The Problem of Fiat Currency and Bitcoin as the Solution
At the 2025 Bitcoin Conference in Las Vegas, Jack Mallers, founder and CEO of Strike, delivered a keynote address that began with a sharp critique of fiat currency. 'The best time to go to Whole Foods and buy eggs with your dollars was 1913,' Mallers said. 'Every other time after, you are getting screwed.' He argued that fiat money's unlimited printing erodes purchasing power. The solution, he declared, is Bitcoin: 'Bitcoin is the money that we coincide that nobody can print. You can't print, you can't debase my time and energy, you cannot deprive me of owning assets, of getting out of debt, of living sovereignly and protecting my future, my family, my prized possessions. Bitcoin is what we invented to do that.' Mallers urged the audience to HODL every dollar they have in Bitcoin, but also to spend a little to enjoy life, because 'you can't HODL forever.'
Bitcoin Volatility Is No Higher Than Some Tech Stocks
Discussing loans backed by Bitcoin, Mallers criticized traditional banks for charging 20% interest on such loans. He countered the narrative that Bitcoin is risky and volatile: 'All these professional economists, they are like Bitcoin is risky and volatile. No it's not. This is the magnificent 7 one year volatility and the orange one in the middle is Bitcoin. It's no more risky and volatile. It's a little bit more volatile than Apple, but is far less volatile than Tesla.' He added, 'As Bitcoin matures, its volatility goes down. Bitcoin volatility is at a point where it is no more risky than a Tesla Stock. We should not be paying double digit rates for a loan.'
Strike's New Loan System: 9-13% APR, $10K to $1 Billion
Building on this logic, Mallers announced Strike's new Bitcoin-backed loan system with annual interest rates of 9% to 13% (though he initially aimed for a single-digit rate, the final product settled within this range). Loan amounts range from $10,000 to $1 billion, allowing users to access cash liquidity without selling their Bitcoin. This rate is far lower than the 20% or more charged by traditional banks for similar collateral, significantly reducing the burden on borrowers.
Responsible Borrowing: Debt Like Fire Can Warm or Destroy
Mallers concluded with a cautionary note: 'Please be responsible. This is debt. Debt is like fire in my opinion. It can heat a civilization. It can warm your home, but if you go too crazy it can burn your house down.' He emphasized that Bitcoin-backed loans are meant to help users improve their lives or handle emergencies without liquidating their long-term holdings. He ended with a personal note: 'Life is short. Take the trip, but with Bitcoin you just get to take a better one.'