A Digital Alternative to your Retirement Individual Retirement Accounts and 401(k)s have received a breath of fresh air that many employees hope will turn around the IRA industry’s sub par performance and penchant for high fees. A recent study by Center for American Progress calculated that “administrative costs, combined with investment expenses, can total 1 percent or more and add up to nearly $140,000 over the lifetime of a worker whose salary starts around $30,000 at age 25” Bitcoin IRA is the much-needed shot in the arm, the industry has been waiting for. The new retirement investment option, allowing individuals to invest in Bitcoin is a very serious, very real way to invest in Bitcoin. Bitcoin IRA is the first digital currency based IRA created in accordance with current IRS regulations in the United States. The Bitcoin IRA was created following the earlier ruling by the IRS which classified Bitcoin as a form of asset. This ruling paved the way for a Bitcoin-based IRA that can be funded from a Traditional or Roth IRA. The Bitcoin-based IRA offering allows people to invest directly in digital currency and store it in a special IRA approved bitcoin wallet. In compliance with the existing IRS regulations, all Bitcoin IRA accounts will have an authorized custodian. No one can say for sure, but Individuals investing in a Bitcoin IRA believe they stand to gain more in profit than if they had invested in more traditional assets, like stocks or bonds. One look at the historical price of Bitcoin is enough to understand why. Bitcoin Investment Thesis (ELI5) For starters, the value of Bitcoin has increased drastically in the past few years. An investment of around $200 in Bitcoin in 2011 would have turned to over $1 million today. That’ s a small peek […]
