Topic: How Would you Like Your Pension Paid in Bitcoin? - page 4. (Read 485 times)

This is indeed really funny on how the naira has been speedily crashing against the Dollar.
Your experience just reminds me of a video I came across on Facebook of a young man who narrated his painful experience of how his father bought shares so many years ago in his name when he was way much younger.

This young man stated that his father bought a whooping 1 million Nigeria Naira Share in a well known company. Of course you'd feel very relaxed knowing that you have a share worth that much money in your name, I believe he said this happened over 30 to 40 years ago.

So in this recent video, the young man lamented on how the so called 1 million naira share has magically turned into an 11,000 Naira share.

It was funny and at the same time a food for thought, made me ask myself what direction is Nigeria really taking with all of these. It's actually really frustrating.

  Stacking up bitcoin will for the long run is a great idea of saving for retirement, because with bitcoin gaining more recognition in the every part of the world, it’s a very lucrative investment for the long run same way most retired workers invest on stock for their retirement plans. Bitcoin is a very important asset for every investor to own, because of its flexibility and freedom. Once you have na idea about the market strategy of bitcoin you can achieve success in bitcoin.
    Personally I will prefer my pension fund paid in bitcoin, because I know about the risk involve in hodling, I also have knowledge about the cryptocurrency market and how I can go about other related projects. I believe in Bitcoin and its possible potential. The future of bitcoin is so bright that when it’s finally get adopted we will see Bitcoin in its glory once more.

can you have the option to just accept pensions in BTC during bull run and accept stablecoin in the bear market?

aa old as a pensioner may be, he wouldn't really need to worry about the form of his pension unless he still troubles himself into investing in BTC while any second he could accidentally slip and die. though if he is to give the BTC to his favorite grandkid, then maybe this investor is as smart as old Buffet and wants to trade still even in the Casa Tranquila.

I doubt that you would be a millionaire even in current bitcoin price. Though you would be able to earn a lot compared to the current pension money you have today. I also think that pension funds aren't supposed to be invested on any other things but as a way to survive in the future when you don't earn anymore in your current job. We all have regrets in life and one of those are the chance that we missed on investing on bitcoin or on other cryptocurrency, I myself had spent bitcoins too just to buy a latest iphone which is now unusable and can't keep up to the current technology. We still have chance to buy some, unless you still want to miss the chance again.

That's a pretty poor return, it yielded you something between 2.5%-3% a year on average, most likely way below the inflation rate.
But it's not like you had a fortune there anyway. You might want to look around and see if you have any option to choose how your pension funds are invested. If not, you could just transfer your money to a different pension. Who knows, maybe when Bitcoin spot ETFs are approved, it will be possible to invest your retirement funds in them.

Paying your contributions directly to your wallet, whether bitcoins or fiat, would be defying the purpose of employee pension schemes. It would be just an equivalent of you getting a small rise and being responsible for your own retirement.

Pension funds would really benefit if you put at least 1% to 10% of the total money that is deducted from your salary and left it in the form of Bitcoin to receive when you retire. They still prefer low-risk investments since for some people the pension means everything, but I expect It should have a good percentage of investments in Bitcoin in the future, especially if Bitcoin obtains some legal acceptability and some global awareness that there would be a US ETF or a market capacity exceeding at least 3 trillion.

It seems your main issue is devaluation of your local currency. It really has nothing to do with Bitcoin investment. In your case it would have been profitable if you had invested your pension fund into Bitcoin. But that might not be the case for many others here.

 The main reason for your less savings compared to USD is that the value of naira has gone down to a great extent. Also what your calling as pension fund is not really a pension fund. You are not dependent on this money. Pension fund is something which takes care of your retired life. You can still start building one by investing in Bitcoin in small amounts and averageing out the buying price.

We are missing the most important thing which is the inflation of Naira which has devalued drastically against the international exchange rates. A dollar as at October 2017 then was around 360 Naira.
Converting the pension 99000 Naira as at then will be equivalent to $275 and a purchase as at that time will be equivalent to 0.06875 which would amount to $2,392 and would today be equivalent to more 2 million naira in the Nigeria currency. Although this isn’t a super rich person but OP will be a millionaire in his local currency wealthy today. Following up your calculations it could also be $142,353 and not $47,451 if he had done it base on your calculations

Also another area to consider again is the bitcoin wouldn’t have actually been bought that 2017 but would have be bought gradually if the salary deducted was converted to bitcoin straight away from that 2014. With bitcoin relatively low then and the dollar to Naira exchange been around 150 naira we could have a very higher numbers up there.

