Importance of cryptocurrency
Dhawal Sharma
GameFi | On/Off Ramp | Digital Assets | OTC | Cryptocurrency | Web3.0 | DeFi | Blockchain | Luxury Professional | NFT's | Strategy | Stock Market
Pension Funds Must Adopt Bitcoin Or Risk Insolvency
For many years, pension funds were limited to investing primarily in government securities and investment-grade bonds because of their stable returns.?Bonds are thought of as fixed-income because of their predictable coupon payments.
What could pension funds do to achieve returns if they have to keep buying government bonds by mandate, and those bonds are losing them money??
Some have resorted to leverage, a technique that nearly blew up the pension space in the U.K. just a few weeks ago. But there is another alternative.
Bitcoin has no risk of liquidation. Bitcoin does not require leverage. Instead of making risky bets, perpetuating the culture of moral hazard and socialized losses, pension funds can use bitcoin as an asymmetric opportunity in order to bolster their returns.