How Buying Bitcoin Could Help Solve the Global Crisis

August 16, 2019 / by Crypto.IQ

The pension crisis is getting deeper and deeper due to the gap between how much a pension needs to pay out to people and how much is available. Public pensions are short $4 trillion in funds. And this gap is now widening. According to Moody’s Investors Services, there will be a rise in pension costs by 2020.

So, the pressing question this raises is: how can we bridge the $4 trillion gap? Adam Cochran appears to have found the answer to this important question, at least until population growth goes back to the levels it was when pensions were first introduced. 

In an article shared on Coin and Coffee.Substack.Com, Adam explained how Bitcoin could help save pension funds. The article reads, “In the last full audit (2015) of state and local government pensions, it was found that the US pensions had roughly $3.8T in assets, and an average annual return of roughly 3.6%.”

Cochran refers to “other nongovernmental securities,” which are assets that don’t stick to a pre-stipulated, institutionalized process for buying and selling on popular exchanges. As such, they are often a very risky asset held by the pension fund.

He explains further that the annual return would be greater than the current 3.6 percent if pension funds invest a fraction of the money meant for other risky “nongovernmental” securities in Bitcoin. Cochran said that the overall growth rate over the past four years would have added up to approximately 171 percent yield, almost doubling state pensions from $3.8Trillion to $6.5Trillion in that period.

Young people and top politicians are becoming more interested in Bitcoin-powered retirement instruments. In fact, investors have started putting Ethereum, Bitcoin, and other cryptos in several individual retirement accounts (IRA). One of these retirement vehicles is Bitcoin IRA, which claims to have processed up to $350 million in the last 12 months.

Also, a top politician of the Republican Party, Ron Paul, recommended Coin IRA, which belongs to the California-based coin dealer, Goldco. Coin IRA offers investments in BTC, as well. A statement on the company’s website states: “A mere $200 investment in Bitcoin in 2011 would be worth well over USD 1 million today! That’s over 500,000% return in just a few years.”

Marketing hype aside, retail and institutional investors alike are increasingly looking for non-traditional options to offset shortfalls from traditional investment sources. Bitcoin and other cryptoassets are looking more attractive as the crisis widens.