The new "" are making headlines across America. President Trump's latest tax legislation includes a for every child born in 2025 and onwards. The money will be put into an account that will track a stock index. But they will also allow private contributions of up to $5,000 a year from Mum and Dad, or perhaps Grandma if you suck up right.

What if instead of adding a private contribution to the baby bonus account, you put that supplement into instead? It is an intriguing parallel investment worth considering.

Of course, you’ll have to have a baby first. So if you don’t know what to do, then you’ll have to start with a book called “Where Did I Come From?” Once that’s understood, then let’s talk investments.

The Bitcoin Alternative: A Digital Head Start

Imagine investing $1,000 in Bitcoin alongside the Trump Account baby bonus. It would be an interesting race to the finish line. One investment is a traditional cargo plane. Slow and steady could possibly win the race (in theory). The other is a rocket to the moon that could possibly hit a meteor shower on the way. 

But let’s flesh it out. With Bitcoin currently trading around $114,000 (08 August 2025), that $1,000 would buy approximately 0.0088 Bitcoin today.

The Power of 18 Years of Growth

Bitcoin has demonstrated remarkable long-term growth potential. While past performance doesn't guarantee future results, the numbers are striking. Even using conservative growth assumptions, the potential returns could be significant:

Conservative Scenario (15% annual growth):

• Initial investment: $1,000
• Value after 18 years: $12,375

Moderate Scenario (25% annual growth):

• Initial investment: $1,000
• Value after 18 years: $55,511

Optimistic Scenario (35% annual growth):

• Initial investment: $1,000
• Value after 18 years: $221,824

These projections assume compound annual growth rates that are significantly more conservative than Bitcoin's actual historical performance. 

And of course we need to say here that Bitcoin could possibly go to zero, with no warning, for any reason. You could end up living in your granny’s garage, driving her to pickleball every day. So let’s not put everything you have plus your granny into Bitcoin as a sole investment strategy. 

Why Consider Bitcoin for Long-Term Savings?

Children born today are digital natives. Crypto, with its reputation of being the “internet money”, will make sense to digital natives in a digital world. Bitcoin represents the native currency of the internet age.

The Trump Account baby bonus represents an opportunity to give children a financial head start. Whether you choose the traditional investment approach or explore Bitcoin alternatives, the key is starting early and thinking long-term.

If you do split the approach, and HoDL BTC for 18 years, then we can all circle back to see which was the better investment, as long as we haven’t all died waiting for the result. 18 years is a long time for people with stupid hobbies like jumping off mountains in wingsuits. Using a split-approach strategy combines the growth potential of cryptocurrency with the stability of conventional assets.

Baby Bonus Bottom Line

While we can't predict exactly what Bitcoin will be worth in 18 years, history suggests that thinking long-term with innovative assets has often rewarded patient investors. The question is, are you patient? Or will you dip into your Bitcoin savings and blow it all on a holiday to Aruba, covered in strawberry daiquiris? You may as well just move there now if that’s the case. And don’t forget to take your baby with you. If not, invest in your baby in the USA, and we will see you in 18 years! 

Disclaimer: Hypothetical or back-tested performance results may not reflect actual outcomes, and past performance does not guarantee future results. Investing in cryptocurrency carries a high degree of risk, including the possibility of losing some or all of your investment. Please invest only what you can afford to lose.

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