Old grandmas funds to pump bitcoin?

[bbc.reporter]

Help me understand this. Will this partnership help retirees to buy and sell bitcoin under the trading strategies of Fidelity's experts? They cannot expect old grandma to do it by herself.

Pump and dump with retiree funds?



Crypto custodian Kingdom Trust is offering customers bitcoin cold storage from Fidelity Digital Assets.

The storage will be offered on Kingdom Trust’s Choice retirement account, a hybrid self-service retirement platform where investors can buy, sell or hold stocks, exchange-traded funds (ETFs) and digital assets in one tax-advantaged account.

Kingdom Trust CEO Ryan Radloff hopes the partnership with Fidelity will nudge the investment giant closer to serving retail crypto investors.

“I think having Fidelity grow is so important for bitcoin and the market’s maturity that I’m willing to sacrifice a few basis points of margin for that,” Radloff said of the new business arrangement. “We think this is meaningful for a lot of people that already have Fidelity retirement accounts but have really been waiting for Fidelity Digital Assets’ mandate to mature from just an institutional one to institutional and retail.”

Read in full https://www.coindesk.com/fidelity-digital-assets-to-custody-bitcoin-in-kingdom-trust-retirement-accounts

[mk4]

Idunno man, them having the choice of buying bitcoin is great, but probably the last thing that I would expect to cause a BTC pump, is from old people's retirement money money. Especially knowing that probably most of them is going to call bitcoin a scam once you mention it to them, with them telling you a quick history lesson about the Dutch tulip mania.

[exstasie]

Trading BTC through a retirement account (tax free) is pretty awesome. That's great news for the what, 1,000 customers or so, that might have a Kingdom Trust Choice retirement account?

Let me know when Accenture or Oppenheimer offer something like this. Then we can talk about pumping Bitcoin.

[Janation]

Then most of them might just dump those retirement Bitcoins, right?

Most of them usually just save them, some use them for other stuffs like investing in some businesses or maybe what the agency wanted to. I mean, I don't know. If this happens I guess the community will be adding more holders in the process.

[davis196]

It's not about old grandmas!
When you are saving for a pension in a retirement fund,you are saving for the most of your active life.The people,who are saving money in retirement funds aren't that old.They are active and working.
When they retire,they start getting pensions and spending the money in their retirement accounts.
From where did you get that stupid assumption about old grandmas making investing decisions?
This is going to be a "hybrid self-service retirement platform",so you have the answer to your question in this article.
Bitcoin being adopted by a retirement fund seems like a good news,but I wouldn't be that optimistic that this will actually happen.The authorities might deny such adoption.

[crzy]

Considering bitcoin as your retirement fund is not bad at all but this can't guarantee that the market will pump. We need more businesses to adopt honestly, but if those people who wants bitcoin to become their retirement fund is fine, I just hope that they really keep safe their private keys and keep monitoring the market so when the times come, they can easily enjoy the money that they worked for.

[Juggy777]

Help me understand this. Will this partnership help retirees to buy and sell bitcoin under the trading strategies of Fidelity's experts? They cannot expect old grandma to do it by herself.

Pump and dump with retiree funds?



Crypto custodian Kingdom Trust is offering customers bitcoin cold storage from Fidelity Digital Assets.

The storage will be offered on Kingdom Trust’s Choice retirement account, a hybrid self-service retirement platform where investors can buy, sell or hold stocks, exchange-traded funds (ETFs) and digital assets in one tax-advantaged account.

Kingdom Trust CEO Ryan Radloff hopes the partnership with Fidelity will nudge the investment giant closer to serving retail crypto investors.

“I think having Fidelity grow is so important for bitcoin and the market’s maturity that I’m willing to sacrifice a few basis points of margin for that,” Radloff said of the new business arrangement. “We think this is meaningful for a lot of people that already have Fidelity retirement accounts but have really been waiting for Fidelity Digital Assets’ mandate to mature from just an institutional one to institutional and retail.”

