The value proposition of blockchain technology has all potential that it will take to ignite a financial revolution.
"Gold is incredibly inconvenient.” - Vitalik Buetrin, Founder, Ethereum.
As crypto transactions are becoming more prevalent, older investors are willing to put their money into digital assets.
Bitcoin retirement funds are gaining the right traction and can provide long-term investors with lucrative returns.
The rise in the volume of crypto investments has been evident as it has become a lucrative investment option for those who are willing to take the risk.
It is true that the trends are driving the market as of now but the value proposition of blockchain technology has all potential that it will take to ignite a financial revolution. But are cryptocurrencies soon going to become a viable alternative to traditional investment options?
In this blog by CoinGabbar, we are going to explore the possibilities of cryptos replacing much more stable investment options and if so, what are the reasons behind that. Stay with the blog till the end to know whether should you consider your plan your retirement funds in cryptocurrencies.
Vitalik Buterin Compares Cryptocurrencies with Gold
The founder of the second largest cryptocurrency in the world, Ethereum, has recently compared the pros of cryptocurrencies over the most conventional investment option in the market. Gold is trusted by all and challenging its authority as a safer investment option has made Vitalik answerable to many queries from investors.
In one of his recent tweets, Vitalik Buetrin stated:
"Gold is incredibly inconvenient. It's difficult to use, particularly when transacting with untrusted parties. It doesn't support safe storage options like multi-sig. At this point, gold has less adoption than crypto, so crypto is the better bet."
This assertion from Vitalik is expected as he has been bullish on blockchain technology from the very beginning. Vitalik’s reasons are also valid that gold is not the cheapest commodity to maintain and it might be an inconvenient investment to maintain.
Vitalik has also raised the issue of the inability of gold to be transacted over the internet with the same ease and anonymity as that of cryptocurrencies. The storage of gold is another concern as it is generally held in its metal form and it increases the risk of being stolen or lost.
Even though the reasons tweeted by Vitalik make sense to most of us, it is also true that gold prices have been very stable for years and it has gained its intrinsic value over centuries. Gold is still one of the favorite investment options for millennials but for how long will it hold its throne will be interesting to see.
Role and Reliability of Senior Citizens on Crypto
The older generation has always been infamous for not being able to adapt themselves to the latest technologies. They love the way they had lived their lives and do not want to change the way they interact with money. However, this is not the same with cryptocurrencies and blockchain technology. As crypto transactions are becoming more prevalent, older investors are willing to put their money into digital assets.
They have the access to information through different internet sources empowering them with the right knowledge about the crypto space. All of us are aware of the spike in Bitcoin’s value during its 2021 bull run and none of us is willing to miss the next one.
The hope to survive this crypto winter and invest when the markets are at their lowest is driving not only senior citizens but people of all ages to invest in cryptocurrencies.
Bitcoin is Gaining Popularity as Retirement Funds
Bitcoin is the most popular cryptocurrency in the market and has become the backbone of decentralized internet trade. It has gained popularity amongst tech enthusiasts and created an entirely new market for its investors. Bitcoin is trusted by its community and has resulted in unbelievable returns over the last few years.
The trust in the community and the increasing use case of Bitcoin has made it possible for investors to invest in Bitcoin for their retirements. Bitcoin retirement funds are gaining the right traction and can provide long-term investors with lucrative returns. Millennials from the United States of America have shown keen interest in Bitcoin retirement funds as it provides much better returns than conventional retirement policies.
However, experts are still sceptical about considering cryptocurrencies as a safe retirement investment option. The total risk involved and the volatility of the present crypto prices might make the long-term investments lose their charm and become counterproductive during the bearish market sentiment.
What next?
The drastic rise and fall of Bitcoin have depicted a negative image of cryptocurrencies amongst those who do not know much about crypto markets. However, as per the indicators, the crypto winter is not going to last for long, and foundationally strong cryptocurrencies are going to regain their value. However, it would not be wise to expect the highs of 2021 anytime soon.
This uncertainty in crypto markets is one of the biggest reasons why investors are hesitating in putting their money in crypto retirement funds. This tweet from Vitalik has highlighted the reasons why crypto can still be preferred and could become a stable investment option for you.
