It is likely that you have heard of the popularity of cryptocurrencies, and particularly bitcoin and ethereum. Those two absolutely shot up in value a cross 2017 and it is likely that are valuable only continue to increase. This has also given rise to people who want to open a bitcoin IRA, particularly since that has been allowed under IRS rules since 2014. Let’s take a look at the 10 main reasons why you should consider doing the same.
10 Reasons Why You Should Open a Bitcoin IRA
- Cryptocurrencies have existed for less than 10 years. This means they are a young asset class that still have a lot of growth ahead of them.
- The world is becoming increasingly digital, which means it is likely that digital currencies will also solidify their position.
- Cryptocurrencies offer a tremendous appeal because they are anonymous. If you value the privacy of your financial identity, allowing you to conduct transactions in a discreet manner and avoiding the chance of identity theft, then cryptocurrencies are the way forward.
- Those who hold cryptocurrencies do not have to worry about the US Federal Reserve interfering in their money. Cryptocurrencies are not regulated by central banks and governments, which means they are as appealing as precious metals.
- You do not have to pay for holding the cryptocurrencies or for making transactions. Other asset classes all have significant fees to be aware of.
- Like gold, cryptocurrencies provide a safe Haven against financial, economic, and geopolitical disasters. Because there is a limited amount of cryptocurrencies available, meaning they can not be reproduced, they will always hold at least some value.
- Supplies of cryptocurrencies are limited but demand is growing. Only 21 million Bitcoin will ever be in existence and 17 million of those have already been mined. This means that bitcoin is actually more rare than gold, a true statement towards its value. Ethereum is just as limited.
- A strong retirement portfolio is one that includes a diverse range of asset classes. The statement that you should never put all your eggs in one basket is also true for your Investments. Financial experts agree that you should dedicate 10% of your portfolio to each asset class, one of which could be cryptocurrencies.
- The US treasury is printing more and more dollars, thereby forcing its value to decline. This is not possible with cryptocurrencies because of their limited amount.
- It is completely legal and increasingly easy to include cryptocurrencies in an investment portfolio.
These are just 10 reasons why you should consider cryptocurrencies for your retirement. Do make sure, however, that you sign up with a knowledgeable custodian who understands the way these currencies work. As with any investment, there is a significant amount of risk involved as well, and cryptocurrencies are highly volatile in nature. Make sure, therefore, that you never invest anything that you cannot afford to lose. Also, before you invest in them, find out what they are and how they work as you should only ever invest in those things that you understand.