But the question we should be asking is would OP be able to hold on to that amount until now without selling it off?

First of all I understand your regret.

Now neither bitcoin nor any other investment is going to knock on the door of your house, it is about information.

So , a little flash back to your revelation:
This is a problem that has been treated since the late 70s, it became more acute in the 80s.  A global problem, un fact, it has been in the news for decades.

So people who worked for years had something as simple as a fixed term in the bank and with interest of 10-15% (+ etc.) savings plans were enough, without mentioning other financial incentives that the banks offered.

That ended decades ago, not 4.5, 15 years ago, and it is in a way a crisis of the elderly in many countries, but it has been partially solved with pension funds, trust funds, etc.

Any person must establish a retirement plan for the future, and perhaps bitcoin is a partial and not a total alternative, which is the issue in most cases, since other types of investment may not guarantee millions but stability and tranquility, so that you can have a happy old age.

Information is a good investment in happiness and is catalyzed differently depending on the country and the individual, hence bitcoin is not necessarily your 100% solution for your pension. (Imo)

A pension fund is for security when you get old. You'll receive it from the government or a private institution on a monthly basis to fund your needs. So, I don't think we should put that at risk. Although we can say that Bitcoin is a good investment that could potentially increase the value of the pension received, not everyone is willing to take that risk, especially if a person does not have many income sources after retirement.

october 2017 btc was worth $4k/btc
if you converted your pension of $99 to btc on that date you would have 0.02475 which today ($34.8k/btc) = $862
which yes is better then the current balance your pension has of $115

as for "millionaire". well thats a bit of a dream buzzword.. id probably guess maybe $50k by now.. not millionaire status// lets play it out

i know the dream would have been to become a millionaire by trading at the exact moments of best opportunity by taking that october 2017 0.02475:
sell at december 2017 ATH ($20k/btc) to get $495
wait for december 2018 correction low ($3.4k/btc) $495= 0.14558823
sell at june 2019 high ($12k/btc) to get $1747
wait for march 2020 correction low ($5.2k/btc) $1747= 0.33596153
sell at november 2021 ATH ($69k/btc) to get $23,181
wait for december 2022 correction low ($17k/btc) $23181= 1.36358823
which today (at $34.8k/btc) would be $47,452

yes it seems like you would be (in nigerian lifestyle value 'rich') but thats a dream no one can achieve to play the markets that precisely

dont be so hard on yourself that you are only sitting on a nest egg of $115 instead of $862 or $47452
no one and i mean this no one has had a best case event of perfect investment.. EVERYONE could in hindsight seen there was more opportunity they could have taken to maximise investment more..
emphasis no one can predict perfect conditions and everyone could have done better if they had a time machine

It's risky, pension fund is like your survival money, it should be in Fiat, someone who gets pension is someone who already can't work anymore, at least under the government, I have seen old men who aren't paid their pension fee and that's all they have left to feed their family, and they suffered a lot.

If I have to advice any government worker that's going to retire very soon I will tell them to get prepared and find something they can do that can bring money at old age, with very limited stress because most times the government delays this payment, or owe them for years before paying at times, imagine relying on this for your health treatment every month?

Back to receiving Pension payment in Bitcoin, this will sucks so bad because such people can't be ready to keep their money in Bitcoin, it's very hard to come by such people, this type of money is going into bank account for personal use not for investment or holding any Bitcoin.

If you received the pension in bitcoins, it will be worth more by now. The Nigerian economy is in a terrible state, the value that N114,000naira would have had before in 2014, is not the same value now, It has greatly reduced.

It would have been difficult to convince the company you worked for to pay you the pension in bitcoins especially when they have no knowledge of it, but it was worth trying so you even could have had the option of full salary and no pension, and then would have had more to DCA with.

As an employee, the habit of investing a percent of your fiat income to purchasing bitcoins is very encouraged, so if your employers do not accept to pay you pension in bitcoins, you will not be so worried because you are already DCA-ing.

