Wait, what is Bitcoin?
Bitcoin is the world’s first cryptocurrency — digital money that allows people to send and receive payments directly to each other, without the need for banks or government institutions. It was created in 2009 and was created by an unknown individual or group under the pseudonym Satoshi Nakamoto. It is based on a technology called blockchain, which is a public ledger of transactions that is recorded and shared among thousands of computers around the world. It is this technology that enables the security and transparency of every transfer of funds. Initially with no real market value, Bitcoin was first used in 2010 to buy — and two pizzas for a whopping 10,000 BTC. Today, in June 2025, one Bitcoin is worth more than $100,000, representing an increase of nearly 190 million percent. But how did that come about — and can Bitcoin really be a good choice for your retirement?
Source: cointelegraph
Bitcoin Volatility
Bitcoin has been known throughout its history for large fluctuations in price. For example, in August 2024, it was about 4.5 times more volatile than the S&P 500 index and as much as four times more volatile than gold. Such volatility can pose a serious risk to pension portfolios, which tend to strive for stability and predictable growth. Bitcoin’s history has been marked by a series of dramatic crashes: in 2011, the price fell from $32 to just one cent due to the hacking of the Mt. Gox exchange; in 2013 from $260 to $50 after market overheating; In 2018, during the so-called “crypto winter”, its value fell by 83%; and in 2022, after the collapse of FTX, it dipped below $16,000. Yet, despite these shocks, one trend stands out: Bitcoin’s volatility is slowly decreasing over time. As the market matures and institutional interest grows, Bitcoin is increasingly viewed not only as a speculative tool, but also as a potential long-term investment — and even as a retirement option.
Source: cointelegraph
Bitcoin and institutional acceptance
Although Bitcoin has long been considered an alternative and risky asset, in recent years it has begun to enter more serious financial circles — including the world of pension funds. For example, the American pension fund Fidelity allowed individuals to allocate part of their funds to Bitcoin in their 401(k) plans, which marked an important step towards the institutional legitimacy of cryptocurrencies. Also, some countries such as El Salvador, which have formally recognized Bitcoin as legal tender, are considering including Bitcoin in the state’s pension reserves. In Australia and Canada, some smaller pension funds are already exposed to Bitcoin through ETFs (exchange-traded funds), and more and more institutions are exploring this possibility. While such moves are still considered experimental, they show that Bitcoin is increasingly perceived not only as a speculative asset, but also as a potential long-term means of preserving value in retirement portfolios.
Source: cointelegraph
Tax Benefits of Holding Bitcoin
In Croatia, Bitcoin is currently treated as an asset, not as a currency, which means that capital gains made from the sale of Bitcoin are subject to a capital income tax, which is 10%, with an additional surtax depending on the place of residence. However, there are important tax benefits that holding Bitcoin can make attractive in the long run. Namely, if a citizen owns Bitcoin for more than two years before selling it, then he is exempt from paying tax on the realized capital gain. This means that a long-term investment, such as that for retirement, avoids tax liability altogether — provided that the funds are not sold within that two-year period. Also, if Bitcoin is used exclusively as a means of savings and is not converted into fiat currency, there is no tax liability until the sale takes place. Such a tax framework encourages passive investors to consider Bitcoin as a long-term strategy for preserving value, and increasingly for retirement purposes.
Source: cointelegraph
Bitcoin vs Gold for Retirement Investment
Investing for retirement is based on finding a balance between risk and stability. Gold has historically been the foundation of such strategies — prized for its reliability, stable value, and global acceptance. On the other hand, Bitcoin is a relatively new player in the market, but it is increasingly being referred to as “digital gold”. The question is: does it really belong in the pension portfolio? Historically, gold has been known for preserving its value through wars, recessions, and inflation, and its price moves predictably. In 2024, for example, it increased by almost 30%. Bitcoin, although it recorded a 120% jump in the same year, is known for its extreme volatility. Also, while both assets are highly liquid, gold has a more stable market and is not subject to technical risks such as hacking. And when it comes to inflation protection, gold is once again in the lead, while Bitcoin still doesn’t have a long enough history to be considered a reliable protector of purchasing power. Yet, despite all the advantages of gold, Bitcoin is increasingly appearing in small percentages in the portfolios of wealthier investors looking for diversification and a potentially high return. For retirement, gold remains a safer option — but Bitcoin could be that “wild” addition for those willing to take a little more risk for a bigger potential gain.
Source: cointelegraph
Best Way to Save Bitcoin for Retirement
If you decide to include Bitcoin in your retirement strategy, security and long-term portfolio management become key elements of success. The first step is to choose a safe storage method. The most secure option is cold storage — physical devices like hardware wallets (e.g., Ledger or Trezor) that keep private keys offline, away from hackers and online threats. Unlike storage on exchanges or with third parties, where users often don’t have actual control over funds, a cold wallet gives you complete ownership control — which is especially important for assets that you plan to hold for years. Furthermore, it is important to think about diversification. Bitcoin can be one part of your retirement portfolio, but balancing it with traditional investments like stocks, bonds, and maybe even gold will help you mitigate your risk. Finally, don’t forget to review and adjust your portfolio from time to time — especially after major market moves. Maintaining a balance and managing investments regularly is essential for a secure and prosperous retirement future.
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