One bitcoin expert states that investing in the cryptocurrency is “highly favourable” for retirement income portfolios. Speaking to Express.co.uk Max Keiser said: “The fact is, every possible investment alternative, stocks, and bonds, for example, are trading in bubble territory except bitcoin. As the world catches up to this incredible new asset class, the upside potential is highly favourable.
“Having some in your retirement account makes a lot of sense”
Now that bitcoin’s price has skyrocketed in the past 12 months, some experts predict cryptocurrencies could be the next asset to see major investment from the retirement industry.
With bonds yielding some of the lowest dividend income seen in decades, pensioners are also considering diversifying their retirement portfolio into bitcoin.
Bitcoin is now seen as a legitimate inflation hedge, in the same way as gold.
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The Coinbase IPO has been seen as a watershed moment for decentralised finance and digital currencies.
Referring to the significance of the Coinbase IPO Asen Kostadinov, Strategy Manager at leading London crypto custody provider Copper, told Express.co.uk: “This is the most important IPO in crypto to date.
“Coinbase is a credible, regulated, profitable blue-chip tech stock, which is also a pure-play crypto company.
“As such, it will be a likely holding for every tech investor/ETF fund and it will also be the best crypto market proxy investors have had.
“The IPO will result in new types of investors entering the crypto space, some of whom will recognise the benefit of owning crypto assets directly as opposed through a proxy.
“Institutional adoption of crypto has clearly gone through a major inflection point since the last quarter of 2020 which speaks to the maturity and credibility of the space.
“The growth the sector has experienced over the past year is a lot more sustainable than in 2017.
“The indicators are that this bull market has further to go and we are not at the top yet with such strong liquidity, transactions at a record high, and institutions buying as much as they are.”
However, speaking to Express.co.uk this week investment expert Chris Clothier said investors should be wary of bitcoin’s volatility.
He said: “It is possible that bitcoin will go on to be successful, but we think that it is likely to be highly volatile and there’s a pretty good chance it will end up being worthless.
“So for a conservative fund manager, it is not an appropriate asset to put in our portfolio.”
The world’s preeminent cryptocurrency did see a slight dip in mid-April, some suggest this was due to a sell-off by Tesla, who have a portion of their balance sheet invested in bitcoin.
Express.co.uk does not give financial advice. The journalists who worked on this article do not own cryptocurrency.