An investment boom is emerging within the U.S. military, with technology stocks and cryptocurrencies being the main investment targets.
TL;DR
A growing investment trend among U.S. military personnel focuses on tech stocks and cryptocurrencies, boosting wealth but also exposing them to high risks like market volatility and scams, as shown by IRS data highlighting their significant role in the crypto market.
Tags
According to ChainCatcher, citing the Wall Street Journal, a strong investment culture is sweeping through the U.S. military. From tech stocks to cryptocurrencies, military bases are becoming a unique "investment club."
The report states that this trend is genuinely changing the wealth of military personnel. Porsches and Hummers are increasingly filling military base parking lots, and social media influencers in military uniforms are sharing their wealth-building secrets with their followers. However, this phenomenon is also accompanied by significant market risks. The high leverage and concentrated holdings strategies employed by some military personnel have raised concerns about their financial situation should the market reverse.
The article uses several case studies to illustrate the high risks of military personnel investing. The story of Coast Guard Petty Officer Bryson Saunders is quite representative. He entered the market after hearing his comrades boast about making money on Dogecoin, and subsequently invested in Bitcoin and meme stocks like GameStop, frankly admitting, "I was trying to punch my ticket."
Navy Lieutenant Commander Zach Rodriguez, while cruising the Pacific aboard an aircraft carrier, was influenced by his comrades to invest half of his family savings (over $100,000) in cryptocurrencies like Chainlink . He experienced a surge in his assets but also suffered a devastating loss of $250,000 in cryptocurrency scams. Now, he describes himself as a "bitcoin and chill" investor, holding approximately $1 million worth of Bitcoin and related company assets .
The article, through analysis of IRS data, reveals that the U.S. military played a significant role in the 2020-2021 cryptocurrency market cycle. Data shows that in 2021, 11 of the 25 U.S. zip codes with the highest rates of individual income tax returns for receiving or disposing of cryptocurrency were located around military bases. Taxpayer participation rates at some military bases were more than four times the national average.