Bitcoin PENSION launched – but critics warn of HUGE risk as investors may lose ALL capital

CoinIRA provides investors the opportunity to save for retirement by investing in bitcoin, ethereum, and other digital currencies as part of a self-directed individual retirement account (IRA). 

A bitcoin IRA works much like any other retirement account. You make regular, tax-advantaged contributions to an IRS recognised retirement account that is set up and administered by a custodian. 

However, rather than investing in traditional investments like stocks, you invest your savings in bitcoins.

The company’s new program allows individuals to legally own bitcoin, ethereum, Ripple, and other digital currencies using tax-deferred funds from a retirement account.

An individual retirement account is a form of “individual retirement plan” provided by many financial institutions, that provides tax advantages for retirement savings in the US.

CoinIRA CEO Trevor Gerszt explained how the revolutionary new scheme works. 

He said: “The investor sets up a self-directed IRA, transfers money from an existing 401(k) or IRA account to the new IRA, then uses that money to purchase bitcoin or other cryptocurrencies. Those cryptocurrencies are held by a custodian, preferably in cold storage so that the assets aren’t vulnerable to hackers.”

Mr Gerszt is a firm believer in cryptocurrencies and sees growth for the market in 2018 despite recent volatility. Despite the shaky start to 2018 by bitcoin and other leading cryptocurrencies he believes they will bounce back with interest. 

Mr Gerszt said: “Cryptocurrencies have tremendous long-term growth potential, as digital payments are the way of the future, so it’s only natural to think of cryptocurrencies as a possible retirement asset.”

Unlike others who view cryptocurrencies with suspicion and believe they should be clamped down on, Mr Gerszt thinks differently. 

He said: “We believe that bitcoin remains a solid investment option since it remains the market leader and is the gold standard by which all other cryptocurrencies are judged. 

“Litecoin is a strong option as well, as it is considered the silver to bitcoin’s gold. And ethereum is another fine option, especially since it performed so well in January. 

“Since the ethereum platform offers much more than just a cryptocurrency, we foresee some significant growth there in the future.”

Mainstream pension companies disagree with this move and have issued warnings to investors.

Steven Cameron, pensions director at Aegon, said: “Bitcoin and other crypto currencies are high risk and seen by some untrained investors as an exciting investment. Cryptocurrencies are at the extreme end of the risk spectrum, not supported by any underlying asset. 

“Investors in crypto currencies should be prepared to lose all their capital and they have no place in mainstream pensions.”

Bitcoin currently stands at $7,850. Ethereum at $795 and Ripple at $0.76.