(Natural News) As the price of Bitcoin continues to hover substantially below $4,000 per coin, after reaching earlier all-time highs of around $20,000 per coin, venture capitalists appear to now be swooping in for the kill as they launch brand new crypto schemes using people’s pension funds as financial backing.
According to reports, a previously obscure finance firm known as Morgan Creek Digital recently decided to launch a crypto-based venture that includes two U.S. pension funds as “anchor investments,” which apparently is the first this has ever been done.
The $40 million endeavor is said to be backed not only by these dual pension plans, which are managed by Fairfax County Retirement Systems (FCRS) in Virginia, but also by an insurance company, a university endowment, and a private foundation.
As FCRS and many other underfunded public pension funds across the United States struggle to maintain their payouts in the face of recipients living longer than expected, some of them are succumbing to the siren’s song of crypto – which could end up backfiring in a major way, should said cryptos collapse to zero, as we’ve long been warning.
In addition to proposing an increase in the retirement age, some of these pension funds are now flirting with the idea of putting people’s retirement money into crypto schemes with an “attractive asymmetric return profile.”
“There’s a belief in the institutional world that if the industry will be around for a long time, it will be very valuable,” Anthony Pompliano, founder of Morgan Creek, told reporters in an interview. “The smart money is not distracted by price but looks at the long-term trends, and believes they’re betting on innovation as a great way to deliver risk-mitigated returns.”
For more related news, be sure to check out BitRaped.com.
Morgan Creek says that all traditional assets “will eventually be represented by digital tokens”
Readers who have been following the dramatics up and downs of Bitcoin over the past several years will immediately recognize that all of this wishful thinking by Pompliano and the pension funds his company represents will more than likely come to ruin eventually. That is because so-called crypto “assets” aren’t really assets at all, but are simply imaginary “tokens” that are backed by false hope, and in many cases greed.
Despite the fact that crypto enthusiasts have convinced themselves that institutional investors like Morgan Creek will increasingly be drawn towards digital assets like Bitcoin because they’re extremely volatile, meaning they have the potential to garner massive gains if played correctly, none of this bodes well for people’s retirement funds, which are now being leveraged by the equivalent of imaginary money.
Morgan Creek is convinced that all traditional assets “will eventually be represented by digital tokens” anyway, which makes its venture a no-brainer, in the eyes of the company’s founder. But will it all actually pan out this way in the long run? Time will tell.
“For now, at least, Fairfax County retirees can breath a sigh of relief,” contends Zero Hedge.
“Because the double-digit return projections we imagine will soon be penciled into the funds’ balance sheets will temporarily lift the pressure to raise the retirement age while taxpayers can worry less about shouldering a rising share of the fund’s cost burden … That is, until reality sinks in, leaving a giant hole where lofty market-beating returns were ‘supposed’ to be.”
Be sure to check out this report by the Health Ranger about why he believes Bitcoin doesn’t stand a chance, no matter how much it’s hyped by the crypto apologists.
You can hear financial expert Peter Schiff’s take on the Bitcoin scam at Brighteon.com.
Read more news about the impending collapse of public and private pensions at Pensions.news.
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