Bitcoin as a part of the American retirement plan

By I-HODL | A Crypto Journey | 22 May 2022


Happy Bitcoin Pizza Day, everybody! It's that time again where we gather around to share a slice or two of Papa John's and to lift our glasses in toast to Laszlo Hanyecz, the guy who, on this day in 2010, traded 10,000 Bitcoin for two Papa John's  pizzas, large so he could have a bit more to eat the following day.

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Image courtesy Pixabay

Today, with Bitcoin averaging around $29,000, more than 50% down from its all time high of $68,000, 10,000 Bitcoin would net $299,000,000. Now, it must suck to be the guy who fumbled a bag bigger than the net income of many countries, right? Not so according to Hanyecz, he's just happy to have started the Bitcoin payments system going. Mm-hm. Then again, maybe he reinvested and has a pile of Bitcoin stashed away somewhere. Who knows, right?

From Pizza to Salaries & Pension Plans

Anyways, in some good news for the father of all cryptocurrencies, there's talk of a proposal for Bitcoin to be incorporated into Americans' retirement plans. And this is not just the news about Fidelity Investments, the largest holder of 401(k) assets in the country, adding Bitcoin, dubbed the crypto casino by at least one media house, to its retirement offering, a move which has been celebrated by many crypto enthusiasts including politicians.

This is instead the bill proposed by United States Rep. Byron Donalds  in the U.S. House of Representatives on Friday, which seeks to ensure that all 401(k) investors  have the complete freedom to choose their investment types through a brokerage without the intervention of the Department of Labor seeking to bar crypto investments. This bill accompanies the Financial Freedom Act and whether it passes or fails, it will have implications for Fidelity Investments' Bitcoin offering.

It should be noted that previously, in March 2022, the US Department of Labor issued regulatory guidance advising investment firms against allowing crypto in their 401(k)s. It stated, "At this early stage in the history of cryptocurrencies, the Department has serious concerns about the prudence of a fiduciary's decision to expose a 401(k) plan's participants to direct investments in cryptocurrencies, or other products whose value is tied to cryptocurrencies. These investments present significant risks and challenges to participants' retirement accounts, including significant risks of fraud, theft, and loss."

Anyways, friends, if Bitcoin were included as an investment option in your retirement account, will you take it or do you think it's too risky? I'd love to hear your thoughts.

Bitcoin Mining in Russian Prison

Meanwhile, in some random news, there are reports that some Russians thought to capitalize on some free electricity and open a Bitcoin mining farm in the country's oldest prison in Moscow. Talk about gutsy and enterprising, right? Though, to tell it true, the mining rigs haven't been extracting any cryptocurrencies since February of this year. In fact, according to the reports, the rigs were only in operation  from November of 2021 to February, and during that time, the machines consumed approximately 8,400 kW of electricity, all on the government's dime. Suffice to say, as these stories go, the guys were caught and the deputy warden, the alleged head of the operation, is in a bit of hot water. 

And so, friends, that's it for me today. It's a relatively quiet weekend in the crypto space, and so maybe I'd take the opportunity now to investigate some metaverse coins further.  We'll chat again soon. Until we do, please remember to be safe. And have an extra slice of pizza for me.

 

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I-HODL
I-HODL

Navigating the ebbs and flows of crypto trading, and writing about it.


A Crypto Journey
A Crypto Journey

There's nothing more exhilarating than navigating the ebbs and flows of crypto trading. I have sea legs today, but truth be told, I've been lost at sea more than I care to remember and I have weathered quite a few storms as a trader. But the crypto-verse has also rewarded my resilience, and so after every dip, I get right back to sailing in pursuit of me buried treasure. I love this digital evolution and am proud to be a part of it. These are the tales of a crypto adventure! 

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