Like the prices of many safe haven assets, cryptocurrency prices have decreased as a result of all the recent market turmoil. With stock markets well off their recent levels, investors and financial institutions across the board have been in a race for cash, looking to sell off assets to boost cash holdings and pay bills, settle contracts, etc. That resulted in gold, silver, Bitcoin, and most other assets losing value across the board.
What we saw from the 2008 crisis, however, is that those safe haven assets recover significantly once the worst part of the crisis is over. Gold and silver tripled and quadrupled respectively from their 2008 lows. Bitcoin and cryptocurrencies weren’t around back then, so this is their chance now to show that they are safe havens on par with gold and silver. But if they perform as expected, they should continue to climb in the next year or two, as stock markets suffer and investors look to find alternative assets with which to build their wealth.
This is the time for investors who have the ability to do so to think about protecting their assets and maximizing their wealth in the coming years. With stock market growth in the coming months and years looking just about non-existent, investors will have to find alternatives, and cryptocurrencies could be just the ticket.
Those investors who already have investments in tax-advantaged accounts such as a 401(k), IRA, or TSP account can even roll over their existing retirement savings into a cryptocurrency IRA without tax consequences. That allows them to benefit from their existing asset growth and still maintain the same tax advantages as a conventional retirement account, all the while investing in cryptocurrencies instead of conventional financial assets such as stocks and bonds. For investors looking for alternative investments to diversify their portfolios and protect themselves against ongoing weakness in financial markets, a cryptocurrency IRA may be just what they’re looking for.