6 reasons to own bitcoin in retirement

Written By

Ted Stevenot

1. BITCOIN BROADENS YOUR ASSET ALLOCATION BASE

Sound asset allocation is the antidote to putting all your eggs in one basket.

Owning at least some bitcoin, especially due to its distinct properties when compared to other “cryptocurrencies,” provides an opportunity to broaden your asset base.

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2. Bitcoin offers a hedge against currency debasement

When the government issues more money, it debases existing supply–which makes a dollar buy less than it used to.

Bitcoin’s fixed supply helps safeguard its future purchasing power. As such, owning bitcoin in retirement may provide a hedge against inflation.

3. Bitcoin offers an opportunity for asymmetric returns

There will only be 21,000,000 bitcoin but demand for bitcoin grows daily.

As bitcoin’s limited supply collides with increased adoption, it has the potential to dwarf the returns of nearly every competing asset class.

4. Bitcoin offers protection from  long-term bond rISKS

Bonds are a part of most retirement portfolios due to their perceived low risk and tendency toward capital preservation. However, things have changed.

Interest rates now hover near historic lows. As rates go up, the market value of bonds goes down. Owning some bitcoin for the long-term may help offset risk incurred from owning bonds in retirement.

5. Bitcoin offers a potential solution for long-term healthcare risk

Long-term healthcare costs rise due to monetary debasement and growth in the aging population.

Due to its potential for long-term price appreciation, setting aside bitcoin in retirement may help offset future long-term care expenses.

6. Bitcoin offers you individual sovereignty

Bitcoin gives you a level of ownership not achievable with other assets.

By holding bitcoin in a wallet you control, no government or central bank can steal its value by printing it into oblivion, and no one can block access to or freeze your funds.

This article is provided for educational purposes only, and cannot be relied upon as tax or investment advice. Unchained makes no representations regarding the tax consequences or investment suitability of any structure described herein, and all such questions should be directed to a tax or financial advisor of your choice.

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