Do you really need Bitcoin to retire?
I saw a few people saying that we need Bitcoin to retire. I noticed that they are either new to the crypto world or someone who has no idea about cryptocurrencies and Bitcoin. This is my opinion. The reason is that we have so many coins today and we don't need just Bitcoin alone to retire. We can have our digital assets in multiple forms and those assets can keep giving us revenue in the form of passive income, so it can be a good way to invest in sources that give passive income to us and try to retire.
I would like to start this article with points on why Bitcoin has challenges to be assumed as a retirement cryptocurrency. There are so many options available for us and if we explore, we can invest in something that is concrete and can give us passive income.
Bitcoin does not give passive income
Having a Bitcoin with us has now become a pride these days. I wouldn't agree that someone will need Bitcoin to retire. There is also nothing wrong if we don't have Bitcoin but are still very active in the crypto world. This is not financial advice because I know a few people can resist and say that Bitcoin is a very important investment. I agree that the price of Bitcoin can keep going High and high but the problem with Bitcoin is that it does not give us any passive income. We don't get any form of income just for holding Bitcoin.
Even banks give us something in return if we are holding our money with them. But keeping Bitcoin in our wallets will not give us any regular source of income. But the value of Bitcoin can rise and if we have the interest in selling it for a better price, we can sell it in the future and become rich. In most cases, people who hold Bitcoin don't feel about selling it because it is a pride. I have seen people saying that they want to hold at least one full Bitcoin. But even if someone wants to do some fraction of their Bitcoin for a profit, they might have another problem which is the next topic.
Microtransactions in Bitcoin can be very costly
If someone wants to sell a small amount of Bitcoin they have been holding for many years, they might have to lose some money in transaction fees. Maybe today the transaction fees might look a little less but for someone trying to do micro transactions, the fees can even go up to 100$ in the future or even more than that. It can become a pain and there can be instances where people won't feel like selling their Bitcoin and just keep holding it.
In my opinion, I would like to buy a car only to have it on the road and not on the Garage. Investing in Bitcoin will be like a costly car standing in a Garage. Of course, the value of the car will keep going up every year but if we are not going to be using it on the road, then what is the point?
Retirement is not dependent on Bitcoin
I would like to say that retirement should not be dependent on Bitcoin. There are so many ways in which people can have passive income sources and be safe to retire. Having a Bitcoin is more like pride and not a source of income to retire. Some people who might have bought hundreds of Bitcoins in 2012 might find it to be their retirement plan because if they sell a few Bitcoins, they should be able to easily establish a few passive income sources for them outside the crypto world that can make them keep going. Even in the future when Bitcoin pumps further, they can continue to sell more and take cash whenever required. For people who have small amount of BTC, this may not be an option.
It is as you say, due to ignorance. The best way to earn with Bitcoin is by taking advantage of the rises in the currency. For the rest, passive income is an option, taking advantage of secure websites to generate it such as Hive or Poloniex.