Parents Bet on Bitcoin for Kids' College Savings

Parents are increasingly turning to Bitcoin as an alternative to traditional 529 college savings plans, drawn by the cryptocurrency's potential for high returns and diversification. The surge in Bitcoin's price, which has risen over 500% since its recent lows and surpassed $105,000, has fueled this trend, despite occasional dips.

Jim Crider, a certified financial planner and father of four, is among those who believe in Bitcoin's long-term potential. Based in San Antonio, Crider plans to save one whole Bitcoin for each of his children by the time they turn 18, convinced that the cryptocurrency will reach $1 million in the next decade. While acknowledging the risks, Crider sees even greater risk in having no exposure to Bitcoin.

Travis Headley, a 43-year-old doctor from Louisiana, is shifting his kids' 529 plan savings into Bitcoin. Headley believes that the traditional approach will not be sufficient to cover escalating college costs and that his children have enough time to recover if the investment goes awry. Alex Crognale, a professional soccer player, shares this sentiment, having become disillusioned with the returns of 529 accounts and opting for Bitcoin as a more flexible and promising asset.

The rise of Bitcoin ETFs has brought renewed attention to cryptocurrencies, following their recovery from several scandals. While most financial advisors do not recommend allocating all savings to crypto, some suggest that small investments in cryptocurrencies could align with long-term financial strategies. For many parents, the potential benefits of investing in Bitcoin outweigh the risks.

Rajat Soni, a Toronto-based financial analyst, has outlined a strategy for parents looking to shift from 529 plans to crypto. By buying $10-$100 of Bitcoin per month over 18 years, parents can set their children up for a comfortable future. Soni predicts that, at some point, 0.001 Bitcoin (100,000 Satoshis) will buy what $100,000 buys today.

Some Bitcoin enthusiasts are even educating their children about the cryptocurrency to ensure a smoother entry into adulthood. Chris and Frieda Bobay, a crypto-loving couple from Nashville, created an illustrated kids' book, "Bitcoin for