Michael Saylor says Bitcoin is the perfect retirement asset. He mentioned that Fidelity’s new Bitcoin 401(k) solution would help cover a significant void. Following Fidelity’s decision to include Bitcoin in its retirement 401(k) accounts, MicroStrategy CEO Michael Saylor stated that digital currency is a better fit for retirement than bonds.
In an interview with CNBC last week, Saylor pointed out that Bitcoin is a much better investment choice than popular traditional asset classes, including gold, stocks, and bonds. According to the MicroStrategy chief, the leading cryptocurrency is less risky and much safer than traditional assets, making it the perfect option for retirement.
“To call it digital gold is an understatement. It really is the hardest money in the history of the world. But if you’re thinking about generational wealth and if you wanted to leave something for your grandchildren or if you wanted a retirement fund, it’s obviously a very, very compelling element of a 401(k)… What have I wanted to hold some kind of commodity money that’s better than a commodity because no one can make any more of it and Bitcoin is that thing.”
Saylor added that the business intelligence software company intends to work with Fidelity Investments to offer its employees access to Bitcoin retirement 401(k) accounts. The Bitcoin proponent noted that he was delighted to offer MicroStrategy’s employees the option of having BTC in their 401(k) accounts, considering the potential of the asset.
Fidelity Investments is a leading financial services company and the largest 401(k) plan provider in the United States, with $2.7 trillion in assets under management (AUM). The company announced Tuesday that it plans to offer Bitcoin as an option for its 401(k) accounts by the middle of this year. This makes Fidelity the first major 401(k) provider do so.
As people fear putting money in stocks and bonds because of current economic conditions, the market is still in a potential recession stage, and the Fed’s policy has just issued a warning about inflation rising too high in economic history, claims of assets held by Saylor are still in doubt. Saylor’s move was also supported by many, with Changpeng Zhao, CEO of Binance, also retweeting and saying:
However, there are still speculations that MicroStrategy recently sold Bitcoin, with many saying that the company’s billion-dollar bet on Bitcoin might make or kill the company. Their business has significantly fallen, and the company’s share values are significantly lower than their all-time high. In fact, their market capitalization is $4.4 billion, which is less than the $5 billion in BTC on their balance sheet. Most investors are unable to handle the enormous exposure to BTC and the debt that the company has.
If Bitcoin does well, all these problems might fade away in the future. However, if it crashes for any reason, the company will find itself in a huge problem. And in any case, if they are forced to sell their coins, it will impact the market negatively. At the time of writing, Bitcoin is still in the red with a drop to $36,000.
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