7 Reasons to Consider Bitcoin as You Enter Retirement

For many nearing retirement, Bitcoin may seem like a young person’s game, but let’s face it: this digital asset is making waves in finance. With recent shifts like new FASB accounting rules on Bitcoin assets kicking in this December, Bitcoin ETFs on the horizon, institutional adoption by companies, and rising inflation concerns, there are plenty of good reasons to rethink Bitcoin. Here’s why adding a little Bitcoin to your portfolio could be the savvy choice you didn’t know you were missing out on.

1. Protecting Purchasing Power: Bitcoin vs. The Dollar

One thing every investor knows? Your purchasing power matters. The value of the dollar has dropped over time, with inflation eating away at cash. Consider this: will your dollar’s purchasing power increase or decrease over the next decade?

On the other hand, Bitcoin has a fixed supply—only 21 million will ever exist—which gives it a built-in resistance to inflation. Looking back, the average cost of a house in 2012 was about $230,000 in USD. In Bitcoin? That same house would’ve cost around 2,800 BTC back then. Fast forward to 2024, and the average U.S. home is now worth around $420,000, or just about 15 BTC. With Bitcoin’s rising value, you’d need far less Bitcoin today to buy the same home than if you held cash. That’s purchasing power that holds up over time.

2. FASB’s New Rules for Bitcoin on Balance Sheets

One reason companies hesitated to hold Bitcoin as an asset was outdated accounting rules, but that’s all changing in December. The Financial Accounting Standards Board (FASB) is introducing new guidelines that allow companies to value Bitcoin assets at fair market value. This makes it easier for them to report gains and adopt Bitcoin on their balance sheets, reducing the previous reporting burdens.

Companies like Tesla, MicroStrategy, and even Fidelity are already holding Bitcoin, and this change could fuel wider adoption, creating a bigger wave of demand.

3. Institutional Adoption: Following the Big Players

Bitcoin isn’t just a niche asset anymore; some of the largest corporations are already buying. Today, about publicly traded companies are holding Bitcoin on their balance sheets, and over 400 private companies have followed suit. Financial giants like JPMorgan and Fidelity now offer Bitcoin-related products, signaling they’re seeing long-term value in digital assets. Bitcoin’s appeal is no longer limited to tech-savvy millennials —it’s a strategic move for companies looking to protect their wealth from inflation and diversify their holdings.

If the big players are adopting Bitcoin, maybe it’s worth looking at it.

4. Bitcoin ETFs: A Gateway to Easy Exposure

Here’s some good news: Bitcoin ETFs are finally coming, opening the door for everyday investors to get exposure to Bitcoin without needing to buy and store it directly. Think of a Bitcoin ETF (exchange-traded fund) as a way to invest in Bitcoin through a simple brokerage account—like buying shares in the S&P 500 or a mutual fund. These ETFs are already driving interest, giving investors easier access and regulated exposure to Bitcoin’s performance without needing wallets or private keys.

Bitcoin’s Recent Performance: Over the last 12 months, Bitcoin has outperformed traditional markets like the S&P 500. While the S&P has faced moderate gains amid volatility, Bitcoin’s price has surged considerably, underscoring its potential as a high-reward investment. For example, Bitcoin has increased over 60% in value compared to the S&P 500’s modest single-digit gains, reinforcing why institutional interest is so high.

5. Legacy Planning: Setting Up Your Family with Digital Wealth

If you’re considering what assets to pass on, Bitcoin offers a future-proof way to diversify a legacy. Many aim to leave wealth to children or grandchildren, and digital currency could be an exciting and strategic asset to hand down. With Bitcoin, your heirs gain something beyond just cash—they get a resilient asset that doesn’t degrade with inflation. Setting up proper custody (i.e., secure storage) has become much more accessible, with financial firms and consultants available to help secure assets for future generations.

6. Bitcoin as Diversification: Non-Correlated Asset Class

Most near retirement age have their wealth spread across stocks, bonds, and real estate—classic moves. But diversifying into Bitcoin offers something different. Bitcoin’s price movements don’t follow traditional markets, which can help buffer your portfolio during market downturns.

For instance, during economic challenges, Bitcoin can sometimes behave differently from stocks, adding resilience to your investments. Think of it as putting your eggs in more than just one basket.

7. Staying Ahead of the Curve – Because Knowledge is Power

Adding Bitcoin to your portfolio doesn’t mean you’re becoming a tech wizard. However, it’s a valuable opportunity to get familiar with digital assets reshaping the financial world. The digital economy is growing, and engaging with Bitcoin could give you insights to share with the younger members of your family—plus, it positions you as someone who understands the future of finance.

Wrapping Up: The Dollar vs. Bitcoin in the Long Run

Bitcoin isn’t about quick gains or hype; it’s about protecting and growing wealth over time. As inflation keeps chipping away at the dollar, Bitcoin’s limited supply and increasing demand could make it a valuable addition to your portfolio. As you think about the future, consider adding a little Bitcoin. After all, you’ve seen how financial trends come and go, and Bitcoin could be the modern asset you didn’t know you needed.

At Sovreign, we can help you in your Bitcoin adoption journey. Test your Bitcoin knowledge here and get a free pdf. Test your Bitcoin knowledge and get a free pdf.