IRA Financial’s Adam Bergman discusses the impact of Bitcoin hitting $9,000 and what it means for retirement account investors.
When this podcast was originally recorded on June 19, 2019, Bitcoin was just over $9000. Now, less than a week later, it’s up over $11,300! It just goes to show you how hot the Bitcoin market is right now. Further, other cryptocurrencies, such as LiteCoin, are seeing a resurgence as well. Mr. Bergman discusses what this means for investors in his latest podcast.
As an asset class, Bitcoin is far exceeding everything out there. No one, minus the staunchest advocates, saw this coming. As I’ve said in other articles, Bitcoin is here to stay for the foreseeable future. Whether you choose to invest in it, is completely up to you. Again, we’re not offering investments advice, we’re here to give our opinions on different asset classes, such as cryptos.
Bitcoin at $9000
What do you contribute to the recent growth of Bitcoin over the last several month? Here are a few of our thoughts about it:
Facebook’s announcement of their venture into the crypto world. Although not a typical crypto, as it’s being dubbed a “stablecurrency”, it seems to have boosted the price of Bitcoin.
China Trade Wars
The tension between the US and China is something that’s been around for awhile. It’s probably not going away anytime soon. This has led many people to look at alternative investments, among them, Bitcoin.
More and more companies are are becoming accepting of Bitcoin. Some major financial institutions are even allowing you to invest in them. The more widespread the acceptance is, the greater it can grow. Not only that, but the blockchain technology used with cryptos is seeing more uses.
Still, the biggest reason that Bitcoin is still around, is the fear of the global banking world. People want a currency that’s not tied to big banks.
Why Invest in Bitcoin with Retirement Funds?
According to IRS Notice 2014-21, “Virtual currency is treated as property for U.S. federal tax purposes.” Further, “General tax principles that apply to property transactions apply to transactions using virtual currency.” Basically, unlike dollars and euros, cryptocurrencies are treated as an asset and not as currency.
The tax advantages offered by retirement plans, such as a Self-Directed IRAs and Solo 401(k) plans, make Bitcoin an interesting investment choice. All gains are tax-deferred until distributions during retirement. Moreover, if you have a Roth option, all qualified withdrawals are tax-free! Read all about investing in Bitcoin here.
As with any investment, whether traditional stocks, or alternatives such as cryptos and real estate, you should only take on as much risk as you can stomach. Bitcoin investing is not for everyone, especially if you can’t afford the slumps. However, it’s always good to diversify your assets and Bitcoin can certainly help there.
As we’ve mentioned, we’re not telling anyone to go out and invest your entire future in Bitcoin. It’s best to speak with a financial advisor to come up with a plan that works for you. Who knows where Bitcoin will be a month from now, let alone 20 years.
Thanks for listening to “Bitcoin at $9000”! If you would like to listen to our older podcasts, be sure to check out our SoundCloud page. Contact us @ 800.472.0646 if you would like more info about investing in Bitcoin with your retirement funds.