What if bitcoin was the answer?

After invading Black Rock’s corporate headquarters, the railroad workers head to Bourbon Palace. And while the demonstrations continue, negotiations on pension reform seem already doomed.

Pension reform, hopeless situation?

After rejecting two motions of censure, the French Parliament passed the pension reform on March 16th.

In addition to changing the legal retirement age, The new law consolidates the 42 private pension systems into a single points-based system. The aim, according to the Elysee, is to facilitate a professional transition and career break. However, pension reform penalizes people who have difficult or precarious jobs.

While unions are calling on Emmanuel Macron to launch a citizens’ consultation on pension reform, the situation seems hopeless. But for the government, this reform is a necessary evil to rebalance the state coffers.

According to Bruno Le Maire, this reform should bring 17.7 billion euros to pension funds by 2030. On the other hand, support measures aimed at facilitating the transition to the new pension system should cost the French government 4.2 billion euros.

While some investment funds, including Vanguard, have turned their backs on Bitcoin. Still others see it as a hedge against currency depreciation that directly affects retirees.

BTC, a solution to the pension problem?

In the US, some pension funds have started offering crypto investments to their clients.

For example, Fidelity wants to allow its customers to integrate Bitcoin into their 401(k) plans. (a private pension plan that allows Americans to contribute to a retirement savings account) By the end of 2023. Thus, they will be able to invest up to 20% of their 401(k) funds in Bitcoin. As a reminder, the Boston-based mutual fund manages the pensions of about 23,000 companies.

Thus, some experts see France’s pension reform as an opportunity to boost bitcoin adoption. And they say the problem may even encourage other pension funds to follow in the footsteps of Fidelity Investments and ForUsAll, two of the largest pension funds in the United States.

According to the businessman Dale CriexptoThe French can retire at the age of 62 by converting their contributions into Bitcoin for the next five years. According to some specialists, the depreciation of fiat currencies is a strong enough argument to transfer part of our dues to Bitcoin.

An asset that resists inflation!

average, Retirees receive a pension of 1,400 euros per month. Taking into account the annual inflation rate of 3%, retirees will need about €1,721 per month to maintain the same standard of living by 2030 and €3,109 per month to hope to exit by 2050. These projections are based on preliminary data from the European Union Commission and European Central Bank. .

In contrast, the bitcoin price has increased by more than 70% since the end of December. In fact, Satoshi Nakamoto’s cryptocurrency has risen from just under $16,600 on Jan. 1 to over $28,200 as of this writing.

Michael Saylor, one of the biggest proponents of Bitcoin, believes it is the best safe haven in the world. MicroStrategy, the company he chairs, has purchased an additional 1,045 BTC.

With the latest purchase, the company raises its reserves to over 140,000 BTC. And as a reminder, MicroStrategy was one of the first US companies to offer crypto allowances to employees.

Moral of the story: It will serve you no better than yourself.