Pension in crypto: pros, risks and prospects

Vladlena Martus 2022-09-19

Pension in crypto: pros, risks and prospects

We all remember very well that Bitcoin is now on the hype wave. People use it when paying for services, shopping, ordering online, and as a method for storing, saving, or trading.

In addition, recently, Business Insider shared that Fidelity, the leading provider of corporate retirement plans in the United States, said they would begin offering the opportunity to invest in Bitcoins by the end of 2022. 

This is a new stage in the influence of Bitcoin on society and social initiatives from the state, government agencies, and private companies. Of course, the news that pension funds will, among other things, invest in cryptocurrencies has already shaken our little worlds. Still, now we see a completely new proposal for the older generation.

On the one hand, it all sounds super-modern, especially in the hype of cryptocurrencies, meta-universes, and NFTs. However, there are some downsides to paying pensions in crypto.

Let's look at all aspects of this scenario and decide how it is more profitable to save for retirement: traditionally or with cryptocurrency in your pocket.

We remind you that cryptocurrencies are a risky asset that entails the loss of funds. Do not invest in cryptocurrency trading money that you are afraid of losing, cannot afford to lose, and credit funds.

Be responsible and careful – here we publish personal acquaintance and reflection information. Do not rush into cryptocurrencies without proper knowledge and experience in the market.

When people are at retirement age, they can't work at full strength as they did in their youth. In addition, older people are easily replaced with younger ones because it's how life goes. Also, if you don't have a proper retirement plan, your life could be stressful, challenging, and even damaged by outside circumstances. 

Before today people used the traditional pension programs to provide themselves and others with specific terms for comfort and healthy retirement life, tax benefits were the only way to save money for the future. However, Bitcoin has brought another vision of future pension programs. And right now, traditional pensions are going out of fashion.

Why is traditional pension out of style?

  • Confusions, stress, and paperwork 

    Today those who are going to retire and their loved ones need to go through the nine circles of hell to get the papers they need to register for social security. 

  • Lack of pension program supporters

    More often, employers become unwilling to offer proper pension packages to their employees, so the last ones almost lose the chance to spend retirement decently and calmly. It becomes a huge issue to think of an alternative retirement program too.

  • Crisis, COVID-19, and more

    Some reasons don't let Pension Funds develop and build up more profitable pension programs are the COVID-19 pandemic, world economic crisis, and worldwide wars. Because of that, companies either struggle to make payments for the monthly stipends as agreed or have little to no funds to support a robust pay scheme.

  • The massive rise in the inflation rate

    Regular price increases have become another major trouble for pension services offering. Because of the fewer things people can afford with the same amount of money (like a couple of years ago), older people reduce the relevance of the traditional pension programs. The asset value remains the same, but the goods and services are increasing in price year by year. 


All these reasons have brought us to alternative types of retirement programs. While most people still don't trust crypto, breakthrough organizations like Fidelity are making progress. 

Bitcoin is a means of long-term financial security, so people are looking for ways to use cryptocurrencies to save for retirement. 

Here are the benefits of crypto usage in one’s retirement plan: 

  • Income growth possibility

    Bitcoin has made an impressive move and gives great returns if you know how to work with it. In the future, experts predict the $100,000 rate for 1 BTC, so it is worth adding to the retirement plan. In case of success, your funds could be multiplied by two or even three in a couple of years! Bye-bye inflation!
  • Easy to use

    You won't get any troubles with paperwork, queues, delays, or inflation here. Bitcoin is a way out of the infinite bureaucracy and long-term issues with documents. Once you learn how to use, withdraw or deposit it – it will be remembered for good. Just start as soon as possible.  
  • Freedom from institutional manipulations and control 

    At least for now. Bitcoin isn’t under control as a peer-based digital currency. It’s just a digital wallet you use to pay for services or get for work. However, there could be some issues with the authorities of certain countries, like El Salvador, the USA, etc. 
  • The “Bitcoin” worldwide trend

    Today the majority of modern brands adopt cryptocurrency in their usual lifestyle picture. Gucci is accepting BTC and selling NFTs for crypto, and Elon Musk is investing in Dogecoin, Bitcoin, and others. Many shopping centers all over the world place BTC ATMs to give people the possibility to use cryptocurrency in their favor. The whole world is moving from paper money to digital currency. And this is the trend. 


As we may see, many advantages of adopting crypto to retirement plans worldwide exist. However, some cons and risks go side by side with cryptocurrency assets. Let's look through them:

  • Speculative asset 

    Bitcoin is a speculative asset because of the considerable volatility on the market, untrust from the authorities, and the fear of a "bubble effect." Experts say Bitcoin is driven by emotions, not real reasons or values. This makes it a pretty risky asset. 
  • Hacking risks

    Different crypto projects are the target for hacking groups of people. As it is not a 100% regulative area, some thieves can use the advantages of the high income and steal your money. Authorities are usually useless because the cryptocurrency addresses are anonymous, so the real criminals are hard to follow. 

Final thoughts

As a final thought, Bitcoin takes a proper course targeting improving people's lives. This could not upset us because year-by-year people, especially older ones, face issues with their comfort and health. 

With Bitcoin, these people can afford more, live happier, and learn how to trade to increase their incomes even more! They can do that on safe platforms like Wisebitcoin, for example. 

And Fidelity initiative is something we all should be attentive to. This is the beginning of the new generation of pensioners, who will be modern, happy, and wealthy! Let's hope so!

Of course, no one should also forget that Bitcoin is a volatile asset. In addition, most countries' crypto market is relatively young and non-regulated. 

Thus, in Wisebitcoin, we help develop the culture of using cryptocurrencies from the beginning. We help to understand that cryptocurrency is not a scary thing to use or to trade with. With us, people explore and experience crypto as it is. 

We provide a reliable cryptocurrency trading exchange platform with excellent service and conditions for crypto trading. You can easily create an account and buy cryptocurrency – our interface is user-friendly, and our support team will be ready to help you anytime you need. 

So if you want to retire as a decent person with all of the comfort terms you appreciate and are used to, study how to invest in cryptocurrency even if you're young, don't have Fidelity by your side, or have a problem with the pension program at work. 

Live and learn! Wisebitcoin will help you with that.