Financial and investment advisory giant The Motley Fool has announced that it will invest $5 million in bitcoin (BTC) and expects its value to reach $500,000.
The company announced today via a blog and Twitter post that it will not buy overvalued ETFs, but will buy bitcoin directly. According to SimilarWeb, the company currently ranks fifth in the world in the investment category and records 87 million website visits per month. The Motley Fool lists three main reasons to buy: Bitcoin retains its value better than gold, is an effective protection against inflation, and has the potential to become a transactional asset.
Here’s why:
1. We believe it will hold its value better than gold in the long run.
2. We think it could be used as a broker if prices stabilize in the next decade.
3. We believe it can serve as a productive hedge against inflation.
– Motleyfool (@themotleyfool) February 17, 2021
The company will invest in bitcoin through its 10x Real Money Portfolio, one of 40 assets it expects to yield 1,000% over the next 15 years. The company has recommended the digital asset to all of its 10X members as a primary holding, giving them time to acquire BTC before the Motley Fool begins its own purchase.
Given the long-term commitments, this announcement indicates that volatility is of little consequence.
While bitcoin may remain volatile in the short term, we believe it has a 10x potential in the long term as part of a diversified portfolio. We plan to maintain this investment in bitcoins for the next few years.
If the company’s prediction is correct, bitcoin will transfer $500,000 in the next 15 years. According to the Motley Fool, he has a strong investment track record.
The Motley Fool has so far named 10 of the 40 investment projects in his 10X portfolio, including cloud computing company Appian Corporation, Swiss biotech CRISPR Therapeutics, cyber security company CrowdStrike, e-commerce platform Etsy, genetic testing platform Fulgent, insurance company Lemondate, social media platform Pinterest, mobile gaming platform Skillz, and video communications company Zoom. It should be noted that many of these measures have already been recommended in the context of the company’s other core investment services.
The consulting firm has been familiar with cryptocurrencies for years. A 2017 analysis showed that bitcoin’s biggest competitor is Litecoin, not Ethereum.
Fun fact: The second most visited page by users of The Motley Fool is the IRS page.