Read in full https://www.coindesk.com/fidelity-digital-assets-to-custody-bitcoin-in-kingdom-trust-retirement-accounts

@bbc.reporter old folks will never buy bitcoins because they cannot handle the volatility that bitcoin brings, and secondly they may even find it complicated to keep their wallet safe. Lastly at their age I don’t expect them to be patient enough if bitcoin transactions take longer than expected, and hence we can rule them out of ever investing in bitcoins.

Sources:

https://www.marketwatch.com/story/why-these-early-retirees-wont-touch-bitcoin-or-other-cryptos-and-neither-should-you-2018-02-02

https://www.cnbc.com/2018/07/30/more-millennials-than-older-adults-say-bitcoin-is-the-best-way-to-save.html

[jrrsparkles]

Most of the old people never understand the inflation and investments that is why they choose to save their money on bank accounts rather than on assets but they are keep losing their savings every year unknowningly.As others said old people will call bitcoin as scam and from my experience its hard too convenience old people from their own perspective towards anything.

[Spaffin]

I believe that this issue is very complex and, in principle, is one of the reasons why cryptocurrency will not be able to be widely used in the daily life of every person in the near future. it is the old people who are the very obstacle, before the introduction of cryptocurrency into everyday life on a par with the national Fiat Linea funds. of course, there are elderly people advanced in the IT field who can use computers and smartphones, their new number is practical units and. very often old people do not even understand How to use mobile phones, this one says nothing even about cryptocurrency.

[el kaka22]

I do not think that there is any logic on using funds to buy bitcoin when the people are so old and their investments do not really need to go up too much. I mean these people only have like 20 years to live on average at the very best cases, bitcoin is not something that is gradually and slowly increasing method, you go buy bonds or sure stocks or whatever when you want slow but guaranteed stuff. What happens when grandma loses all her money in bitcoin?

I mean she is old, she can't just go out and work to make it back right? So, she would be basically put to a government house or maybe even worse, left alone to die. That is why I would assume that bitcoin for older people doesn't make sense even if they manage to buy it and store it, it is too risky for them to do it.

[bitbunnny]

Idunno man, them having the choice of buying bitcoin is great, but probably the last thing that I would expect to cause a BTC pump, is from old people's retirement money money. Especially knowing that probably most of them is going to call bitcoin a scam once you mention it to them, with them telling you a quick history lesson about the Dutch tulip mania.

Exactly, it's not a prejudice but many older people don't trust Bitcoin. Majority of them doesn't even know what it is, that is the fact.
Also, in older age you want security, something reliable so I don't think that is very likely they will invest in Bitcoin. Too much risk for something unknown and with possibility to lose money they saved whole life. Alsow, I wouldn't recommend for older people to invest larger amount of money.

[Jating]

I do not think that there is any logic on using funds to buy bitcoin when the people are so old and their investments do not really need to go up too much. I mean these people only have like 20 years to live on average at the very best cases, bitcoin is not something that is gradually and slowly increasing method, you go buy bonds or sure stocks or whatever when you want slow but guaranteed stuff. What happens when grandma loses all her money in bitcoin?

I mean she is old, she can't just go out and work to make it back right? So, she would be basically put to a government house or maybe even worse, left alone to die. That is why I would assume that bitcoin for older people doesn't make sense even if they manage to buy it and store it, it is too risky for them to do it.

I think that's where Fidelity and Kingdom Trust enters the picture, to help those retirees to make the decision to whether invest their hard earn retirees money to bitcoin.

However, I don't link the idea though and I do hope that they will simply enter their money, after all they have work so hard for it for many years. So probably there will be no pump in the price, and I hope that retirees will have someone to get second opinion because its very dangerous to invest on bitcoin and lost their money on it.

[gentlemand]

I remember a great deal of talk about 'Mrs Watanabe', the stereotypical backbone of Japanese retail investment, riding to Bitcoin's rescue when the Japanese market opened up.

As with every other goddamn thing that was going to 'save' Bitcoin, as soon as she was unleashed fuck all happened.

I think the uptake for this will be somewhere in the region of - nil.

[StonksStonksStonks]

stop thinking of grandma and start thinking about average aged person adding to their 401k.

