Bitcoin's 190M% Rise: Risk or Reward for Retirement?

Bitcoin, the first cryptocurrency, has gained significant attention as a potential investment for retirement. Created in 2009 by an unknown person or group using the name Satoshi Nakamoto, Bitcoin introduced a new way to handle transactions online, operating on a technology called blockchain. This system ensures that transactions are secure and transparent.

Initially, Bitcoin had no market value, but as of February 2025, a single Bitcoin would set you back a number just shy of $100,000 dollars. This astronomical increase of almost 190,000,000% since 2009 can be attributed to several factors:

• Increased adoption: Over the years, Bitcoin has gained acceptance from both individuals and institutions as a legitimate form of digital currency and investment.
• Scarcity: Bitcoin's supply is capped at 21 million coins, with the number of new coins released into the system halving every four years, creating a sense of digital scarcity that has driven demand.
• Regulatory developments: Favorable regulatory changes, such as the approval of Bitcoin exchange-traded funds (ETFs) in the United States, have enhanced accessibility and legitimacy, attracting more investors.
• Macroeconomic factors: Economic uncertainties and inflation concerns have led investors to view Bitcoin as a hedge, further boosting its appeal.

However, Bitcoin isn't a safe bet, according to some critics. Warren Buffett, for instance, has stated that "buying Bitcoin is not an investment" because it lacks intrinsic value. Additionally, Bitcoin doesn't really have a competitive use case for transactions anymore, with newer, faster cryptocurrencies like Tether's USDt (USDT) being far more popular among those who "use" their cryptocurrencies as intended.

Moreover, quantum computers using Shor's algorithm, which could arrive in as little as five years, may potentially derive private keys from public keys, allowing unauthorized access to Bitcoin funds and reducing community faith in the chain. All it takes is for the five top holders to sell their assets in such an event, and a flood of almost 1 million Bitcoin could trigger a fire sale.

Investing in Bitcoin in any case, whether for retirement or not, is a risky game to play. Its volatility is evident in its history, with significant price swings