Over the last couple of years, Bitcoin has made a huge impact in the investing world.
This past spring, it was announced that employers may now offer employees Bitcoin in their retirement plans. Many investors swear by this new currency and claim it will be the next up and coming currency. Fidelity said that “employers can allow employee contributions in crypto or up to 20% per payroll cycle and investors can have up to 20% of their total 401(k) account value in a digital assets account.”
With how the economic world has changed over the last couple of years, this may or may not be considered a little risky.
In Michele Singletary’s article, ‘Bitcoin & your 401(k)’, she lists out some good and bad points that cryptocurrency has brought to our attention.
The good:
More young adults have taken an interest in investing since this currency created a boom over the course of the pandemic. It is so important for everyone to understand how investing works and decide how they would like to invest and save for the future. Even though most people aren’t physically investing, it has created a conversation and may just boost people’s saving habits.
The bad:
It’s unregulated with no protection for the consumer. Consumer disclosure rules and regulations are limited or nonexistent.
With the currency trending, many consumers can be swayed into risking their savings to make an exorbitant amount of money. But it is very risky.
Ready more from Singletary’s article from LNP’s paper from July 10th 2022.
