Bitcoin vs Social Security: Who wins?
Given the direction in which Social Security is headed and the potential to make money with Bitcoin, you may find yourself asking whether it pays to give up the former and focus on the latter. But the reality is that you don’t need to pit the two against each other because both Bitcoin and Social Security have the potential to provide a large retirement payday, and both also have the potential to let you down.
First, let’s talk Bitcoin. Like other cryptocurrencies, Bitcoin can be very volatile, and whether it can really grow in value steadily over the next number of decades is yet to be determined.
Remember, Bitcoin has only been around since 2009, and while more merchants are coming to accept it as a means of payment, for the most part, that’s not the norm. As such, it’s hard to predict whether Bitcoin will gain enough value to provide a viable retirement income stream. And if you’re the risk-averse type, you may not want too much of it in your portfolio.
Now let’s talk Social Security. The program is facing its share of financial challenges, and in the coming years, it may need to cut benefits to compensate. Clearly, that wouldn’t be a good thing. Also, Social Security has, over the past couple of decades, done a poor job of helping seniors maintain their buying power in the face of inflation.