Can Bitcoin Reshape The Retirement Narrative?
In past times, people turned to their families and extended families for security during their older years. But during the 20th century, the government began to assert itself as the controlling influence over one’s retirement and old age lifestyle.
Now the sovereign nature of Bitcoin threatens to change this trajectory, fueled by a looming collision between Individual Requirement Accounts and the popularity of digital assets.
A champion of this movement is former US Republican party congressman and presidential candidate Ron Paul through his advocacy of a Bitcoin-based retirement fund called Coin IRA. Paul is encouraging Americans to learn more about this digital currency and the opportunities it may offer.
He states on the CoinIRA website:
“As a firm believer in currency competition, I’m excited to see the options that Bitcoin and blockchain open up.”
Paul’s message is particularly targeted to older American’s that have utilized gold as an investment plan.
Coin IRA is a subsidiary of Goldco, a firm that provides retirement funds based on investments in gold. Coin IRA’s current suite of portfolio offerings includes Bitcoin, Ethereum, Litecoin, and Ripple.
In an October interview with the financial news organization, The Street, Paul shared his views on blockchain technology’s emergence and the growing number of currencies based on it. Admitting that he’s not an expert, Paul has stated that he currently is not in support of the technology and its legalization so far. At the same time, he’s clear in his opposition against the growing involvement of US government’s in Bitcoin technology.
Notes Paul: “There is too much surveillance already on how the currencies are transferred, [how] the reports have to be made by the exchanges to the IRS. If it is a really good deal and a good process rest assured the government will be looking at it very carefully…it makes me very nervous.”
He went on to add:
“If the people want it and want to use it, the government should stay out of it.”
A 2015 report revealed that “About half of households age 55 and older have no retirement savings” such as in a 401(k) plan or an IRA. The report also noted that among those with retirement savings, the median amount is about $104,000 for those between ages 55 and 42 and $148,000 for those within the 65 to 74 age range.
Is Social Security a Retirement Ponzi Scheme?
The fact that social security retirement contributions are being distributed to current retirement recipients have led some to suggest that it is at least in part a Ponzi scheme. This scheme is defined as one where investors think they are investing in one thing only to discover that they are instead being used to pay one another back. At a certain point, this practice runs out of new investments flowing in and collapses.
In a 1997 article entitled Will Retirement Become a Personal Responsibility Lawrence W. Reed, president of the Foundation for Economic Education argues that Social Security Must Ultimately Be Privatized. This appears to be the position that Paul and others are taking, namely, a self-directed approach where people can manage their pension fund investments themselves.
At the end of the day, personal sovereignty for our retirement future requires each individual to assume self-responsibility for their future freedom. Having the flexibility to invest in bitcoin and other forms of crypto assets promises to open new possibilities in this endeavor.