Cryptocurrency’s Stealth Growth Opportunity
Bitcoin Cash (BCH) might be the most solid cryptocurrency investment you never heard of. Often overshadowed by bitcoin’s value and volatility, BCH provides the foundation for flexible retirement savings and a diversified portfolio of assets.
BitIRA provides individual retirement accounts (IRAs) based on BCH, a cryptocurrency that broke away from Bitcoin in August 2017. The coin enables many of the same capabilities as its more famous parent, only faster and at lower costs.
A Different Type of IRA Can Make a Solid Investment
For more than 35 years, IRAs have been a staple of retirement savings. These days, many IRA investors want higher returns for their retirement savings and are willing to take more risk to get them. For those people, innovative assets such as cryptocurrencies fill the bill as one of the best options to possibly grow ROI on the long term.
Cryptocurrency-based IRAs are examples of a new investment vehicle for a new asset class. These accounts permit a wider range of investments and require different management rules than are allowed in conventional IRAs. This flexibility gives investors a chance to add higher-risk assets to their portfolio.
To see why some investors are adding Bitcoin Cash to their IRA, watch this video:
Higher Potential Rewards for Bold Investors
This investment vehicle is the self-directed IRA (SDIRA). In SDIRAs, you can combine cryptocurrencies, other alternative investments, and traditional assets in one IRA. Here’s how the setup process works:
- Set up a self-directed IRA. If you already have an IRA or other eligible retirement plan, we can help you roll over or transfer your savings. Learn about the BitIRA rollover process.
- Choose cryptocurrencies.
These include BCH (Bitcoin Cash), BTC (bitcoin), ETH (Ethereum), and others. Learn about BitIRA offerings.
- Choose other alternative assets (optional).
You can select from a varied list of investments, such as equity in startups, precious metals, or real estate investments in residential, commercial or undeveloped land.
- Invest in standard IRA assets (optional).
These include individual stocks, bonds, index funds or mutual funds.
Managing Your IRA Investments
A major advantage of a self-directed IRA—a longer list of investment opportunities—comes with some responsibility, as you are charged with managing the assets in your SDIRA. These tasks include:
Choosing, Buying and Selling Cryptocurrencies
Unlike standard IRAs, you’re in control of managing the assets in your account. As the IRA manager, you must search the cryptocurrency market and make all buying decisions on your own.
Although these important decisions are yours alone, our team of Digital Currency Specialists and IRA Specialists can help:
- Complete IRA setup paperwork.
- Monitor the rollover process.
- Explain the pros and cons of investing in Bitcoin Cash and other tokens.
- Explain options for traditional and cryptocurrency investments.
- Help keep stored BCH tokens secure.
Transferring and Storing Your Cryptocurrency Safely
Much of the challenge of cryptocurrency ownership involves keeping your tokens safe during storage or various types of transactions.
BitIRA offers BCH for placement in a Bitcoin Cash IRA, along with other digital currencies. This full-service solution has been set up to offer the most secure digital IRA on the market, which includes the world’s first insured cold storage capabilities.
The solution is backed by various support information, about topics such as current cryptocurrency news, security measures, and blockchain technology. We also provide our cryptocurrency security guide to help you avoid anxiety and keep your coins safe.
Benefits of Cryptocurrency-based IRAs
An investment in Bitcoin Cash within your IRA provides short-term and long-term benefits.
Although all the technical details have not been worked out, BCH development is moving toward what every cryptocurrency needs–a down-to-earth function that stimulates adoption and ensures its long-term value.
Different paths of technical development separate bitcoin and Bitcoin Cash. But, they have the same use case–a digital currency. The significant difference between the coins: Bitcoin Cash runs transactions more quickly and with lower transaction costs. Technical tests that will guide BCH development will continue throughout 2018.
Yes, you must pay taxes on cryptocurrency profits. However, if you follow the rules and regulations for a self-directed IRA, you can defer taxes until you take a distribution. This means that you can buy and sell BCH tokens within a Bitcoin Cash IRA or hold them as a long-term investment. You won’t have to pay Uncle Sam until you start taking money out of your retirement fund.
