Cryptocurrency Rises as Retirement Investment Option, Raises Concerns Over Volatility and Risk

The introduction of cryptocurrency as an investment option for retirement funds has sparked concern among financial experts. A recent executive order has made it easier for individuals to invest in cryptocurrencies, but this comes with significant risks.

Crypto prices are known to be highly volatile, with frequent and massive price drops that can happen without warning. Historically, the crypto markets have seen numerous boom-and-bust cycles, resulting in devastating losses for investors who bought near peak prices.

The Government Accountability Office (GAO) has found that crypto assets available to 401(k) plans are four to 12 times as volatile as the S&P 500. Research also shows that Bitcoin's volatility is nearly 10 times higher than major fiat currencies, such as the US dollar.