Mallers is optimistic about the inclusion of Bitcoin in retirement plans 401 (K).
The specialist gave Harvard, an institution that declared investments linked to BTC.
Jack Mallers, CEO of Strike, states that the traditional investment model based on 60% in shares and 40% in bonds is obsolete. In his opinion, these assets – together with the real estate market – have not only lost profitability, but are “destroying US cities” for their low performance.
In a recent publication, Mallers stressed that the opening of retirement plans 401 (K) to Bitcoin (BTC) and gold, added to Harvard’s decision to acquire the asset, are clear signs that “portfolio 60/40 is dead.” His verdict was overwhelming: «Long life to hard money. Bitcoin’s long life ».
Part of his optimism towards BTC relies on the recent Executive order Signed by Donald Trumpwhich seeks to expand access to “alternative assets” in retirement plans 401 (K) – retirement savings accounts sponsored by employers in the US. UU.— and other defined contribution schemes. This measure, aimed at democratizing investments outside of traditional markets, includes cryptocurrencies.
For Mallers, this opening offers To millions of Americans the possibility of accessing Bitcoin as an alternative to preserve and grow their long -term capital.
In addition, Harvard’s case stands out. And, according to data presented to the US Stock Exchange and Values Commission reported That as of June 30 of this year it had about 1.9 million shares of the Bitcoin ETF of Ishares, valued at more than 116 million dollars.
It is worth mentioning that Bitcoin’s relevance responds mainly to his fundamental characteristic: his shortage. Unlike real -real estate, BTC’s offer is limited to 21 million unitsand the production of new currencies progressively decreases with the halvings that occur every four years until the total supply is finished, something planned for the year 2140.
Therefore, a few days ago Mallers stressed that, given the high demand for large funds and even governments, Buyers will be forced to acquire BTC at increasingly high prices.
A problem that affects cities
In an episode of his podcast, Mallers illustrated his position with the case of the city of Chicagopointing out that the city faces a budget deficit estimated at 1,120 million dollars by 2026.
Thus, he explained that much of the pensions of essential workers, such as police and teachers, are invested in treasury bonds and commercial real estate. However, he warned that the sharp fall in the value of these assets has put at risk the ability to pay said pensions.
According to the young Bitcoin specialist, this vicious circle – thoughtful in difficulties that impact the city, and a city in problems that threatens pensions – shows that the 60/40 model is no longer viable. “They will not survive with bonds and actions,” he said.
The truth is that Strike’s CEO is not alone in its diagnosis. As Cryptonotics reported, financial advisors such as Ric Edelman have indicated that the 60/40 model was conceived at a time with less life expectancy and with higher performance bonds. Today, the specialist maintains, allocating 40% of low performance fixed income portfolio is no longer enough to maintain capital over decades of retirement.
Edelman considers that Bitcoin offers a higher performance potential and presents a low correlation with actions, bonds and raw materials. This makes it, in his opinion, an effective tool to improve the risk-return profile of the portfolios. For that reason, it has raised its recommendations, moving from a modest 1% in BTC to allocations of between 10% and 40%, according to the investor’s profile.
