According to Bitcoin Reserve Monitor, 20 states have pending strategic Bitcoin Reserve (SBR) legislation. Like these efforts, they may be overshadowed by the range of seats promoted by Senator Cynthia Lummis, a framework now head of the Digital Assets Subcommittee for Banking.
After 16 years of speculation, experimentation, stopping war and hair loss, it seems that Bitcoin is on the cliff of the main threshold. Bitcoin’s inflation rate is already below 1%, and its 21 million BTC scarcity is a bastion of inevitable currency erosion for central banks around the world.
Perhaps most importantly, unlike gold reserves, Bitcoin’s ledger is easily verified by everyone. These and others are clearly positioning Bitcoin as the primary retirement asset, which is extremely resistant to the tampering of central planners.
But what would a retirement with Bitcoin actually look like? First, we need to study the importance of discussing the fact that BSR is discussed at such a high level.
BSR: The ultimate perceptual push?
At the end of the line, the ultimate resource for the human structure to function is trust. It is based not only on interpersonal relationships, but also on large-scale social systems. That’s why the narrative control recently exposed by Elon Musk’s road through the United States Agency for International Development (USAID) funding, regardless of its marking, is crucial to the governance system.
Although highly precious, trust is an available resource. For the purpose of social stability, if trust in forgery is achieved, it is as valuable as trust in truth. However, the former trust types lack resilience and therefore require continuous improvement in control scope. This in turn makes custodial trust more vulnerable.
In contrast to custodial trust, we use Bitcoin as a trustless system. Paradoxically, Bitcoin represents the highest and most resilient form of trust management, because it simultaneously minimizes subjective trust through its cryptographic and proof-of-work mechanisms.
At first glance, this will make Bitcoin an obvious choice for a store of value, right? Not so fast. Surveys time and time again show that older people are trustworthy people of Bitcoin and digital assets.
Voices of Investor Research in 2023. Image source: Morning Star
Why is this? Why do people with a larger pool of experience distrust the highest trust in trust management like Bitcoin? Don’t they welcome such a major innovation?
This is because reputation signaling covers technical understanding. For most people, there is no attempt at technological understanding without social push. In other words, to adopt and integrate something, it must be sanctified by an authority figure so as not to limit it to the edge.
Older populations, specifically, rely on “reputation-related activities in the psychological/memory area while making decisions”, as shown in 2023’s computational modeling, titled Age-related differences in social associations learn about trust information.
Arguably, for older people, the lowest commonality mainstream media has been the main supplier and sacred of Bitcoin information. But because mainstream media is closely intertwined with government, it is clear from Doge Power’s revelation that the sanctification process begins with government.
This is why the potential strategic reserve of Bitcoin is such a huge threshold. This will indicate trust in Bitcoin from the top and then drip it into the sanctification layer that provides tips for older crowds. Even if MSM is not good for Trump administrators, the existence of BSR will change Bitcoin coverage forever.
Therefore, BSR should be understood as the ultimate perceived driving force for changing the Bitcoin landscape. The meaning is already very obvious.
Baby Boomers and Zoomers: Holders and Elasticity
As the survey shows that younger generations are most likely to participate in digital assets, they also show that Gen Z is the least person who wants to own a house. This is a major generational cleavage that effectively burys the so-called “American Dream.” But is this really a situation of progress?
What if BSR sets up new social signals for the baby boomers? In this case, the baby boomers will become large wealth holders (1946-1964). Boomers cover Genx (1965 -1980) and Millennials (1981 -1996), and it is estimated that the U.S. net wealth is estimated to account for $78.1 trillion as of 2023.
On average, the baby boomer has a net worth of $2.31 million, said Terry Rawnsley, an economist at KPMG Urban. By comparison, Genx has an average net worth of $1.88 million, millennials are $757,000, and Gen Z has $96,000 at the bottom.
If Boomers get a reputation tip from BSR, only a small portion of capital flowing into Bitcoin, custodial or non-monitoring will significantly shift the price of BTC. Wealth Fund has already recommended that the portfolio be distributed by more than 1% BTC.
Vaneck sets that number at 3%, while Standard Charter’s Geoffrey Kendrick expects to allocate up to 5% from sovereign wealth funds. In short, this will bring the price of BTC to $500,000 in 2028, increasing the market value of Bitcoin to nearly $10 trillion.
