Crypto analyst: one bitcoin is enough to save a pension

According to a Bitcoinist report on April 13, more and more analysts are encouraging young people to use the current downturn in the cryptocurrency market to invest in bitcoin for life after retirement. Although this idea is not new, the inflation problem in the traditional financial field makes investing in Bitcoin more attractive. One analyst asserted that from the perspective of long-term returns, investing in one bitcoin is better than making traditional savings.

Inflation may change the rules of the game

Over the past 40 years, retirement plans in developed countries have gradually shifted from fixed benefit plans (such as standard pension plans) to fixed payment plans. Although the wisdom of this transition is still controversial, there is no doubt that the retirement income of millions of people today is largely dependent on some form of personal savings.

For those with sufficient savings, this approach is not bad. However, decades of low inflation and a brief economic recession may have a big impact on it. If the current global financial crisis causes inflation to soar, retirees may fall into economic difficulties.

For those who are still working, the long-term depreciation of fiat currencies such as the US dollar and the euro can be devastating. As the earning power of retirement savings fades, people may choose a more radical way of saving. Analyst Davincij15 stated in a recent tweet:

From small to large, I have witnessed the depreciation of the fiat currency. I do n’t know how much the current $ 150,000 can buy when I ’m 65. I do n’t know how much money will be able to afford my retirement.

Deposit 1 bitcoin and you will have more by the time you are 65. Analyst: One bitcoin is enough to save a pension

Davincij15 admitted that it was wise to start saving when he was young, but he pointed out that inflation would make all saving behaviors in vain. This is why he would advocate Bitcoin as a possible hedging tool.

Bitcoin enters retirement portfolio

In the current economic crisis, many people say that Bitcoin is a potential safe haven. However, we should pay more attention to ideas that consider long-term investment in Bitcoin. As we all know, young people prefer to invest in cryptocurrencies, and employees under 35 choose to add blockchain assets to their retirement portfolio more than ever.

Of course, part of the reason for this trend is that people believe that the performance of cryptocurrencies will continue to be far better than traditional investments. Young investors may now make such a choice to protect them from inflation or other economic recessions after retirement. In other words, cryptocurrencies may be added to hard assets such as gold and government bonds and become part of a reasonable investment portfolio.

There is no doubt that Bitcoin and other cryptocurrencies are permanent elements in the global financial landscape. And the current economic crisis has given more legitimacy to this new asset class than ever before.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

A picture proves that there are a large number of cleaning transactions on the exchange

In order to more accurately depict trading activity, the "Real 10" indicator only considers the volume of t...

Blockchain

Yesterday, 340,000 ETH on the Upbit exchange was stolen, but this server was attacked ...

Author: Chengdu chain security According to industry media reports, around 1 pm on November 27, the security system o...

Market

Dialogue with Circle CEO How can USDC recover the market lost due to SVB's bankruptcy?

In this interview, Laura Shin and Jeremy Allaire discussed various topics including Coinbase's investment in Circle, ...

Blockchain

FTX owns 38 properties in the Bahamas worth over 200 million US dollars.

The company stated that prior to filing for bankruptcy last year, it had paid out billions of dollars to executives, ...

Blockchain

The money was not earned, and the head was almost bald: interview with the boss of the startup exchange

Currently, one of the most profitable industries in the cryptocurrency sector is the exchange. According to The Block...

Blockchain

Thousands of exchange platform license thresholds reach the cloud or 5 platforms enter the Hong Kong Securities Regulatory Commission's sandbox

Source: 21st Century Business Herald Author: Zhou scorching The confrontation between the United States and Iran has ...