Over the recent years, bitcoin has come up strongly as a currency that gives people the ability to transfer funds without relying on intermediaries or being regulated by the government through the central bank. Bitcoin is increasingly becoming recognized as more merchants are accepting it as a form of currency. Consumers are able to store their Bitcoins in digital wallets that usually resemble a virtual bank account. Bitcoin has been around since 2009, and since then, its value has grown by over 2,500%!
As mentioned above, bitcoin is decentralized meaning its value is not under the central bank’s regulation or that of any government. As more and more people become interested in it, the demand goes up and so does the price. Another thing is there is a limited supply of Bitcoins. They are about 16,000,000 in the whole world. This means that there is a high demand for the coins throughout the world.
The above are some of the reasons that make bitcoin an attractive investment. As a result of this, people have now actively started considering bitcoin as one of the investment vehicles for their individual retirement accounts (IRAs).
Bitcoin as an IRA investment vehicle
IRAs were introduced back in 1974 to allow individuals to manage their own accounts. This means that they were free to invest in any of the available investment vehicles. These were majorly bonds, stocks, and Certificate of Deposits (CDs) or other physical assets that have value. To date, this has remained the case.
However, with the growth in technology, things are slowly changing. People are now actively seeking alternative investment options that do not have the limitations of the current vehicles. One of such investments is bitcoin self directed IRA. Bitcoin, unlike the other investment vehicles, is not regulated by any government. This means that its price is left purely to the market forces. This makes a great way option for diversification.
Bitcoin IRA options
Since bitcoin is a relatively new concept. It is yet to be accepted as an IRA asset. It, however, has not been excluded either. However, as it is currently, some brokers are offering specific IRA bitcoin options to consumers. As more people become increasingly aware of the potential that bitcoin holds, more will start trading in it, and with time, it might become the primary currency in the world.
From the above information, bitcoin looks like a promising investment that can only get better with time. Its unregulated nature makes bitcoin a volatile investment that might be hard to predict. It is therefore vital to approach it with caution. That said, it is common knowledge that the best way to spread any risk is through diversification, and now that bitcoin is slowly being accepted as one of the IRA investment options, you may consider putting in some of your investment there as it may end up being a profitable venture.