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Author: Anthony Pompliano, founder of Professional Capital Management; compiled by: Bitchain Vision
It is rumored that the White House will allow President Trump to sign an executive order later on August 7, local time in the United States, allowing individuals to buy bitcoin and cryptocurrency in their 401(k) retirement accounts.This is a huge advance for the cryptocurrency industry and should have been achieved long ago.
It is estimated thatThe total amount of funds for all retirement accounts in the United States is about $43 trillion, including about $9 trillion in 401(k) accounts.By comparison, the entire cryptocurrency industry has a market value of less than $4 trillion, so this executive order will open up a huge pool of funds that pour into bitcoin and cryptocurrency assets.
Many people now complain about the White House’s approach.They will claim that Bitcoin is risky.They would scream how inappropriate it is to give individuals the right to allocate their pensions as they see fit.
But this is totally nonsense.First, every American should be allowed to dominate his or her money as he pleases.Why should the government tell you how to use your money?If you want to invest in a new company, then do it.If you want to invest in Bitcoin, no politician or regulator should stop you.
For critics, your job is not to stop people from using their money as they please.Your mission is to strengthen financial education in the United States so that people can make informed and rational decisions.If you don’t want people to gamble, explain them the high loss rate.If you don’t want them to speculate on low-priced stocks, explain to them the benefits of investing in high-quality assets for long-term compounding.
Gone are the days when American citizens are treated as fools.Smart independent retail investors are on the rise.Many of them even outperformed institutional investors.Will anyone make mistakes and make wrong decisions?Of course there is.But this is also a way to learn.
We must restore personal responsibility.We do not need a matrilineal country to micromanage our people’s personal portfolios.
In fact, if critics really want to speak out for a major cause, they should start questioning why so many U.S. retirement accounts are used to hold U.S. Treasuries.These assets are essentially destined to depreciate over the long term, and retirement accounts are reportedly optimized to prevent depreciation.So, if we are willing to let people invest their retirement accounts in high-risk U.S. Treasuries, why can’t they buy Bitcoin?
For example, the iShares 20+ year Treasury ETF has shrunk by nearly 50% over the past 5 years.Outdated financial advisors are using outdated 60/40 portfolio allocations to destroy the baby boomer portfolio.
In the long run, U.S. Treasury bonds will only fall, while Bitcoin will only rise.So, unlock the potential of your retirement account.Refuse people to freedom.Give investors the opportunity to save themselves from the upcoming financial disaster without only allocating those “safe” investments in the past.
These investors need a good opportunity to invest because the dollar is being destroyed.”In the past 50 years, U.S. consumers’ dollar purchasing power has dropped by more than 83%. Meanwhile, the S&P 500 has risen more than 150 times even considering inflation. Why do you need to invest…”
This is not a profound science.People just need to try it out to get rid of this crazy currency devaluation.
Galaxy’s Mike Novogratz appeared on CNBC in the morning and explained the significance of opening up the retirement account market to Bitcoin and cryptocurrencies.
Trump came out last night to talk about crypto assets being eligible for 401k.I mean, that’s a huge capital pool…The window to buy cryptocurrencies is expanding…And the price is determined marginally, think about what happens when there are hundreds of millions of new dollars a day.
Bitcoin is digital gold.It is a hedge against endless printing of money, and it is a hedge against endless bad fiscal policies throughout the world.
As long as the government can’t spend less than their income, you will continue to see Bitcoin appreciate.
So, ladies and gentlemen, get started!Critics are furious, but they are on the wrong side of history.Bitcoin and cryptocurrencies will continue to exist.Now, they are about to enter your retirement account.
