People are rightfully concerned about inflation and the decreasing value of the US dollar. We see the dollar become weaker every day whenever we go to the local grocery store or gas station. It’s becoming very clear that the current US government will continue borrowing more and more money. This will in turn devalue the US dollar even further and make our money worth less.
Is there any way to protect our wealth from completely evaporating due to incompetent government spending? Yes. And the answer is quite clear. Future retirees and all Americans need to begin moving away from the US dollar.
I’m not telling you to abandon the country. And I’m not telling you to transfer all of your wealth and other assets because that would be crazy. But you can begin storing your wealth in alternate investments like Bitcoin and other cryptocurrencies.
These safe haven investments will protect your wealth from outrageous government spending. Plus, Bitcoin is one of the hottest investments right now. So, you’ll not only preserve your wealth and protect it, you’ll also grow your wealth tremendously at the same time.
Do you believe me or do you need further convincing? Stick around to discover many other reasons why you should invest in Bitcoin through cryptocurrency IRA companies right now.
1) Bitcoin Has an Intentional Limited Supply
The unknown creator of Bitcoin knew exactly what he or she was doing when they created this digital currency. They intentionally limited the supply to prevent inflation from ever becoming a problem.
Inflation happens when the US dollar and other paper currencies suffer tremendously at times. The local government has the ability to print as much currency as they see fit. And when they flood the market with additional currency, it becomes less valuable.
So, you work hard your whole life and accumulate a healthy retirement nest egg based on current day standards. But 20 years from now, you suddenly wake up and learn that the government inflated the currency more than expected. You discover that you do not have enough money to survive in retirement and need to go back to work.
In fact, I just read a quote on Twitter from Fed Chairman Jerome Powell. He said in plain English, “50 Cent is now 47 Cent due to inflation.” He was obviously making a joke about the rapper. But at the same time, the joke only works because inflation is running rampant in the US right now.
This is the reason Bitcoin is truly amazing. There will never be more than 21 million Bitcoins in existence. The entire structure of the system was designed this way. And once they are all mined, that’s all there will ever be. Bitcoin inflation can never become a problem under this system.
How does this benefit retirees and investors? If anything, the limited supply is a godsend because it will constantly create bigger demand. When you print too much money like the government is doing with the US dollar, the supply becomes overblown. And it becomes a lot less valuable as well.
Fiat currencies from around the world that can potentially blow up from inflation include the following:
- The Australian Dollar
- The US Dollar
- The Mexican Peso
- The Chinese Yuan
- The South African Rand
- The Euro
- The British Pound
- The Indian Rupee
- The Saudi Riyal
To avoid this sad fate, you should begin moving a portion of your wealth into a cryptocurrency IRA account. Discover the best crypto IRA companies by reading my dedicated review.
2) Cryptocurrency IRA Tax Benefits Are Extraordinary
Investing in cryptocurrency IRA accounts definitely has its benefits as we are learning today. But one of the biggest benefits of all is the tremendous tax incentives and breaks that you’ll receive. Investors have the ability to take advantage of a fabulous opportunity to pay little to no tax on their investments.
When you open a Bitcoin IRA, your options are as follows:
- Traditional Self-Directed IRA provides tax-deferred investing opportunities
- Roth Self-Directed IRA provides tax-free investing opportunities
Getting these benefits depends on how you set up your account when you initially begin the IRA rollover process.
In a traditional self-directed IRA, better known as a cryptocurrency IRA, you benefit from tax-deferred investing.
Everything deposited into this account comes directly off the top of your annual adjusted gross income. As an example, if you earn $75,000 this year you can deposit $6000 into your crypto IRA. This will effectively lower your yearly income by $6000. So, when tax time comes, you are only responsible for paying taxes on $69,000 worth of income.
Pretty great, right?
