There is a lot of noise in bitcoin superannuation emerging industry. People who read headlines and only scratch the surface would be conned into thinking that bitcoin is fool’s gold. However, for those who scratch a little further in the search of truth and make a facts-based decision on bitcoin as a genuine self managed super fund option find that the fundamentals are strong and core development continues at a rigorous pace. These underlying facts are pinned in the bitcoin whitepaper about true digital scarcity that runs as a trustless and unconfiscatable decentralised network. The fool’s gold narrative is old and aimed to scare new market entrants by traditional gold holders who fear that Bitcoin will continue to rapidly outpace investment returns for decades to come. The bitcoin verse gold returns below are staggering, the figures here of bitcoins first decade of existence.
Bitcoin is risky in the short-term due to price movements in a volatile market, but it is now riskier in the long-term to NOT hold bitcoin. The fundamentals listed earlier, in particular the digital scarcity element will ensure an increase in price as the demand continues to grow on a global scale. With superannuation a long term investment for Australians, taking a percentage from your traditional retail super fund and allocating a portion to Bitcoin is fast becoming the norm for youthful tech savvy individuals. These individuals are becoming locked out of the housing market due to asset inflation that is based on shaky economic management from those in charge of monetary policy. With greater potential for long term investment returns that will provide a comfortable lifestyle in retirement, crypto asset allocation via a SMSF is on the rise. The myth that an asset must be income generating, which bitcoin is not, fails to hold any weight in a discussion as to whether Bitcoin is a strong investment option as the gains over the long term far outweigh any other income generating asset on the planet since 2009. With decades as an investment timeline, then it becomes easy to understand the long term potential of this digitally scarce asset when considering the bitcoin superannuation option.