In a thought-provoking discussion with FOX Business, Fred Thiel, the CEO of MARA Holdings—a prominent Bitcoin (BTC) mining company—championed a strategic “invest and forget” approach. This strategy is particularly aimed at retail investors eager to explore the realm of the world’s foremost digital currency.
Thiel Highlights Bitcoin’s Robust Historical Performance
Bitcoin continues to hold steady in the mid-$90,000 range, following a retreat from its record high of $108,135. While crypto market analysts diligently monitor Bitcoin’s price dynamics, major BTC stakeholders appear to remain unfazed by short-term market volatility.
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Drawing from Bitcoin’s historical trajectory, Thiel recommends that retail investors adopt a long-term perspective. He pointed out that Bitcoin has concluded the year at a lower price only three times throughout its 14-year existence, including during the height of the COVID-19 pandemic. Thiel shared his thoughts:
My advice, for instance, to my kids, is to set aside a small amount each month in Bitcoin and then forget about it. Over the span of two, three, or four years, it grows, and that’s what people typically do.
Thiel further highlighted Bitcoin’s consistent growth, noting that the cryptocurrency has appreciated annually by an average of 29% to 50%. However, it’s crucial to recognize that BTC remains a high-risk asset, which might deter risk-averse investors until the asset class gains broader acceptance or receives official recognition from a major global economy.
For example, the creation of a U.S. strategic Bitcoin reserve could cement the cryptocurrency’s status as a legitimate asset, potentially triggering a ripple effect that encourages other nations to follow suit. Thiel described such a reserve as a pivotal catalyst for propelling Bitcoin’s price to new peaks by 2025.
Additionally, Thiel pointed to significant institutional involvement through Bitcoin exchange-traded funds (ETFs) and favorable digital asset regulations during the Trump administration as other factors likely to support BTC’s growth this year.
While Thiel’s advice was primarily directed at retail investors, recent data indicates that many are already planning to increase their Bitcoin holdings. According to a survey conducted by MicroStrategy CEO Michael Saylor, more than 75% of 65,164 respondents intend to conclude 2025 with a greater amount of BTC than they initially possessed.
This poll underscores the burgeoning enthusiasm among retail investors, fueled by bullish developments in 2024 such as ETF approvals, the Bitcoin halving, and Trump’s victory in the November elections.
Increasing Bitcoin Adoption Among Corporations
The corporate embrace of Bitcoin continues to expand. MARA Holdings, for instance, already includes BTC on its balance sheet. Meanwhile, competitor crypto mining firm Hut 8 has recently augmented its holdings to exceed 10,000 BTC.
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In 2024, other companies, like Japan-based Metaplanet and Canada’s Rumble, have joined the Bitcoin movement. Furthermore, Bitcoin ETFs have amassed over 1 million BTC within a year of their introduction.
Nevertheless, skepticism persists. Japan’s Prime Minister recently expressed caution about establishing a strategic Bitcoin reserve, reflecting ongoing doubts in certain circles. As of the latest update, BTC is trading at $97,229, reflecting a 0.7% increase over the past 24 hours.
As Bitcoin continues to evolve, investors and corporations alike are navigating the dynamic landscape with cautious optimism, anticipating further developments in the cryptocurrency arena.
