Topic: Bitcoin and pension fund - page 2. (Read 349 times)

Bitcoin is the solution of the future. And the biggest investment in the world today is in Bitcoin, not in Gold. Although the current use of Bitcoin has not been dominated by all circles. Only for those who understand about networking and online investing.
We target that the use of Bitcoin in 2030 will reach all circles. And started by various companies in the world.

I share the same idea that some of you have. When investing in bitcoin in most cases we think of a long-term investment. In particular, I have decided to save in bitcoin to pay for the University of my nephew and niece who are now minors.

In addition, I am also thinking about my old age, saving is very important, I myself am experiencing it with my grandmother. In my country, pensioners receive very little money for a plan designed by the government, so I have had to help my mother with my grandmother's expenses.

Fortunately, she is very healthy and there are other relatives who help her to support her.
In view of this, I have also decided to save in bitcoin and crypto for when I get those golden years I know how to handle them and of course it would also be of help to my mother.

after we invest we may have invested for the future with a long term, if one day we want to retire we can take our money back for something we want to use,that is an investment that we build from a young age and very it is useful to meet our needs in the future,that is what an investment with a long term is for.if we want to retire later we can take our funds back,only the amount is different

Pension funds are for security, the fact that bitcoins are volatile would be hard for them to regulate their value
Problems can arise. It would be more convenient to hold them on our own to avoid any conflict.

pensions. have to have a high standard of fund security to reduce cost and minimise loss..
much higher standard than just plain 'investing'

so pension funds have portfolio in hi-grade secured/high standard regulated investment options

because they are protected by investing in other regulated companies. it pushes the risk/loss liability off them.
having direct holding of raw asset is a risk. costing them more on their insurance and liabilities, licenes, auditing etc

EG. just take the insurance part
imagine you had bitcoin hoard of $1m. to insure it under ur home insurance its a $1m liability. causing you a high premium.
but have shares in a bitcoin company collateral. where they have insurance. means if your 'shares' are lost. you can then claim on their insurance. meaning your own insurance for your share holdings wont be as high
because your more protected. and chances are you will get funds back from any losses via the third party insurance

EG just take the regulation
hoarding bitcoin would mean you have to KYC and taint analyse your incoming deposits. as you are liable for any AML.
however have shares in another company that hoards bitcoin where that company is regulated. means you dont have to KYC so heavily and dont have the licencing and auditing costs that come with it. because the other company is doing that before you

EG take the liabilities.
if you hoard bitcoin. and a thief/hacker stole them from your house.. all your customers would sue you. and your in bankruptcy. however have shares in a company that hoards coin. your not directly liable and its passed down to the other party, which falls onto their insurance. and their liquidity. protecting you

its all about several layers of protection, cost reduction of admin/insurance. and also if bitcoin goes up by 10% and the company trust share goes up by 10% .. why invest in bitcoin when you can invest in a more regulated share system with less management costs and still get the same market movement offers

Bitcoin is not an ideal investment to prepare for retirement, because its value is very volatile and bitcoin will be more suitable as an investment instrument.
and pension funds are reserve funds that we can use to fill our old age when we are no longer working and because these funds can at least ward off currency inflation so that their value is maintained, while the price of bitcoin is very volatile where prices can change significantly from time to time.

1. Most of those assets that you've mentioned can do the same as bitcoin. It can provide profit at the same it's your cash(medium of payment) and investment.
2. I don't know much about gold but I think there are people that treats it too as their retirement asset.

I heard that small percentage of pension funds in Norway already have Bitcoin and other investments that are not connected with fiat currencies.

I don't really trust any pension funds, I also don't trust governments especially after 2020 and 2021, and I believe that all funds will be destroyed in upcoming financial collapse or great reset attempt.
Pension funds are owned by various  investment firms that are investing in various things like equities, for example Ohio pension funds invested 5% of their assets in gold, and Chile pension funds have done something similar.
People should be responsible for their own money and they should invest in hard assets like gold, silver and in digital alternative as Bitcoin.

I don't think that's going to happen, bitcoin doesn't have a definite development team, everyone can use and develop them, and even if there is it's very difficult to determine its value, because the price is very unstable and will keep changing all the time. Bitcoin is much more suitable for investing only.

1. If bitcoin continues to be as volatile as ever then probably we won't see it being added as aprt of pension funds unless they are traded in the market but I don't think that pension funds will want something risky being added to it.

2. Not everyone can afford it and I don't know if this is just in my country but gold can't be taken out when you buy it from a bank and you have to pay storage fee for them to safekeep the gold.

Maybe back then but right now gold not being considered a legal tender is already not true depending on which state or country you are because in Louisiana, Utah and Texas, they have a legislation that considers gold as a legal tender.

There are already some pension funds buying bitcoin. Not directly, probably due to legal limitations, but they are able to buy Bitcoin ETF.

In Brazil we already have a bitcoin ETF and there are some pension funds buying  it.

Google translated:


I also found about this fund in New Zeland which is buying bitcoin:

Why don't pension portfolio managers want to dabble in Bitcoin direct?

I think it will require reasonable amount moderation in price volatility and uncertainty for this to be accepted by most.
In regards to the question on gold , i suspect they do that to be able to control the price and keep it affordable for industrial purposes. That shouldn't be much of a problem with Bitcoin, because  it's used mostly as currency

Pension funds can be attracted to the possible returns with investing in Bitcoin, but they can be turned off with its extreme volatility. And since not a single person in a person fund can decide the investment strategy, they will have a hard time deciding to go or not to go, unlike with private companies where the decision-making can fall on a few heads. However, this is a great opportunity for a platform to provide Bitcoin investing services to pension plans with some good safety nets in place. Hope someone brilliant can come up a good idea along this line.

Pension funds are usually handled by private companies. So it's not actually Bitcoin who has to join, it's the companies who have to decide to make the step. And it's really up to them whether or when they do that.
Since Bitcoin is still seen as high risk, highly speculative and highly volatile asset, no wonder that most are afraid. But time works in our favor. Institutional investors "just" started coming in, we need a little more patience and probably the "labels" will become softer and more (including pension funds) will join these markets - directly or indirectly.

About gold I don't know, sorry.

institutional pension portfolio managers dont want to dabble in bitcoin direct.
for their own regulated and insured treasuries they can only invest in other regulated and insured assets/companies

so that is where ETF trusts are to be created
whereby the ETF trust(company) holds bitcoin and values the ETFtrust(company) at the amount of bitcoin held.. and offers regulated and insured shares of the trust(company) where the share value a division of the value of the collateral(bitcoin value) held within

..
as for people personally 'saving for retirement' in their own lives.. outside of institutional portfolios
they are free to buy bitcoin and hoard it for a few decades

Pension funds typically provide investment options such as shares, property, cash and bonds.

1. Is Bitcoin likely to join the mix in the future?

2. Why is gold not usually available as an investment option for pension funds?