CNBC Reviewed BitcoinIRA as Americans are Ready to Risk Their Life Savings Using Bitcoin
| Updated by Maria Konash · 3 min read
BitcoinIRA, the worlds first company which revolutionized retirement industry, attracts more and more investors despite all the associated risks and assets’ volatility.
BitcoinIRA.com (Individual Retirement Account) launched in May, 2016, was reviewed in a video developed by CNBC. The in-depth broadcast provides an educational, unbiased review of Bitcoin IRA concept. It also includes an overview of the company, the crypto-currencies investment benefits and the current market conditions. Chris Kline, Chief Operations Officer at BitcoinIRA, together with some of its clients participated in the interviews conducted in the framework of the video generation.
BitcoinIRA is the world’s first and the only company that allows investors to purchase Bitcoins and other crypto-currencies for their IRA or 401(k) retirement accounts. The company differentiates itself from other Bitcoin investment products in multiple ways. Unlike Bitcoin ETFs and investment funds, Bitcoin IRA offers an opportunity for individuals to invest in real Bitcoin at a much lower fee. In addition, investors keep total control over their Bitcoin deposits, being able to withdraw once the term is over.
Apart from the tax-advantage, the platform offers its investors the return of a high-risk, high-reward alternative asset class. BitcoinIRA is kind of similar in nature to other IRAs, except that instead of being funded by gold, cash, and bonds, it’s backed by bitcoin.
FYI, the platform deals with not only Bitcoin (which, by the way, according to the CoinMarketCap today at 08:04 UTC hit yet another all-time high of $3517.70 with market cap $57,6B ) – it now also includes ether, and plans to list two more coins by the end of the summer.
Talking about IRA’s profitability, Chief Operating Officer Chris Kline says that business couldn’t be better. According to his words, in its first year BitcoinIRA was had around a million dollars of monthly inflows. Now it reaches that amount in a single day.
Concerning BitcoinIRA’s featuring at CNBC Chris Kline stated:
We’re thrilled to be included in one of the most well-respected news institutions with the highest journalistic standards. The feature is a fair and balanced look at the value of crypto-currencies in an IRA and provides a great educational piece for investors looking to diversify their retirement accounts.
Still, one shouldn’t look at the crypto-based IRA through rose-coloured glasses. Despite crazy returns, which really take place sometimes, the asset like bitcoin or ether comes with a certain degree of risk. Cryptocurrencies are always moving, and one should remember that they’re prone to tremendous price moves in a very short period of time.
According to Campbell Harvey, a finance professor at Duke University, this volatility is partly stems from the fact that these cryptocurrencies aren’t collateralized. They’re valuable, because people believe in their value. That’s a big part of why Campbell says he’s really worried about the BitcoinIRA.
There are now over 700 individual account holders, including clients as young as 20-years-old, who are ready to risk their life savings putting them into an extremely volatile surroundings of an crypto asset.
For the record, BitcoinIRA itself isn’t free. If an investor sinks less than $50,000 into the account, 15 percent set-up fee will be imposed.
Despite high volatility and possible fees, BitcoinIRA, which in fact revolutionized retirement industry, attracts quite a large number of investors serving, in fact, as a hedge against inflation, which mainstream currencies are more and more prone to. Now, bitcoin and ethereum offer an alternative way to tackle inflation.
Being a successful graduate of Belarusian State Economic University (BSEU), Maria has acquired competencies in economic and social studies. Given Maria’s previous research working experience, and desire to explore what's really shaping the future, the main research focus is placed on FinTech and Blockchain Technology.