Bitcoin, the once vaguely known digital currency is now gaining mainstream adoption across the world. It has become the most widely used form of alternative currency at the moment. Bitcoin IRA, having recognized the future potential of the digital currency has created the first ever Bitcoin-based Individual Retirement Arrangement (IRA) in the United States. Bitcoin is being increasingly adopted by big-name companies in the United States. Among the companies accepting Bitcoin payments in the country includes Microsoft, Dell, Overstock, Newegg, PayPal, Tesla and more. The creation of Bitcoin based IRA is influenced by the US Internal Revenue Service (IRS) ruling. IRS states that virtual currency like Bitcoin has an equivalent value in real currency and can be used to purchase goods and services. The same government department, in its “ Virtual Currency Guidance: Notice 2014-21 ” has declared that “ Bitcoin can be digitally traded between users and can be purchased for, or exchanged into US dollars, Euros, and other real or virtual currencies .” This ruling has opened doors for the creation of retirement and 401(k) accounts that are funded by the digital currency. Bitcoin IRA is an IRS approved IRA fund which has already opened accounts worth over $500,000 within months. Many people are interested in Bitcoin-based retirement funds because of the digital currency’s inherent advantages over conventional asset classes. By default, Bitcoin is disconnected from conventional asset classes, making it a speculative investment that doesn’t follow the dynamics of fiat ecosystem. For example: In the case of a market crash, investments based on conventional asset classes are bound to take a hit. But Bitcoin, being an alternative asset class may remain unaffected. Also, by design, the maximum number of bitcoin to be ever mined stands at 21 million. The finite supply of Bitcoin makes it an […]
