Could Bitcoin Help You Retire Early?
While cryptocurrencies have historically been very short-term, speculative investment plays, there is now growing interest in crypto as a long-term retirement option. In April, for example, Fidelity Investments announced new Bitcoin (CRYPTO: BTC) investment options for 401(k) holders. And some political leaders in Washington, D.C., are now advocating for new legislation that will clarify exactly how crypto can be used by retirement plans.
But not all cryptos are suitable for retirement. Bitcoin, as the oldest and most valuable currency of this type, is really the only one that potentially belongs in your retirement portfolio. Here's a closer look at the risks and rewards of investing in Bitcoin for retirement.
The primary allure of Bitcoin, of course, is that it has the potential for stratospheric returns. Over the 10-year period from 2011 to 2021, Bitcoin dramatically outperformed a wide array of asset classes, including major benchmarks in stocks, bonds, commodities, and real estate, delivering average annualized returns of 230% per year. That annualized rate was more than 10 times higher than the second-ranked asset class (high-tech growth stocks) during the same period.
Source Fool.com
