MicroStrategy CEO Michael Saylor is telling investors that buying Bitcoin (BTC) is better than putting their money into traditional assets like stocks, bonds and gold.
In a new interview with John Darsie, the director of business development at alternative investments firm SkyBridge, Saylor compares Bitcoin against other asset classes over the past 10 years.
“I think that over the course of a decade, Bitcoin’s [up] 170% a year, every year for a decade. Nasdaq is [up] 19% every year for a decade and the S&P is [up] 14% every year for a decade. Gold is [down] 6 basis points a year, every year for a decade. Long bonds, 240 basis points.”
Saylor says that despite the volatility of the benchmark cryptocurrency, it offers the highest returns and lowest risk among asset classes.
“The conclusion you come to is pretty clear. If you can stomach the volatility and the novelty of Bitcoin, you’re getting paid 10x. If you can’t stomach it, you sit in the S&P index.
The truth of the matter is, the lowest risk thing you can possibly buy right now is Bitcoin, because there’s no CEO, there’s no corporate headquarters…
The product is simple: it’s one 21-millionth of all the money in the network forever, so you’re getting away from the board of directors and the employee base and the regulatory nexus and the competition, and you already know there’s a demand for a non-sovereign store of value.”
Saylor says despite the concerns about governments and regulators imposing a ban, BTC has been recognized as “digital property,” and notes that its volatile nature might even be favorable to investors who want to buy the asset at a low price.
“It’s scarce, they might say it’s a speculative store of value. But if it wasn’t speculative, it would be trading at $10 million a coin right now. The only thing that keeps it from going up by a factor of a hundred is the fact that it’s ‘speculative,’ but otherwise, it seems to me it’s a lot more risky to buy gold, it’s a lot more risky to buy a company, a stock, even a big tech monopoly.
I think that the best thing you could possibly have is the volatility that keeps all of the conventional thinkers out of the asset, because that gives you a chance to buy it cheap.”
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