{"id":17505,"date":"2022-05-12T17:00:37","date_gmt":"2022-05-12T11:30:37","guid":{"rendered":"https:\/\/zebpay.com\/?p=15032"},"modified":"2022-05-12T17:00:37","modified_gmt":"2022-05-12T11:30:37","slug":"buying-bitcoin-with-your-retirement-money","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money","title":{"rendered":"Buying Bitcoin with your retirement money"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Nature_of_Bitcoin\" title=\"Nature of Bitcoin\">Nature of Bitcoin<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Diversification\" title=\"Diversification:-\">Diversification:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Hedge_Against_Inflation\" title=\"Hedge Against Inflation:-\">Hedge Against Inflation:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Expanding_Industry\" title=\"Expanding Industry:\">Expanding Industry:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Enhanced_control\" title=\"Enhanced control:-\">Enhanced control:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#High_return_generating_potential\" title=\"High return generating potential:-\">High return generating potential:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Volatility\" title=\"Volatility:-\">Volatility:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Legality\" title=\"Legality:-\">Legality:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Growth_issues\" title=\"Growth issues:-\">Growth issues:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Cybersecurity\" title=\"Cybersecurity:-\">Cybersecurity:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Business_Risk\" title=\"Business Risk:-\">Business Risk:-<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zebpay.com\/in\/blog\/buying-bitcoin-with-your-retirement-money\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Retirement is a reality facing every working individual, whether employed in a large corporation or running his enterprise. Planning for retirement is one of the most important financial goals in one\u2019s life, it involves setting aside the retirement money during the working life of an individual.<\/p>\n\n\n\n<p>The investment for retirement should start as early as possible, and since the investment is long-term in nature some risk can be incorporated into the <a href=\"https:\/\/zebpay.com\/blog\/build-your-crypto-portfolio-in-5-steps\/\" target=\"_blank\" rel=\"noopener\">portfolio<\/a>. Considering this, there has been some argument around using one\u2019s retirement money to invest in <a href=\"https:\/\/zebpay.com\/in\/buy-bitcoin\/\" target=\"_blank\" rel=\"noopener\">Bitcoin<\/a>. This article weighs in the pros and cons of doing so.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nature_of_Bitcoin\"><\/span>Nature of Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before talking about buying bitcoin with your retirement money, let us first understand the nature of Bitcoin as an investment. Bitcoin is the first crypto asset and its value is not pegged to the profits of a corporation or a precious metal, and it completely depends on the dynamics of demand and supply.\u00a0\u00a0<\/p>\n\n\n\n<p>Bitcoin is not part of any banking system and is designed to be free from any government control. It is accepted by some enterprises to buy goods and services and its value keeps on fluctuating, making it one of the more volatile assets to hold in your portfolio.\u00a0<\/p>\n\n\n\n<p>Bitcoin has been at the forefront of the latest innovation in the world of finance and millions of new investors are getting attracted to it. It was launched in 2009 and has gained tremendous value since then. The major appreciation occurred from 2016 to 2021 when in November 2021, it attained a valuation of $60000 (INR 45 lakh) before falling to current levels below $32000 (INR 24 Lakhs).<\/p>\n\n\n\n<p>It is difficult to analyse the fundamental factors in the price fluctuation of Bitcoin, as the price is mostly driven by sentiment and uncertainty in the global financial system.<\/p>\n\n\n\n<p>However, certain benefits make it attractive to buy bitcoin with your retirement money<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Diversification\"><\/span>Diversification:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin can serve as an alternative investment with a low correlation with traditional asset classes like equity and debt. The money invested in Bitcoin will not be impacted by market downturns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Hedge_Against_Inflation\"><\/span>Hedge Against Inflation:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As opposed to Fiat currencies like Indian Rupee or US dollar which have an unlimited supply, Bitcoin has a limited supply. The total supply of Bitcoin is fixed at 21 million, hence it can be seen as a store of value like gold, which augurs well for your retirement portfolio to beat inflation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Expanding_Industry\"><\/span>Expanding Industry:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Crypto is an expanding industry and the acceptance of Bitcoin is increasing by the day. Bitcoin is an asset with an early mover advantage in the industry that may work in your favour in terms of value appreciation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Enhanced_control\"><\/span>Enhanced control:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In contrast with other investment options like bank deposits or capital markets, there is no custodian required for crypto, and you have full control over your funds using private keys.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"High_return_generating_potential\"><\/span>High return generating potential:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The returns in the last 4-5 months period have not been great, but if you look at the long term for 5 year and more, the returns have been phenomenal. Since retirement is a long term goal, you can afford to wait with your retirement money<\/p>\n\n\n\n<p>On the other hand, the picture is not all that rosy and surely there are concerns when you think of buying bitcoin with your retirement money.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Volatility\"><\/span>Volatility:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin prices have shown a great deal of volatility in the past, and the trend is expected to continue in the future. You need to be careful around that at the time of withdrawal as some sudden downturn in the value may result in the loss at that time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legality\"><\/span>Legality:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The regulations around Bitcoin are not clear, they are not banned in India, and a tax of 30% on bitcoin earnings has been levied by the union government in the last budget, but there is no guarantee that Bitcoin will remain safe for investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Growth_issues\"><\/span>Growth issues:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The growth of any crypto asset depends on the innovation it does on the blockchain and its ability to attract new users, till now bitcoin has been able to do that but whether this will continue in the future, is difficult to predict<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cybersecurity\"><\/span>Cybersecurity:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There have been cases in the past where crypto exchanges have been hacked by scammers. Even the wallets of individual investors have been hacked and pilfered in the past, and this is a credible threat<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_Risk\"><\/span>Business Risk:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Crypto trading and investing in the latest trend that is currently gaining traction, but we do not know for sure as to whether it is going to continue in the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bitcoin is a risky option in the traditional sense, as far as using your retirement money to invest is concerned. However, investing a small percentage of your retirement money (based on your risk appetite) in Bitcoin can afford you many advantages. Buying bitcoin with your retirement money will help you diversify your portfolio and give you high growth potential. For more information on how to buy Bitcoin, please log in to <a href=\"http:\/\/www.zebpay.com\" target=\"_blank\" rel=\"noopener\">www.zebpay.com<\/a>.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retirement is a reality facing every working individual, whether employed in a large corporation or running his enterprise. Planning for retirement is one of the most important financial goals in one\u2019s life, it involves setting aside the retirement money during the working life of an individual. The investment for retirement should start as early as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12242,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/17505"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=17505"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/17505\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/12242"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=17505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=17505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=17505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}