[2019-3-4]Blockchain & Crypto Changing the Face of Pensions

magneto

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Quote

A United States-based firm, Cambridge Associates, a pensions and endowments consultant with more than $388 billion in assets under advisement (AUM), has revealed that institutional investors should start delving into the blockchain and cryptocurrency sector.

Recently, Cambridge Associates released a research note dubbed “Cryptoassets: Venture into the Unknown,” that explained the state of blockchain sector and encouraged users to begin planning on investing and utilizing opportunities in the blockchain industry.

I'm not sure how good of an idea putting your entire pension fund into a solely cryptocurrency based fund really is.

Firstly, you are trusting someone else to hold the bitcoins for you, which takes away from the trustlessness of bitcoin that underlies its fundamentals. Secondly, the short term price swings that are present mean that if you have to access your pension fund at a relatively inopportune time, you simply don't have the freedom to continue to hold, or to have the ability to buy/sell yourself.

I'm not saying that it's a bad idea to invest in bitcoin at all. I just think that to do so, you need to hold that BTC in your own private keys and address, not in custody with a third party institution. Diversifying some of your pension savings into crypto is smart as well, just don't blindly go 100%.

I wouldn't doubt institutions will look at this opportunity in the future, as the market continues to develop and regulations clears up though.

elda34b

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This idea is not entirely new, in fact an ICO project has already started to prepare a blockchain & token based solution for this problem. They're called Akropolis. The team behind this project is experienced on pension system, but I doubt they can start functioning asap because many government and technological issue behind pensions system. Maybe they wanted to make a decentralised system, but I think government won't just let them do as they please.

btyco

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Even if they invest just 2% in crypto currencies it would be around 7.5 billion added to the market. If 10 companies done the same then it would be worth 75 billion. When the bull run starts, they will all jump in

o_e_l_e_o

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Quote from: Naida_BR on March 05, 2019, 05:14:50 AM

There are many countries that have a huge problem with their pension systems or the funds that they are collected in order to be given when then workforce is retired.
Blockchain and cryptocurrencies are the best solutions to that especially in these countries who face these problems.

Many countries are facing a massive pension crisis in the next 10 or so years. There are proportionally more Baby Boomers and Gen Xers reaching retirement age than there are Millenials and Gen Zers already in and entering the workforce. The problem is likely to get worse over the coming years as average lifespan continues to increase with modern medicine.

The article, however, does not suggest that cryptocurrency is the solution, and I'm curious as to why you think it is. Putting your pension fund in crypto is arguably a terrible idea. Sure, you might make a profit, but you might lose everything and be unable to retire, ending up working until the day you die. What the article does say is that while there are "large potential payoffs", they suggest their clients should seek to gain exposure to cryptocurrencies by allocating only 1% of their portfolio.

Naida_BR

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There are many countries that have a huge problem with their pension systems or the funds that they are collected in order to be given when then workforce is retired.
Blockchain and cryptocurrencies are the best solutions to that especially in these countries who face these problems. Pension funds can be stored and never lost. Also, the value of them is protected due to inflationary trends.

Harlot

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Of course why do you think this firm is advising them to invest in cryptocurrency? Because they will earn from it if their investors have followed their advise. This advisement they have made is more of a marketing tool rather than a prediction that the cryptocurrency market will be good in the future. They'll get loads of cash if their clients especially the financial institutions would agree to what they will say. This fund managers would really think that they are always their to make us rich but the truth is they are only saying this to get commissions out from you.

Vladdirescu87

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A United States-based firm, Cambridge Associates, a pensions and endowments consultant with more than $388 billion in assets under advisement (AUM), has revealed that institutional investors should start delving into the blockchain and cryptocurrency sector.

Recently, Cambridge Associates released a research note dubbed “Cryptoassets: Venture into the Unknown,” that explained the state of blockchain sector and encouraged users to begin planning on investing and utilizing opportunities in the blockchain industry.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/blockchain-face-pensions/

Topic: [2019-3-4]Blockchain & Crypto Changing the Face of Pensions (Read 174 times)