SINDICATO DE PERIODISTAS DE COSTA RICA

“The pension is safe” – Is Bitcoin suitable for long-term investments?

Bitcoin, the digital gold, is also increasingly being used in long-term investment strategies. Is this premature or sensible?

Bitcoin trader: we can pay a flight, a taxi or drinks in Bitcoin

Also to get a salary in Bitcoin is nothing really new anymore. Couldn’t Bitcoin trader, if so much can be done with it, also change our social systems, according to the motto be your own pension? The use of Bitcoin as part of an unconditional basic income has already been much discussed.

Ultimately, much of the outcome of this discussion can be applied to pensions. The CEO of Chainfrog, Keir Finlow-Bates, has commented on this:

“When the state introduces a single pension for all, it is ultimately an unconditional basic income for pensioners. If this pension is proportional to what individuals have paid in, it will of course be more complex, because then the payments have to be considered over a long period of time. Of course, many people think that this is already possible with the blockchain. Since we don’t know exactly what accounting systems will look like in ten, twenty or fifty years, which will certainly have an impact on the development of blockchain technology.”

Pension in Bitcoin for crypto trader

The Wall Street Journal and onlinebetrug have reported about the scam on BitcoinIRA in this regard. It is not a crypto trader affine circle of Irish extremists, but a company that allows its clients to invest in their individual retirement accounts (hence IRA) based on Bitcoin. Unlike other Bitcoin investment funds, clients do not have to pay management, holding or performance fees. Clients can also withdraw their funds quickly.

The platform cooperates with experts from the Fintech sector and thus guarantees secure, profitable investments with Bitcoin.

Edmund C. Moy is the lead strategy developer at BitcoinIRA. He commented on the unique selling proposition of his company as follows:

“We are the only ones who put real Bitcoins in the Roth IRAs. If Bitcoin increases significantly, this profit will not be taxed unless it is immediately paid out in accordance with IRS regulations. If I were an asset manager, it would be my primary duty as a citizen to diversify my client’s portfolio with Bitcoin”.

In the company’s latest investment report, Moy looks very positively to Bitcoin’s future:

“2016 was a good year for Bitcoin IRA. Our clients have made an average profit of over 40% – which is of course due to Bitcoin. Volatility has decreased and the entire ecosystem around Bitcoin is becoming more regulated: “With the confirmation of our business model by the Wall Street Journal, we are looking optimistically into 2017”.

Bitcoin: Things don’t always go uphill
So far, everything sounds like a sky full of violins. But despite all the enthusiasm about the rise in the last few months (which was not completely destroyed by the fall in prices in the last few weeks) one must not forget that Bitcoin is still a risky investment. You can still lose a lot of money here.

In 2013, Jack Tatar, former financial advisor and current CEO of GEM Research Solutions, dared an experiment: he invested 25,000 dollars in a so-called Bitcoin Investment Trust.

He shared his experiences: he lost 50% of his investment with the fall in Bitcoin’s share price. According to Tatar, probably no other author has ever been called a “fool” as often as he was.

So the question arises: Can you use Bitcoin to improve or secure your pension or is it still too early?

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