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.
- Bitcoin was created in 2008 upon the introduction of a white paper authored by someone using the alias Satoshi Nakomoto.
- Only 21 million Bitcoin can be produced, and 77 million are currently in circulation as of July 28, 2021.
- Even though 80 percent of that 21 million Bitcoin has been mined in just 9 years, it will take approximately 122 years until the last Bitcoin is produced thanks to a somewhat complex mining protocol that includes a process called halving.
- Other cryptocurrencies exist, even though Bitcoin is wildly popular and the most expensive. Here is the full list of cryptocurrencies along with their current market capitalizations.
- This article highlights the 10 most invested in cryptocurrencies—in the world today—with explanations as to why.
- Many major companies and franchises accept cryptocurrency payments for goods and services. Microsoft, AT&T, Subway, Overstock, and Virgin Galactic are some of them.
- The carbon footprint that mining cryptocurrency leaves is enormous, prompting some companies like Tesla that promote green living to stop accepting bitcoin as payments until mining becomes more ecofriendly.
- As an asset, crypto 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 crypto investing in this IRS publication.
- 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.
- In the US, taxation on cryptocurrency 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.
If you want to invest in Bitcoin or other cryptocurrency in your IRA, contact Advanta IRA today.
This article was first published on December 13, 2017, and has been updated on August 13, 2021 with current statistics and information.
