Not many people understand cryptocurrencies, and more so Bitcoin. However, most people are making efforts to acquire knowledge on how this relatively new concept works. Currently, Bitcoin is the most popular and most valuable digital currency. It owes its position to be the pioneer in this industry and has provided the world’s financial system an alternative to fiat currency.
At the moment, this asset is trading at just above $52,000. Speculators project that it could soon hit $100,000. If you can buy a full coin of BTC, then it means you could make about $50,000 if it hits the projected mark. Keep in mind though that this is a volatile asset and could swing in either direction in just a short time. Should you still go ahead and have it in your retirement portfolio? Here are a few reasons why you should consider it.
Bitcoin Is Secure
Unlike fiat currency that is controlled by a central authority, bitcoin is completely independent of any financial institution. It is not controlled by any bank in any country. That means that it can never be seized and is not prone to physical risks such as fires and other natural calamities. It essentially means that during your retirement, you can travel and live anywhere and still access your cash without any restrictions. Bitcoin stores its data in a public ledger that is accessible to everyone in the network. No one has more power than any of the other peers to change anything making the network very secure.
Store Of Value
When considering assets and properties to have in your retirement portfolio, it makes sense to have options that can increase their value with time or at least maintain it in the long term. Saving cash in a bank account will lose value with market inflation. Banks can also print more money making your existing savings useless. Bitcoin, like gold and silver, has a very limited supply. Its supply is limited to about 21 million coins. As the coin’s demand continues going up, its value will also go up due to its limited supply. If you are to invest for retirement purposes, it means you are going into it for the long run. Having a fraction of the coin as part of your portfolio will see you make a handsome profit when you cash it out after a few years.
Bitcoin Is Highly Liquid
When retired, you want an asset you can quickly transform into liquid cash when you need it. Bitcoin is currently listed in almost all major online exchanges and trading platforms. The listing makes it one of the most liquid financial assets with very low conversion fees. It is also very convenient since you can easily do it in the comfort of your home. When its price goes up, you can quickly cash it and make some profits and then buy it back when it goes down. If you want to keep it for the long term as you will for retirement, its strong market demand will have you get a good retirement plan as its value is bound to continue rising.
Minimal Requirements And Ease Of Access
Traditional investment options like stocks and bonds require a lot of certifications and licenses. When you need to buy some company’s stocks, you will have to approach a broker and fill a lot of forms before getting the stocks allocated to you. Investing in Bitcoin is different from these other conventional options. All you need to do is find a viable exchange platform, load it with fiat currency and then buy the number of coins you need. You can even buy a fraction of a coin. You have full control of your investment, and you can add or sell coins at your discretion. The immediate cryptocurrencies like bitcoin provide you with a very good investment option.
Provides New Opportunities
Unlike conventional stocks and bonds, cryptocurrencies present new opportunities. There is still a lot that remains unknown about digital currencies. As with all new technologies, it could bring massive gains or fail, but Bitcoin has already shown promising potential having sustained itself for more than 10 years now. While not very certain, Bitcoin will present new opportunities that could earn you massive gains and give you a very comfortable retirement package.
Relative Low Inflation
Unlike fiat currencies, cryptocurrencies, and in this case Bitcoin is to an extent immune to inflation. It is only affected by real market dynamics. It can never get influenced by artificial swings common with conventional financial institutions. You do not have to worry about your investment losing value not unless something very drastic happens within the cryptocurrency circles.