Cryptocurrency Investments Pose Risks for Retirement Savings

Cryptocurrencies have been gaining attention in recent years, with some investors even using them as a potential addition to their retirement portfolios. However, the volatile nature of these investments raises concerns about their suitability for long-term savings.

The Government Accountability Office (GAO) has found that adding Bitcoin to a retirement portfolio can lead to losses five times worse than traditional investments. This is due in part to the high volatility of cryptocurrencies, which can swing 5% to 10% or more on a single day.

Crypto's wild price swings can destroy decades of savings, as investors who bought near the peak have seen their investments plummet by 30% or more in weeks. This is not a reliable way to build a secure retirement fund.