Interview with Bitcoin Veteran Jack Mallers: Dollar Crisis, Bitcoin as a Store of Value, and 21 Capital
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Interview with Bitcoin Veteran Jack Mallers: Dollar Crisis, Bitcoin as a Store of Value, and 21 Capital
Against the backdrop of global monetary turmoil and asset revaluation, Jack Mallers explores a new model for institutionalized growth and capital pathways with Bitcoin at its core.
Navigating Web3 tides with focused insightsCompiled & Translated: Daisy, ChainCatcher
Editor's Note:
This article is compiled from a video interview between Jack Mallers and hosts David Lin and Bonnie Chang. Jack Mallers is the founder of the Bitcoin payment platform Strike and co-founder and CEO of the investment firm 21 Capital, dedicated to advancing Bitcoin’s real-world applications in global payments and capital markets.
In the interview, Jack delved into the logical foundation of Bitcoin as a global store of value, explained new metrics such as "Bitcoin Per Share (BPS)" and "Bitcoin Return Rate (BRR)", and highlighted the fundamental differences between 21 Capital and traditional ETFs. He also shared how Strike adapts its products flexibly based on local needs across different countries, and discussed the political and macroeconomic backdrop behind Bitcoin’s institutionalization.
The following is the compiled and translated transcript of the interview.
TL;DR
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Money is fundamentally a tool for storing and exchanging labor, and Bitcoin is currently the optimal choice for value storage.
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Under mounting debt and deficit pressures, Bitcoin’s value as a scarce asset becomes increasingly evident.
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The U.S. dollar export model is breaking down, elevating Bitcoin’s role in the global value storage system.
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Volatility is the prerequisite for returns.
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Risk is not equivalent to volatility; true risk lies in systemic failure.
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21 Capital introduces "Bitcoin Per Share (BPS)" and "Bitcoin Return Rate (BRR)" to reconstruct the capital market evaluation framework.
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Unlike ETFs, 21 Capital actively increases investors’ Bitcoin exposure through operations rather than passive holding.
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Bitcoin’s rules are determined by global node consensus and cannot be altered by any government or institution.
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Bitcoin is not a political bet but a financial system built on mathematics and freedom.
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The real risk is not volatility, but systemic failure stemming from centralization and counterparty trust.
Bitcoin’s Value Logic and the Global Monetary Landscape
Bonnie: Do you think the continuous decline in the U.S. dollar’s purchasing power and America’s passive weakening of its currency will naturally push the world toward Bitcoin, or will a major event like a financial crisis or war be required to catalyze this shift?
Jack: Money, like other goods, competes in a free market where superiority determines survival. But unlike consumer products, money serves to store and exchange people’s time and labor. Even without crises, people will naturally gravitate toward the best store of value. Bitcoin holds clear advantages in this regard.
Bonnie: You mentioned Bitcoin has the potential for 400 to 500 times growth—what’s the basis for that estimate?
Jack: I’m not predicting price, but analyzing the market size Bitcoin faces. Total global assets are around $900 trillion, with about half used for value storage. This means humanity is seeking tools to store $400–500 trillion in value. Bitcoin is the most promising vehicle for this purpose—both a technological advancement and an innovation in value storage. By comparison, global equities total only about $150 trillion. Comparing Bitcoin to stocks or Ethereum severely underestimates its potential and positioning.
David: After Trump took office, Bitcoin’s price didn’t rise, disappointing some investors. Were you surprised?
Jack: Not at all, because market expectations were wrong. People assumed Trump’s presidency would bring liquidity expansion, but the reality was tightening. To understand the current situation, we must look back to after WWII, when the U.S., backed by gold reserves, became the issuer of the world’s reserve currency. It established a system of “printing paper to import goods,” shifting from manufacturing to finance dominance. This structure is now unsustainable. Trump’s emphasis on reviving manufacturing and fiscal balance directly responds to debt and structural deficits. In this context, Bitcoin’s value as a scarce asset becomes even more pronounced.
