The Bitcoin IRA is a reasonably new investment construction but one that is rapidly gaining a lot of interest. That is because cryptocurrencies have boomed in value and some people can now even call themselves bitcoin millionaire. While most agree that investing in a bitcoin IRA will not get you rich quick, it is a safe haven for your financial future. Let’s look at some of the main reasons why you should consider finding the best bitcoin IRA for your own retirement funds.
Stats on Cryptocurrencies – Why You Need the Best Bitcoin IRA
The naysayers will tell you that bitcoin is far too volatile to ever be considered a safe investment. However, they must conveniently ignore the fact that so many people have indeed earned millions. They must also conveniently ignore the fact that cryptocurrencies saved a lot of people during the Greek and Cypriot financial crisis. Bitcoin has stood the test of time, just as other inflation proof investment methods such as precious metals have. Some of the facts that prove these naysayers wrong include:
- That the market cap of cryptocurrencies is currently $117 billion. Of that, $76 billion, or 65%, is shared by bitcoin and ethereum. Considering cryptocurrencies I’ve only been around for nine years, this gives you an idea of the humongous growth that has been experienced.
- That in 2017 alone, bitcoin grew by 500%. Indeed, for a time it grew even more than that and it was worth more than $10,000 per unit. Today, it stands at around $3,000, which is still a very significant amount.
- 2017 was also the year of growth for Ethereum. By the end of the year, it grew by 19,000%, starting at $1 a unit and ending at around $200 per unit.
The above figures may not quite paint a picture that is easy to understand. To make it easier, consider the fact that, have you purchased $1,000 of Bitcoin on January 1, 2011, you would now have $11,165,667 in your account. Unfortunately, you and many other people did not purchase $1,000 worth of Bitcoin on that date but that does not mean it is now too late.
As a result of this explosive growth and the fact that more and more people have become interested in it, the US government has now allowed cryptocurrencies to become part of an investment portfolio for retirement. That means you can add them to an IRA, together with other more traditional investment assets such as stocks, bonds, and real estate. Whatever percentage of your bitcoin IRA you dedicated to cryptocurrencies will be protected against inflation, stock market crises, real estate bubbles, hyperinflation, global disasters, wars, and anything else that has an impact on the value of all those other traditional assets. That is because cryptocurrencies are completely decentralized. Additionally, they are finite in number. What this means is that there is no government or bank in the world that can simply decide to create more cryptocurrencies just because the existing one is not valuable enough anymore.