Senator Lummis claims pouring retirement funds into Bitcoin is still a good idea
Bitcoin is widely considered a store of value by most investors. But during the year, the value of bitcoin fell due to macroeconomic factors.
Cryptocurrencies are notoriously volatile, and 2022 has seen a prolonged bear market phase that has left investors scrambling. As a result, most cryptoassets have seen their value plummet, and R&D is rising in the market.
Stablecoins were considered viable alternatives. However, the collapse of Terra cast doubt on this theory and has left crypto investors looking for a safe haven for their tokens.
But despite price fluctuations, bitcoin has proven its longevity and rewarded investors for their faith. Although some individuals debate its long-term value, it is the most widely used cryptocurrency worldwide. El Salvador recognizes the number one cryptocurrency as a legal tender and sees the future positively.
Investing pension funds in Bitcoin – is it a good idea?
The bearish movement in the market does not move Republican US 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 of the crypto horizon, she remains unfazed. In an interview, she stated that adding BTC to 401(k) plans is a wealthy move. Senator Lummis sees BTC as different from other cryptocurrencies.
She based this claim on bitcoin’s scarcity. Bitcoin has a maximum market cap of 21 million. Therefore, according to her, it will only increase the price of the coin in the future.
However, some other US political heavyweights are not so comfortable with the idea of investing BTC in pension funds. For example, Senator Elizabeth Warren scrutinized Fidelity’s decision to allow investors to include bitcoin in their 401(k) retirement plans.
Senator Lummis pushes to reintroduce her proposed crypto bill in January. She intends to discuss the details with the SEC. This bill aims to provide consumers with maximum protection and create some fiscal reference points.
Be thankful for Bitcoin
Lummis whipped the US authorities for letting the US fall into a financial crisis. According to her, the value of the US dollar may decrease in the coming years. She believes the best approach is for fiscal officials to ensure that non-fiat currencies flourish.
She believes that bitcoin’s decentralized nature gives investors much-needed financial freedom. It will also protect Americans should the dollar lose its value.
The senator has passionately supported bitcoin over the years with investments in the token. She bought 5 BTC in 2033, near the $300 mark, and added $100,000 worth of BTC to her holdings last August. Many experts also share their thoughts on cryptocurrencies as a store of future value as events unfold.
