The U.S. government has not yet decided how it is going to treat cryptocurrency, so the legislative environment has not yet been defined for the space. Still, tax structure has been designed, and most Americans are not aware of the tax implications of their crypto transactions. The truth of the matter is that every crypto transaction is a taxable event. Not being aware of this, crypto investors might be setting themselves up for problems, spending their gains and not leaving enough to pay the IRS.
When looking for someone in whom to entrust one’s financial future, measured and reasonable thought is a plus. Jay Blaskey, head of sales for BitIRA, could be just your man. Knowing that sales of his company’s product depends on the faith that cryptocurrency will gain value in the long run, Blaskey recognizes problems the space has had when it comes to valuation.
Blaskey points out how reasonable value of the space was skewed last year when there was so much hype around bitcoin. He says that when people look at adding crypto to their investment portfolios, they need to understand that adoption of such transformational technology takes time.
The people at BitIRA believe the same thing is going to be true of the crypto space that was true of the tech space of the mid-90s, and their platform helps people invest in that long-term potential. BitIRA puts all transactions inside of an IRA, making gains tax neutral.
The BitIRA Platform
Every type of IRA is available on the platform (Roth, SEP, Traditional, 403b, and 401k). Customers pay no penalties for moving cryptos into their accounts, and they can buy crypto through their accounts. The platform provides full investment services, which allows IRA holders to invest totally in crypto or to create a portfolio that combines crypto with stocks, bonds, and/or mutual funds.
Working with multiple partners, Blaskey says the company isn’t doing anything revolutionary. Their internal operations use very traditional software to allow the client to purchase crypto through a trading partner. Proprietary technology allows the company to move the crypto to a wallet address. Clients can request liquidation or allocate into crypto. The platform offers account holders a fully-fledged dashboard, which gives them constant view of what is in their accounts.
The BitIRA Product
The political environment being so uncertain, investing in an IRA gives people peace of mind. Rather than dabbling in other types of investments, Blaskey points out that the company doesn’t offer tax advice; unlike other forms of investments, with their speculation, funds are neutralized once inside the IRA.
An IRA allows holders to preserve capital and not have it eaten up by taxes.
BitIRA’s is a full-service platform. The company does all the paperwork to set up the account and sets up accounts any way the client wants. They can do rollovers; they can do a whole portfolio or just pieces from different retirement accounts, and, as previously mentioned, they allow the client to totally invest in crypto or to marry it with more traditional investments, like stocks and bonds.
BitIRA Customers and Competition
Blaskey says that there are a couple other companies providing similar services, but only BitIRA has entered voluntary regulatory oversight with the Treasury Department, which allows them to excel at managing regulatory oversight when it comes to buying and selling crypto. He also says that BitIRA is the only company in the United States that has partnered with hardware companies to create a hardware insurance solution. Multiple policies with multiple partners cover fraught, theft, and other threats, and everything is kept in cold storage. He says the company’s security as unequalled.
Blaskey sees BitIRA having two basic types of customer.
The first type is a young person who is mobile and knows a lot about crypto. They have an existing 401k, but they know about crypto and want to move into crypto.
The second type of customer that is a good fit of BitIRA is 50 or 60 years old. He or she has an IRA and knows what it was like 20 years ago, at the beginning of the Internet. He or she knows about tech and want to put a portion of their retirement account into crypto, but they need a little more education.
Blaskey on the Direction of the Industry
Knowing that regulatory changes will aid adoption, Blaskey says he is enthused every time he sees an article on regulation. He notes that a lot of people are looking for the next get rich quick thing, when they should be looking for long-term investment and value.
Concerning the potential of cryptocurrencies, he says that he thinks a lot of the smaller “trash coins” won’t make it. Despite growing older, he notes that bitcoin technology has been integral in ushering in the era, even if the coins ultimately hold no value long-term. He predicts that the industry’s largest players won’t give up easily to Ripple. His saying that makes one wonder if he does believe that those currencies will in fact one day give up to XRP.
On cryptos in general, he sees coins and tokens being measured by three standards:
- What do they do differently?
- What value do they add?
- How useful are they?
The team at BitIRA knows that they can add value to the IRA space. Blaskey sees the probability that the company adding to the six cryptocurrencies currently offered, which are…
- Bitcoin Cash
- Ethereum Classic
The company has also added ZCash and Stellar to its investment portfolio.
Speaking to how the technology needs time to grow, Blaskey reminds that we didn’t invent the motor and then go back to the horse and buggy. Once again recalling how crazy the tech space was in the mid-90s, he points out that people who invested early were eventually rewarded for doing so.
He closes his comments with strong words for all who are interested in the crypto space: “Relentless pursuit of doing things better will move us forward to technology that helps us move faster, safer, and better. Broadly, this asset class makes more sense than most people actually know.”
If the rest of the team at BitIRA has the same measured and reasonable look at the cryptocurrency space as the company’s head of sales, the company promises to be a good bet to guard investors’ retirement wealth, and it will be interesting to see how the firm’s value grows alongside the market cap of the crypto space.
Written by Paul Keenan.