Should Pension Funds add Bitcoin to their Portfolio?
Pension funds are considered to be among the most conservative investors nowadays, and for relatively obvious reasons.
It’s still hard to present blockchain, Bitcoin BTC, 2.60%, and other investing opportunities behind arising from innovative technology to future pensioners, as they are focused on steady, guaranteed paybacks of their hard-earned fiat money.
Taking a closer look to European pension plans reveals that if you, for example, decided to trust the German government, or a German pension fund manager with 20,000 hard-earned euros today, you’d only get back 19,976 euros after thirty years of holding.
Analogizing the situation, I can only question myself and the readers: Why would anyone invest in Pension Funds, or trust the government to hold their money for thirty whole years, only to get compensated with less than what was initially contributed? The thing with pensions is that given the thirty years threshold, a big portion of what should be paid back to Pensioners is frozen, or distributed back to the pension fund manager company or government fund, and not distributed between the remaining pensioners, if let’s say a future pensioner passes away before the date they would be compensated.
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