The popularity of Bitcoin and other cryptocurrencies has grown exponentially over the past few years.
Cryptocurrencies are slowly becoming an accepted method of payment, with many retail companies now accepting Bitcoins, as well as other cryptocurrencies.
2017 has been a historic year for Bitcoin, the value of which increased by 1,300 percent during a twelve-month period.
While this fantastic growth has attracted the attention of people from across the world, it has also sparked concerns about future price fluctuations. Despite the volatility, Bitcoin undoubtedly has a great future, which is also reflected in the fact that an increasing number of people is using their IRA to invest in Bitcoin.
We’ve prepared a short guide to the top three reasons why people are choosing to invest Bitcoin in their IRA.
Bitcoin is the Future
Despite some ominous predictions about its future, Bitcoin has performed remarkably well during the last couple of years and the trend is likely to continue. Of course, there’s no way we could predict how Bitcoin will fare in the future, but cryptocurrency experts are stating that investors should take interest in the cryptocurrency market, while even some of the largest banks and institutions are also showing interest.
Bitcoin is still in its infancy and will need more time to stabilize. In the past, lost up to 94 percent of its value in a matter of months, but recovered quickly – something that repeated several times during the last few years.
If you’re thinking long-term, it’s quite evident that Bitcoin is here to stay and that cryptocurrencies will play an important role in the near future.
It’s Completely Legal
The legal status of Bitcoin varies from country to country. In Australia and Canada, Bitcoin transactions are fully legal, while other countries have placed restrictions on Bitcoin transactions.
However, only a small number of countries have completely banned Bitcoin. In most countries, including the United States, Bitcoin is legal, but there is an ongoing debate as to whether Bitcoin should be regulated.
When it comes to Bitcoin IRA investment, the IRS does not prohibit IRA investments in Bitcoin. Keep in mind, however, that life insurance and collectibles are not permitted for IRA investment.
Tip: If you’re looking for good returns for your investment, you can try out the Bitcoin Code trading system. However, you should be very careful to avoid offers promising huge returns and remember to find a reliable broker.
It Can Save Money on Taxes
Bitcoin and all other cryptocurrencies are currently treated as property, which means that they are taxed like other types of property and subjected to capital gains rate.
Having a self-directed IRA (which is a prerequisite for investing in Bitcoins) will open up new possibilities for making tax savings.
As a digital currency, Bitcoin is not regulated by any central bank or a financial institution, but it’s still accepted by many merchants worldwide.
It may still be a long time before Bitcoin stabilizes, the fact is that its impact on the global economy will grow in the future.