Fri August 19, 2022 ▪ 3:00 p.m. ▪
min read – by
Retirement does not have the same meaning among workers. For some, it refers to a cessation of professional activities and the collection of a pension to cover the fixed costs of the former employee. For others, it could mean the end of a situation of stability and the beginning of financial fragility. This is where retirement savings products come into play. If it hadn’t been for this inflation, many retirees wouldn’t have to worry about their future. However, she made sure that all the plans fell through. That until the bitcoin alternative comes along.
Bitcoin, a bold retirement plan?
No one is spared by the inflation that is currently raging. In France, the posted rate is around 6.1%. Unheard of for 10 years if we take into account this curve of France Inflation.
It won’t stop until there is stability on the energy price side. And you are not unaware that the war waged by Vladimir Putin in Ukraine does not help things on this level. Added to this is the rise in the prices of food products, services and others.
Our government may take things in hand, but it is nevertheless impossible to have a positive impact on the millions of households in France.
For French retirees, there is a bill relating to purchasing power that politicians have been working on for some time. The Minister of the Economy does not hide the fact that he comes to the rescue of these people.
But given that the Russian-Ukrainian war has not yet come to an end, will our Retirement Savings Plans (PER) be able to stand up to inflation?
Such a question leads us to review the existing solutions.
How about bitcoin as a new retirement account? Elsewhere, this alternative is already being discussed. This is particularly the case in the United States, where representative Byron Donalds has set up a project to include it in 401 (K) retirement plans.
By the way, in the land of Uncle Sam, retirees have Fidelity which facilitates the placement of bitcoins on similar plans.
Also note the existence of a rapprochement of bitcoin with American devices of the type Individual Retirement Account that we developed at the beginning of the year. As an indication, the IRA is the equivalent of our Individual Retirement Savings Plan (PERIN) in France.
In short, the integration of bitcoin in the retirement savings plan is not at all utopian.
How can bitcoin help retirees?
A contributor from Bitcoin Magazine believes that bitcoin would be a retirement investment for several reasons.
Bitcoin appreciates in perpetuity
We all know that bitcoin is limited to a maximum supply of 21 million coins. That’s what we call ” inelastic supply “. Thanks to this, the value of bitcoin will keep increasing with the demand. Principle of scarcity obliges.
By taking bitcoin as a retirement fund asset, each employee will have a guarantee that their holdings will be revised upwards when they leave. Imagine that one day the prediction from Finder experts that the price of bitcoin will hit $193,000 in 2025 really comes to pass. How much will you earn in 2 years buying at the current price of $23,000?
You are the sole controller
Thanks to bitcoin and blockchain, the ability to bypass banking services and related fees is becoming a reality. Certainly you have been among those who complain about the high cost of banking services for retirement.
In addition to the deductions made from your assets, there are also hidden costs that will sooner or later impact their value. But at the time of discovery, there will be no going back.
To say that with bitcoin, you have transparency, 100% control of your assets and a lower cost of ownership. Indeed, the simple purchase of a hardware wallet will be enough to secure the bitcoins proudly purchased. No theft or collection without your knowledge to fear.
Bitcoin rhymes with no tax
With cryptocurrencies wisely kept in Ledger-type cold wallets, it will be difficult for the state to force retirees to invest in anything. And even less to levy taxes on these assets.
For your information, be aware that in Germany, BTC and ETH are tax exempt in the event of a sale. Provided they are held for a period greater than or equal to 1 year.
In short, this leads us to rethink existing retirement plans, both for employees and for financial players. Bitcoin and other cryptocurrencies have already opened up opportunities to deal with inflation. All that remains is to adapt the offers for retirees, and even innovate, in order to ensure a peaceful retirement.
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The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy of this World, against all hope, I will say that I had something to do with it