Note: BitIRA does not currently offer Bitcoin SV IRAs, though it may in the future. Currently, other crypto IRA types are available.
Move over Bitcoin and Bitcoin Cash – Bitcoin SV believes it’s the true embodiment of Satoshi Nakamoto’s vision for a global, peer-to-peer currency. When Satoshi released the original Bitcoin whitepaper, no one knew his true identity. Disagreements within the Bitcoin community have led arguing parties to disagree on Satoshi’s beliefs and wishes. Bitcoin SV was born out of these ongoing debates about what Satoshi, who has still yet to reveal his identity to the world, truly wanted for the digital asset.
The Story Behind Bitcoin SV
Back in the early days of Bitcoin, there were disagreements within the community as to how certain aspects of the network should be handled. The most contentious dispute was whether or not to increase the size of each block on the blockchain to handle more transactions.
Some argued that increasing the block size would permit the network to scale more easily and allow more transactions. On the other hand, detractors felt that such changes went against Satoshi’s original vision and would hurt the security of the network. Ultimately, the two sides could not agree, and this led to a fork of the Bitcoin network, leaving in its wake two blockchains with their own cryptocurrencies, Bitcoin and Bitcoin Cash.
This wasn’t the last blocksize disagreement in the Bitcoin community. In 2018, the block size argument reared its head once again, causing a split in the Bitcoin Cash community. On November 15, 2018, the Bitcoin Cash blockchain experienced a fork of its own, resulting in a new cryptocurrency with a larger block size known as Bitcoin SV.
The leader behind the fork that ultimately led to Bitcoin SV is Craig Wright, who has made claims in the past that he is Satoshi. Wright is supported in his efforts by blockchain company nChain and cryptocurrency entrepreneur Calvin Ayre.
But why is the cryptocurrency known as Bitcoin SV? The “SV” in its name is in reference to “Satoshi’s Vision,” as it claims to be the only cryptocurrency consistent with the original vision Satoshi Nakamoto had when creating the Bitcoin whitepaper.
Why Bitcoin SV is the Real Bitcoin
Bitcoin SV is very similar to Bitcoin and Bitcoin Cash (you can find a more basic overview of Bitcoin here). It uses a proof-of-work (PoW) consensus mechanism and has a maximum limit of 21 million coins.
The only difference between these projects is the block size of each blockchain. At its inception, Bitcoin SV increased its block size from Bitcoin Cash’s 32 MB to 132 MB in order to keep transaction fees low and increase scalability. Due to a recent upgrade to the network, Bitcoin SV now has an unlimited block size, with no restrictions. By getting rid of limitations on its block size and allowing for cheaper merchant costs and faster processing times, Bitcoin SV believes it will become a more efficient payment network than other Bitcoin alternatives.
|Block Size Limit
Outside of its use as a digital currency, the Bitcoin SV network is host to a variety of decentralized applications and protocols. Some of these include:
- WeatherSV – Records and tracks large amounts of weather and climate data
- Twetch – A secure social networking platform where users own their data and get paid for content
- PeerGame – Provably fair online gaming
All told, there are 428 active projects and ventures within the Bitcoin SV ecosystem and counting, all of which are contributing to a growing network.
A Bright Future for Bitcoin SV
Bitcoin SV is poised to remain a relevant and growing cryptocurrency in the coming years. Here are just some of the most recent news and accomplishments for Bitcoin SV.
- Bitcoin SV is currently a top-15 cryptocurrency in the industry, valued at close to $4 billion.
- In January 2021, Stephan Nilsson, founder of supply chain company UNISOT, revealed his company is building on the Bitcoin SV network because of its “security, scalability, stability and cost efficiency.”
- Volt Finance is helping tokens built on other networks migrate to the Bitcoin SV blockchain.
- Investors like Unbounded Capital are pouring money into the Bitcoin SV ecosystem to grow its utility and usability.
- The Bitcoin Association launched Bitcoin SV Academy, which provides information and educational resources to get more people interested in the blockchain.
These are all reasons to believe that Bitcoin SV makes for a strong investment that will grow in value over the coming years.
All About Self-Directed IRAs
IRAs are some of the most discussed financial vehicles for investors. That’s because an IRA provides immense tax benefits that help grow retirement savings over time. Most conventional IRA plans restrict your investment to stocks, bonds, and other traditional assets. Yet, taking advantage of alternative assets like cryptocurrencies can help you gain outsized returns that outperform the market and bring you one step closer to retirement.
To add cryptocurrencies to your IRA, you must open a self-directed IRA (SDIRA). Because an SDIRA is exceptionally flexible, it can be used to invest in alternative assets that you might not have access to in other retirement accounts. This makes using cryptocurrencies in your retirement portfolio doable.
Setting up a self-directed IRA is easy, and can be done in the following steps:
- Set up your SDIRA – If you already have a retirement plan or IRA, you can roll over or transfer your savings to your new SDIRA.
- Decide on your cryptocurrency investments – Once your SDIRA is set up, you can choose from a host of different cryptocurrency options.
- Add traditional assets – After you add cryptocurrency to your SDIRA, you can still invest in conventional assets like stocks, bonds, and mutual funds.
- Add alternative investments – Remember, a self-directed IRA allows you to include assets that aren’t available in other retirement plans. This includes precious metals, real estate, or equity in startups.
The IRS requires all SDIRA accounts to have a custodian or trustee to manage the responsibilities of financial disclosures, transaction records, tax documentation, and the like. Luckily, BitIRA works with two highly reputable custodian partners, Equity Trust Company and Preferred Trust Company, to fill this role. Both companies are licensed custodians who are well-versed in digital assets, all while providing excellent customer service and support for all of your SDIRA needs.
Additionally, you need to ensure the security of all your SDIRA holdings. The worst news to cryptocurrency investors is that their funds were stolen due to lack of security. BitIRA provides its users with an insured cold storage solution on all retirement accounts. This means your cryptocurrency will be stored and secured offline, and if funds were ever to be compromised, BitIRA offers $100 million end-to-end insurance coverage on digital currency holdings. This type of insurance covers all facets of your cryptocurrencies, from transmission to storage. Furthermore, BitIRA’s insurance partners are a reputable panel of London insurance companies with S&P ratings of A or better, all of whom have knowledge and experience of underwriting digital asset insurance products.
Can You Buy Bitcoin SV with BitIRA?
As of now, investors can not purchase Bitcoin SV within their retirement account with BitIRA. However, we offer a variety of other popular cryptocurrencies for you to purchase such as Bitcoin, Ethereum, and Chainlink. Although Bitcoin SV is not currently on our list, we may offer it in the future. Although BitIRA doesn’t yet offer Bitcoin SV IRAs, subscribing to our newsletter will inform you if the option becomes available.
Until then, see how you can expand and diversify your retirement portfolio with cryptocurrencies, check out the full list of cryptocurrencies BitIRA offers here. You can find more information about setting up a secure cryptocurrency-based IRA here. If you have questions about investing in cryptocurrencies for your retirement or qualifying for IRA-based tax deferrals, contact us today at (800) 299-1567 to get started.