Depending on your preference, you might enjoy the benefits of a Roth self-directed IRA instead. In this account, you’ll have already paid taxes on everything deposited into it. Since the taxes were already paid, the proceeds of your investments remain tax-free. You get to keep everything that you earn in this account. And you’ll never have to pay taxes on this income at any point.
To begin your Bitcoin IRA journey, please consider my review of the best cryptocurrency IRA companies. Read this valuable information to discover the best companies in this investing space.
3) Bitcoin Has a Major First Mover Advantage
This point can be debated, but most investors believe that Bitcoin is the original cryptocurrency. It first made its way into the world in 2009 by a programmer that goes by the pseudonym Satoshi Nakamoto.
Since Bitcoin was the first to market, it has literally become the brand name for the cryptocurrency industry. When people think of cryptocurrencies, the name of Bitcoin immediately springs to mind. This gives this cryptocurrency a huge advantage over the hundreds or even thousands of other options out there today.
Think about it this way. The next time you’re in a conversation with somebody about cryptocurrencies, pay close attention to the words they say. More than likely, they will tell you about the price of Bitcoin.
They will tell you how excited they were when they first saw Bitcoin break 60,000. Why? Because they own a little of it.
For the most part, the average person doesn’t even realize that other cryptocurrencies exist. They have no idea about Ripple, Solana, Tether, Ethereum, Shiba Inu, or any of the other digital coins. And truthfully, they can honestly care less in most cases unless they are an avid crypto investor.
How does this help as an investor?
When these people finally do come around and invest in cryptocurrencies, they are going to buy Bitcoin. This first mover advantage means that investors immediately gravitate toward Bitcoin before they consider other cryptocurrencies.
This really presents a huge opportunity that you may not have ever considered. But if you’re ready to get started, read about the best crypto IRA companies by checking out my dedicated review.
4) Bitcoin’s Popularity Keeps Trending and Trending
Have you ever invested in an unpopular company? It’s really a sad sight to see as you watch your stock go nowhere. Or maybe it even goes backwards.
It’s truly a sad state of affairs to say the least. And when a company is unpopular, or nobody is paying attention to it, your investment stagnates. It doesn’t experience any major growth whatsoever and your money is sitting idle instead of experiencing growth.
Now consider Bitcoin.
This cryptocurrency is currently the most popular investment on the planet right now. And everybody wants to own Bitcoin and it’s very apparent. How do I know? I know because the price of Bitcoin is nearly $65,000 at the moment of this writing. In early 2020, the price of Bitcoin was barely $5000!
The odd thing is that Bitcoin didn’t even grow the most out of all of the cryptocurrencies. At least it didn’t grow on a percentage basis. But that’s a different story for another day.
As far as popularity goes, everybody wants to get their hands on this digital dynamo. Celebrities, big-time investors, governments, big business, and everyone in between is buying Bitcoin at an alarming rate.
What are you waiting for? Do you not see the immense value that it possesses?
Celebrity Bitcoin Buyers
Some of the top celebrity Bitcoin investors include:
- The Winklevoss twins – they became Bitcoin billionaires! Winkle Voss twins
- Gwyneth Paltrow
- Bill Gates
- Mike Tyson
- Mark Cuban
- Elon musk
- Steven Stegall
- Serena Williams
- Kanye West
- Floyd Mayweather
- 50 Cent
And the list goes on and on.
Corporate Bitcoin Ownership
The major companies that own Bitcoin in their portfolios include:
- Voyager Digital
- Burger King
- Pizza Hut
Even more interesting, certain sports franchises are also accepting Bitcoin as well. The Miami Dolphins and Dallas Mavericks are two popular sports teams that accept Bitcoin purchases. Obviously, if they’re accepting Bitcoin than they definitely own Bitcoin as well.
By now, you undoubtedly understand the reasons why you should invest in Bitcoin. This popular digital commodity isn’t going anywhere. It’s honestly going to get bigger and better as time goes by.