I understand how it feels OP, but the duration of 3 years is still ok, but quite not a big duration to make you lots of money. Regarding the amount of money you've saved in your pension account. I've experienced that first hand in the case of my parents. They've been saving up on their pension account for more than 20 years and the generated amount wasn't anything if they had saved the money in bitcoin. Although, it's all on a different dimension of thoughts. Not every company would want to do that for their workers. In the terms that the worker saves the money themselves, they would have done that in bitcoin. One good thing about the banks or pension companies they'll hold the money until the specific time has reached before disbursing it. But, if you did that in bitcoin, how sure are you that the funds would be there till 3 years without being spent by you. That's in the case where you're in-charge of saving the funds. It's all good having such thoughts in mind, yet if we didn't take such choice. Then, nothing else can be done about it. Especially, when we are aware of spending the money. We all wants to be millionaires, that's why we tend to feel sad when we miss such an opportunity.

The management could only pay you if they are accepting bitcoin or transacting with bitcoin and also depends non the country and I believe country you residing does not accept bitcoin transaction and many companies obey the rules and regulations of the operating country so it will be very difficult for them to pay you with bitcoin.

And one thing you said is still confusing me. I thought pension is the retirement money paid to those who were working in a firm, organizations and institution. It is the money giving to those who could not work again bear of old age. But from the way you explain, I am really confused. They (the company) stop paying you because you are no longer working. Please tell me more on that part, I want to know something from that sentence. I thought it is the money giving to to someone after work and not when the person is still active in the company. When you are still active in the company then it is salary that you supposed received and not pension.

Well, as much as I understand perfectly what you mean and sure agree with you, let me also point out that I never said one's pension being paid in bitcoin is something that will be accepted by everyone, and if you read again, you will also realize that I never mentioned receiving salary in bitcoin, my 100 percent focus was on pension and not salary per say.

For some one like me, nothing would have been more fulfilling than receiving my salary in fiat normally, and my pension paid in bitcoin into my bitcoin wallet.

I don't know how this is done in other countries, but over here in Nigeria, funds on one's pension account cannot be accessed by the until he or she is 50 years old and above, this is only when you can asked to be paid this money, if they can lock up my pension in bitcoin instead of do it in fiat, I don't mind, after all, I have a next of kin registered who will request payment of the bitcoin if before 50 years, I am no more.

Bitcoin price in October 2017 was $4K, assuming you get paid by Bitcoin at that time, you're only earn 8x right now which is $800, how you can say you will become a millionaire?


If you think your pension funds should be deducted every year from 2014 where Bitcoin price was below $1K, your company will not think same since they will think and choose an option where they can pay you as small as possible.

You're not alone. So many of us in the global South got fked over by our pensions -- though I note even in the "first world" they're not immune (just remember Greece pensioners grieving in the wake of 2010 banking crisis).

Sadly, you won't be the last. Many countries experiencing hyperinflation now and in a few decades, all those hard-earned savings for Argentinians, South Sudanese, even Turks and Jordanians, will have their value wiped out.

DCA. Not because Bitcoin guarantees (I personally think it does) but because you should spread your risk.

I consider it a mistake to believe and trust a Bank gives you money as an advantage.  All the time, they take something from you in return.

It is a difficult situation.  While Bitcoin SEEMS to be here to stay we still get a lot of hatred from leaders around the globe.  You just never know.  Of course the past six years seem miraculous for Bitcoin investors.  But that is only today because we can see its history.  You do not know if the next six years will follow the same miraculous pattern.

On the other hand.  Naira is losing value.  Fiat itself is losing value all the time.  With recent inflation and tough times we get Fiat losing value more than ever before.  I do not know what advice I can give you.  If Naira keeps losing value it could be a good thing to move from holding pension funds in Naira to holding pension funds in Bitcoin.

Take care and do not suffer.  Mistakes happen and you only notice when there is a history of how things could have gone.

Well, if you live in a country with a good economy, which ensures that the fiat currency of the country isn't losing value and purchasing power as each day breaks, then maybe that term "always diversify" could mean something.

And besides, the word "diversify" is commonly used to describe the terms "do not put all your eggs in one basket", which speaking from an investor's point of view simply means that, one should invest in different assets, fiat to me, is not an asset, and neither should one hold it for several years, and refer to it as an investment., completely makes no sense to me honestly, fiat I keep is fiat I am ready to spend immediately or few days coming, I do not keep fiat long term in my account, for it will only lose value, as well as purchasing power.