Bitcoin is the least risky investment
Bitcoin is the least risky investment

Bitcoin is the least risky investment

By Vincenzo Cacioppoli - 16 Nov 2021

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The CEO of Microstrategy, a company that owns about 105,000 Bitcoin, Michael Saylor said in an interview that investing in Bitcoin is much less risky than investing in stocks or bonds.

Why Bitcoin is a less risky investment than others

This consideration stems from comparing Bitcoin over a 10-year period to other assets in the risk-return ratio.

“I think over the course of a decade, Bitcoin is up 170% per year, every year for a decade. The 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”.

So according to the CEO of Microstrategy, despite its high volatility, over the long term Bitcoin has proven to be the least risky asset when compared to its very high yield.

Saylor went on to talk about the regulatory issues surrounding cryptocurrencies, and the fact that Bitcoin could be considered as a store of value, although the speculative factor still remains high, preventing it from growing to unimaginable levels for now.

It’s scarce, they could 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’s stopping it from going up by a factor of a hundred is the fact that it’s ‘speculative’, but otherwise, it seems to me that it’s a lot riskier to buy gold, it’s a lot riskier to buy a company, a stock, even a big technology monopoly. I think the best thing you could have is the volatility that keeps all the conventional thinkers out of the asset, because that gives you the ability to buy it cheap”.

This is Saylor’s conclusion.


Microstrategy, the largest investor in Bitcoin

Microstrategy’s CEO’s words may not be entirely disinterested, considering that his company is currently the world’s largest holder of Bitcoin with about 105 thousand BTC in its portfolio.

Last summer, between July and September, the company bought 5,000 Bitcoin at an average price of $48,000. Microstrategy is said to have a Bitcoin value in its portfolio of more than $7 billion, almost as much as its total capitalization, which is valued at around $7.4 billion.

In a recent tweet on October 28, Saylor said that he personally owns about 17700 Bitcoin, purchased at an average of about $10,000 each.

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog., he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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