Custodial services are what will get bitcoin to the trillions. Coinbase is doing custodial services too. Ok so heres how it works: the SEC declined to allow Bitcoin ETF on the NASDAQ because if someone were to steal the funds its be a nightmare. Custodialship solves that problem.

Think gold, a custodian will hold gold in a vault, with security and it may even be backed by insurance if it gets stolen. That how you sell bitcoin to the investing public as safe: secured and insured. Also if the custodial were to steal the bitcoins, thats someone they can go after with a lawsuit.

Custody is what will bridge crypto street to wallstreet investors.

[exstasie]

I remember a great deal of talk about 'Mrs Watanabe', the stereotypical backbone of Japanese retail investment, riding to Bitcoin's rescue when the Japanese market opened up.

As with every other goddamn thing that was going to 'save' Bitcoin, as soon as she was unleashed fuck all happened.

Not that I ever bought into the "Mrs Watanabe" narrative, but it did emerge in late 2017 when Bitflyer came to prominence and churned out record BTCJPY volumes month after month. At the time, it was the main exchange I watched because it seemed to be consistently leading the rest of the world.

You can't exactly say fuck all happened since the market literally bubbled to $20K.

Whether you believe Mrs Watanabe had anything to do with that is another matter.....

[sunsilk]

Then most of them might just dump those retirement Bitcoins, right?

Most of them usually just save them, some use them for other stuffs like investing in some businesses or maybe what the agency wanted to. I mean, I don't know. If this happens I guess the community will be adding more holders in the process.

They will add more holders but the concern for the grandmas and grandpas is that they might not contain the risk and volatility that it can bring them. With their age, patience becomes weak although not for all.

But, they shouldn't encourage those that don't understand it.

[buwaytress]

Think this news was announced a few months ago actually, the first of its kind and all that. No different from other pension funds as I recall, and funds of these kinds simply allocate percentage to different assets based on the banks' or funds' own assessment of risk. I don't think the actual fund owner has any say once they allow portions of it to include Bitcoin.

Exposure to Bitcoin it may be, but in the least significant way possible without owning any.

[Lucius]

~snip~

This is definitely something that makes sense, but the average Bitcoin user or rather the user of this forum thinks that Bitcoin should be as far away from the custodial way as possible because its decentralization is jeopardized if each user is not their own bank. Logically speaking, this is true, because if Coinbase has 1 million Bitcoins in its possession, it means that all those who keep them there actually have nothing but their user account and trust in one company. If something bad happened to that company, then a new Mt.Gox would happen to us and BTC would suffer a serious blow.

Insurance or lawsuits are something that can last for years, especially with something that is quite sensitive like crypto. The trillions that some dream of will still have to wait a bit, but that big investors will be the ones to pump BTC should not be doubted for a moment - the only question is what will be the final result, will BTC be just a temporary toy for them?

[wxa7115]

It's not about old grandmas!
When you are saving for a pension in a retirement fund,you are saving for the most of your active life.The people,who are saving money in retirement funds aren't that old.They are active and working.
When they retire,they start getting pensions and spending the money in their retirement accounts.
From where did you get that stupid assumption about old grandmas making investing decisions?
This is going to be a "hybrid self-service retirement platform",so you have the answer to your question in this article.
Bitcoin being adopted by a retirement fund seems like a good news,but I wouldn't be that optimistic that this will actually happen.The authorities might deny such adoption.

This, it seems to me this is more geared toward the millennials than anyone else, those that are retiring or close to retiring cannot afford to invest in bitcoin even if they think it is a great opportunity, the volatility of this market is extreme and they are depending on that money to live the rest of their lives.

It is well known that money managers recommend to have a more aggressive portfolio when you are younger as if something goes wrong you have a lot of time to recover and keep holding whatever asset you have decided to hold until it recovers, but when you are old you do not have time on your side and it is better to invest in something that is not as volatile even if the profits are not a spectacular compared to other asset classes.

[AjithBtc]

Retirement funds being used to pump bitcoin could happen if the entire funds were secured under a single key. The regular savings gets accumulated under one's own account which is under a specific firm. This means the firm as well as the user has control over the fund, but the individual with his fund cannot make a price pumping. If the firm plans, it can cause a price pumping combining the entire volume of funds available.