Author and speaker Napoleon Hill, in his classic Think and Grow Rich, advised readers to “turn down a glass” when they discovered a life-changing opportunity – a moment they’d look back on as a true turning point.
For crypto, that moment may have just arrived.
Long viewed by many as the “wild west” of investing, cryptocurrencies have struggled to win over cautious retail investors – especially those focused on retirement planning. But a single executive order has now cleared the way for crypto to enter the $9 trillion 401(k) market.
This could be the shift that takes crypto from the sidelines into the mainstream. Here’s why…
What is going on with cryptocurrency now?
The reality is that cryptocurrencies’ reputation to many Americans, justified or not, had been a reputation of being associated with speculators and wild west gamblers. At least until the last year or two.
Recent changes to the regulatory environment, though, have made crypto more attractive to institutional investors who are showing a strong interest and move into cryptocurrencies.
Still, the consumer investing market is marked by individual investors planning for retirement. Everything that most retail investors do is for that purpose and not for speculation or high-risk growth.
So, cryptocurrencies still lagged behind in retail investor buy-in.
That is about to change.
It’s amazing what one executive order can do…
The biggest barriers to retail acceptance of crypto have always been the perceived risk and the fact that so many investors do most or all of their investing through investment vehicles for their retirements.
With changes to the regulatory environment (which we’ve talked about before), institutional investors have become more comfortable with cryptocurrencies.
Institutional investor buy-in is helping the retail consumer market to also become more comfortable. After all, if the big banks are investing into cryptocurrencies, then it must be safe enough for the little guy, right?
But there was still that nagging difficulty of how to include cryptocurrencies in retirement savings. Most people could not diversify with cryptocurrencies through their 401(k).
Until recently, that is. Andrew Moran with The Epoch Times writes,
President Donald Trump signed an executive order on Aug. 7, opening the $9 trillion retirement market to cryptocurrencies and other alternative assets, White House officials said.
That’s right, the average individual investor may soon be able to invest into cryptocurrencies through their 401(k) which is the primary investment vehicle used by a huge number of Americans.
But maybe you’re asking yourself…
Why would someone want to diversify with “nontraditional” assets like cryptocurrencies?
It’s a fair question with a straightforward answer. From Reuters:
…industry advocates and the Trump administration say investments in private equity, crypto or privately held companies like ChatGPT developer OpenAI or Elon Musk’s SpaceX hold the promise of greater returns…
That’s right, the potential for better returns.
And if you think that is a pie-in-the-sky dream, then you may find it interesting to know that Fox Business noted that, “bitcoin nears all-time high following Trump’s crypto 401(k) announcement.”
That’s not a typo.
Bitcoin, which has a track record of showing impressive numbers already, went even higher because investment professionals recognize that when consumers can fit cryptocurrencies into their existing worldview about investing, there will be an explosion of demand because retail consumers will have a way to invest into cryptocurrencies that they’re comfortable with.
We are truly at a turning point in the broad acceptance of cryptocurrencies.
Before you turn down that glass, though, realize that there will still be a time period between the executive order being issued (which has already happened) and consumers actually being able to invest into crypto through their 401(k).
That means…
There is an opportunity here – if you’re ready to seize it
We know that once retail investors can use their 401(k)s for crypto investing, demand and valuations will go through the roof.
You, however, can get ahead of that demand spike so that you can make the most of that growth opportunity.
How?
By investing into cryptocurrency now before the retail market wakes up to it (which they will once they can access crypto through their 401(k)s.
And you can invest into cryptocurrencies now using tax advantaged retirement accounts.
Which is why now is a perfect opportunity to look into your own digital IRA. Get started right now – in less than 10 minutes – any time, day or night. Open your digital IRA now.
Have questions or concerns? Uncertain that a digital IRA is right for you? You can find out more with your free, no-obligation copy of the Insider’s Guide to Digital IRAs.
