Each day, news in the cryptocurrency industry seems to flow, with the price of Bitcoin constantly setting new records. With so much value available through the right currencies, it makes sense that people would be curious about how they can get involved with the action. Importantly, it's not just digital enthusiasts and traders that are interested in the power of Bitcoin.
Over the last year, Bitcoin IRA has given US retirement accounts the chance to invest entirely in bitcoin. Your individual retirement account, or IRA, is your opportunity to set aside money for your retirement, and protect yourself during your old age. Bitcoin IRA is a new method of using this system with cryptocurrencies, instead of standard cash and bonds.
According to the chief operating officer behind Bitcoin IRA, Chris Cline, monthly inflows into the company tripled last month, going up to $3 million. Additionally, the customers aren't just people trying to jump into the Bitcoin world early - there are people of all ages investing in a Bitcoin IRA.
The question is: "Is a Bitcoin IRA a good idea?" After all, cryptocurrencies can be extremely volatile, and investing entirely in Bitcoin is quite a gamble. According to Kline, there are currently two types of investors. For some, the concept is a speculative one. They think that cryptocurrencies are the next big thing, and they believe that they're investing in the right solution for the future. For other people, the decision to invest in cryptocurrency is made out of fear.
Some people have already seen what the federal reserve has done to the country, and the incidents in Venezuela and Germany have established what might happen when countries print too much money. According to the chief strategist at Bitcoin IRA, Edmund Moy, Bitcoin may be a good hedge against the standard dollar value. After all, the prices of cryptocurrency are typically unrelated with movements in traditional currency. What's more, Klein believes that cryptocurrencies are a useful alternative to gold. You can get more information here: https://www.mineweb.net/bitcoin-ira-review
Besides the risk of hyperinflation, the argument could be made that American retirees don't really need to hedge movements in the dollar value. The whole point of preparing for retirement is to build assets that you can spend when you're older. Usually, this is done in dollars, but Kline suggests that inflation could damage the potential of some retirement portfolios. Saying that, gold, bonds, and stocks may be able to outpace inflation with less volatility than cryptocurrency.
Kline has acknowledged that a retirement account focused entirely on bitcoin may need to form a part of a more diverse, and broader portfolio, complete with plenty of conventional assets. The cryptocurrency solution is being used as a means to offer investors access to new methods of diversifying savings. However, whether it's a wise choice or not will depend on how concerned savers feel about hyperinflation.
If we consider Bitcoin's short history, it's easy to see that the cryptocurrency might add something unique to your portfolio. The average return for Bitcoin per month since 2010 has grown to 30%, compared to only about 1% for the S&P 500. However, the cost is a huge deviation in the bitcoin price from month to month.
It's hard to say whether Bitcoin investment will be right for your retirement portfolio. However, retirement should be about building a steady collection of assets that can be used to give you a more reliable income when you get a little older. Unfortunately, buying cryptocurrencies might not be a risk-free way to prepare for the future.
This press release is for informational purposes only and should not be viewed as an endorsement by CoinIdol. We take no responsibility and give no guarantees, warranties or representations, implied or otherwise, for the content or accuracy. Readers should do their own research before investing funds in any company.