Why are retirees not interested in Bitcoin?
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The research firm said that retirees have been looking for a viable asset class to invest in, and the IRS's confirmation of the cryptocurrency IRA (individual retirement account) can be seen as a rise in demand for crypto assets by retirement account holders. index.
“Retirees are always interested in alternative assets that can help diversify their portfolios to cope with market volatility. The IRS approves the cryptocurrency IRA, indicating that retirees are increasingly interested in adding some cryptocurrencies to their retirement accounts. The researchers said.
For retirees, even if Bitcoin is considered a viable alternative to assets such as gold, it is difficult to invest in it due to technical constraints.
Typically, investors purchase encrypted assets through regulated exchanges such as Coinbase, Gemini and Kraken in the United States. However, due to strict regulatory requirements, investors must undergo a rigorous understanding of the customer (KYC) verification process.
After a long process, investors must transfer funds from bank accounts to exchanges, most of which require online services.
For retirees and older investors, the whole process can be cumbersome, and it's as simple as buying a stock over the phone like a company like Fidelity or Blackrock, and the cryptocurrency market is unlikely to attract enough retirees. force.
Bitcoin must be as simple as stocks
At the end of 2018, Jeff Sprecher, chairman of the New York Stock Exchange (NYSE), said in an interview with Fortune magazine that he intends to include bitcoin in the 401(k) plan, but currently The currency does not have a good market structure.
He said: "Bitcoin does not have a good market structure. Even with Bitcoin, different markets will issue many different prices. And you can pay up to 6% of the difference and exchange dollars with Bitcoin, which means you receive Bitcoin needs to rise 6% before balancing.
Sprecher said that in the future, asset management companies and financial institutions will use the money trusted by Millennials to attract younger generations, such as Bitcoin.
“Millennial generations don’t trust traditional financial institutions. To gain their trust, banks, brokerage firms and asset management companies can use the currency that millennials believe, such as bitcoin. Using digital currency has brought a lot of criticism,” Sprecher added. Road.
If Fidelity, ICE's Bakkt and other hosting providers can successfully create a solid market structure for Bitcoin as suggested by Sprecher, then more retirement account holders and investors who were previously reluctant to invest in Bitcoin may find Asset classes are more attractive. (continuous chain)