by Evan Sixtin
The former director of the United States Mint, author, entrepreneur, sales executive, consultant and distinguished leader in public service, Edmund C. Moy, is now the Chief Strategist for BitcoinIRA, a new and unique American company that allows people to invest with bitcoins for their IRA or 401(k).
"A bitcoin IRA – or Individual Retirement Account – is like any other IRA, subject to the same IRS regulations. But a bitcoin IRA simply means that the account holder has chosen to fund his or her IRA with bitcoin instead of, say, straight cash, gold, bonds, artwork or some other kind of investment vehicle."
The IRS has ruled that digital currency, including Bitcoin, has an equivalent value in real currency, therefore, since bitcoin can be exchanged for dollars or other currencies, it can be used in place of dollars or other currencies to make investments. By law, a bitcoin IRA must be handled through a custodian. BitcoinIRA provides specialists who deal exclusively in Bitcoin, to help you choose the custodian that’s right for you.
There is rapidly increasing interest in Bitcoin among investors seeking retirement solutions. In answer to this, BitcoinIRA offers both traditional and Roth IRA options, which offer the same tax incentives as regular IRAs and 401(k)s.
"Gold has a negative correlation to the dollar and can provide an effective safe haven when the dollar slides or the world economy contracts. Because of its independence from the dollar, bitcoin can serve as a similar hedge – but with the enhanced possibility of an upward spike and, therefore, greater returns. Bitcoin and gold can serve as complementary hedges to protect against losses, as investors prepare for retirement."
Other advantages of a bitcoin-based IRA include tax incentives and lower cost of entry. If you compare a bitcoin ETF to a bitcoin IRA, an IRA is a more favorable investment because ETFs have multiple charges and fees, where an IRA has only a one-time fee. Additionally, with an IRA, investors can choose to keep their investment in bitcoin even after the investment term has finished. This option is unavailable with an ETF. In December of 2016, BitcoinIRA reached a milestone of $2 million in investments, just five months after beginning operations.
On February 3, 2017, BitcoinIRA announced a second milestone, opening accounts worth totaling over $4 million, and as a result they have launched a weekly report on Bitcoin Marketplace Evaluation, called the "Bitcoin Bull Watch.”
Since it’s birth in 2008, and despite severe volatility, bad press, and several other challenges, Bitcoin has marched ahead unrestrained. More than eight years later, it seems clear that a global digital currency is inevitable, and bitcoin is most suited to fill this role. Investing with a bitcoin IRA could be a very profitable and exciting way to build up a nice little nest egg.