Imagine this: you're at Strategy World 2025, listening to Chris Kuiper, the Vice President of Research at Fidelity Digital Assets, challenging corporations to rethink their approach to risk, capital allocation, and long-term financial health. He drops a bombshell, "Bitcoin has been the superstar performer among all asset classes for the past decade. If your company is hoarding cash or sticking to low-yield bonds, you're missing out big time."
Bitcoin's Decade-Long Success Story
Let's dive into the numbers with Kuiper. Picture this: a 79% compound annual growth rate (CAGR) for Bitcoin over the last ten years and a solid 65% over the past five years. In comparison, snooze-worthy investment-grade bonds barely managed a 1.3% nominal return during the same period.
Debunking the Volatility Myth
Now, let's clear the air on volatility, shall we? According to Kuiper, volatility isn’t the real villain—permanent capital loss is. He points fingers at inflation and currency devaluation as the true enemies lurking in the shadows, even for stalwarts like U.S. Treasury bonds that have seen negative real returns over time.
Strategies for a Safe Bitcoin Journey
Concerned about Bitcoin's roller-coaster ride? Kuiper offers two practical strategies: position sizing and playing the long game. "Don’t go all-in on Bitcoin," he advises. "Think of it as a volume knob, not an on-off switch." Even a modest 1–5% allocation can beef up a company’s risk-adjusted return while keeping downside risks in check.
Unlocking Corporate Potential
Shifting gears to corporate basics, Kuiper hammers home the importance of return on invested capital (ROIC) over flashy earnings figures. He points out how holding onto excess cash can drag down a company's ROIC, using Microsoft's example to showcase the negative impact of idle capital.
Seeing Cash in a New Light
For Kuiper, the balance sheet speaks louder than the income statement. He challenges executives to rethink their cash reserves and see Bitcoin as a game-changer that can transform idle cash into a dynamic asset.
So, dear executives, Kuiper throws you a curveball: "Can your opportunities outshine Bitcoin?" It's a question worth pondering.
For more insights, check out Fidelity’s Chris Kuiper Presents "The Investment Case For Bitcoin" At Corporate Conference on Bitcoin Magazine.
Frequently Asked Questions
What Should Your IRA Include in Precious Metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. They don't require you to be wealthy to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You might think about buying physical coins such a bullion bar or round. Stocks in companies that produce precious materials could be purchased. Your retirement plan provider may offer an IRA rollingover program.
No matter what your preference, precious metals will still be of benefit to you. These metals are not stocks, but they can still provide long-term growth.
Their prices rise with time, which is a different to traditional investments. If you decide to sell your investment, you will likely make more than with traditional investments.
What are the pros and disadvantages of a gold IRA
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. There are some disadvantages to this investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
Another problem is the cost of managing your IRA. Many banks charge between 0.5%-2.0% per year. Others charge management fees that range from $10 to $50 per month.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. Most insurers require you to own a minimum amount of gold before making a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers restrict the amount you can own in gold. Others allow you to pick your weight.
You'll also need to decide whether to buy physical gold or futures contracts. Physical gold is more costly than gold futures. Futures contracts, however, allow for greater flexibility in buying gold. They allow you to set up a contract with a specific expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy does NOT include theft protection and loss due to fire or flood. However, it does cover damage caused by natural disasters. You may consider adding additional coverage if you live in an area at high risk.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians are not allowed to sell your assets. Instead, they must maintain them for as long a time as you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. Your monthly investment goal should be stated.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. The company will review your application and send you a confirmation letter.
Consider consulting a financial advisor when opening a golden IRA. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
What precious metals do you have that you can invest in for your retirement?
Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. These are great options to diversify your portfolio.
Gold: One of the oldest forms of currency, gold, is one of mankind's most valuable. It is also extremely safe and stable. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: The popularity of silver has always been a concern for investors. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It is very durable and resistant against corrosion, much like silver and gold. It's however much more costly than any of its counterparts.
Rhodium: Rhodium is used in catalytic converters. It's also used in jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also less expensive. This is why it has become a favourite among investors looking for precious metals.
Statistics
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Legal – WSJ
bbb.org
investopedia.com
How To
The best way online to buy gold or silver
First, understand the basics of gold. Gold is a precious metallic similar to Platinum. Because of its resistance to corrosion and durability, it is very rare. It's difficult to use, so most people prefer purchasing jewelry made from it rather than actual bars.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren’t exchangeable in any currency exchange. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. For every dollar spent, the buyer gets 1 gram of Gold.
You should also know where to buy your gold. If you want to purchase gold directly from a dealer, then a few options are available. First off, you can go through your local coin shop. You can also go to a reputable website such as eBay. You might also consider buying gold from an online private seller.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers will charge you a 10% to 15% commission for every transaction. That means you would get back less money from a private seller than from a coin shop or eBay. This is a great option for gold investing because you have more control over the item’s price.
An alternative option to buying gold is to buy physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. Physical gold must be kept safe in an impassible container, such as a vault.
You can either visit a bank, pawnshop or bank to buy gold. A bank can offer you a loan for the amount that you need to buy gold. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks typically charge higher interest rates than pawn shops.
The final option is to ask someone to buy your gold! Selling gold is simple too. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
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By: Jenna Montgomery
Title: Discover Why Bitcoin Is the Ultimate Strategic Asset for Corporations
Sourced From: bitcoinmagazine.com/news/fidelitys-chris-kuiper-presents-the-investment-case-for-bitcoin-at-corporate-conference
Published Date: Wed, 07 May 2025 19:37:26 +0000
