Bitcoin is the first “properly engineered store of value” and could absorb up to $15 trillion lost annually due to inflation and asset decay, according to Strategy formerly MicroStrategy's Executive Chairman Michael Saylor.

"I'm not saying 100% of long-term capital becomes Bitcoin," Saylor said in a podcast. "What I'm really saying is long-term capital is like $450 trillion. I think there's 3% entropic lapse, there's 3% loss in that capital every year, either due to inflation or entropy, whether it's a financial asset or it's a physical asset… That works out to $13 to $15 trillion a year of inefficiency."

Saylor's calculation is based on the idea that long-term global capital — assets held by individuals and institutions — amounts to $450 trillion. He estimates that 3% of this capital is lost each year due to factors like inflation, asset decay, and business failures.

This means that every year, approximately $13.5 trillion to $15 trillion disappears from the economy. He refers to this as "entropic lapse," comparing it to natural decay, where assets like real estate deteriorate, companies go bankrupt, and fiat money loses value over time.

Saylor argued that Bitcoin stands apart from other assets because it doesn't suffer from depreciation, inflation, or degradation over time. Unlike real estate, corporate stocks, or fiat currencies, Bitcoin is immune to structural decay. "People or institutions own things, and the building falls down, the company fails," he noted.

Saylor likened Bitcoin to a "global siphon," allowing capital to flow into a more secure system. "There's a natural tendency of people to want to move their capital from a less secure, more chaotic, more uncertain place," he said. "They want to move their person, they want to move their money… It's human nature."

He also noted Bitcoin’s volatility as a major strength rather than a weakness, suggesting it provides opportunities for investors through high-yield strategies. "If you were holding a million dollars of MicroStrategy stock and selling calls at the market with 120 vol, you could get paid 200% annual nterest," he explained.

Bitcoin as the ultimate store of value

According to Saylor, Bitcoin is "the world's first perfect money"—a technological breakthrough that outperforms gold, fiat, and other assets. "The second-best money has a half-life of 30 years, and the first-best money has a half-life of forever," he declared.