Cryptocurrency advocates say they offer much higher returns than the assets normally held in 401 (k) accounts. However, most analysts agree that cryptocurrencies are simply too risky to form an important part of a responsible retirement plan. Of course, investors shouldn't rush to add bitcoins or other crypto assets to their 401 (k) plans just because they can. Yellen has warned people not to add digital assets to their retirement plans.
He said that cryptocurrencies are “a very risky investment,” adding that Congress should explain what assets can be added to retirement options, such as 401 (k) plans. An additional way of looking at Bitcoin is to use its tendency to encourage more people to invest for retirement. It's the appeal of investing in it that makes it more likely that people who don't normally save for retirement will start saving. Don't the means of investing in Bitcoin justify the purpose of saving more for retirement? Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency.
A safer but potentially less lucrative alternative is to buy shares in companies exposed to cryptocurrencies.