The world’s population is getting older, and that’s creating a crisis for countries across the world.
That’s because population ageing, exacerbated by COVID-19, is placing immense pressure on retirement systems worldwide. Even some of the world's richest nations are facing expenses that could quickly leave them underwater.
Could betting on Bitcoin be an unlikely way to stop the world from drowning?
Between the costs of sustaining aged care, healthcare, and pensions, countries are facing a massive bill they might not be able to pay.
That problem has been made even worse by the fact that a smaller number of workers are supporting an increasing number of retirees.
Right now, nations are throwing everything at the wall to solve this oncoming crisis. That includes boosting immigration and adopting family-friendly policies. But what you might know is that it also includes big bets on Bitcoin.
Bitcoin could serve as a strategic investment to support retirement systems. Its scarcity and resistance to inflation make it a potential store of value, while its historical price growth offers the opportunity for high returns. For ageing economies, Bitcoin’s liquidity could provide a flexible resource for managing growing costs in healthcare and pensions.
However, Bitcoin’s volatility and regulatory uncertainties pose significant risks.
If sovereigns want to get serious about using Bitcoin to compensate for growing retirement costs, they can’t rely on BTC as a cure-all. It needs to be part of a diversified strategy, with careful management to mitigate potential losses.
Here’s how I think it could work.
Sovereign nations could allocate a small percentage of their wealth funds to Bitcoin, gradually accumulating it and pairing this with traditional investments to maintain stability.
At the same time, they could follow the lead of what’s working right now in countries like Sweden, which have prioritised family-friendly policies. For instance, Sweden offers generous parental leave, subsidised childcare, and financial incentives have supported higher birth rates compared to other advanced economies.
This has allowed them to counter ageing trends by implementing robust family-friendly policies. Still, while effective, these policies require significant public investment and long-term political commitment, which may not be feasible for all nations.
Another key strategy to offset workforce shortages and support ageing populations is immigration. Countries like Australia have relied on immigration to sustain population growth and fill labor gaps. But immigration needs to ensure value addition and societal integration, since uncontrolled immigration risks straining public resources and creating division.
Policies need to focus on attracting skilled workers and supporting cultural integration to maximise economic benefits. A multifaceted approach addressing the challenges of ageing populations needs to come from a combination of immigration reform, healthcare innovations, and family-friendly polices.
If countries want to get out ahead, they also need to bet on the future.
As a high-risk, high-reward asset, Bitcoin could be just what countries struggling with the ageing crisis need right now to complement this approach and diversify their bets on the world of tomorrow.
Watch Our Latest Videos.
Subscribe!Disclaimer:Please note that nothing on this website constitutes financial advice. Whilst every effort has been made to ensure that the information provided on this website is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we strongly recommend you consult a qualified professional who should take into account your specific investment objectives, financial situation and individual needs.
Cristian is the CEO and Co-Founder of Liquid Loans. A former partner in an international accounting firm, Cristian brings this wealth of experience to build and provide thought leadership in the blockchain and DeFi space.