Firefighters pension fund invests 25$ million in crypto

[kryptqnick]

Pensions come from a state fund in my country, and there's a part of taxes that goes towards the fund. But as our Minister of Finance said recently, anyone younger than 40 in 2021 cannot even hope to get this pension because the nation's getting older and the fund can barely pay the benefits to people who are already entitled. So instead, our country will be moving towards state-owned and private pension funds that invest money into things. AFAIK, pension funds usually aren't allowed to make investments that aren't deemed low-risk, and it's not the first time I see a pension fund investing some money into Bitcoin. So I suppose it means Bitcoin isn't considered a high-risk investment, which is good news.

[paxmao]

Interesting news. Pension & retirement funds from the public sector are amongst the largest beast of nature in the market. These normally put their funds into stable, well cared for companies that rarely give surprises - like dividend kings or large bond issuing corporations, utilities,... The fact that this fund has chosen bitcoin is really good news but also speaks of the craze of a market in which interest are yielding nearly nothing.

[wxa7115]

This huge investment coming into bitcoin blockchain is a reason we may see bitcoin price not dropping greatly because it gives smaller investors hope for bull this season. The dominance of bitcoin and increase marketcap is keeping more investors to hodl. Comparing the 2017 to this time, the volatility is steadily increasing .

What happened on 2017 is just purely a bubble and the adoption by that time was not so huge that's why we see the dumping is continuous when the market is on bear since no one actually catch up the price when its falling and the one people does at that time is selling and getting panic when everything is collapsing but now institutional imvestors are in crypto many big names and rich guys are now supporting it so we cannot expect a hard dump now since bitcoin is a strong currency now and that decision they made for investing their pension for longterm is maybe a good decision since they can possibly get more money from it un future once bitcoin pump and reach for 6 digits in figures.

Agreed, what is happening now is what we thought it was happening in 2017, back then there was this expectation the world at large will see the development of bitcoin and will see how much potential it had and they will come to the market, but that did not happen, which is what eventually caused the money to run out and the crash we all remember.

However this time things are slightly different in the way we now have the support of institutional investors and instead of a decrease in that support it is to be expected that it goes up, so any crash we may see in the price is no going to be as bad as what we experimented before.