5 Reasons Why You Should Add Bitcoins Into Your Retirement Portfolio

 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. 

Exceptional technology

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. 

Due diligence

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.