It is expected that in 2019, many institutional investors will invest in the crypto-market, but it would be a big Surprise if pension funds would invest. In contrast to other institutional investors, pension funds, try, very slowly, new forms of investment, since you are familiar with the traditional ways better. The reluctance is not unfounded, since many people from these decisions for their retirement. But by the end of 2018, rumour had it that the pension funds opportunities in the crypto check by investment market. In principle, both state and private pension funds are in search of additional asset classes, and the crypto-market offers with more incentives. Today, the yields of the pension funds and the current inflation rate of match is not very good, so we might be able to offer a look into a future in which many pension funds are simply no reasonable pension. Bitcoin has urged, however, in terms of returns again and again to the top and surpassed all other systems in the last 10 years.
The pension funds are in trouble
The pension funds around the world are in trouble and this is a big Problem. In the U.S., Bloomberg reported that public pension funds are in more than 42 States in difficulty. The main problem with pension funds is that in most Western countries, the number of people to Work the start, is far lower than the number of people who go in pension. This means that the number of people who pay money into the pension funds, decreases, while the number of people leaving the workforce is increasing. Secondly, people are living longer, which means that the pension funds will have to pay for a single Person for a longer period. In addition, the interest rates in earlier times were at the more conservative investment products such as government bonds much higher than they are today. Accordingly, the pension Fund must invest to meet their obligations in risky assets, which also brings back problems.
In the past, pension funds were reluctant to currencies in terms of Crypto, the reasons for this are many and varied. It is hard to get money from other people in something like Bitcoin, especially when there are no regulations. What has been missing in the crypto-currencies from the beginning, is the lack of state funding. Anonymity is one of the Strengths of crypto-currencies, but it also means a major lack of transparency, and without these returns are difficult to calculate.
The markets have experienced many manipulations such as Pump-and-Dump and many other Scams. One of the reasons for this is the lack of regulations, by which the majority of these cases can also not be followed. This increases the risk and reduces the confidence of the investors, in addition, there is no possibility of the losses of such systems to compensate, which makes the investment highly unpredictable. The crypto-market is fairly new, and in General it lacks structures. There is confusion about which routes will the entire industry go next. Most of the investors like the General clarity and stability, the crypto-currencies just can’t offer, which is why the pension funds act with restraint.
Will invest the pension funds really in crypto?
For 2019, it is expected that many new institutional investors are coming into the crypto market. Many believe that the market has developed so far that a safe entry of these large companies is possible. Even a small investment from many of the big companies can cause a large change in the market capitalization of many Coins, what can be, of course, the prices are on the rise. Many countries open up the topic of crypto-currencies, which gives investors great confidence. Both in India as well as in Korea, regulations are in development and ready soon for adoption. These measures will reduce the crypto-related risk. The industry leaders take bold decisions, in order to find a clear path for crypto. Slowly the market Matures. The infrastructure, regulations, and legal framework, investors are ready, and the developers are striving to be the weak points to fix the technology. It is only a matter of time until crypto finds its way into the Mainstream. This enthusiasm drives institutional investors, and pension funds in the market.
2019 will surely be an exciting year for the entire crypto-industry. With the impending collapse of the economy, the question of whether cryptography can be considered as a Safe-Haven Investment? How will change the entry of institutional investors, the dynamics of the market? What are the new regulations, the governments are already planning? 2019 is an important year, something that will set the course for this young but promising technology, and if the pension funds come into the market, things really get going.
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