The number of options available for IRA investment has increased considerably in the last two decades. Many people are accustomed to think that these kinds of portfolios are designed to contain nothing more than stocks and bonds. In fact, you can include a much wider range of assets in your retirement portfolio than you might have guessed.
Diverse Options for Your IRA
Investment opportunities include much more than the usual assortment of stocks and bonds with which you are familiar. Today people are even investing in concrete commodities such as precious metals with their retirement contributions. As satisfaction with the growth potential of conventional investments has continued to decline, IRA contributors have gained opportunities in other areas. That is why bitcoins have become eligible for IRA investment with a select number of custodians.
What Is Bitcoin?
Bitcoin can be classified in a number of different ways. Some call it a virtual currency while others disdain it with the name of cryptocurrency.
To understand it, you need to know that it is not tied to anything real. For a long time, all currencies were essentially tied to precious metals. If a country had a certain amount of gold and/or silver in its treasury, its bank notes were tied to that quantity. The currencies of rich countries were powerful because those countries were wealthy.
Even today, long after nearly every nation has dropped the silver and gold standards of yesteryear, the currencies issued by every government are still tied to other wealth. The US dollar represents the economic might of the United States. Its value tends to fluctuate just as confidence in the US economy fluctuates.
Bitcoins, on the other hand, were simply invented in 2008. A Japanese software specialist developed the idea of a pure software currency and issued a limited number of them. He designed them so that limited numbers of them could be mined or developed each year. Thus the pool of bitcoin currency would grow.
At first, many people did not take bitcoins seriously. For a few years, they maintained an investment value of around $10 but were considered curiosities rather than targets of serious investment. Then they began to assume more value as the idea of having an Internet currency became more desirable on a global level.
As of now, bitcoins are worth more than $600 each. That is a major boon to people who bought them for $10 just a few years ago. They may promise even more earnings since many people are predicting the collapse of many traditional currencies over the next decade.
Why Is a Bitcoin IRA a Good Idea?
The biggest concern that retirement investors have regards the future integrity of their investments. If your retirement is going to last 20 or even 30 years, you need to be sure that the businesses in which you have invested are going to remain profitable and successful. If your retirement investments begin to lose value after you have stopped working, you have no way to generate a new income and redirect investments profitably.
This motive has driven people to invest in things such as gold and silver bullion because they know that these things will last. Even more innovative is the option to invest in bitcoin. While other forms of currency are derived from the past, bitcoins are a part of the future. Their value is only going to become more integral to a future characterized by technological advancement.
Paper currencies and metal coins will be the curiosities of the future just as bitcoin was a few years ago. The time for an IRA bitcoin coincides with your future retirement.