To get started, please read about the best cryptocurrency IRA companies doing business right now. I reviewed my all-time favorites, so please take a look to gain a better understanding of each business.
With the decadence in the economy expeciallywith the global effect of the pandemic, it has become important we all look for alternative ways of making our money work for us even when we are sleeping. Bitcoin and crypto currency is an option I ha e kept in mind for quiet some while, but you have made me see it’s potentials. I say thank you
Hello Owoeye! Thank you for the feedback and you are right that Bitcoin and other cryptocurrencies can make you money while you’re sleeping. It’s just that you have to overcome the worries of the short-term ups and downs and be ready to make money over the long-term. This is the reason why I encourage people with retirement accounts to rollover to a cryptocurrency IRA. I say you’re welcome and thank you for your own input. I wish you the best on your investment journey!
Is bitcoin really a lucrative business? I thought of entering it for the longest and time but I always felt like I would be losing money and I don’t like to lose money. Would you recommend that I join and where can I learn more about bitcoin? Thank you so much for this review, I had a great time reading it
Hello Daniel! The best and really the only way to make money in Bitcoin is to invest whatever funds you have in it and invest in it for the long-term much like a savings account that has a very good interest rate. These cryptocurrencies have gone up so much in value over the past 10 years that it eclipses the small ups and downs in the short-term. This is the reason you should invest in it for the long run. Invest and hold. Then invest more of what you make from your day job and keep waiting. Like I said, it is like a savings account – Only invest the money that you do not need in your day to day life. That is the best advice I can give for now. I wish you the best on your investment journey, Daniel!
Thank you David for your post on Bitcoins. I always wondered, who governs the currency. How does the crypto currency gain or lose value? As you have rightly put, a US Dollar loses its value if the currency is printed in excess and more dollars are in circulation. Who governs the circulation of crypto currencies and based on what asset?
Also there are few countries like India, that have not recognized crypto currencies. There may be a time, that more countries may join in banning the crypto currencies. These are the few doubts I have.
Is it possible to clear my doubts?
Hello Ernest! Cryptocurrencies are a deregulated form of virtual currency. The ups and downs are purely determined by supply and demand. Yes, there are countries like China and India that are against cryptocurrencies but what makes it so special is the blockchain technology behind it that is promising to be more widely used in the future. You’re basically investing into the technology. The reason behind investing in cryptocurrencies like Bitcoin and Ethereum is to see how much they have grown in value in the past ten or so years since they have first been introduced. And they are poised to go up even more in value as time goes by and the technology gets used more and more. And as it does, more countries will be welcoming cryptocurrency as many countries have already done so. Thank you for your feedback and inquiries, Ernest!
Crypto currencies are scary for a lot of people. If you remove the terms that mainstream people understand like “taxes,” “returns,” “investments,” etc. you quickly lose a lot of people because they don’t understand “blockchain,” “crypto wallet” and “mining.” I think crypto currency is a great asset, but a lot of people are scared of it.
Hello Jay and all I can say is that you are so right! Most people are scared of it because they don’t understand it. I think this may change over time as people get more educated about it. Thank you for your input and feedback, Jay!
I seem to be seeing a lot of news about Bitcoin from a few years ago.
I think there was a lot of content that had a strong impact on the news. For example, it is true that most of the contents such as a collapse or a surge are psychologically worrying. Although I am envious of celebrities buying Bitcoin, I am worried about whether it is an investment place for people with small funds like me, but my perspective has changed a lot because I can understand the detailed contents of Bitcoin.
Hello Minjun! Thank you for sharing your perspective on Bitcoin. I’m glad that your perspective has changed because you understand the details better. I would encourage even investors with small amounts of funds to invest as much as you can in Bitcoin for the long-run because it is projected to go maybe even 20x or more in value in the years to come in the same way it has skyrocketed in the past 10 years. However, only God really knows! Anyways, I do think investing even a little bit into is worthwhile. Thank you for your input, Minjun!