Bitcoin users can invest their Bitcoin in a fully compliant IRA retirement account through a new service announced today by BitcoinIRA.com. The Bitcoin IRA enables investors to hold Bitcoin directly as part of a tax-advantaged retirement portfolio. The company’s Chief Strategist is former director of the U.S. Mint Edmund C. Moy.
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‘Lower Risk’ with Bitcoin Retirement Investing
“Bitcoin is unique in that it’s a completely decentralized currency,” said Moy. “Thanks to its truly global nature, it has a lower risk of collapse than more traditional investment assets, which depend on the strength of the dollar. I’m thrilled to be working with BitCoinIRA.com at the forefront of this exciting new market.”
The company announced its first-of-its-kind “Bitcoin IRA” investment product that offers a new means for users to invest in bitcoin for the long term. A Bitcoin IRA allows users to hold bitcoin directly in their retirement account as an investment vehicle.
Typical IRA accounts hold paper investments such as stocks, bonds and mutual funds. Other Bitcoin investment products have attempted to fit this mold, including the pink sheet Bitcoin Investment Trust from Digital Currency Group.
Rather than relying on a paper vehicle, the Bitcoin IRA holds bitcoin directly in the retirement account as a commodity, using a self-directed IRA arrangement that provides greater flexibility. Similar arrangements already exist allowing investors to hold precious metals or works of art in an IRA, protecting the assets from taxation. Moy also serves as Chief Strategist for a leading provider of such physical gold IRAs, Fortress Gold Group.
The problem until now was that in order to comply with IRS regulations, commodities designated to an IRA must be held by a custodian. Few if any had the overlapping knowledge set required to act as a Bitcoin custodian for an IRA.
So pleased to be a part of the 1st Bitcoin IRA. It offers diversification & meets the highest regulatory standards. https://t.co/3IXaGk7shJ
— Edmund Moy (@EdmundCMoy) May 17, 2016
BitcoinIRA.com has partnered with BitGo to provide the custodial services using their security-focused, enterprise-grade Bitcoin wallet, which pioneered multi-sig technology.
“We are humbled that BitGo’s treasury management and policy controls will facilitate the secure storage and safe access of digital currencies for BitCoinIRA.com and its customers,” said Jonathan Silverman, Director of Strategic Initiatives for BitGo. “We look forward to the growing use of digital currencies and the portfolio diversification for retail and institutional customers alike.”
Many Bitcoin users may be inclined to shy away from these heavily regulated, custodial accounts. For others, however, this familiar type of financial service may ease the transition into accepting Bitcoin as just another investment option alongside stocks and gold, leading to more people retiring on Bitcoin as time goes on.
Would you be interested in using BitcoinIRA? Let us know in the comments sections below!
Images courtesy of emaze.com, edmoy.com
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