The superior superannuation investment according to Michael Saylor would be Bitcoin. The gains below since his company, MicroStrategy, started investing its cash reserves in Bitcoin.
Bitcoin and gold each have their own unique advantages as investments, but there are several reasons why people are choosing Bitcoin over gold to include in their superannuation portfolio:
- Digital and Easily Transferable: Bitcoin is a digital asset, which means it can be sent anywhere in the world almost instantaneously, making it potentially more practical for global transactions. This makes Bitcoin more liquid than physical gold, which has to be physically stored and transferred.
- Divisibility: Bitcoin can be divided into much smaller units (the smallest unit being one hundred millionth of a Bitcoin, called a “Satoshi“). This makes it more flexible for buyers of all sizes. Gold can also be divided, but not without physically altering the unit of gold, which may not be practical for small amounts.
- Supply Control: Bitcoin’s supply is fixed and will max out at 21 million coins. This is hard-coded into the algorithm and can’t be changed. This scarcity aspect is known to all participants in the market. Gold, on the other hand, is finite on Earth but the exact amount is not known and new supplies are still being mined.
- Utility in the Digital World: Bitcoin’s utility as a decentralised digital currency makes it relevant in our increasingly digital world. It offers possibilities for smart contracts, decentralised finance, and other innovative applications. Gold’s utility is more traditional and physical in nature.
- Transparency and Security: Bitcoin transactions are recorded on a decentralised public ledger (blockchain) that anyone can view. This level of transparency doesn’t exist with gold. Moreover, when stored and used properly, Bitcoin can offer robust security features.