The IRA or individual retirement account is seen as one of the best ways to save up for a secure financial future period over the years comma people have moved outside of the traditional investments such as mutual funds and stocks, looking at many different types of asset as well. Indeed, it is now possible to add things such as gold, private placement securities, tax lien certificates, promissory notes, and real estate in these accounts. In fact, a cryptocurrency IRA is now even a possibility.
The Cryptocurrency IRA Advantage
Cryptocurrencies are clearly a non traditional form of investment. Ripple, ethereum, and bitcoin seem to be the most in demand cryptocurrencies as present. The result of this popularity is that more and more IRA custodians now allow virtual currencies within a self directed IRA. In fact, the IRS has even stated that virtual currencies are a form of property and that the general tax principles apply to them and that they are there for allowable within an IRA.
Cryptocurrency IRA custodians of notice that demand for their services has been increasing tremendously over recent months. This is likely to be linked to the fact that cryptocurrencies have been in the news a lot recently, with their value rising exponentially and very rapidly. People are excited about decentralized payments and the blockchain technology. They believe that it is the way of the future and therefore something to invest in it. This is quite similar to the increase in the number of people who invested in precious metals in the run-up to the 2012 Mayan Apocalypse fear, as well as before that the Y2K virus. Essentially, people have lost faith in the governments’ ways of running the economy and they fear that global currencies will soon completely collapse. Whether this is true or not remains to be seen, but it is certain that it is having an impact on the value of cryptocurrencies.
Around 19% of people in this country make actually contributions to their IRA accounts. Yes, only 5% really take advantage of the benefits of the IRA and contribute $5,000 a year or more. Now that’s cryptocurrencies I have been added to the possible assets to be held in an IRA, it is possible that there will be a significant uptrend in the uptake of these types of accounts, particularly as millennials are starting to look at their financial future.
It is important to understand however, that the cryptocurrency IRA is still reasonably new. Hence, it is possible that some changes will be made and that the benefits experienced today may not exist anymore in a few years. That being said, it is unlikely that any of these changes will have a negative impact on those people who have already started to invest. While there are never any guarantees in the world of finances, it is about as likely as it can get that cryptocurrencies will continue to be around for a long time to come yet.