Cryptocurrencies and blockchain technologies are blowing up in a big way. Financial advisors, Wall Street, hedge funds, and more are looking into this new type of asset class even more so than traditional investments.
Of course, like with any investment, there is some risk to investing. That said, this is an excellent time to look into cryptocurrencies as a retirement investment. The market is fresh, and the general public is still a bit hesitant to enter due to their lack of knowledge on the subject.
Here are five reasons you should add cryptocurrencies to your retirement portfolio.
Massive Growth Potential
Right now, the world of cryptocurrencies is still very new. It is difficult to get into, people don't entirely trust it, and prices are still fairly volatile. However, that volatility and lack of current interest can be used to your advantage.
Less than 1 percent of the world's money is currently in cryptocurrencies. If anything, this is the best time to throw any investment into the digital assets. As the world slowly gathers more interest and more money is thrown into it all, you'll be putting more money towards your retirement funds without even trying.
Governments all over the world are lifting their bans and being rid of their fears of cryptocurrencies. NASDAQ and other traditional stock exchanges are becoming more open to placing digital coins on their platform next to normal stocks. As soon as that and traditional regulation occur, we'll see the general public come to cryptocurrencies in flocks like they did in November of 2017. Only, this time, they will be here to stay.
It is a little-known fact that Bitcoin and the blockchain technology, in general, has been around for a long time. In fact, the Bitcoin whitepaper was proposed in 2008 with the first coins being mined by Satoshi Nakamoto in January of 2009.
Since then, Bitcoin and other cryptocurrencies have seen steady growth both regarding the value and public perception. The digital asset has had a space in the underground dark web or on cult forums before the United States government came in and took a lot of these places down. The biggest offender being the Silk Road drug trading website.
In doing so, not only did the government become one of the largest Bitcoin holders in the world, but they proved the validity of Bitcoin and digital currencies as a whole. Had this new type of asset class been of little threat, the people in power would have done very little to stop everything. Instead, they did everything they could to gain control.
So, for fearmongers who say that cryptocurrencies are in a bubble or that they are a scam or not won't be around for long at all, Bitcoin and the technology behind it has been around for just over a decade now. Since then, it has only gone up in popularity, and now there are more blockchains than ever.
It seems quite foolish to not put money into these newer—but still reliable —alternative investments.
Putting Control Back In Your Hands
The entire goal behind blockchain and digital assets is to take power back from centralized third-parties and authorities.
As a society, we've gotten used to letting these entities take control of our assets and establishing what we can and cannot do with them. There is the illusion of our input, yes, but at the end of the day, it is just that: an illusion.
With Bitcoin and other digital assets, we can be entirely rid of banks, governments, and anyone else trying to tell us what to do with our assets both monetary and otherwise.
I don't know about you, but I'm more than happy to put the control of my retirement portfolios into my own hands or at least the hands of my financial advisors. With any investment we make, we should be the ones to say what happens to it.
With money in a traditional retirement account or investment or really any type of asset class, we're stuck using it in the country of origin. Should we try to move somewhere else, there are bothersome exchange rates, time delays, and all sorts of other issues in doing so.
Cryptocurrencies and digital assets are usable worldwide. To put it simply, a retirement investment made on the blockchain is a retirement account compatible with the entire world. There are no exchange fees or time delays, only you and the decentralized network.
This means that you can use your money in the United States just as efficiently in Finland or Japan (assuming the merchant accepts Bitcoin of course). If you're having trouble with the merchants somewhere else, you can always convert your Bitcoin and other cryptocurrency investments into the local fiat currency.
Power Of Choice
While yes, the traditional stock market provides a wealth of choice, it can be difficult to tell how a company will do with so many out there nowadays.
When it comes to digital currency and alternative investments to the stock market in general, the market is much less flooded. This provides you with an opportunity to do your research and have a better chance predicting which projects have a high probability of coming out on top.
Of course, there is always some sort of risk, but in a new market like this, that risk is mitigated. It is incredibly important for one to do their research and make sure the team behind a project is well-equipped and has a powerful vision. One needs to consider the fact that this will be a long-term retirement investment, and it would be stupid to not believe in the vision or the project. Do whatever you can to avoid risk.
There is a reason big-time Wall Street investors are putting their money in a Bitcoin investment. In fact, some investors are even creating hedge funds around Bitcoin and other cryptocurrencies. It is a new and exciting type of asset class, and it is one that's here to stay.