Bitcoin BTC/USD has been aggressively marketed by its proponents as a tool for building personal wealth in the long term. Their argument has been bolstered by the top cryptocurrency’s meteoric rise over the last decade, during which it has outperformed mainstream financial assets such as gold and stocks.
But can timely investments in the leading cryptocurrency return enough to ensure a comfortable retirement? Let us look at this hypothesis with another example.
The Federal Loan Baggage
It’s no secret that education costs have skyrocketed in recent decades, resulting in an increase in student loans and, ultimately, debt.
Data from a recent report showed that U.S. student loan debt has risen to $1.72 trillion in total, with 92% comprising federal loans. An average student at a public college needed to borrow $32,637 to obtain a bachelor’s degree.
To pay it off, the average borrower requires 20 years, roughly the entirety of their adulthood.
What if instead of borrowing, a person decided to invest this amount in Bitcoin?
How Much Bitcoin Do You Need For Retirement?
Exactly 10 years ago, one Bitcoin was priced at $477.43. So, an investment of $32,637 then would have fetched 68.35 units of the cryptocurrency.
Presently, one Bitcoin is valued at $57,812.86. This means that 68.35 BTCs would be worth $3.95 million.
A recent report revealed that the average U.S. adult estimates needing $1.46 million to retire "comfortably" in 2024, with Gen Z and Millennials expecting more than $1.6 million.
No prizes for guessing that investing the amount borrowed for education in Bitcoin could have secured a comfortable retirement. However, it’s worth noting the critical role of education in fostering personal and mental growth, which is difficult to measure in monetary terms.
Price Action: As of this writing, Bitcoin was trading 0.39% lower than it was 24 hours earlier, according to data from Benzinga Pro.
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
