Bitcoin: The New College Savings Plan

Bitcoin's Growth Fuels Shift Away From Traditional College Savings Plans

Parents in the US are increasingly abandoning traditional 529 college savings plans in favor of Bitcoin, drawn by its historical price appreciation and potential as a hedge against inflation. Despite concerns about volatility, investors remain confident in Bitcoin's long-term growth potential.

Rajat Soni, a popular financier on X (formerly Twitter), advised, "If you’re saving for your kids, add Bitcoin to the portfolio. Buying $10-$100 of Bitcoin per month over 18 years will set your kids up for an excellent life. It will massively outperform the rest of the portfolio."

Bitcoin's recent price action has reinforced investor confidence, with the cryptocurrency reaching a new all-time high of nearly $110,000 this year, marking a staggering 500% surge from its 2022 low of under $20,000.

However, choosing Bitcoin over 529 plans comes with trade-offs. While Bitcoin offers the potential for significant gains, parents who opt for cryptocurrency investments forego the tax advantages of 529 plans, which provide benefits like tax-free withdrawals for educational expenses.

Meanwhile, Bitcoin's rising adoption extends past individual investors. Over the past year, institutional interest has surged, with more than 70 publicly traded companies now holding over 600,000 BTC. This accumulation signals confidence in Bitcoin's long-term value and role as a viable store of wealth.

US President Donald Trump's transition from a crypto skeptic to a pro-Bitcoin advocate has further legitimized the asset. His plan for a Bitcoin stockpile has intensified global interest, with nations such as the Czech Republic and Hong Kong also exploring Bitcoin reserves.

Market experts believe these moves are unsurprising because of the top asset's core attributes. According to them, BTC's decentralized nature, fixed supply, and global accessibility position it as a strong alternative to traditional investment options.

Travis Kling, founder and chief investment officer of Ikigai Asset Management, has highlighted Bitcoin's role as protection against central bank mismanagement. He predicted that Bitcoin would become more stable and widely accepted over the next decade, with its market capitalization potentially reaching $15 trillion and an