Michael Saylor: Bitcoin is an excellent alternative asset for retirement accounts, at a time when equities appear increasingly risky and bonds seem structurally defective due to the macroeconomic environment. We need to educate regulators on the benefits of ₿.
Community Reaction: Michael, why is bitcoin trading in tandem with stocks? Every time I check when stocks or up or down, bitcoin is behaving similarly. That troubles me.
Michael Saylor about Bitcoin (BTC) being in Sync with other speculative dollar-based assets like the NASDAQ:
There is 3 types of investors in Bitcoin. There is the trader. There is the technocrats. There is the maximalist. The maximalists are buying to get the stuff to their grandchildren. They just are cost averaging and they are not controlling the market. The technocrats think it is the next big tech network like Google or Facebook – when they are feeling bullish on technology, they are buying and when they are feeling bearish on the technology they are selling. The traders think it is either a correlated asset or an uncorrelated asset depending on their mood. Right now, they think it is correlated to risk and so if they are selling risk they are selling Bitcoin. It obviously not a tech stock – it is actually the ultimate risk off asset. Right now, the traders and the technocrats control the market. It is a tug of war between them and the mood in the market.
CNBC: Fidelity becomes the first retirement plan provider to allow its investors the option to put Bitcoin in their 401K. Microstrategy will be one of the first employers to offer the cryptocurrency in the company’s retirement plan.
Michael Saylor: Bitcoin is digital property and that makes it the perfect asset for retirement plan. It is less risky than bonds and stocks and commercial real estate and gold. It is kind of built for this. Most people are buying bitcoin – they want to give it to their grand children or great grandchildren. I think Fidelity has put their finger on in an issue that 80 million Americans that have their own digital assets. About 30% of institutions want to owns these digital assets. 401K plan is a pretty common thing for millions and millions of workers who used to save in order to protect their family interest and this is going to fill an important vacuum in the investment product market.
CNBC: And, I realize that microstrategy is technically a tech company, but it is also the largest publicly traded company in terms of Bitcoin holding. So are you expecting many of your employees to actually adopt this in to their retirement plan?
Michael Saylor: Yeah, there is going to be a lot of demand – they have been asking it for quite a while. So, it is a technical challenge offer with 401K savings plan. And, Fidelity has overcome that challenge by offering great products and we are really delighted to offer it to our employees.
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