The past sixty days have witnessed a +46% rise in Bitcoin price. This renewed upward momentum makes Bitcoin a viable shelter for augmenting retirement savings. Instead of putting more cash into low-interest savings accounts and time deposits, it might be more judicious to put it into Bitcoin hoarding. Accumulating and saving Bitcoin might add substantially to your net worth.
Bitcoin price swing is only stressful if you are a trader. Saving through accumulating Bitcoin could help you gradually build a decent retirement or emergency fund. Buying Bitcoins is easy as online shopping. Several platforms let ordinary people use their credit cards and bank accounts to purchase Bitcoins. For example, Binance is a reputable website that can help you start stockpiling Bitcoin.
Why save up on Bitcoin?
Depositing your hard-earned savings of $50k into a bank deposit instrument or an annuity is unlikely to produce an annual return higher than 5%. Long-term financial planning should expand to new avenues. Regular saving your disposable income through Bitcoin accumulation is an excellent alternative to allocating money compared to an individual retirement account (IRA), 401k, or tax-free municipal bond retirement plan.
The recent +46% upswing in Bitcoin has not made it too expensive. It still trades below $25,000, making it affordable to accumulate and hoard. Thanks to the hard cap of 21 million Bitcoin, this cryptocurrency has a massive future capital gains potential. Save up on Bitcoins, and you might eventually enjoy a windfall when its price rebounds beyond its all-time high of $67,567.
Putting your disposable income on Bitcoin increases your secret stash of liquid assets. Its non-political, decentralized, and encrypted design makes it a better private savings platform than a Swiss or Luxembourg numbered account.
Unless it involves a major criminal violation, no government authority can compel a person to surrender his private Bitcoin key. Wyoming even legislated a bill protecting individuals’ cryptocurrency private keys from courts.
Cashing out capital gains on Bitcoin transactions could also only be taxed if you inform the Internal Revenue Service (IRS). Holding on and compounding the capital returns on your Bitcoin savings is also a tax-free way to grow your net worth. Hoarding this cryptocurrency is similar to reinvesting the dividend payments from collecting dividend aristocrat stocks.
The Other Advantages of a Bitcoin-Fortified Future
Aside from the above reasons, there are other benefits to hoarding Bitcoin for retirement or emergencies. Some of these are the following:
1. Bitcoin is a very liquid asset
Like traditional bank savings or checking accounts, Bitcoin could be cashed out quickly should the need for it arises. The core thesis of this article is that Bitcoin is an efficient way to save up for a retirement nest egg. Unfortunately, life is unpredictable. We always need easy access to our savings when unexpected and undesirable events occur.
Bitcoin could be cashed out through ATMs or wired to bank and debit accounts. Cryptocurrencies could be transferred to PayPal and other digital wallets. Bitcoin can be a secret, and safe savings account you can quickly convert to cash for emergencies like hospital/funeral fees or bailing out a loved one from some unforeseen circumstances.
Most private medical or life insurance plans we have still require us to make initial cash payments at hospitals. Afterward, we must file reimbursement documents and wait for weeks or months before insurance firms process our requests.
The game-changing feature of Bitcoin encashment is you can do it without the knowledge of bank personnel or anti-money laundering government regulators. You can cash in and out your Bitcoin without relatives or friends knowing. Unfortunately, we have friends or relatives who leech on our generosity.
2. Hoarding Bitcoin long enough could finance big-ticket purchases
Stockpiling enough Bitcoin while it trades below $26k and only cashing out when it hits $40k could finance expensive acquisitions. Patient Bitcoin accumulation could let you buy luxury sports cars and a new house using 100% cash.
Stashing enough Bitcoin is also a saving grace for people with bad credit scores. The Bitcoin in your crypto wallet could be used as collateral for low-interest loans to start a new business like house-flipping. Owning enough of this cryptocurrency could allow you to buy your first real estate property, remodel and resell it. This house-flipping capitalism is feasible without involving any bank or a loan company.
Stockpiling Bitcoin long enough could give you substantial profits. You can start accumulating gold and diamond-encrusted jewelry or valuable art by emerging artists. Your retirement nest egg could grow to seven figures if you hoard cheap artworks by today’s young artists. After those artists become famous and die, their work usually becomes more valuable.
As for collecting pieces of jewelry, I opine gold and diamond are still more desirable savings items than Bitcoin.
3. Bitcoin is inflation-resistant
Due to its decentralized digital architecture, Bitcoin is more inflation-resistant than traditional central-bank printed money. No bank can print out an unlimited number of Bitcoin. Therefore, the best way to build up savings for retirement is to put your money where it can grow faster than the annual inflation rate.
Most bank savings have less than a 1% yearly interest rate. The current 2023 inflation rate in the US is now at 6.4%. This inflation rate exceeds the average 5% annual return of most US insurance company-issued annuity retirement plans.
What is the best way to save Bitcoin?
Yes, purchasing Bitcoin and storing crypto wallets in the cloud is safe and easy. However, I still recommend that you use a cold wallet. A cold wallet for Bitcoin can be created by reformatting and creating a bootable, high-quality USB flash drive.
You can install your chosen OS, encryption software, a local copy of your hot(cloud-based) crypto wallet, and private keys to the USB drive. I recommend the Linux-based Tails operating system for your bootable USB cold wallet. After, keep the cold wallet USB drive mostly disconnected from the internet.
Put the USB drive inside a bolted-in, hidden safety box with your precious jewelry, house cash, and essential docs. Only use the bootable USB when you do Bitcoin transactions to update and back up the cryptocurrency cold wallet app.
Look Into Hoarding Bitcoin for Retirement Today
Bitcoin is volatile but a secure haven for your hard-earned savings. Hoarding Bitcoin is a valid retirement strategy. Growing a long-term secret account via the constant acquisition of this cryptocurrency is as safe as renewing 12-month bank time deposits and keeping savings/checking accounts.
Based on its historical price performance, Bitcoin has outperformed the top 401k funds’ 10-year return. Its value in February 2011 was only $1. It currently trades at around the $25k price range.
The hard cap limitation of 21 million mineable Bitcoin could eventually make it more valuable. There are now more than 19 million Bitcoin mined. Hoard Bitcoin while the 21 million caps has not yet been mined.
Remember that Bitcoin’s encrypted and decentralized nature means it can never be controlled or seized by any government authority.