Compiled & Translated by: Daisy, ChainCatcher
Editor's Note:
This article is compiled from a video interview of Jack Mallers with hosts David Lin and Bonnie Chang. Jack Mallers is the founder of Bit payment platform Strike and co-founder and CEO of investment company 21 Capital, who has long been dedicated to promoting Bit's practical application in global payment and capital markets.
In the interview, Jack delved into the logical basis of Bit as a global value storage tool, analyzed new indicators like "Bit per Share (BPS)" and "Bit Return Rate (BRR)", and pointed out the essential difference between 21 Capital and traditional ETFs. He also shared how Strike flexibly builds products based on local needs in different countries, and the political and macroeconomic background behind Bit's institutionalization.
The following is a compilation and translation of the interview.
TL;DR:
Currency's essence is a tool for storing and exchanging labor, and Bit is currently the optimal storage choice.
Under debt and deficit pressure, Bit's value as a scarce asset becomes increasingly prominent.
The US dollar output model is collapsing, and Bit's position in the global storage system is increasingly highlighted.
Volatility is a prerequisite for returns.
Risk is not equal to volatility; the real risk is systemic failure.
21 Capital introduces "Bit per Share (BPS)" and "Bit Return Rate (BRR)" indicators to reconstruct the capital market evaluation system.
Unlike ETFs, 21 Capital enhances investors' Bit exposure through operations rather than static holding.
Bit rules are determined by global node consensus and cannot be tampered with by governments or institutions.
Bit is not a political bet but a financial system built on mathematics and freedom.
The real risk is not volatility but the systemic failure of centralization and counterparty trust.
Jack: The design of Bit determines that the amount held does not affect control rights, which is different from the proof-of-stake mechanism. It is a permissionless system where anyone can freely participate, and no specific holder can be excluded. Everyone is equal before the rules, which is the essence of Bit.
David: Are you planning to go public and list on an exchange?
Jack: Yes, we have applied to merge with Cantor Equity Partners, with the stock code XXI, which is still under review.
David: As a company centered on Bit, will you consider hedging price fluctuations?
Jack: We will not hedge Bit assets. The company has introduced "Bit per Share (BPS)" and "Bit Return Rate (BRR)" as new metrics, focusing on increasing the number of Bit represented by each share. We hold long-term and do not sell Bit, with the goal of creating a growth-oriented capital market tool centered on Bit.
Note:
Bit per Share (BPS): Refers to the number of Bit represented by each share of a company, used to measure shareholders' actual Bit exposure, similar to earnings per share (EPS) in traditional finance, but measured in Bit.
Bit Return Rate (BRR): Refers to the growth rate calculated in Bit, used to measure the company's ability to enhance Bit assets through operations without selling Bit.
David: You mentioned the BRR concept, so how is 21 different from a Bit ETF?
Jack: Investing in 21 is investing in an actively operating company aimed at increasing Bit per share. In contrast, ETFs like IBIT are static exposure, with no change in the number of Bit bought and held. 21 continuously expands Bit exposure through financing and business growth. We combine blue-chip qualifications with startup potential, dedicated to helping shareholders grow alongside Bit.
David: You are also the CEO of Strike. Will these two companies intersect in the future?
Jack: No intersection. Strike and 21 are completely independent. Strike serves consumers, providing services like loans, trading, and custody; 21 targets the capital market, focusing on Bit investment tools, with different positioning and goals.
Strike's Product Strategy and Global Implementation
Bonnie: In countries with unstable currencies or weak banking systems, how does Strike operate?
Jack: We customize products by region. In the US and Europe, we support local fiat and Bit; in Latin America and Africa, due to unstable fiat, users prefer USDT + Bit combination. We are user-demand-oriented, doing what they want, which is the key to our success.
David: With a more crypto-friendly regulatory environment, will you adjust your strategy?
Jack: A friendly regulatory environment is good for entrepreneurship, and I'm happy to develop in the US. But Bit does not depend on any political figure; it is a decentralized technology that transcends parties and political situations. Truly valuable things do not rely on who endorses them.
David: After regulatory relaxation, if banks offer crypto services, would you be worried about being replaced?
Jack: I'm not worried. Traditional banks lack understanding and product capabilities for Bit, while we have them. The key is to focus on ourselves and do things best. I was questioned five years ago, but we persevered. Even if Jamie Dimon becomes a Bit banker one day, I'm willing to discuss it again.
Immutable Protocol: How Bit Protects Itself
Bonnie: If governments or institutions hold a large amount of Bit, could they possibly collaborate to modify the 21 million Bit cap?
Jack: Impossible. Bit rules are determined by global running nodes, and no one can unilaterally change them. Those who tried to modify in the past could only fork, resulting in significantly reduced value. Bit's neutrality and immutability are its core. Once the rules change, it loses value. The incentive mechanism also motivates participants to maintain rather than destroy the system, and the total supply cap is almost impossible to modify.
Bonnie: How has your understanding of Bit evolved?
Jack: Initially, I saw Bit as a PayPal competitor, but later realized it is a core technology for storing time and energy. It made me reunderstand the meaning of currency and the value of hard currency for social collaboration and long-term development, profoundly influencing my financial view and decision-making.
David: Would you still buy pizza with Bit now?
Jack: No. I use credit cards for consumption and repay by mortgaging Bit through Strike, thus preserving Bit while meeting daily expenses. Bit is a savings tool, and USD is for spending.
David: If I offer to buy you pizza with Bit, would you accept?
Jack: No, I won't exchange high-quality currency for depreciating assets. Data shows that long-term Bit holding can reduce living costs. In 2011, buying a house required 1.8 million Bit, now only 4.7. Bit becomes more valuable the longer you hold it, while USD shrinks the more you spend, so I save Bit and spend USD.