David: Some argue Bitcoin correlates strongly with equities, while others believe its movement follows global M2 money supply. What’s your view?
Jack: I lean toward the view that Bitcoin closely tracks global M2. Amid dollar depreciation, most asset prices rise—not due to direct correlation, but because they’re driven by the same monetary policy. Bitcoin acts as a sensitive indicator of fiat liquidity, combining technological attributes with resistance to monetary over-issuance. For example, China’s trade surplus capital flows into U.S. stocks and real estate, inflating asset prices and widening wealth gaps. Once such capital stops flowing into U.S. equities, Bitcoin will decouple from stock movements and reveal its independent value. It doesn’t rely on earnings or valuations, but on genuine demand and scarcity.
Bonnie: If Bitcoin becomes a mainstream store of value, how would it affect the valuation of human capital, stocks, and real estate?
Jack: Bitcoin’s proof-of-work mechanism makes it an “energy currency”—it must be created through time and energy, giving it scarcity and inflation resistance. When people can save and plan for the future, society becomes more stable. The harder money is to produce, the better society withstands uncertainty.
Bonnie: You almost never hold U.S. dollars—how do you make that work?
Jack: I don’t hold long-term depreciating assets—I only keep the best performers. Through Strike, I receive salary, take loans, and pay bills in Bitcoin, preserving my holdings while meeting liquidity needs. Services like these are making Bitcoin more practical.
David: Peter Schiff argues Bitcoin lacks intrinsic value and that high volatility equals high risk. How do you respond?
Jack: Volatility is the price of return. The Sharpe ratio measures return relative to volatility—if high volatility brings high returns, it’s worthwhile. Risk isn’t volatility; real risk is systemic failure. Bitcoin operates on math, not counterparties, making it fundamentally lower risk.
Bonnie: For ordinary people, managing Bitcoin is harder than a bank account. How do you address concerns about lost keys or hacks?
Jack: Bitcoin’s uniqueness lies in user freedom. You can self-custody your private keys or choose custodial services.
I encourage users to strengthen their sovereignty, but the key is having the choice. This full control over one’s assets simply doesn’t exist in other financial systems.
David: Over the past decade, Bitcoin’s Sharpe ratio has outperformed most assets. Why is institutional allocation still low?
Jack: Institutional adoption of Bitcoin is slow but steadily rising.
People often overestimate short-term changes and underestimate long-term impacts. Despite complex institutional structures, I’ve seen growing demand for Bitcoin in capital markets, and allocation ratios will continue to increase.
Bonnie: You’re developing Bitcoin-related products, correct?
Jack: Yes. The market currently lacks a Bitcoin representative with institutional strength, and we aim to enter with blue-chip credibility and scale. We hold billions of dollars in Bitcoin, have strong capital and Wall Street resources, and most importantly, focus on building products—not just accumulating coins. As participants in the Bitcoin protocol, we understand the technology and growth opportunities. Our goal is to bridge tech and capital markets, driving growth in “Bitcoin Per Share.”
21 Capital: Building the “Bitcoin Per Share” Growth Model
Bonnie: Can you share any upcoming timelines or plans?
Jack: We’re progressing with the SPAC merger with Cantor Equity Partners, which is still under review. XXI stock is our first product. My focus is advancing the listing process and communicating our business philosophy and Bitcoin’s value to the public.
David: Could large institutions holding massive amounts of Bitcoin threaten its decentralization ethos? What’s your take?
Jack: Bitcoin’s design ensures that ownership amount doesn’t translate to control, unlike proof-of-stake systems. It’s a permissionless system—anyone can freely participate, and no holder can be excluded. Everyone is equal before the rules. That’s Bitcoin’s essence.
David: Are you planning to publicly list the company on an exchange?
Jack: Yes, we’ve filed to merge with Cantor Equity Partners and go public under the ticker XXI, currently pending approval.
David: As a Bitcoin-centric company, would you consider hedging against price volatility?
