More Parents Choose Bitcoin Over 529 College Savings Plans
More parents in the US are shifting from 529 college savings plans to Bitcoin, seeing it as a hedge against inflation and a long-term investment.
More American parents are shifting from 529 college savings plans to Bitcoin, seeing it as a long-term investment and hedge against inflation. They believe Bitcoin’s past growth outperforms traditional investments like stocks, despite its volatility. Many parents view Bitcoin as a way to protect their savings from economic uncertainty. While some use it to replace traditional savings plans entirely, others see it as a diversification strategy. They believe their children will have time to handle market ups and downs before needing tuition funds.
“If you’re saving for your kids, add Bitcoin to the portfolio. Buying $10-$100 of Bitcoin per month over 18 years will set your kids up for an excellent life. It will massively outperform the rest of the portfolio,” wrote Rajat Soni, a well-known financial expert, on X (formerly Twitter).
Bitcoin’s price surge has boosted investor confidence. This year, it reached an all-time high of nearly $110,000—a massive 500% increase from its 2022 low of under $20,000. Supporters believe its growth is far from over, fueling more adoption from both individuals and institutions. However, Bitcoin-based savings have drawbacks. While Bitcoin may bring higher returns, parents choosing it over 529 plans lose access to tax advantages, including tax-free withdrawals for educational costs.
Bitcoin adoption is expanding beyond individual investors. In the past year, institutional demand has skyrocketed, with more than 70 publicly traded companies now holding over 600,000 BTC. This trend signals rising confidence in Bitcoin’s role as a valuable financial asset. Political shifts have also influenced Bitcoin’s growth. Formerly skeptical, President Donald Trump has now become a strong supporter, pushing for a national Bitcoin reserve. His stance has fueled global interest, with countries like the Czech Republic and Hong Kong exploring their own Bitcoin holdings.
Experts argue that Bitcoin’s decentralized structure, fixed supply, and worldwide accessibility make it a powerful alternative to traditional investments. Travis Kling, founder of Ikigai Asset Management, sees Bitcoin as a hedge against central bank policies, stating:
“Eventually, you come to Bitcoin and you can squint a little bit and actually put together a cogent argument that Bitcoin would be a better collateral foundation than Treasuries.”
Kling explained that Bitcoin is designed to absorb much of the world’s money supply growth. This could make it a stronger financial asset than fiat-based investments. While still volatile, Kling expects Bitcoin to become more stable and widely used over the next decade. By 2035, he predicts its market cap could reach $15 trillion, with an annual trading volume of $200 trillion. If this happens, Bitcoin could become a superior financial asset compared to US Treasury bonds.