{"id":15485,"date":"2021-07-26T21:02:56","date_gmt":"2021-07-26T21:02:56","guid":{"rendered":"http:\/\/ci02891b5c40002560"},"modified":"2021-07-26T21:02:56","modified_gmt":"2021-07-26T21:02:56","slug":"bitcoin-iras-rise-popularity","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/bitcoin-iras-rise-popularity","title":{"rendered":"Bitcoin IRAs Are Rising In Popularity In The U.S."},"content":{"rendered":"
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Bitcoin-funded Individual Retirement Arrangements (IRAs) have surged in popularity in 2021, CNBC<\/em><\/a> <\/em>reported. Americans have flocked to retirement arrangements powered by Bitcoin as the Federal Reserve has steadily been increasing liquidity in the economy.<\/p>\n

BitcoinIRA, a company launched in May of 2016<\/a> offering investors a tax-advantageous IRA coupled with the massive returns of bitcoin, currently has more than 100,000 individual account holders, the report said.<\/p>\n

The thousands of workers who have chosen to invest their retirement accounts in bitcoin seek long-term gains in purchasing power for a more tranquil, and maybe anticipated, retirement. Additionally, they can also significantly reduce their tax burden compared to selling BTC if it was a personal investment.<\/p>\n

But while Bitcoin IRAs can provide an interesting option for people \u2013 one whose returns will likely outpace that of other IRAs over time, it brings a critical tradeoff, especially as a long-term investment.<\/p>\n

All bitcoin purchased by a BitcoinIRA account holder is held by BitGo<\/a>, the retirement planner\u2019s chosen third party for bitcoin custody. Consequently, the account holders do not possess actual bitcoin as it isn\u2019t clear if they are given the choice for withdrawal.<\/p>\n

To custody one\u2019s own BTC is important because bitcoin is money \u2013 and you can only freely spend money that you own and hold yourself. Furthermore, since bitcoin is a nascent money early in its monetization path<\/a>, exchanging it for dollars might not make sense 40 years from now.<\/p>\n

As Bitcoin becomes more widely adopted and its principles and characteristics<\/a> are tested and demonstrated over time, it might reach full monetization<\/a> and become a widely adopted unit of account. In that case, dollars would be worthless, and the BitcoinIRA account holder would not be able to reap the benefits of holding bitcoin.<\/p>\n

Therefore, a better approach could be saving for retirement in self-custodied bitcoin. The retired individual would enjoy true sovereignty<\/a> by holding peer-to-peer, uncensorable, unstoppable money \u2013 something worth far more than dollars and tax cuts.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin-funded IRAs are surging in popularity in the U.S. as Americans seek a wealthier retirement.<\/p>\n","protected":false},"author":2572,"featured_media":15486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[752,709],"class_list":{"0":"post-15485","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-bitcoin-ira","9":"tag-retirement"},"author_data":{"id":2572,"name":"Namcios","nicename":"namcios","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/pfp-96x96.png"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/bitcoin-investment-trust-ups-its-proposed-ipo-but-approval-is-still-in-question.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/15485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2572"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=15485"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/15485\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/15486"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=15485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=15485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=15485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}