Bitcoin value has steadily been growing, reaching its newest all-time high. The successful developments have attracted more and more people, with a rising curiosity in jumping on to the cryptocurrency bandwagon.
Day traders and cryptocurrency enthusiasts are not the only people who are dilly-dallying about this game-changing opportunity.
Bitcoin as your IRA
Individual Retirement Accounts (IRA) are tax-advantaged tools that enable people to save for their retirement. Companies have expanded their accounts, with BitcoinIRA making Bitcoins available to its US retirement accounts since 2016.
Investing in Bitcoin is still highly speculative. However, if progress continues in that businesses openly accept Bitcoin, in conjunction with a positive public opinion, there is a strong possibility that the price of BTC will reach $100,000 in 10 years or less. This is a stunning investment and a new addition to a diversified portfolio.
Despite its price volatility, increasing numbers of people are considering Bitcoins as part of their investment portfolio protection for a multitude of reasons:
It changes the way we transact
Paying online is not a new concept: credit cards, Paypal, Payoneer and transactions services are already offering convenience. However, Bitcoin provides an ability to make transactions beyond borders, acting as a bridge from one currency to another. Convenience and safety is in the interest of all transactors, with Bitcoin showing undeniable advantage compared to its rivals
It goes beyond national regulators
Japan had recently approved Bitcoin as a legal form of payment and the Federal Reserve cannot regulate Bitcoin or define it within its jurisdiction. Central banks all over the world do not have authority over Bitcoin, which increase Bitcoin’s credibility and transparency.
Bitcoin is known as the “new gold” of the virtual world. Eric Schmidt, CEO of Google, argues that
“Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicate in the digital world has enormous value.”
Constantly gaining value
The world is adjusting to Bitcoin, with some important global forums and organizations increasingly ready to accept it as the worldwide virtual currency.
Considered as form of currency by the IRS
The IRS considers it as a currency, offering the following statement:
“The IRS is aware that ‘virtual currency’ may be used to pay for goods and services, or held for investment. Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. In some environments, it operates like “real” currency – i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance — but it does not have legal tender status in any jurisdiction.”
Bitcoin is one example of a convertible, virtual currency. Bitcoin can also be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies. For federal tax purposes, virtual currency is treated as property.
While Bitcoin prices may still be volatile, its potential yields are promising. It is important to practice due diligence when considering Blockchain technology: your appetite for risk may gauge how far you are willing to invest.
You may choose to strike while the iron is hot, or succumb to the fear of uncertainty.