Fred Thiel, CEO of Bitcoin mining firm MARA Holdings, has advocated for a long-term 'invest-and-forget' strategy for retail investors, highlighting Bitcoin's strong historical price performance as the foundation for this approach.
In a January 2025 interview with FOX Business, Thiel emphasized Bitcoin's significant growth over the past 14 years, noting that its price declined only three times during that period. His recommendation centers on making small, consistent investments over time and holding them indefinitely.
"My recommendation, to my kids, is they put just a little bit away every month in Bitcoin and forget about it," Thiel stated. He believes these investments will grow substantially over several years, citing Bitcoin's average annual price increases between 29% and 50%.
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Understanding Bitcoin's Volatility
Despite its strong long-term performance, Bitcoin remains a highly volatile asset that often behaves more unpredictably than traditional investments. Thiel acknowledged this risk, recognizing that his strategy might not suit all investors, particularly those with lower risk tolerance or shorter investment horizons.
Looking ahead to 2025, Thiel identified several factors that could drive Bitcoin's price higher:
- Potential establishment of a U.S. Bitcoin reserve
- Increasing institutional adoption through Bitcoin ETFs
- More favorable regulatory environment under the incoming administration
These comments follow a MicroStrategy poll showing 77.7% of respondents planned to increase their Bitcoin holdings in 2025.
MARA Holdings' Bitcoin Commitment
MARA Holdings has implemented a treasury policy to retain all Bitcoin it mines, demonstrating the company's long-term conviction in the digital asset. The company currently holds 44,394 Bitcoin valued at approximately $4.3 billion, making it the second-largest Bitcoin holder among publicly traded companies behind MicroStrategy.
In 2024, MARA's Bitcoin holdings grew by 192.5%, reflecting Bitcoin's nearly 120% price appreciation throughout the year. This growth underscores the potential of long-term holding strategies that Thiel recommends to retail investors.
Global Bitcoin Adoption Trends
Bitcoin adoption is gaining momentum among nations as part of economic diversification strategies. El Salvador and Bhutan continue to maintain Bitcoin reserves, while Hong Kong Legislative Council member Wu Jiexhuang recently proposed incorporating Bitcoin into Hong Kong's national reserves for financial stability.
In Europe, Germany's Free Democratic Party (FDP) has expressed openness to adopting Bitcoin as a reserve asset. Their 2025 election platform advocates for distributed ledger technology and encourages European financial institutions to consider Bitcoin to enhance monetary system resilience.
Christian Lindner, former German finance minister and FDP leader, criticized the government for neglecting opportunities in the crypto sector, calling this oversight a "failure" that risks leaving Germany behind in leveraging Bitcoin's potential benefits.
The discussion about Bitcoin's role in traditional markets has intensified with President-elect Donald Trump's suggestion to make Bitcoin a strategic reserve asset. Several U.S. states are considering adding Bitcoin to their treasury reserves, with Ohio recently becoming the latest state to propose such legislation.
Frequently Asked Questions
What is the 'invest-and-forget' Bitcoin strategy?
This approach involves making regular, small investments in Bitcoin regardless of short-term price fluctuations and holding them for the long term. The strategy leverages Bitcoin's historical upward trend while minimizing the impact of market volatility through consistent investment over time.
Is Bitcoin suitable for all investors?
No, Bitcoin remains a volatile asset that may not suit risk-averse investors or those with short-term financial goals. While historical performance has been strong, potential investors should assess their risk tolerance and investment horizon before allocating funds to cryptocurrency.
How are institutions adopting Bitcoin?
Institutional adoption is growing through Bitcoin ETFs, corporate treasury allocations, and potential national reserve considerations. Major companies like MARA Holdings and MicroStrategy have implemented significant Bitcoin holdings, while several countries are exploring Bitcoin as part of their financial strategies.
What factors could drive Bitcoin's price in 2025?
Key factors include potential U.S. Bitcoin reserve establishment, increased institutional ETF adoption, favorable regulatory developments, and growing acceptance as a reserve asset by nations and states. These elements could combine to create positive momentum for Bitcoin's valuation.
How does Bitcoin's volatility affect long-term strategy?
While short-term volatility can be significant, long-term strategies aim to smooth out these fluctuations through consistent investment over time. Historical data shows that despite periodic declines, Bitcoin has maintained an upward trajectory over multi-year periods.
What safeguards exist for Bitcoin investors?
Investors can mitigate risk through diversification, dollar-cost averaging, secure storage solutions, and long-term perspective. 👉 Learn about secure investment approaches Regulatory developments and institutional adoption are also creating more structured frameworks for Bitcoin investment.
The 'invest-and-forget' approach recommended by MARA's CEO represents a disciplined investment philosophy that aligns with Bitcoin's historical performance characteristics. While not without risk, this strategy offers retail investors a method to potentially benefit from Bitcoin's long-term growth trajectory while minimizing the impact of short-term market volatility.