Back in 2009, Bitcoin became the very first decentralized crypto currency and it has only grown ever since. Nearly a decade later, it’s considered the largest and most popular of all the cryptos not just for short-term purchases but for long-term investments too. In fact, many are even choosing to invest in a Bitcoin IRA. Before we get ahead of ourselves and ask ‘what is Bitcoin IRA’, let’s look at Bitcoin in more detail and how you can take advantage of this current wave.
Created in 2008, Bitcoin was created by a software developer called Satoshi Nakamoto. As an electronic payment system, the idea originally was to allow consumers an exchange and transaction system completely independent of a central authority. Rather than the physical currencies we’ve all been using for generations, Bitcoin has some key differences;
Digital – Firstly, it’s a digital currency (known as a crypto currency) which means there’s nothing tangible. Despite this, it can still be used for transactions much like a regular currency as long as both parties accept the terms.
Decentralized – Secondly, Bitcoin isn’t controlled by a country, a large institution, a bank, or anything like this. Instead, a group of volunteers run the open network and ensure the coding is correct for consumers all around the world. Sometimes, we feel uneasy at the level of control that government institutions and banks have with our money. With Bitcoin, this is removed.
Short Supply – Thirdly, and one of the main reasons we want to answer the question of ‘what is Bitcoin IRA’ today, there will always be a limited supply of Bitcoin. With the so-called fiat currencies, such as the Dollar and Pound Sterling, a central bank can very quickly order the printing of more money. With Bitcoin, this isn’t possible since there’s an underlying algorithm controlling the market. Every hour, small amounts of Bitcoin become available and this will continue to be the case but only until a ceiling of 21 million has been reached.
With this in mind, Bitcoin has already become, and will increasingly become, an asset. Much like gold and other precious metals, the lack of supply will increase the price and make for a good investment.
What Is Bitcoin IRA?
In case you’re unaware, more people than ever before are choosing to invest in other markets for their individual retirement account (IRA). Rather than trusting the US Dollar and our economy as a whole (which is becoming harder to do!), we’re choosing to put our money in gold and silver. For example, Regal Assets is a particular leader in this market and they offer gold, silver, platinum, and palladium for your IRA. However, they’ve also moved with the times and increased their offering to include cryptos such as Bitcoin, Ethereum, Ripple, Zcash, and LiteCoin.
What does this mean? Rather than investing your money in the normal way, your retirement account can instead hold cryptos such as Bitcoin instead. As soon as you get in contact with a reliable and professional company, all you’ll need to do is provide your details and they’ll handle the rest. With extensive experience dealing with cryptos, the provider should adjust your IRA so it contains Bitcoin rather than US dollars.
Why Choose A Bitcoin IRA?
Although we’ve touched upon the reasons why Bitcoin can make a good investment, you need to know why the risk of your retirement money being invested in Bitcoin is a positive one. Below, we’ve listed some simple reasons;
- Diversification – Just as is the case with gold, adding Bitcoin to your investment portfolio is a brilliant move. Since it’s not controlled by a central organization, its value will always be a result of the supply/demand model. With only 21 million Bitcoin that will ever be ‘mined’, it should retain value through the ups and downs we experience as a nation. Even through an economic crisis, its value should hold (or even increase as people look to diversify!).
- Personal Property – Next, the IRS Notice 2014-21 suggests that Bitcoin and other digital currencies are considered to be personal property. Ultimately, this means that any gains you enjoy will always be free from tax until you withdraw. Additionally, if you decide to sell your Bitcoin while keeping funds in the account later down the line, this capital can be reinvested into an IRA-eligible asset while enjoying the tax-deferred benefits.
- More Control – Bitcoin is traded from one person to another, and this removal of ‘middlemen’ entities, such as banks and governments, means you’ll have more control over your retirement. Instead, all transactions will take place on a secure blockchain platform. In layman’s terms, banks and government entities can’t interfere with your investment.
- Protection from Inflation – With Bitcoin, there’s a hard limit on how many tokens are available at any one time. As supply increases, the cryptocurrency actually becomes harder to obtain and this process is called ‘adaptive scaling’. Rather than being printed on demand, there will always be a limit to Bitcoin and this means your Bitcoin IRA will add a layer of protection against inflation.
- Protection from Stock Bubble – Did you know that the market price corrects itself for overvalued stocks around once every six to ten years? If all your eggs are in the same basket, your retirement savings could take a huge hit. With your portfolio now diversified and some money in Bitcoin, this will be less of a concern for you.
Choosing A Vendor
With all of this information in mind, the question of ‘what is Bitcoin IRA’ should now be answered and you also have some reasons as to why they can be so beneficial. Therefore, the next question would be how you find a reliable company you can trust with your retirement money. With the wrong decision, the process could quickly become more hassle than it’s worth. With the right choice, you can sit back and relax while the company does all the work.
Earlier, we mentioned Regal Assets who specialize in Bitcoin and Gold IRA. When looking for a provider, we advise looking towards Regal Assets as an example of everything you need from a company. For example, they have extensive experience in dealing with cryptocurrencies and this is important considering it’s still a growing market. Although newer companies may have some knowledge about this niche, they won’t have seen the growth of Bitcoin and therefore won’t be able to provide such strong advice.
With Regal Assets, they offer experience, superior knowledge, and, perhaps most importantly, great resources which means you can learn all about Bitcoin and gold IRAs without being rushed into a decision. In fact, they pride themselves on having ‘non-pushy’ sales staff because they know how important this decision is for your retirement.
In the last seven years, the value of Bitcoin has increased by a whopping 109,000% ($3,400). As the supply of Bitcoin suddenly stops, the value will become more stable and enjoy increases in the coming years. If you’ve been told setting up a Bitcoin IRA is difficult, show them this guide because it really can be simple. With the right provider, they’ll do all the work on your behalf.
Now you know ‘what is Bitcoin IRA’, you can research more and consider diversification for your financial future! Complete the form below to request your FREE BITCOIN INVESTMENT KIT.