MicroStrategy CEO Michael Saylor, who became famous for buying Bitcoin on the balance sheet of a company traded on the stock market for the first time in history, recommended the Central Bank of Turkey (CBRT) to buy Bitcoin on Sunday.
Saylor said, “Turkey can add 5 billion dollars of Bitcoin to the CBRT reserves and it can increase to 50 billion dollars in 5 years. In this way, they can strengthen their currencies,” he said.
Statement both on social media and ‘Centre!’ became the agenda in our media. Isn’t it funny how a very logical thought that makes us say ‘the way of the mind is one’ only draws our attention when it is voiced by a stranger?
In 2017 and 2018 I already shared this idea with you. You can see my message dated August 11, 2018, which I could find on Twitter, below.
If you remember, Tesla converted 15% of its cash reserves to Bitcoin. Similarly, if the CBRT bought 2 million Bitcoins with 17% of its gross reserves when Bitcoin was at $6000 at the time of this tweet, that investment would have reached approximately $120 billion in just 3 years.
Net reserves excluding swaps would be +83 billion $, not -37 billion $, and $/TL would not be around 9.20s but much, much lower. Even if only 25% of the net reserves were converted to Bitcoin in 2018, the situation would still be much better in foreign currency, where the net reserve will be +$15 billion, not minus today.
Saylor’s advice is a guess, my suggestion has already proven itself.
Moreover, here I recommend that the CBRT buy gold, silver and Bitcoin in preparation for the upcoming big economic crisis.
At that time, the pandemic etc. did not cross anyone’s mind. “There will be no more crises in our lifetime,” said Janet Yellen, the head of the Bitcoin-hating US central bank, Fed. On the other hand, I propose to buy Bitcoin in preparation for the 2020 Crisis, which I predicted by writing a book in 2013. Here is the cover of the book:
Now let’s examine another suggestion I made in 2020, again without addressing foreigners. The CBRT or Wealth Fund should invest not only in Bitcoin, but also in altcoins that meet certain criteria.
Blockchain technology is a historic revolution that happens every 2500 years, and some altcoins have huge potential in the massive blockchain transformation that will take place around the world. The CBRT can take a position as if it invested in Apple, Tesla, Google etc. in its first years.
“Will a central bank even invest in corporate stocks, let alone altcoins?” If anyone says, they can examine the Swiss National Bank balance sheet. In addition to many technology shares, the Swiss National Bank also has MicroStrategy investment. In other words, the bank has indirectly invested in Bitcoin as well.
Another objection comes as follows. Bitcoin can go down as fast as it rises very fast. How do you take this risk? These friends must have never heard of fund management risk management.
Of course, when the Central Bank or the wealth fund invests in cryptocurrencies such as Bitcoin, it will work with professional fund managers who have proven themselves in this field. They will also make buy and sell transactions according to the technical trends.
Now let’s go back to the date I tweeted, August 11, 2018. At that time, the CBRT net reserve is $21 billion. Gold reserves are $9.45 billion.
Let the fund management allocate 25% of the net reserve to cryptoasset investments. So $5.25 billion. (About half of the gold) Let’s buy Bitcoin with 20% of it. Since then, BTC has increased 10 times from $6295 to $62k. So our $1.05 billion was $10.5 billion.
Let’s invest another 20% in Ethereum. ETH also rose 11.8 times from $322 to $3800. Our $1.05 billion was $12.39 billion.
Let’s open an investment position in Cardano with a 20%. ADA increased 19.45 times from $0.11 to $2.14. This $1.05 billion of ours has reached $20.42 billion.
Let’s invest in Binance Coin with a 20%. BNB climbed 40.45 times from $11.74 to $475. So our $1.05 billion has grown to $42.47 billion.
The fund management allocates the remaining $1.05 billion to future projects that did not exist at the time.
Let’s invest in Solana, which opened in April 2020, at an average of $1, with 10% of the net reserve, or $525 million. SOL hit $158 today. Our $525 million jumped 158 times to $82.95 billion!
Let’s make another $525 million investment in Avalanche, which entered the market in September 2020, from an average of $3, with the last 10% of the net reserve remaining. Today AVAX is $55.2. Our last $525 million was $9.66 billion, an increase of 18.4 times!
As a result, if this fund was managed, the $5.25 billion investment would have reached $178.39 billion in just 3 years!! It was almost 34 times gain.
We used 25% of the net reserve and only 7.3% of the gross reserve. Had this plan been implemented, the net reserve would be $+141.39 billion today! Even the $128 billion spent on keeping it dry would have been put in place. We wouldn’t have any problems with dollars, exchange rates, etc.
But what if Citibank’s official prediction of “Bitcoin could hit $318k in December 2021” comes true. Even if we act only on Bitcoin and assume that the value we reach will increase by 5 times, it will increase to $ 178 billion, $ 890 billion!! You call that at least $1 trillion.
Investments can be made that will increase Turkey’s production at the level of Germany, Japan, etc. It is a very possible operation to be realized in just 3 years and risking $5.25 billion (7.3%) of capital.
This opportunity has not been missed. Similar operations can still be performed in the following years. But remember: This window of opportunity may not stay open forever.
Blockchain, Bitcoin and cryptoassets are not something that can be equated with gambling. The future of the nation is at stake here. If we comply, you can be absolutely sure that the rival countries will carry out the operations I have described.
I hope that those who will rule the country in the coming years will learn the potential of Blockchain and cryptoassets so that we do not miss the historical opportunities.