Make Kitco Your Homepage

Saylor says Bitcoin is 'perfect asset for retirement,' less risky than bonds and gold as Fidelity offers Bitcoin option with 401(k) plans

Kitco News

(Kitco News) As Fidelity Investments becomes the first retirement plan provider in the U.S. to offer Bitcoin as an option in 401(k) accounts, MicroStrategy CEO Michael Saylor said the world's largest cryptocurrency is a perfect retirement asset.

Fidelity Investments, the largest 401(k) plan provider in the U.S., announced Tuesday its plan to offer Bitcoin as an option for its 401(k) accounts by the middle of this year. Fidelity, which has $2.7 trillion in assets under management, is the first 401(k) provider to do so.

Saylor said he is "delighted" with the ability to offer his own employees such an option, adding that Bitcoin is a safer investment choice than many other assets, including bonds, stocks, and even gold.

"Bitcoin's 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."

Fidelity's move will fill an "important vacuum" in the investment product market, Saylor noted.

"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."

The move comes as Bitcoin continues to struggle below the $40,000 level, last trading down more than 5% on the day at $38,105.

EU vs. US inflation: differences warrant 'particular type of response' – ECB's Lagarde

Bitcoin has had trouble separating its price action from the selloff in tech stocks. But Saylor remained convinced that this relationship would change in the long term. "It is not a tech stock; it is the ultimate risk-off asset. In time, over the course of 5-7 years, everybody figures that out," he said.

According to him, there are three types of investors in Bitcoin — traders, technocrats, and maximalists. And right now, traders and technocrats are the ones controlling the market.

"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 are buying. 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," he explained.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.