Is Bitcoin part of your retirement plan?

Some people invest in stocks. Other people have saving accounts. However, fewer people relate to crypto for their retirement plans at the moment.

Because of its volatility, investors tend not to trust crypto investments in the long run.

Here are a few things you should know :

There are two types of cryptocurrencies. Bitcoin and Altcoins. Bitcoin has been around since 2009 and is the first blockchain ever launched. Altcoins have a different approach. Some have utility and solve real-life problems using blockchain technology, but others have no utility whatsoever.

Some people that are interested in trading and making short-term profits, may find opportunities in the price volatility of cryptocurrencies. But, in the crypto world what is cool today, may not even exist tomorrow. Many altcoins have disappeared over the years so this is why some people don’t consider investing long term in altcoins.

If we refer to Bitcoin, its value remains unpredictable but at the same time surprising. Bitcoin is definitely here to stay and its value will probably continue to grow.

Why? Because there are already many investors that trust Bitcoin and keep investing in it. The Bitcoin supply is limited, there are only about 2 million Bitcoins left to be mined in the entire world. Countries started to adopt Bitcoin as legal tender. 

State officials can opt to be paid in Bitcoin. Crypto exchanges have partnerships with VISA so you can use a Visa card but pay for your groceries with Bitcoin.

So, is it profitable to invest in Bitcoin and never sell it until you retire?

Time will tell. Until we find out, here are some things to consider about saving real money in a retirement bank account:

• Interest. Keeping your money at the bank is not going to generate so much interest. Some banks give you 2-4% annually, and that is considered profit so you need to pay taxes on it. Very small return on investment.
• Inflation. Every year you keep your money at the bank, it will decrease in value. Simply said, if inflation is 9% for example and you have $100 in the bank, next year, you will still have $100 but their real worth (what you can actually buy with it) is $91. Every year your savings decrease in worth with inflation. So, we could actually say that keeping your money at the bank makes you poorer every year.
• Arguments. The money you have in the bank is not entirely yours. And although this may shock you, your bank controls your money. They could freeze your accounts if they disagree with you. Is that simple.

From 2009 when the first Bitcoin was mined, until now in 2022 it went from a few cents to an old-time high of $64.000. Where will it be in 2030? 2045? We can’t wait to find out. 

This article is not financial advice. You should do the math yourself and decide where to put your retirement savings.

Don't forget to follow us @cryptonezo to stay updated with the latest blockchain and cryptocurrency news.