The latest venture from the first and arguably most popular cryptocurrency is a revolutionary new retirement pension system. It has received many mixed emotions, with some experts saying that they new scheme comes with huge risks and investors could end up with nothing.
The company offering this is CoinIRA and they provide investors with the opportunity to save for their retirement, by investing in different cryptocurrencies; namely Bitcoin and Ethereum. This will form part of a self-directed individual retirement account.
This would work like a normal retirement account whereby you make regular contributions, with the main difference being that you are investing your savings in Bitcoin as opposed to other more traditional stocks.
The CEO of CoinIRA explained how this scheme was set to work;
“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…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.”
When discussing whether cryptocurrencies should be more heavily regulated, he had very different views from other experts, saying;
“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 in the future.”
However; others, and in particular pension companies disagree with this new venture, with one pension director saying;
“Bitcoin and other cryptocurrencies 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 cryptocurrencies should be prepared to lose all their capital and they have no place in mainstream pensions.”