Investing in cryptocurrency is a hot Topic right now. This is true particularly for bitcoin and ethereum. As a result, it is increasingly easy to find an individual retirement account that accepts cryptocurrency. So much so, in fact, that custodians and now arguing over who can offer the best bitcoin Roth IRA. If you are considering using one of these services for your own retirement account, it is important that you understand the potential risks involved with this and that you gain an understanding of how cryptocurrencies are likely to move in the future. That being said, because these types of currencies have existed for less than 10 years, and have become an investment class for just four years, it is incredibly difficult to make accurate predictions.
Predictions on the Best Bitcoin Roth IRA
Financial experts feel that, because of their decentralized nature, cryptocurrencies are highly volatile. However, they do predicts that there remains an enormous price potential in the long run. Recently, a price move was predicted correctly comma stating that the value would go from $750 to $2,000. Now, Van-Peterson, who is a member of the Saxo Bank, has predicted that the Bitcoin price could reach $100,000 in less than a decade. This would represent a 3,483% increase.
This figure was not taken out of thin air. Rather, it was assumed that 10% of forex currency exchanges in the next decade will be relating to the surviving cryptocurrencies. At present, the average daily volume (ADV) of the forex market is around $5 trillion. 10% of this would be $500 billion. Of that market share, bitcoin is likely to retain around 35%. This means their ADV would be $175 billion. It is also assumed that there will be a 10 times ADV market cap, which means the leading cryptocurrency will be capped at $1.75 trillion.
Those are some significant numbers and for experts from Saxo Bank to agree that they are correct must mean that cryptocurrencies are an investment class to watch. There continue to be people who say that these currencies are nothing but a fad, but experts do not agree with this. Rather, they believe that some cryptocurrencies are a fad, but two or three main ones will remain. One of those is likely to be Bitcoin. A second one is likely to be Ethereum, not in the least because this has been marketed and advertised very cleverly. It focuses quite specifically on smart contracts, which is a strong overall market development on the global playing field.
Additionally, numerous large companies are now involved in the Enterprise Ethereum Alliance (EEA). This includes such companies as JPMorgan, BP, Intel, Microsoft, and a range of international Banks. Hence, there is no reason to believe that Ethereum will not continue to go from strength to strength.Whether or not this means the Saxo Bank prediction is correct will remain to be seen, with some believing things will not be as positive as they have predicted, but it seems likely that investing in cryptocurrency in a retirement account is certainly a good idea.
