All over the world, personal financial stress is reaching its peak. A recent American study found that more than three out of four people feel anxious about their financial situation. This sows anti-risk mindsets and raises fears about the security of long-term savings, including retirement funds.

However, that shouldn’t mean hiding money under the floor. Nor should it necessarily mean handing over the reins to a low-growth pension fund that, at current inflation rates, risks losing value. It means being smarter in evaluating all options and in diversifying. And that requires freedom.

That’s what Alabama Sen. Tommy Tuberville (R) advocated when he proposed the Financial Freedom Act in May, which would allow all Americans with self-directed retirement plans to add cryptocurrency to their 401(k) – a defined contribution personal contribution. retirement account. This was prompted by a regulatory directive from the US Department of Labor in March attempting to ban 401(k) accounts from investing in crypto.

Too often, freedom is seen as the enemy of stability, when in fact fear is the enemy of stability. And that’s exactly what the US government’s distrust of alternative assets is fueling. Much of the media was quick to jump on the anti-crypto bandwagon. A quick Google search of coverage of Fidelity’s announcement that they would soon let participants invest up to 20% of their employer-sponsored 401(k) retirement plan in Bitcoin reveals overwhelming negativity, or less skepticism.

To compound perceptions, many were further put off by the incorporation of rockstar assets like cryptocurrencies into their retirement portfolios following the collapse of the Terra ecosystem in May. Most people just want the option to retire comfortably — they’re not planning to buy a yacht or a seat on Elon Musk’s spaceship — and they’re worried that digital assets won’t provide the stability. and the ongoing interest they need to build a solid retirement nest egg.

Age is not always synonymous with wisdom

While caution in the crypto space is always advised, steering people away from considering digital assets in their retirement portfolio altogether is inherently dangerous. It discourages people from accessing what could be the solution to a dying system and pension-eroding inflation.

Because, the truth is, the old ways aren’t a safe bet either. Traditional pension funds are in trouble. All but 12 of the 100 largest US 401(k) funds have job double-digit losses so far this year thanks to soaring inflation and a turbulent US stock market. At the same time, inflation is reducing the purchasing power of cash while interest rates remain extremely low.

Even the real estate market is not a “sure thing”. Many are speculating about a housing bubble for reasons such as Chinese real estate giant Evergrande heading into default. Home ownership is increasingly seen as a pipe dream for younger generations.

Related: Retiring Early With Crypto? Play with fire

It is therefore becoming clear that clinging only to old ways – including traditional financial instruments and an outdated banking system – is not viable for people who want long-lasting retirement savings.

Crypto-currencies become an opportunity to plan for retirement

As inflation nears a 40-year high in the United States, it is no longer “transitional”. Instability is also becoming a semi-permanent fixture in light of climate change and global unrest surrounding Russia’s invasion of Ukraine. It’s hard for anyone to know what the future holds, including pension funds, so people should be free to place their bets wherever they please, including in their own retirement plans.

Real weekly earnings are down for a record 16th consecutive month.

Inflation-adjusted income has fallen for 89% (16 of 18 months) of Biden’s presidency pic.twitter.com/IAgFtBaXJ6

— zerohedge (@zerohedge) August 10, 2022

Stablecoins, for example, box be a prudent addition to a 401(k). It’s just a matter of choosing the right kind – one that can store wealth and hedge against the damaging effects of inflation. As an algorithmic stablecoin, Terra was inherently vulnerable to speculative attacks due to a lack of independent asset support. Stablecoins backed by physical assets, such as gold, on the other hand, have enormous potential as vehicles for preserving wealth.

Gold has time and again withstood economic crises much better than stocks, bonds and fiat currencies. In 2021, for example, as the pandemic saw fiat currencies around the world turn volatile, the price of gold held steadily between $1,700 and $1,950 per ounce, proving both its stability and its value.

From a broader perspective, the value of gold has increased by more than 500% in the years since the abolition of the gold standard, as central banks ensured that their reserves remained plentiful. But only now is gold digitalized and infinitely more accessible, making it easier to buy in fractional quantities and transact with it. Economist Danielle Di Martino even noted that gold, historically, is the least correlated asset class with inflation. More than just offsetting its effects, gold has maintained a positive correlation with rising inflation rates and has achieved an average annual performance of +10.6% over the past 50 years. Gold has done well in times of high volatility, in bear markets, and has even outperformed stock markets at times.

Governments have a role to play in fostering our economic salvation

Let’s face it. Retirement is a daunting prospect, especially as it becomes more difficult to find growth in the economic environment, as well as protection and liquidity. Americans who consider an increasingly distant possibility are right to think conservatively. But they must think conservative in a way that embraces the future.

Investing in digital gold is the ultimate “future conservative” decision, combining the best of both worlds: the historic support of traditional currencies, and the flexibility and autonomy of blockchain-based decentralized digital currencies.

Governments must recognize the potential of these assets and, instead of limiting investors’ options or scaring them away into an anti-change mentality, they should provide cross-border oversight and promote increased transparency, allowing investors to achieve freedom financial by providing a context of safety.

The global economy is moving towards alternative assets. Pension wealth cannot be an exception to this rule. Individuals simply cannot afford to exclude alternative assets from their retirement plans, especially with inflation already eating away at their hard-earned savings. It is time for everyone to take control of their wealth and seek better, safer and fairer alternatives to the status quo.

The opinions expressed are those of the author alone and do not necessarily reflect the views of Cointelegraph. This article is for general informational purposes and is not intended to be and should not be considered legal or investment advice.