Jack: We won’t hedge our Bitcoin holdings. Instead, we’ve introduced “Bitcoin Per Share (BPS)” and “Bitcoin Return Rate (BRR)” as new metrics, focusing on increasing the amount of Bitcoin each share represents. We hold long-term, never sell, aiming to build a Bitcoin-based growth vehicle for capital markets.
Note:
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Bitcoin Per Share (BPS): The amount of Bitcoin represented by each share of a company, measuring shareholders’ actual Bitcoin exposure—similar to EPS (Earnings Per Share) in traditional finance, but denominated in Bitcoin.
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Bitcoin Return Rate (BRR): The growth rate measured in Bitcoin terms, assessing a company’s ability to grow its Bitcoin assets through operations without selling.
David: You mentioned BRR—how is 21 different from a Bitcoin ETF?
Jack: Investing in 21 means investing in an actively operated company focused on increasing Bitcoin per share. In contrast, ETFs like IBIT offer static exposure—the amount of Bitcoin bought and held doesn’t change. 21 continuously expands its Bitcoin exposure through fundraising and business growth. We combine blue-chip stability with startup potential, enabling shareholders to grow alongside Bitcoin.
David: You’re also CEO of Strike—will the two companies intersect in the future?
Jack: No overlap. Strike and 21 are completely independent. Strike serves consumers with services like lending, trading, and custody; 21 targets capital markets with Bitcoin investment tools—different positioning and goals.
Strike’s Product Strategy and Global Implementation
Bonnie: How does Strike operate in countries with unstable currencies or weak banking systems?
Jack: We tailor products by region. In the U.S. and Europe, we support local fiat and Bitcoin. In Latin America and Africa, where fiat is unstable, users prefer USDT + Bitcoin combinations. We follow user demand—we build what they want. That’s key to our success.
David: With more favorable crypto regulations, would you adjust your strategy?
Jack: Friendly regulation helps entrepreneurship, and I’m glad to grow in the U.S. But Bitcoin doesn’t depend on any politician—it’s decentralized technology, beyond parties and politics. Truly valuable things don’t need endorsements.
David: If banks start offering crypto services after regulatory easing, do you fear being replaced?
Jack: Not at all. Traditional banks lack understanding of Bitcoin and product capability—we have both. The key is focusing on ourselves and doing things best. Five years ago, people doubted me too, but we persisted. Even if Jamie Dimon becomes a Bitcoin banker one day, I’d happily discuss it again.
The Immutable Protocol: How Bitcoin Protects Itself
Bonnie: If governments or institutions accumulate large amounts of Bitcoin, could they collude to change the 21 million cap?
Jack: Impossible. Bitcoin’s rules are enforced by nodes running globally—no single party can alter them unilaterally. Those who tried in the past ended up forking, and their chains lost significant value. Bitcoin’s neutrality and immutability are core. Changing the rules destroys its value. Incentives also align participants to preserve, not break, the system. The supply cap is virtually unchangeable.
Bonnie: How has your understanding of Bitcoin evolved?
Jack: Initially, I saw Bitcoin as a PayPal competitor. Later, I realized it’s foundational technology for storing time and energy. It reshaped my understanding of money, the value of hard currency for social coordination and long-term development, and deeply influenced my financial thinking and decision-making.
David: Do you still buy pizza with Bitcoin?
Jack: No. I use credit cards for spending and repay via Bitcoin collateral through Strike—this way I keep my Bitcoin while covering daily expenses. Bitcoin is for saving; dollars are for spending.
David: If I treat you to pizza using Bitcoin, would you accept?
Jack: No, I wouldn’t trade high-quality money for a depreciating asset. Data shows long-term Bitcoin holding reduces living costs. In 2011, buying a house required 1.8 million BTC; today it’s 4.7 BTC. Bitcoin appreciates the more you hold; dollars depreciate the more you spend. So I save Bitcoin and spend dollars.
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