When bitcoin was first invented, it became the first fully functional cryptocurrency of its kind in the world. Since then, digital currencies have evolved tremendously. Indeed, they are now even bitcoin millionaires and more are being created on an almost daily basis. In 2017, the value of cryptocurrencies suddenly shot up and those who were lucky enough to already own some coins really struck it rich. So much so, in fact, that an increasing number of people wants to get involved in cryptocurrencies and this has also led to the development of Bitcoin Roth IRA’s.
Understanding the Popularity of Bitcoin Roth IRA’s
Whenever something becomes valuable, investors, doctors, and speculators build an interest in it. What makes bitcoin so interesting is that it is not a tangible resource, nor is it controlled by a government or a Central Bank. This means that investing in these coins truly is speculating comma a very risky business. However, it is no more risky than playing at the casinos in Las Vegas or investing in penny stocks, both of which are also incredibly popular.
Understanding the Bitcoin IRA
And IRA, individual retirement account, is a plant that many financial institutions offer. A traditional IRA means that people do not pay taxes over the contributions they make to the plan. A Roth IRA means that people do pay taxes over their contributions but they do not have to pay taxes on the money they earn in the account.
The Bitcoin IRA is a type self directed IRA, which means that those who hold the plan have to make decisions themselves in terms of how much they want to invest in cryptocurrencies. This is true whether it is a traditional or a Roth IRA. Effectively, these types of IRS allow individuals to hold bitcoin, ethereum, and other types of cryptocurrencies in there retirement accounts.
Cool Facts about Cryptocurrencies
- At the time of this writing, there was a $117 billion market cap on cryptocurrencies. Together, bitcoin and ethereum share 65% of this. That equates to $76 billion which is an almost in measurable amount of growth.
- In 2017, there was a 500% growth in the value of bitcoin, starting at $500 for a unit and at one point reaching $10,000 per unit.
- While 2017 was a fantastic year for bitcoin, it was even better for ethereum. That particular currency experienced in 19000 percent growth, starting at just $1 per unit and reaching as much as $200 per unit.
What this means is that, have you purchased $1,000 worth of Bitcoin on the 1st of January 2011, you would now have $11,165,667 in your account. What this means is that investing in cryptocurrencies is certainly a good idea. You would find it very difficult to find any other investment assets that can bring these types of returns. If you haven’t yet considered cryptocurrencies as an investment vessel, therefore, now is the time to start. The value has once again dropped considerably, but it is likely that it will once again pick up, as it has done many times before.