Older people are more likely to find themselves in a situation of economic vulnerability. Bitcoin, as a saving method, can provide the elderly with greater independence and economic prosperity.
A Japanese elderly steals a loaf of bread in a wholesale store, while another in Venezuela dies from hunger. This happens because the daily income of a person over 60 depends mostly on the state or third-party policies. In situations of precariousness and abandonment, cryptocurrencies like Bitcoin offer an alternative to traditional retirement funds.
The World Health Organization (WHO) estimates that by 2050 around 22% of the world’s population will be older than 60. Although the increase in life expectancy is one of the 20th century’s greatest achievements, it has led to unfavorable consequences.
As most elderly people do not work actively, they depend on pension funds to survive. In this sense, countries with the longest-living population, such as Spain and Japan, have decided to change their pension policies. However, companies in this sector are not as profitable as in previous years and could be forced to cease operations.
Old age is no longer profitable either for these companies or for those undergoing it. The biological and social conditions that senior citizens experience expose them to abandonment, excessive dependence and invisibility. Many people have worked their whole lives to contribute to the State, but this seems to have been insufficient.
In the absence of purchasing power, the elderly find it hard to get access to good food, medicines, new goods and services. In this sense, the quality of life for this sector of the population is greatly reduced.
Bitcoin Is a Solution
If the problems of the elderly have an economic origin, their solutions must also be of a financial nature. Experts recommend that people save money before retirement, given that retirement pensions are usually insufficient. Buying properties, investing in foreign currencies and having savings funds are popular strategies to ensure a more dignified old age.
Anthony Pompliano, an enthusiastic cryptocurrency investor, proposed last year that pension funds use Bitcoin. He considers that cryptocurrencies can help this industry avoid having more expenditure than income due to the increase in the population of retirees. This is because it has better return than other market assets like the US dollar.
The investor says that Bitcoin has asymmetric return as its users have made more profits than losses since its launch. He also noted that this asset is not correlated with other markets, so the events of a country or company do not affect its price.
Morgan Creek Digital, a company founded by Pompliano, managed to close an agreement with two US pension funds in 2019. Both companies, originally from Virginia, agreed to handle about USD 40 million in Bitcoin. The alliance set a precedent on the management of pensions with cryptocurrencies, but there are still many alternatives.
Senior citizens do not have to wait until a third party takes cryptocurrencies to cushion their purchasing power loss. Elderly people can also save with Bitcoin, using their own wallets and becoming directly involved with this new technology.
Cryptocurrencies not only offer greater economic prosperity but also greater independence. People do not have to depend on a bank, a company or the State to deposit the fruit of their work, but simply check their movements and balance in Bitcoin from a computer.
Developing new skills and self-sufficiency are qualities that considerably help improve the elderly’s quality of life. It is precisely in this specific area that Bitcoin can be of great help.
By Willmen Blanco