In turn, even the younger generation with insignificant numbers will lay a solid foundation for their retirement plans compared to the baby boomers. And if Bitcoin regards people as a primary retirement asset, it will be just the beginning of its appreciation.
Bitcoin: Performance of retirement assets
In the simplest form, there are two ways to utilize Bitcoin as a mature asset. One way is to make a self-customer route by maintaining access (wallet) to a Bitcoin blockchain with offline storage. Another way is to veto the trusted nature of Bitcoin by using any listed Bitcoin exchange-traded funds (ETFs) or crypto exchanges to calculate institutions.
Since then, government spending and central banks have done this work for BTC holders. As the respective fiat currencies lose value, BTC is gaining inflows as a decentralized ledger powered by a massive energy/computing network.
So far, people have been counting on stocks, commodities or bonds to prevent the dollar from erosion. From these basic elements, a large number of combinations can be made over time to optimize the maximum gain. Some people invest in solo stocks, some in mutual funds that can pool funds into various assets, while others accumulate precious metals (such as gold and silver).
Mutual funds are particularly popular as retirement programs because 401(k) and IRA are tax-friendly. In other words, the financial infrastructure is already there to integrate Bitcoin seamlessly.
The Bitcoin Individual Retirement Account (IRA) is already there to serve retirees, from Bitcoin and Bitcoin IRA and Alto IRA.
At present, paper Bitcoin is still dominated by common funds. For example, Bitcoin Profund (BTCFX) will be exposed to Bitcoin, but only through futures contracts. Since its inception in July 2021, the actively managed fund has brought holders’ annual performance of 22.10%
For comparison, the average mutual fund return of 401(k) is in the range of 3%-8%. This becomes even more impressive when one explains inflation, or how to adjust inflation indicators through the relative importance of the project to provide politically delicious results.
This also continues the job figures and salary. Adjusted for inflation, and it is usually true that real income is the best case.
Even paper Bitcoin’s annualized performance of 22.10% is not impressive when these factors are taken into account. However, it still outperforms the status quo. Also, remember that 2022-2023 is an unusual period for Bitcoin.
Bitcoin is mixed with a wider layer of overleveraged cryptography. The bubble rose just a few months after it rose after rising in March 2022. It started with the Terra (Luna) crash, spreading to Celsius Network and Blockfi, reaching its peak only in the bankruptcy of Core Core Scientific (Corz) mining companies and FTX Exchange.
Government agencies have been greatly helped by a concerted effort to revoke cryptocurrency companies from the financial track through the unanimous efforts of Choke Point 2.0.
But at the end of the line, Senator Elizabeth Warren not only broke out with an explosive instigator, but Fed Chairman Jerome Powell did the same, saying he was “troubled by these numbers” [debanking] Report”.
In other words, while people doubt inflation and working numbers, Bitcoin’s performance can also be doubted, but now the power is becoming more and more even.
What is the ultimate goal of Bitcoin retirees?
Currently, Bitcoin is being integrated into the existing financial system. Like other assets, Bitcoin will be another component to be added to a hybrid portfolio and tax incentive account.
But in the end, it’s easy to see blockchain native systems that emerged from generations younger than the baby boomers. These retirees are more likely to use decentralized pensions based on automated smart contracts.
The main features they need are features, such as you can view photos of QR codes and scan photos of QR codes, or secure automatic backups that they don’t consider. Accessibility is the name of the game.
AI agents may also handle people’s affairs and leverage layer 2 solutions such as Lightning Network for ultra-low transaction fees and near-fixed speeds. Once in place, this pension system can develop to include micro-loans, mortgages and savings output, reducing the need to sell bitcoin and further exacerbate its scarcity.
This shift will benefit all relevant parties. If most Bitcoin retirees prioritize yield generation rather than selling their shares, the sales pressure on the market can be alleviated. This, in turn, could stabilize or even drive the continued momentum of Bitcoin’s price.
Ultimately, Bitcoin has the potential to change not only how we think about money, but also how we retire. Instead of seeing retirement as a consumption of accumulated wealth, Bitcoin-powered systems can create new opportunities for retirees and their descendants, thus reshaping the concept of retirement itself.
This is a guest post from Shane Neagle. The opinions expressed are entirely their own and do not necessarily reflect the views of BTC Inc or Bitcoin Magazine.