Diversifying Against the Stock Market
By investing in BCH, you’re diversifying beyond conventional IRA assets, such as stocks, bonds and their related funds. However, cryptocurrencies are a brand-new asset class. Be sure that you understand the pros and cons of using BCH for this purpose.
Long-Term Value of Bitcoin Cash
Development of the BCH blockchain started when miners and developers saw that BTC technology couldn’t scale effectively and make transaction fees attractive to prospective users.
Some members of the Bitcoin community wanted to update the original blockchain code to improve current and future capabilities of the blockchain. Other members did not accept the update. The result: a technological divorce, in which BCH separated (forked) from the Bitcoin team in August 2017.
Why does it matter? The long-term financial value of BCH depends on its usefulness and popularity, which depend on its capabilities.
Bitcoin Cash Capabilities
Because BCH developers view BCH as peer-to-peer electronic cash for the Internet, it’s helpful to do the same. What are its capabilities, and will they help create a competitive digital currency?
Currently, BCH transfer fees are around $ 0.20 per transaction, compared to around $1 for BTC. Using BCH translates into much lower fees and virtually no waiting to verify a transaction—usually several seconds versus up to a 10-minute wait with BTC.
Although BCH is faster and less expensive to use than Bitcoin, it’s still slower and less efficient than PayPal and other commercial payment systems. Active research and technology improvements needed to make BCH a competitive payment system have been in the works since May 2018.
Two Different Routes to Value
Several technology upgrades are scheduled for autumn 2018. They are designed to keep improving BCH as a form of digital money. That means making it faster, more reliable, more secure and more affordable. According to the developers behind Bitcoin Cash protocol Bitcoin ABC, BCH is being made “…ready for global adoption by mainstream users and provide a solid foundation that businesses can rely on.”
These developments trace two very different approaches to blockchain development and use. Bitcoin technology development supports the changing role of BTC as an investment, such as an alternative to gold. And, BCH engineers are actively working to improve network speed, scalability, and security to support its potential role as a future PayPal.
BTC Business Update
Technology alone doesn’t give cryptocurrencies their value. Buyers, sellers, and real-life uses do. To become really valuable, cryptocurrencies need more users, who are concerned with real-life uses, not speculation or the details of sophisticated technology. On the business side, developments include:
- Since the Bitcoin-Bitcoin Cash split in August 2017, enough economic value and social energy went towards BCH that it obtained and maintains significant market cap of $9.12 billion.
- Bitcoin Cash is still in the speculation stage, when users invest in coins and hold onto them. The utility phase will occur in the future, when people use BCH primarily to complete a transaction.
- However, this trend might be changing. Some BCH developers now view BCH as a digital currency, whose killer use case is peer-to-peer transactions.
- Nov 2018. After a controversial hard fork off of Bitcoin Cash by Bitcoin SV (BSV), sparking skepticism about both coins, the market continued to favor Bitcoin Cash (BCH).
- Apr 2019. Despite undergoing a hard fork of its own in the past months, Bitcoin Cash reemerged in fourth place of all cryptocurrencies by market cap, rising in value by over 80% since the beginning of the year.
- Apr 2019. Binance and other crypto exchanges begin delisting Bitcoin SV (BSV), bolstering the case for Bitcoin Cash (BCH) as the more legitimate successor to Bitcoin.
The exact nature of those transactions remains to be seen. But some analysts see BCH’s competitive niche in uses, where low transaction fees and fast confirmation times are more important than maximum security.
Bitcoin Cash Technology Update
Although technology doesn’t determine BCH business value, it provides the capabilities that do. Here are technology-side development trends, which give hints to BCH development direction and priorities:
- Plenty of developer talent. BCH development includes a robust community of first-rate programmers. More than sixty developers once involved in BTC now contribute to BCH technology.
- Network services for people is Priority #1. BCH developers are focused on building a rock-solid, peer-to-peer payment network. They’re working to produce a network that runs more users per second than presently, without threatening network security.
Add Solid Investment Value to Your IRA
Our Bitcoin Cash Self-Directed IRA is one of our full-service solutions. It’s a great way to invest your retirement savings and participate in the exciting cryptocurrency market. Contact us today if you have questions about cryptocurrencies or qualifying for IRA-based tax deferrals.