MicroStrategy, lately shared “21 Bitcoin Guidelines” through social media. These rules not solely encapsulate his stable perception in cryptocurrency, but in addition reveal the elemental logic of the digital capital age. Combining philosophy, economics, and technical insights, these guidelines are supported by MicroStrategy’s radical practices and replicate the inevitable change on this planet’s wealth construction.

Bitcoin as a “digital singularity”

Saylor’s “21 Bitcoin Guidelines” exhibits the emphasis on Bitcoin “Inconsistency” and “Paradigm Shift” it’s clear. Rule 7, for instance, claims that “Bitcoin is the one true asset within the universe.” Decentralized Possession Mechanism. In contrast to conventional property comparable to actual property and shares, Bitcoin is managed by a personal key, eliminating the necessity for third-party custodians. This possession mannequin destroys the normal financial definition of “property rights,” much like the disruption attributable to the issuance of the Dutch East India Firm’s shares over bodily commerce within the sixteenth century.

Moreover, we’ll clarify Bitcoin by combining Rule 4, “Bitcoin is pushed by chaos” and Rule 5, “The one profitable sport on the on line casino.” Anti-dility. A main instance of this may be seen in MicroStrategy’s response to the worldwide market disruption attributable to the Covid-19 pandemic in 2020. The corporate has actively acquired Bitcoin and continued to extend its holdings by using bond issuance and inventory funds. As of February 2025, MicroStrategy has over 400,000 Bitcoin (value round $18 billion) and has an annual mixed return charge of 62%, far surpassing the S&P 500’s efficiency. Use Bitcoin as a hedge.

From MicroStrategy to the Strategic Modifications of International Giants

Saylor’s guidelines will not be solely validated as private beliefs, however are additionally validated by the energetic implementation of MicroStrategy. Rule 20, “By no means Promote Bitcoin,” is immediately mirrored within the firm’s asset technique. Since 2020, MicroStrategy has allotted 90% of its money movement to Bitcoin purchases, increasing its returns “Clever leverage” (Similar to issuance of Bitcoin help bonds). This created a “super-linear” correlation between the corporate’s inventory worth and the value of Bitcoin. With each 10% improve in Bitcoin’s worth, the micro-Technique inventory worth will increase by 15% on common.

This mannequin inspired different conventional corporations to cooperate. For instance, in 2024, Saylor submitted a report back to Microsoft, suggesting that Bitcoin be allotted 30% of its $70 billion money reserve. He predicted that the transfer may improve Microsoft’s market worth from $1 to $4.9 trillion. Microsoft has not adopted the proposal, however tech giants like Tesla and Sq. have begun investing in Bitcoin. As of 2025, public corporations worldwide have greater than 1.2 million Bitcoin, a rise of 500% since 2020, verifying Rule 15, “Bitcoin belongs to everybody.” “It has complete potential.

From “Chaos Hedge” to “Digital Capital Infrastructure”

Saylor’s guidelines predict the evolution of Bitcoin from a “frontier property” to a “core reserve.” Rule 13 calls Bitcoin an “orange drugs.” It is a treatment for financial issues. It is a metaphor that was demonstrated throughout the 2024 US Federal Reserve aggressive rate of interest hikes. 300%, as establishments more and more see Bitcoin as a substitute for “digital gold.” In the meantime, Rule 12, “All Fashions Are Damaged,” factors to the failure of conventional analysis techniques. For instance, MicroStrategy’s costs and return charges deviate from the foundations of the software program enterprise, and at the moment are totally pushed by the worth of Bitcoin Holding.

The widespread impact might be seen in Rule 21, “Spreading Bitcoin with Love.” This highlights the community-driven influence. Saylor defends Bitcoin as a worldwide monetary normal by public talking engagement, company collaboration and training initiatives (such because the open supply Bitcoin monetary mannequin). A notable instance of this was the issuance of the world’s first Bitcoin-controlled sovereign bonds in 2023, with 65,000 million to construct “Bitcoin Metropolis” impressed by MicroStrategy’s technique to make the most of MicroStrategy. It is elevating 1000’s of {dollars}.

The danger boundary of guidelines

Regardless of idealism inside Saylor’s guidelines, they should look into their limits. Rule 9, for instance, advises shopping for Bitcoin with “monetary funds that you could’t afford to lose.” MicroStrategy itself faces almost $3 billion unrealized losses as Bitcoin costs plummeted to $16,000 in 2022, and the corporate is compelled to restructure its debt to alleviate liquidity pressures. It was completed. Moreover, Rule 20’s “By no means Sells” may overlook the necessity for portfolio rebalancing. If Bitcoin’s volatility is increased than that of conventional property, a very concentrated place on Bitcoin can amplify the monetary dangers of the corporate.