The Bitcoin has been around for over a decade now and has had its highs and its very highs, at the time of writing this it is pushed the 6000 US Dollars mark, to put this in perspective if you invested in bitcoin just 6 years ago you would now be looking at a return of 457,400% !!!!????!!!!! Huh!!!. Yes that figure is correct, when I first saw this I had to go back and check several different Bitcoin historical charts and try different calculators to confirm this figure.
You may have noticed the title of this article relating to the terminator film, well this is because much like technology rises up and takes over the world in the disappointing 3rd instalment, Bitcoin is now on the verge of doing the same. Why You Ask?
Well the IRS has now recognised Bitcoin as an investment asset (treating bitcoin as a property for tax purposes), and let me tell you this is HUGE! In the last year or two bitcoin has clawed its way up from a low of $400 to more than ten times that at reaching over $7500 in October of 2017. Now I cannot say for certainty why this is the case, you may read in many forums full of bitcoin hooligans and conspiracy theorists that it is because society is finally breaking free from the grips of corrupt governments and sticking it to the man, hahaha well in my opinion quite the opposite. Bitcoin has been growing in popularity for many years and it is simply too popular for governments to ignore, so instead of outlawing bitcoin it has taken a “cant beat them, may as well join them” attitude. Now recognising it as a real asset means you can now invest in proper retirement investment accounts, which are known as a bitcoin IRA (Individual Retirement Account).
Now it is just a case of understanding the governments previous issues with Bitcoin and what it means to have them in an IRS approved IRA. Bitcoin has long run outside officially recognised currencies, with tax free anonymous transaction easily being made around the world on an ever-growing scale. The one problem the Bitcoin Millionaire has is they cannot swap bitcoin for say US dollars without Mr. Tax Man hearing about it and cannot purchase big assets like property or other investment assets (ever seen a real estate with a sign saying “we accept bitcoin”). With the Bitcoin IRA both the Tax Man and the Bitcoin Millionaire benefit. Now the door is open for the Bitcoin Millionaires to turn their virtual wealth into real paper notes, whilst the Tax Man can finally charge some tax on bitcoin users as well as getting all that extra money into the system (economy).
With Bitcoin being an asset for any investor will mean bitcoin can be bought in bulk and then investors will sit on those bitcoins for many years. This will solidify the strength of bitcoin, and from there bitcoins own superiority over the many issues with traditional currencies can slowly take grip over society and how we all see and use currency.
Mark Andrew from Getthemidastouch.com, is a real estate investment marketer for London based consultancies, and an avid bitcoin miner/trader since 2012. Along with various crypto-currencies, he follows numerous alternative investments, and provides content marketing services to a range of brokerages and consultants.