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Since the introduction of IRAs’s in the 70’s more and more people have been taking them up as a way of increasing the returns on their retirement benefits. People are constantly seeking alternative ways of trying to increase theirs away from the commonly known ones like stocks, shares, and bonds. With the growth in technology, new and better investments have come up to help people increase their revenues from such investments. One of the most recent establishments is the cryptocurrencies.
What are Cryptocurrencies?
Cryptocurrency is a digital currency that operates just like the normal currencies only that there are no physical forms of it. It is usually stored in digital wallets that are themselves stored in the cloud. One of the most common distinctive features about it is that it is decentralized. What this means is that no one, individual or government can claim ownership over it. What this means is that it is not regulated by anyone, Unlike the normal currencies that are under the regulation of their governments through the central banks. Its value is left purely to the forces of demand and supply.
Due to their decentralized nature, cryptocurrencies are known to be highly volatile and have great fluctuations in price. One of the best-known cryptocurrency is the bitcoin. Bitcoin was first invented in the year 2009 during which its value was less than $5. Nine years later, however, Bitcoins’ value has grown to over $17,000! This is a growth of over 3,000%. Again due to its nature and supply, its value will continue to increase as more and more people turn to it for their daily trading.
Bitcoin as an IRA
Due to the above-highlighted advantages, more and more people are embracing cryptos, particularly bitcoin as IRA assets. While cryptos are yet to be accepted as official currencies, people are increasingly embracing its use, and with the current trend, it’s just a matter of days until the world economy accepts its use as any other currency. If the current trend continues, there is a chance that cryptos may end up replacing the normal currencies that people are used to today. For this reason, it may be wise to start investing in the cryptos early enough before stricter regulations are laid down.
Advantages of Cryptos
Some of the reasons why cryptos are appealing to most people are that they are freely transferable. This means that one can move them from one user to another with ease. Again, cryptos are quite secure and therefore not easily stolen as one needs authentication keys. Lastly, cryptos are not traceable. This means that it is hard to decipher where they are coming from and going.
From all the above, it is evident that cryptos offer a promising investment, especially in IRA. For this reason, you may want to invest some money in them and with time, and if the current trajectory continues, it’s a matter of years for your initial investment to double or even triple. It is however recommended that you take precautionary measures as there is a chance that you may lose your investment if the cryptos are devalued. This is, however, a common risk with any investment, only that it is greater in the cryptos.