A few weeks back, I offered my two cents on Bitcoin (and other crypto-currency) and why I thought they would be lousy investments in a 401(k) plan.

I own Bitcoin and other crypto investments. I buy and sell NBA Top Shot Non-Fungible tokens (NFTs). I’m creating a business with some friends and offering NFT trading cards. Yet, they are a terrible investment to offer in 401(k) plans. I am a seasoned investor with a long-term buy and hold. But the typical investor in a 401(k) plan isn’t seasoned, doesn’t understands dollar-cost averaging, and will lock in losses when any investment goes down substantially. In addition, cryptocurrency lacks the regulations that mutual funds and stocks have.

Cryptocurrency trading is very volatile and the last thing that any 401(k)plan sponsor needs are a participant that puts in all their money in crypto and panics when there is a sell-off. We can afford to be aggressive in our outside investments, we can’t afford that aggressiveness in 401(k) plans.