If you are looking to start putting money away and saving it for the future, then chances are good that you are also interested in learning about the different kinds of retirement accounts that can help you not only save money but also make money over time as well.
One such account that people have utilized for years for this purpose exactly is a kind of investment account known as a Roth IRA account. Roth IRA accounts have all kinds of rules regarding how long the money has to be put away and what kinds of financial penalties a person incurs when they pull that money out early.
They also have some pretty amazing rules regarding the ability to take that money out and have it be nontaxable! So in an ideal world, a person is investing lots of money in their Roth IRA, never taking it out until they are allowed to, and enjoying tons of tax-free money as they approach their retirement.
One new form of IRA account is known as a Bitcoin Roth IRA, and it should be clear by the name what makes this kind of account different!
So, if you are looking for a quick Bitcoin IRA review, then you have come to the right place. Let’s break down a few of the top advantages and disadvantages of this kind of investment account so that you can figure out which is better for you, a traditional IRA or a Bitcoin IRA.
Strength of Bitcoin IRA #1
One key strength of a Bitcoin Roth IRA is that the return for Bitcoin has been amazing over the years and may very well continue to be amazing. Just think about the fact that BTC used to be pennies on the dollar per coin. Now it works well over $40K even on a bad day! Moreover, many experts expect BTC to only increase in value, with some pegging prices in the millions of dollars in the coming years.
Weakness of Bitcoin IRA #1
A major weakness of investing in BTC for your retirement is that the coin can be incredibly volatile. IRA accounts traditionally yield relatively low and consistent returns overtime over the years. For that reason, they are thought to be pretty low stress. However, BTC can be a heavily stressful entity to invest in as the prices can range by many percentage points per day depending on how the market is behaving.
Strength of Bitcoin IRA #2
Another strength is diversity! Adding the “blue chip” cryptocurrency to your investment portfolio will give you more diversity and less reason to worry if the traditional market begins to dip a bit. In fact, BTC sometimes performs best when the stock market is struggling to perform.
Weakness of Bitcoin IRA #2
The final weakness to consider here is that – for some- the long-term belief in BTC as a real financial tool is in doubt. Some feel the viability of crypto has been massively overstated, and others think that BTC and the entire crypto market will one day go to zero. That would not be great for someone who is investing for the long-term future. Still, just as many people – if not many more – believe that BTC does not only have a future but is the future of the financial world.
If that were the case, then anyone investing in BTC now would likely be set for life in the coming decades.
