Investing retirement funds in cryptocurrencies can be a high-risk strategy, despite a recent executive order making it easier to do so.
A study by the Government Accountability Office (GAO) found that adding Bitcoin to a retirement portfolio could lead to losses five times worse than a traditional mix of stocks and bonds. The GAO also noted that cryptocurrency prices tend to move like a financial roller coaster, with frequent and massive price drops that can happen without warning.
Cryptocurrencies lack the benefits of more traditional investments, such as paying dividends or generating real-world value beyond their price movements. Instead, their value depends entirely on what other people think they're worth at any given moment.