Bitcoin in Retirement Portfolios: Experts Clash on Risk and Reward

Bitcoin's volatility has led many to question its suitability for retirement portfolios. While some experts recommend limiting crypto exposure, others see it as a viable option.

MIT finance professor Jonathan Parker is among those who advise against investing in cryptocurrency during retirement, stating 'Yes, zero.'

Parker is not alone; 77% of Americans consider cryptocurrency in workplace retirement plans to be risky, according to a National Institute on Retirement Security survey.

However, regulators and investment firms have increasingly opened the door to greater crypto exposure in retirement savings. BlackRock suggests allocating up to 2% of a portfolio to Bitcoin for investors who can tolerate the risk, while Fidelity recommends allocations of 2%-5%, which could improve retirement outcomes.