In a recent interview with FOX Business, Fred Thiel, the CEO of Bitcoin mining firm MARA Holdings, shared his recommendation for retail investors to adopt an "invest-and-forget" strategy when it comes to investing in Bitcoin. According to Thiel, this approach is based on the strong price performance of Bitcoin over the long term.
Bitcoin’s Strong Price Performance Over Time
Thiel noted that, out of 14 calendar years, Bitcoin’s (BTC) price has only fallen three times. This remarkable track record is a testament to the resilience and potential of this cryptocurrency. When asked about his advice for investors, Thiel emphasized:
"My recommendation, to my kids, for example, is they put just a little bit away every month in Bitcoin and forget about it." Over two, three, four years, it grows, and that’s what people do.
Average Annual Returns of 29-50%
Thiel also highlighted the impressive average annual returns that investors can expect from investing in Bitcoin. He stated that the price of this cryptocurrency rises by an average of between 29% and 50% most years. This level of growth makes it an attractive investment opportunity for those willing to hold onto their assets for the long term.
Challenges Associated with Investing in Bitcoin
While Thiel’s invest-and-forget strategy may seem appealing, it is essential to acknowledge that investing in Bitcoin comes with its own set of challenges. The asset is considered relatively risky and has far more volatility than most traditional financial (TradFi) assets. This means that investors must be prepared for significant price fluctuations, which can make it more challenging to adopt Thiel’s recommended strategy.
Catalysts for Higher Prices
Thiel identified several catalysts that could push the price of Bitcoin higher in 2025. These include:
- The potential establishment of a United States Bitcoin reserve
- Increased institutional adoption through spot Bitcoin exchange-traded funds (ETFs)
- A friendlier regulatory environment under the incoming Trump Administration
Support for Thiel’s Strategy from Other Prominent Figures
Thiel’s comments were followed by an X poll conducted by Michael Saylor, MicroStrategy executive chairman and a well-known Bitcoin advocate. The results showed that 77.7% of the 65,164 participants plan to increase their Bitcoin holdings in 2025.
MARA Holdings’ Commitment to Holding Bitcoin
Thiel’s company, MARA Holdings, is also committed to holding Bitcoin for the long haul. In July, MARA shifted its treasury policy to retain all Bitcoin it mines and adopt a range of capital market instruments to bolster its Bitcoin reserves. This move demonstrates the company’s confidence in the potential of this cryptocurrency.
MARA Holdings’ Bitcoin Holdings
As of 2024, MARA holds the second-largest Bitcoin holdings among publicly listed companies, with a total of 44,394 Bitcoin worth $4.3 billion at current prices. This represents a significant increase from the 15,174 Bitcoin it started with last year.
Conclusion
In conclusion, Thiel’s invest-and-forget strategy for retail investors is based on Bitcoin’s strong price performance over time. While there are challenges associated with investing in this cryptocurrency, several catalysts may drive its price higher in 2025. With MARA Holdings committed to holding Bitcoin and other prominent figures advocating for increased adoption, the future of this asset looks promising.
References
- Thiel’s interview with FOX Business
- X poll conducted by Michael Saylor
- Data from BitcoinTreasuries.NET
- Article: "Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana?"
