Michael Saylor, Chairman of the Strategic Committee, introduced a new concept for classifying Bitcoin and digital assets based on their different financial functions. According to Saylor, Bitcoin should not be viewed simply as a payment method; it should be seen as a fundamental layer of "digital capital" upon which loans, money, and other financial products can be built.
Saylor, evaluating digital assets within a "money spectrum," defined Bitcoin as "digital capital," STRC as "digital credit," SR-strcUSX as "digital money," and $USDT as "digital currency." He stated that as one moves from left to right across this spectrum, volatility and potential returns decrease, while price stability and transaction convenience increase.
In Saylor's view, Bitcoin is the perfect store of value, possessing high volatility and high return potential. Digital currencies like $USDT, on the other hand, are at the other end of the spectrum in terms of price stability and convenience for everyday transactions.
Saylor stated that the "digital credit" and "digital money" categories serve as a bridge between these two extremes, describing STRC as a semi-stable, high-yield digital credit product with value storage capabilities. He added that the "digital money" category aims to combine the technological advantages of digital currencies with the economic characteristics of Bitcoin.
Saylor also characterized Bitcoin as a directly owned "bearer asset," while noting that digital credits, digital money, and digital currencies are created and managed by financial companies. He stated that the layer of ownership within these structures is "digital capital," and collectively defined all these components as the "digital financial stack."
Saylor argued that Bitcoin is not just an asset to be held, explaining his viewpoint with an analogy to oil. He stated that crude oil is valuable in itself, but when refined into gasoline, jet fuel, plastics, and various industrial products, it acquires a much wider range of applications.
Saylor argued that the same approach applies to Bitcoin, stating: "Bitcoin is digital capital. Innovation transforms capital into credit, money, and currency." Thus, he suggested that in the future, Bitcoin may become not only a store of value but also a fundamental collateral and capital layer within a broader digital finance ecosystem.
*This is not investment advice.
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