BURBANK, Calif., Sept. 2, 2021 /PRNewswire-PRWeb/ -- BitIRA, a pioneer of cold storage and end-to-end insurance for bitcoin IRA accounts, announced the addition of Chainlink (LINK) to its digital IRA lineup.
"We're always looking to innovate both our services and our offerings for our customers," said Jeremy Warner, Head of Sales at BitIRA. "We began vetting Chainlink's suitability months ago, based on customer feedback."
Vetting Chainlink's suitability, what exactly does that entail?
"That's a fantastic question," Warner said, "and it's one we get asked a lot. It boils down to two factors: regulation and rigor."
Regulation, in this case, refers to both U.S.-based exchanges and governmental policies. Warner explained that BitIRA's partner exchange operates within the oversight of the Security and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Warner explained, "We only work with exchanges, and with cryptocurrencies, that meet the rigorous standards laid out by the SEC and FINRA."
Rigor refers to the requirements of the insurers who underwrite BitIRA's end-to-end insurance. "We work with a panel of London insurance companies all rated S&P A or better, all who've had experience underwriting digital assets," Warner said. "In many ways, they're even more particular than the SEC and FINRA when assessing cryptocurrencies."
BitIRA's original eight cryptocurrency options give customers access to about 65% of the total market cap for digital currencies. Including Chainlink doesn't move that needle significantly (LINK represents 0.55% of the global cryptocurrency market cap today).
However, an overly-narrow slice of the overall crypto market such as the "bitcoin IRA" could expose customers to concentration risk. That's the opposite of diversification.
Asked for examples, Warner described correlation coefficients. "Diversification is beneficial when two assets are weakly correlated. When they don't move up or down in price together. Look at bitcoin and ethereum." Today, the three-month correlation between BTC and ETH is 0.95 (the scale ranges from -1 to +1.) "When bitcoin goes up, ether tends to go up about the same amount. And vice versa. A lot of our customers think that's too tight a correlation for diversification benefits."
So adding another cryptocurrency has the potential to enhance diversification benefits?
"Absolutely," Warner said. "Check the correlation between Chainlink and any of the top cryptocurrencies." (Three-month correlation coefficients: BTC and LINK, 0.72; ETH and LINK, 0.84.)
Ultimately, BitIRA strives to offer retirement savers the growth potential of cryptocurrencies in a manner that allows diversification among cryptocurrencies, as well as across traditional retirement asset classes.
"After all, this is people's retirement savings we're talking about," Warner said. "You don't want all your eggs in one basket. Adding a single cryptocurrency like Chainlink offers a nearly-infinite number of diversification opportunities."
The full line-up of cryptocurrencies available within BitIRA's digital currency retirement accounts are:
Bitcoin (BTC)
Ethereum (ETH)
Litecoin (LTC)
Stellar Lumens (XLM)
Bitcoin Cash (BCH)
Bitcoin Satoshi's Vision (BSV)
Ethereum Classic (ETC)
Zcash (ZEC)
Chainlink (LINK)
About BitIRA:
Based in Burbank, California, BitIRA is a leading specialist in the setup and management of cryptocurrency holdings in self-directed IRAs. Founded by team members from Birch Gold Group with extensive precious metals IRA experience, the company was established on the belief that Americans should have easier access to the wide range of conventional and alternative assets available to hold in their tax-advantaged retirement accounts. Aside from facilitating the setup and management of digital currency IRAs, BitIRA advocates for public awareness of available investment options.
For more information about BitIRA and digital currency IRAs, visit https://www.bitira.com.
Media Contact
BitIRA, BitIRA, +1 (800) 299-1567, [email protected]
SOURCE BitIRA
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