MicroStrategy has invested billions of dollars in Bitcoin over the past few years and intends to increase its investment.
MicroStrategy CEO Michael Saylor believes that Bitcoin is less risky than bonds. He made this statement after betting big on Fidelity, which recently introduced a Bitcoin 401(k) offering to its clients.
Saylor told CNBC that he is delighted with Fidelity’s latest offering and believes it will pay off big in the long run. Fidelity Investments became the retirement plan provider in the United States to offer Bitcoin as an option in 401(k) accounts.
The asset management firm said it would introduce the Bitcoin 401(k) option to its clients by the middle of the year. Fidelity has more than $2.7 trillion in assets under management and is currently the largest 401(k) provider in the United States.
Saylor was excited by this latest development and commented that;
“Bitcoin is a digital property, and that makes it the perfect asset for a retirement plan,” Saylor told CNBC Tuesday. “It’s less risky than bonds, than stocks, than commercial real estate, than gold. It was kind of built for this. It is a technical challenge to offer a 401(k) savings plan, and Fidelity has overcome that. So we are really delighted to be able to offer this to our employees,” he said. “Fidelity has put their finger on an issue — there are 80 million Americans that currently own or have owned digital assets.”
Saylor added that Fidelity’s adoption would fill an important vacuum in the investment product market.
Bitcoin has been underperforming in recent months and currently trades below $40k per coin. However, Saylor maintains he is bullish about the long-term price potential of the leading cryptocurrency. He said;
“Maximalists are buying the stuff to give to their grandchildren, and they are dollar-cost averaging. They are all in already, so they don’t control the market. Technocrats think it is the next big tech network like Google or Facebook. When they are feeling bullish on technology, they buy. When they are feeling bearish on technology, they are selling. The traders think it is either a correlated asset or not correlated asset to risk assets, depending on their mood. Right now, they think it is correlated to risk. So if they are selling risk, they are selling Bitcoin,”
Saylor said traders and technocrats control the Bitcoin market at the moment but maximalists will win in the long run.