Reports indicate that a growing number of parents in the US are shifting from traditional 529 college savings plans to Bitcoin.
This move is driven by Bitcoin’s impressive historical price growth, which has outpaced more conventional investment vehicles like stocks.
Many parents see Bitcoin as a hedge against inflation and economic uncertainty, believing in its long-term value preservation despite its volatility.
While some view Bitcoin as a diversification tool rather than a complete replacement for 529 plans, they remain confident that their children will have ample time to weather market fluctuations before accessing funds for tuition.
Rajat Soni, a popular financier on X (formerly known as Twitter), wrote:
“If you’re saving for your kids, add Bitcoin to the portfolio. Buying $10-$100 of Bitcoin per month over 18 years will set your kids up for an excellent life. It will massively outperform the rest of the portfolio.”
Bitcoin’s recent performance, including a record high of nearly $110,000 earlier this year—up 500% from its 2022 low—has bolstered investor confidence, though BTC has since dipped to $93,707.59, marking a 6.85% drop in 24 hours and 7.20% over the past week.
However, opting for Bitcoin over a 529 plan comes with trade-offs.
While Bitcoin offers the potential for significant returns, parents who choose cryptocurrency for college savings forgo the tax advantages of 529 plans, which offer tax-free withdrawals for educational expenses.
Bitcoin's adoption is increasingly extending beyond individual investors.
Over the past year, institutional interest has surged, with more than 70 publicly traded companies now holding over 600,000 BTC.
This growing accumulation underscores confidence in Bitcoin's long-term value and its potential as a store of wealth.
In parallel, Bitcoin's rise has been fuelled by political shifts, notably US President Donald Trump's transformation from a crypto sceptic to a pro-Bitcoin advocate.
His proposal for a Bitcoin stockpile has sparked global attention, with countries such as the Czech Republic and Hong Kong also considering Bitcoin reserves.
Market experts view these developments as a natural progression, given Bitcoin's key attributes.
Its decentralised nature, fixed supply, and global accessibility make it an appealing alternative to traditional assets.
Travis Kling, founder of Ikigai Asset Management, has highlighted Bitcoin’s role as a safeguard against central bank mismanagement, noting its capacity to absorb a significant portion of global money supply growth.
Despite Bitcoin's current volatility, Kling predicts it will become more stable and widely accepted over the next decade.
By 2035, he envisions Bitcoin's market capitalisation reaching $15 trillion, with an annual trading volume of $200 trillion, potentially positioning it as superior collateral to traditional assets like US Treasury bonds.
Spanish authorities dismantled a major crypto pyramid scam that defrauded over 3,600 victims out of an estimated 32.6 million euros through a fake online investment platform. Eight suspects were arrested, and the scam affected victims in 36 countries, leading to asset seizures and frozen bank accounts.
JoyIn his X post, Calacanis told his 981,600 followers that Bitcoin has enjoyed a wonderful streak, but he predicts that there could be something even bigger than Bitcoin that would replace Bitcoin, resulting in a 'restart in the game.'
XingChiNorth Korea's Lazarus Group has become one of the largest Bitcoin holders, controlling 13,562 BTC, after stealing $1.46 billion in a crypto heist. This makes North Korea one of the top government holders of Bitcoin, raising concerns about their intentions and role in global cybercrime.
AnaisThe Bank of Korea rejected the idea of holding Bitcoin in its foreign exchange reserves due to concerns about volatility and liquidity. Despite growing political interest in Bitcoin reserves, the central bank remains cautious and aligns with global trends of skepticism.
AnaisJames Howells' request to search a landfill for a hard drive containing 8,000 Bitcoin was rejected by the UK Court of Appeal, marking a setback in his legal battle. He plans to appeal to the European Court of Human Rights, but the landfill is set to close soon, making the search more difficult.
WeatherlyAmerican streamer Amouranth survived a violent home invasion in Houston, where armed intruders assaulted her and demanded her cryptocurrency keys. Four suspects, including two teenagers, were arrested, and the case highlights the rising danger of criminals targeting people with significant digital assets.
JoyGemini set a Guinness World Record by using 1,000 drones to form the Bitcoin logo in the sky over Austin, Texas. The event celebrated Bitcoin's role in the US Strategic Bitcoin Reserve initiative and showcased the growing influence of cryptocurrency.
AnaisRussia is increasingly using cryptocurrencies like Bitcoin and Tether to conduct oil trade with China and India, bypassing Western sanctions. The use of intermediaries and offshore accounts has made crypto a key tool in these transactions, speeding up operations despite financial restrictions.
WeatherlyThe White House is planning to acquire large amounts of Bitcoin for a strategic reserve, with support for the Bitcoin Act that proposes purchasing up to $80 billion worth of Bitcoin. The government aims to do this in a budget-neutral way, possibly using gold certificates, though the feasibility remains unclear.
WeatherlyA growing number of wealthy U.S. investors are turning to cryptocurrency, with 26% already holding crypto and 38% planning to invest in the future, especially among younger investors. Despite this interest, many still view crypto mainly as an investment tool rather than a technology for broader applications.
AnaisThe digital age has armed us with both the tools of deception and the tools of truth but the war against fake news is likely to be a continuous struggle.
CatherineUS Lawmakers pressure the White House on cracking down the use of crypto for illicit purposes after Hamas attack.
Hui XinIsraeli authorities have taken strong measures to shut down cryptocurrency accounts and seize substantial digital assets to cut off financial ties between the crypto markets and Hamas, as a response to the group's attacks on Israel
JixuThe Shanghai Municipal Government has unveiled a comprehensive plan, titled the "Shanghai City Action Plan for Advancing New Infrastructure Construction (2023-2026)". This initiative seeks to revolutionise the city's infrastructure and services by harnessing the potential of emerging technologies such as artificial intelligence, blockchain, 5G, and digital twins.
JoyIn March, the investment company, which operates as an affiliate of Digital Wave Finance (DWF), entered the Orbs ecosystem through a token purchase of up to $10 million.
DavinAptos, a blockchain network, encountered a significant outage lasting over five hours on October 18, 2023, as it celebrated its one-year anniversary.
JasperA survey found that 41% of respondents would prefer not to hold virtual assets, and only 20% want to hold virtual assets in the future
ClementRipple executives have been absolved of the charges previously levied against them but the journey continues as Ripple and the SEC must settle on remedies for institutional XRP sale violations.
CatherineBinance has formalised agreements with new fiat partners for EUR payments, deposits, and withdrawals but the new service providers involved in this collaboration were not disclosed.
KikyoThis funding will be split between the University at Albany (UAlbany) and the State University of New York (SUNY), signifying a pivotal move towards establishing New York as a leading force in AI innovation and education.
Jasper
