Bitcoin has seen rapid appreciation this year, but now a new way to leverage the crypto currency has emerged. BitcoinIRA launched in May of 2016. It provides investors the tax-advantage of an Individual Retirement Account (IRA), plus the return of a high-risk, high-reward alternative asset class. It's similar in nature to other IRAs, except that instead of being funded by gold, cash, and bonds, it's backed by bitcoin.The new retirement investment option has grown rapidly. In its first year, BitcoinIRA reportedly was averaging a monthly inflow of about one million dollars, while now it draws that amount of business in a single day.
As a speculative asset, BitcoinIRAs come with risk. Cryptocurrencies are literally always moving, and are prone to seismic price moves in a very short space of time. That volatility is due to the fact that cryptocurrencies aren't collateralized, so they're valuable as long as people think they're valuable.
Investing in a BitcoinIRA isn't free. Anything less than a $50,000 investment faces a 15%t set-up fee. Besides the draw of a high return, BitcoinIRA investors feel it's a hedge against the inflationary tendencies of mainstream currencies, along with traditional investments in gold, stocks, and bonds.
Read more about BitcoinIRA and watch a video on CNBC news.
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