Millions of U.S. citizens own both Bitcoin and a retirement account, but hold no Bitcoin in that retirement account.
Ryan Radloff, CEO of custody solution Kingdom Trust, recently explained a vast number of Americans do not hold Bitcoin (BTC) in their retirement accounts.
“There’s 7.1 million Americans that have already made the leap to buy Bitcoin or take the dive into our industry so to speak, and have a retirement account, but don’t have Bitcoin in their retirement account,” Radloff told Morgan Creek Digital co-founder Anthony Pompliano in a July 18 interview.
People have more to spend on Bitcoin in their retirement accounts
Retirement accounts allow the public to put money into a long-term investment fund, with the stipulation of only taking money from that account after a certain time period — usually totalling decades, depending on the participants age. Such a format comes with significant tax breaks and incentives.
Various solutions exist as gateways for Bitcoin retirement account purchases and investing, including an option from Kingdom Trust. According to Radloff, people have available capital in their retirement accounts for BTC, but have not pulled the trigger on buying.
“If you also look at people’s investible, discretionary money, they usually have three to four times more investible discretionary money in their retirement accounts than they do in their non-retirement accounts,” Radloff said.
Bitcoin means potential in retirement accounts
Bitcoin spells opportunity at present, given the number of people in the industry, matched with retirement account usage, Radloff noted.
“When I say this is the biggest opportunity for Bitcoin, especially in this kind of stock-to-flow model that we look at, I’m looking at 7.1 million Bitcoiners that have three times more investible money in their retirement accounts that aren’t using their retirement accounts to HODL.”
Mentioning the trillions of dollars at play in the retirement market, Radloff also noted a lack of workable structure around crypto and blockchain companies offering 401k options to their employees.
Radloff’s comment on opportunity comes with reference to Bitcoin’s stock-to-flow ratio, made by crypto Twitter analyst PlanB. The model essentially explains Bitcoin’s inevitable rising price due to its decreasing mining reward payout and limited maximum supply.