Funny about Money

The only thing necessary for the triumph of evil is for good men to do nothing. ―Edmund Burke

Top 5 Reasons to Open a Bitcoin IRA

If you want to have a diverse retirement portfolio, which means a strong retirement portfolio, then you should consider all types of investment classes. Since 2014, it has been officially allowed to open a bitcoin IRA. While this is still a relatively new concept, it is one that has gained a lot of interest and attention from the media and financial experts alike. Deciding to invest in any type of asset class requires careful consideration on your part comma but it seems that most agree that adding at least some cryptocurrencies to your holding is a good idea. Let’s take a look at the top five reasons why you may want to consider a bitcoin retirement fund.

5 Reasons to Open a Bitcoin IRA

  1. Bitcoin and ethereum in particular offer a really safe haven against economic turmoil, not unlike that offered by precious metals. When a geopolitical, financial, or economic crisis hits, precious metals like gold offer a safe haven because there is a fixed quantity of them. Cryptocurrencies are the same, as they have been created in a finite amount. It is perhaps no surprise, therefore, that with increases in tensions around the world, and global governments printing more money, that people are turning towards cryptocurrencies instead.
  2. There are limited supply of cryptocurrencies, yet demand is growing. That is the economic formula for a price rise over time. The Bitcoin system is such that there will never be more than 21 million bitcoins around come up with around 17 million of those already having been found. What this means is that bitcoin is effectively even rarer than gold and, by 2140, no new bitcoin will ever be found again. The other main cryptocurrency, ethereum, is also limited in its production.
  3. A good retirement portfolio is a diverse portfolio, and cryptocurrencies offer you a fantastic diversification option. Most people still focus mainly on stocks and bonds but these are perhaps as volatile as alternative assets. The more secure stocks and bonds may not be as volatile but they are yield is also much smaller. Hence, adding at least some cryptocurrency is certainly a good idea.
  4. The dollar, which is a printed money, is declining. The US treasury seems to print more money on a daily basis, with a current deficit of over a trillion each year. What this means is that, with supply expanding limitlessly, the value of the dollar is dropping rapidly. Again, because of the finite nature of Bitcoin, this is not a concern.
  5. Because the Bitcoin IRA is becoming increasingly popular, it is now also much easier to find a financial advisor that can help you make the right investment decisions.

If you are wondering whether or not you should open a bitcoin IRA, the simple answer is that yes you should. But do understand that having a bitcoin IRA does not mean you should invest 100% in cryptocurrencies. Rather, only a fraction of your overall investments should focus on those but you will require a digital IRA just to be able to hold any.

Funny about Money is a little old lady with a computer, not a financial adviser, financial advising firm, or anything even vaguely related thereto. No part of this site’s content should be construed as advice, and you should not take anything that is said here as investment or financial advice. Speak with a professional before making important decisions about your money, your professional life, or your personal life.

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