{"id":10791,"date":"2021-06-03T03:21:33","date_gmt":"2021-06-03T07:21:33","guid":{"rendered":"http:\/\/staging-prblog.paladinregistry.com\/blog\/?p=10791"},"modified":"2021-06-04T04:18:41","modified_gmt":"2021-06-04T08:18:41","slug":"should-you-include-bitcoin-in-your-retirement-portfolio","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/investing\/should-you-include-bitcoin-in-your-retirement-portfolio\/","title":{"rendered":"Should you Include Bitcoin in your Retirement Portfolio?"},"content":{"rendered":"\n

The spectacular rise of Bitcoin\nsince its launch in 2009 is often equated in investing circles to a gold rush.\nWithin a very short span, this unique digital asset has made its own\nbillionaires, such as the Winklevoss Twins, while ruining many others in the\nquest to capture quick growth. Cryptocurrencies have become so popular that\nsome supporters claim they have attained asset\nclass status.<\/em> An asset class is a group of securities or investments that\nhave similar characteristics and exhibit similar behavior, like equities or\nfixed income, or even real estate. Asset classes form the base for asset\nallocation strategies formulated to help investors maximize gains and reduce\nrisk by spreading the portfolio investments across different non-correlated\nassets. That way, the potential loss from one asset class is compensated by the\nprice rise in another. While cryptocurrency continues to bedazzle investors\nwith unprecedented gains, and also confuse the market with its volatility in\nprice, some believe that adding small portions of a popular cryptocurrency like\nBitcoin to their portfolio mix may yield better total returns on investment. <\/p>\n\n\n\n

Bitcoin is the world\u2019s most\npopular cryptocurrency. Created in 2009 by an unknown inventor who goes by the\npseudonym Satoshi Nakamoto, it had the first-mover advantage and has exploded\nin the market. Young tech-savvy investors find appeal in its decentralized mode\nof operation. Cryptocurrencies are also not tied to any bank or Government.\nThere are no middlemen controlling transactions between paying and receiving as\nbanks do with traditional currency. As a virtual form of currency, Bitcoin has\nquickly gained popularity as more and more companies started accepting payments\nin Bitcoin for goods and services. For example, you can purchase Microsoft\nprograms using Bitcoin and can pay for your food at Burger King or Subway in\nBitcoin. Tesla has also been vocal about considering accepting cryptocurrency\nas a form of payment. Cryptocurrency is touted as the future of currency, even\nthough Governments of some countries like Qatar, Vietnam, Saudi Arabia, and\nPakistan have placed blanket bans on it. \n<\/p>\n\n\n\n

That said, it is imperative to\nunderstand that there is no fundamental principle to Bitcoin – the digital coin\n– and price movement works purely on a demand and supply basis. This means it\nis impossible, just yet, to figure out which direction the crypto market will\nmove in. Nevertheless, investors have now started to mull over including\ncryptocurrencies in their portfolios. Many are awed by the fact that a digital\nasset that has grown multifold within a decade may grow further in the years to\ncome as blockchain technology advances and there is more understanding of the\ninner workings of the cryptocurrency market. <\/p>\n\n\n\n

All these factors beckon the\nquestion: Will cryptocurrencies like Bitcoin be a good idea for a retirement\nportfolio? If yes, how does Bitcoin fit in your current retirement portfolio?<\/p>\n\n\n\n

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