Lottery winners choose lifetime annuities; CZ suggests that one-time Bitcoin investment is more cost-effective

Source: DigitalToday Original Title: Lifetime Lottery Winner… CZ “Lump Sum Payouts More Advantageous Than Coin Investments” Original Link: “Should you take a lump sum or an installment after winning the lottery” became a real case this September, attracting global attention. A woman in her twenties from Montreal, Quebec, Canada, who won $1 million (about 1.4 billion KRW), chose to decline a lump sum and instead opted for a lifelong annual pension of $1,000 per week.

Recently, CZ, founder of a leading exchange, commented on this case, saying, “If it were me, I would take the $1 million lump sum to invest in cryptocurrencies,” bringing this topic back into focus.

The winner is Brenda Aubin-Vega, who bought two tickets at a convenience store near her workplace, one of which was a winner. It was a “Gagnant à vie” lottery operated by Loto-Québec, a public enterprise in Quebec, where winners can choose either a “lifetime weekly pension of $1,000” or a “lump sum of $1 million.” She chose the lifetime pension, reasoning that “it feels safer, especially considering future plans to buy a house, and it offers peace of mind in the long run.” At $1,000 per week, it would take about 19 years to reach $1 million.

CZ believes this choice isn’t optimal. He stated, “Taking the $1 million lump sum and investing it in Bitcoin or platform tokens would be more advantageous. When the winner withdraws $1,000 weekly for living expenses, over 100 years, they will have withdrawn a total of $5 million. However, if the $1 million is continuously invested in cryptocurrencies, the potential returns could far exceed the principal.”

CZ’s viewpoint is based on confidence in the future price of Bitcoin. Industry leaders like Kathy Wood and Michael Saylor predict Bitcoin could reach $1 million before 2030, with Saylor even forecasting a Bitcoin price of $13 million by 2045.

Based on these predictions, the analysis that long-term crypto investments can create greater value than fixed income has gained recognition. Critics also point out that the $1,000 weekly income could diminish over time due to inflation, whereas digital assets may offer stronger inflation resistance than fiat currencies.

CZ’s perspective highlights the potential of digital assets as an inflation hedge, making them more attractive compared to fixed fiat currency payments.