It was in April when Fidelity bank decided to let their 401(k) customers add bitcoin to their retirement accounts. The plan by Fidelity is to allow individuals allocate part of their retirement savings in Bitcoin through the Digital Assets Account (DAA).
This move by Fidelity wasn't without a reaction by the government. The US Department of Labor back then expressed concerns over such a move by employees to add crypto currencies to their retirement accounts citing the volatility in prices of cryptocurrencies as published in a blog post by the Assistant Secretary,Ali khawar.
Now,with the bleeding going on in crypto right now,is it still viable for employees to add crypto to their retirement plans? Is it a wise move and recommendable?
Yes, it is still a wise move to be my answer. I will back this with the following reasons:
First, the crypto market right now is not the only market looking bleak in performance. We have stocks and bonds looking pretty bad. So,the thought that crypto is bleeding doesn't hold much water. There is bleeding across fields and that doesn't make saving a Bitcoin in 401(k) not a wise move. The stocks that are usually used as the traditional retirement plan are also having their worst nightmares right now. But still people invest in it. So ask yourself why you can't save in crypto currency? A space that is revolutionizing the financial market and still innovating.
Besides, one thing with the market is that it will always have its ups and downs. That crypto is having this downturn doesn't negate the fact that crypto is the future of finance if not presently.
Some will argue that crypto currency is not stable-that it can be rugpulled any day. Of course, there is always a challenge in every sector including stock markets. Blockchain technologies like Bitcoin and ethereum have solid structure and utility that has come to stay. And that is why Fidelity is only adding it for now to the Digital Assets Account.
Crypto currency like other financial sectors will always have its challenges but the good thing is that this sector keeps on reinnovating and solving its problems which makes it a viable platform to save for your retirement. I would suggest as an employee to save only in Bitcoin and ethereum.
In conclusion,this article is a personal opinion of the writer and in no way a financial advice. Always do your research before investing in any sector.
Would love to get feedback when you are done reading this article.