Has Bitcoin hit mainstream? Fidelity Bank Thinks So
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Our blitzkrieging editors pull together a rapid wrap looking at the mass normalization of Bitcoin and the world — Howard Fields Rick Botelho, MD, Equity Muse and Sean Moffitt are our intrepid crypto-spelunkers this week.
Bitcoin in Your 401(k): Is That a Good Idea?
Fidelity plans to give employers the option of adding Bitcoin cryptocurrency to retirement plans later this year. Here are some questions to consider before investing.” WSJ April 2022.
This isn't Robin Hood Hodlrs; it’s 23,000 company pension funds. Process that. A pension holder can buy Bitcoin as easily as gold, IBM or an S&P-based ETF.
Surely this will drive equity one way or the other in these modern economics and social constraints.
The Great 😎
1. People in America and some globally, to invest in a new asset class legally and following regulations.
2. It is somewhat transparent
3. Bitcoin makes some people richer fr time to time.
The Good 😇
1. Citizens will feel safer as this cryptocurrency gets normalized like other new asset classes such as single-family homes and art.
2. The bank with have a new stream of profits, and that will help their customers, the LPs, The GPs and other stakeholders.
3. There could be a transparent tax at the right time on cryptocurrency when it is exchanged for profits and moved to more liquid asset classes.
The Bad 🤥
1. Given the volatility, some investor will lose their savings.
2. Chance for manipulation is high not just by banks but also by blocks of Robin Hood Investors. How is this not a casino? #moralhazards
3. If a crisis or massive fraud happens, it will delay the rollout of modern, safe e-currencies
The Uncertain 🧐
1. How will the US regulate this? Why is it legal?
2. This is happening in Canada and other jurisdictions but in investment accounts, not retirement accounts. Is that ok?
3. How will the uberwealthy be involved, and how can money laundering be controlled?
4. Is there a grassroots version of this type of account that is not like betting on sports or on a casino
5. What incentives and disincentives can be designed to make this system self-organizing, transparent and regulated nicely?
