06 Crypto Investment Bitcoin Adobe 640x640 4 No Stablecoin for Your 401(k): Why Crypto is a Bad Investment for Your Retirement

No Stablecoin for Your 401(k): Why Crypto is a Bad Investment for Your Retirement

– Cryptocurrencies are a non-centralized digital means of exchange that rely upon blockchain technology – digital money.

– The market value of most cryptocurrencies fluctuates daily, and the volatility in market price can be substantial.

– In order to mitigate the challenges related to daily market volatility, and to facilitate efficient trading of a cryptocurrency, developers created a subcategory of cryptocurrency referred to as stablecoins.

– Stablecoins have their value pegged to another asset (dollars, gold, and sometimes other cryptocurrencies).

– The claim that a stablecoin such as tether is pegged to the dollar requires focused attention.

– Pegging the value of an asset to the dollar is not a new concept.

– The dollar peg of money market funds does not rest simply upon the claim of a fund sponsor but is supported by a robust regulatory system.

 

 

06 Crypto No Stablecoin for Your 401(k): Why Crypto is a Bad Investment for Your Retirement
No Stablecoin for Your 401(k): Why Crypto is a Bad Investment for Your Retirement 3

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