Bitcoin is a volatile asset that is not considered to be a wise choice for securing the future. The value of it may change according to the market inflation at a given point in time. People willing to take high risks and are primarily stable financially by reaching retirement age choose Bitcoin to secure their post-retirement plans.
Bitcoin can act as a good hedge investment against the original market capital of a particular person. It can be compared to gold, except Bitcoin isn’t a stable hedge like gold. Eyeing the current market rise and shares, Bitcoin is likely to go up in value and can be a high-yielding, non-taxable income source for the future.
Schemes for utilizing Bitcoin post-retirement
Direct Purchase
A person can directly purchase bitcoin from the miners and sellers by creating a cryptocurrency wallet. Apps like bitcoin superstar or similar others help people make their Bitcoin Wallets and invest accordingly. When filled with actual currency, these wallets convert it to the fraction of bitcoin entitled to that person and keep it. The person planning for retirement can change his currency to Bitcoin value by adding it to the wallet. The money stays for them in the digital form, and the person could sell the bitcoin when the value of Bitcoin is high enough to sell or whenever required by the person.
Creating a Bitcoin IRA
Bitcoin IRA is a digital account used by people mostly to make Bitcoin transactions. The IRA stands for Individual Retirement Account, which regulates and safeguards a person’s money post-retirement in Bitcoin. The IRA automatically rotates the Bitcoin fraction in the account through further investments, which would guarantee gain.
Investing in high profit giving institutions
High-yielding companies currently allot a certain percentage of investors in their retirement age to fund their company. By verifying the terms and conditions and measuring the market risks and returns carefully equally, Bitcoin can be invested to finance them or buy shares from those companies. This process involves an element of high risk. A change in the value of Bitcoin may change the shareholding percentage of an individual in the company.
Advantages of using Bitcoin as the post-retirement scheme
- Bitcoin is the most critical and valuable store of value and currency. It is currently valued more than gold. Thus Bitcoin is expected to yield a lot more than other physical assets.
- The chances of Bitcoin value going up seems inevitable. With the increase in the digitalization of the world, the recognition of Bitcoin also increases, which will result in the surge of bitcoin value in the future. So investing now can be fruitful later.
- If invested, the whole amount of Bitcoin stays in the digital media and portable drives, preventing physical storage crunch and reducing a high chance of being stolen.
- As Bitcoin remains in the digital form in the Bitcoin Wallet, withdrawal of the money and redeeming the bitcoin happens almost instantly and isn’t time-consuming at all.
Disadvantages of using Bitcoin as the post-retirement scheme
- Bitcoin is dynamic by its nature. Tweets from different influential people cause its market to crumble down. Hence there is always the fear of any significant economic event later, which can cause it to crumble down and lose its value.
- People in their retirement age are often not confident over their memory. Hence forgetting the Login credentials could be a possibility. Also, writing down the login credentials can lead to data theft if misplaced anyhow.
Conclusion
There is always risk in any post-retirement scheme. Bitcoin utilized as a post-retirement scheme could be beneficial and high-profit yielding. But there lies the same amount of risk in investing as the determination of a good performing company at retirement age is a tough choice. But if someone works hard enough in his working tenure and is willing to take risks, investing in a bitcoin post-retirement scheme is an excellent way to secure a future.
