Bitcoin is widely regarded as a store of value by most investors. However, in the year, the value of bitcoin plummeted due to macroeconomic factors.
Cryptocurrencies are notoriously volatile, and 2022 has seen a prolonged bear market phase that has left investors reeling. As a result, most crypto assets have seen their value plummet, and FUD is rising in the market.
Stablecoins were considered viable alternatives. However, the collapse of Terra created doubts about this theory and has left crypto investors looking for a haven for their tokens.
But despite price fluctuations, bitcoin has proven its longevity and rewarded investors for their belief. Although some individuals debate its long-time value, it is the most adopted cryptocurrency worldwide. El Salvador recognizes the number one cryptocurrency as a legal tender and is bullish on its future.
Investing Retirement Fund In Bitcoin – Is It A Good Idea?
The bearish movement of the market does not move U.S. Republican Senator Cynthia Lummis. Instead, she advised Americans to feel safe investing their retirement savings in bitcoin. She is a well-established bitcoin advocate and also has investments in BTC.
Despite the unfortunate events on the crypto horizon, she remains unfazed. In an interview, she stated that adding BTC to 401(k) plans is a prosperous move. Senator Lummis regards BTC as different from other cryptocurrencies.
She based this assertion on bitcoin’s scarcity. Bitcoin has a maximum market capitalization of 21 million. Therefore, according to her, it will only increase the price of the coin in the future.
However, some other American political heavyweights are not so comfortable with the idea of investing BTC into retirement funds. For example, Senator Elizabeth Warren scrutinized Fidelity’s decision to allow investors to include bitcoin in their 401(k) retirement plans.
Senator Lummis is pushing to reintroduce her proposed crypto bill in January. She intends to discuss the details with the SEC. This bill aims at giving consumers maximum protection and creating some taxation benchmarks.
Be Grateful For Bitcoin
Lummis tongue-lashed the U.S. authorities for letting the U.S. fall into a financial crisis. According to her, the value of the U.S. dollar can decline in the coming years. She believes the best approach is for fiscal policy officials to ensure that non-fiat currencies blossom.
She believes that the decentralized nature of bitcoin grants investors much-needed financial freedom. It will also shield Americans if the dollar were to lose its value.
The senator has supported bitcoin passionately over the years with investments in the token. She purchased 5 BTC in 2033, close to the $300 mark, and added BTC worth $100,000 to her holdings last August. Also, many experts share their thoughts on cryptocurrencies as a store of future value as events unfold.