Top 10 Bitcoin Facts that You May Not Know (but Should)

Investing in Bitcoin is at the forefront of news in the financial world because of its recent record-breaking rise. You may be considering investing yourself if you haven’t already. If you’re on the fence, these top 10 Bitcoin facts may help you determine if this asset belongs in your retirement portfolio.

 

  1. Bitcoin was created in 2008 upon the introduction of a white paper authored by someone using the alias Satoshi Nakomoto.self-directed IRA bitcoin cryptocurrency facts
  1. Only 21 million Bitcoin can be produced, and 16.67 million are currently in circulation.
  1. Other cryptocurrencies exist, even though Bitcoin is wildly popular and the most expensive digital currency out there. Some folks refer to all cryptocurrency as bitcoin, but here is the full list of others along with their current market capitalizations.
  1. Approximately 1324 other forms of cryptocurrency exist as of December 4, 2017.
  1. More than a few companies accept Bitcoin as cash payments for goods or services. Here are the top five, (hello Microsoft and PayPal!) according to Business Insider. And, here are others including but certainly not limited to big names like Subway, Gap, GameStop, and JC Penney.
  1. As an asset, Bitcoin is treated like personal property for federal income tax reporting purposes per IRS Bulletin 2014-16, Notice 2014-21. However, if you invest with a self-directed IRA, your IRA owns the asset not you personally. Find a gold mine of FAQs regarding Bitcoin investing in this IRS publication.
  1. Perform your own exhaustive due diligence before making any investment—including Bitcoin—and regardless of how well it’s performing today. For example, here’s an article that might make you think twice.
  1. Some experts believe Bitcoin is in a bubble destined to burst. This article published by The Guardian explains the bubble belief, although when and if it pops is really anyone’s guess.
  1. In the US, taxation on Bitcoin is in effect if you use it to pay for goods or services. Better get the full details in this press release published by the IRS.
  1. Bitcoin is trading at more than $16,000 as this article is being written (on December 11, 2017), That’s an 8% jump and experts expect that number to climb.

If you want to invest in Bitcoin with your IRA, contact Advanta IRA today.

About Jack Callahan

Jack proudly earned his bachelor’s degree in finance and multinational business from Florida State University and his law degree from the University of Florida College of Law. He established Advanta IRA in 2003 and has steadily nurtured and grown the company and the team every year since. Prior to founding Advanta IRA, Jack delivered specialized counsel to real estate investors, small business owners, and real estate professionals on tax, legal and financial matters. As an industry expert, Jack is a frequent speaker on self-directed retirement plans. He is an accredited continuing education instructor for the Florida and Georgia Bar Associations, Florida and Georgia Real Estate Commissions, and The American Institute of Certified Public Accountants.