Transcript    ∙    Links & Resources    ∙    Discussion



What financial asset is booming in popularity, making people wealthy very quickly… and facing a difficult political terrain?  Why, it’s none other than Bitcoin, of course!  Today I’ll tell you all about bitcoin and how it fits into your self-directed IRA or solo 401(k).  I’m Bryan Ellis.  This is episode #279 of Self-Directed Investor Talk.



Hello, Self-Directed Investor Nation!  Welcome to the broadcast of record for savvy self-directed investors like you!  This show, my friends, is considered “must-listen” show prep for every other show in America that discusses self-directed retirement investing, so congratulations to you for going straight to the source… straight to the horses’ mouth, so to speak!

I like it!  I think I’ll now adopt the title of the STALLION of the Self-Directed Investing industry!

Ok folks, we have a great show for you today, and I’d love to hear from you, either right now by telephone at (833) SDI-TALK, 833-SDI-TALK or you can visit today’s show page which is SelfDirected.org/bitcoinSelfDirected.org/bitcoin.

Ok, folks, I’m not yet certain… it might take more than one episode to really cover this topic like we need to do it, so let’s get right into it!

Bitcoin… Bitcoin… Bitcoin…  Well, let’s start from ground zero.

If you’ve never heard the word Bitcoin, I wonder how that could be the case.  But if you don’t understand Bitcoin, that means you’re just like everybody else… including most of the people who are involved with it.

Bitcoin is, for lack of a better description, a digital currency that isn’t tied to any particular bank or government.

The promise of bitcoin is that it provides a way for people and businesses to send money to each other that’s very fast, very cheap, very private, very secure and very easy.

So far, to be honest, it has achieved those objectives, though who knows what the future holds.

But back to basics… Bitcoin isn’t actually a coin.  It’s just data.  There’s some pretty cool technology behind it that makes it very difficult, so far, basically impossible, to create fraudulent transactions.  But it’s just data.  There’s nothing physical about it.

In order to buy, own or sell Bitcoin, you have to create something called a Bitcoin wallet.  Again, this is essentially just a logical construct… a piece of software that is secure and allows you to manage your bitcoin.  It’s essentially the equivalent of a bank account, even though there is no such thing as a Bitcoin bank.

Bitcoin is routed through a bunch of entities worldwide called exchanges.

Now let’s step aside from the technology for a moment and just consider the profit potential angle.  Frankly, it’s been astounding.  Highly volatile, but astounding.

What do I mean?  Well, on the profitability front, consider this: Six months ago, Bitcoin was trading at about $1,000 per coin.  Today, at the moment I’m saying this, Bitcoin is trading at nearly $4,400 per coin… yep, that’s over 4x in six months.

Pretty good, huh?  I wouldn’t be crying over that type of result.

But the volatility is crazy, too.

Bitcoin went on a run from $1,000 to about $3,000 in a bit over 2 months… then proceeded to lose 50% of it’s value in the following month…  Then proceeded to run up by over 250% in only 6 weeks.

That’s when Jamie Dimon, the CEO of the financial behemoth CitiGroup, came out and made some rather harsh – and maybe accurate, maybe not, time will tell – comments about Bitcoin.

Namely, he said Bitcoin isn’t a “real thing”.  He said he figures the government will ultimately shut it down.

Bitcoin’s value slid by about 40% in the first half of September.  But truth be told, it’s regained most of that loss and as I said, if you look at it on the basis of the last 6 months, it’s increased by about 4X in that period… just amazing.

So as a result of all of this stuff, I’ve been getting a lot of questions about Bitcoin and whether you can invest in Bitcoin inside your IRA or 401(k).

People, people, people!

The answer to that question is Yes and No.

If you have a captive IRA with the likes of Schwab or TD Ameritrade or Fidelity, then you probably can not do so, as they nearly always restrict their clients to investing in stocks, mutual funds and publicly traded securities.

Bitcoin is definitely not that.  It’s not regulated by or under the auspices of the U.S. federal government in any way.

Having said that, if you have a self-directed IRA provided by a legitimate and truly self-directed IRA custodian, chances are very high that you CAN buy bitcoins in your IRA.

So the questions that come up at this point, my friends, are these:

  1. HOW do you invest in bitcoin in your IRA?
  2. SHOULD you invest in bitcoin in your IRA?

Ah yes… those questions reach to the heart of the matter.

And in the interest of doing them justice, I’m going to defer those answers until the NEXT exciting episode of Self-Directed Investor Talk.  Where can you find that episode?

Well, just stop by SelfDirected.org/bitcoin – SelfDirected.org/bitcoin – and you’ll be able to find this episode… and the episodes to follow in the bitcoin series.  You’ll be glad you did!

But in the mean time, let’s get the discussion started, shall we?  Stop by over at SelfDirected.org/bitcoin and tell me about your experience with bitcoin!  Have you jumped in?  Have you purposely steered clear?  Have you hit a home run?  Are you thinking of using your IRA funds for bitcoin investing?  I’d love to hear from you at SelfDirected.org/bitcoin!

Hey my friends… I’d be SO GRATEFUL if you’d stop by over at iTunes and give this show a 5-star rating, assuming that you like the show, of course!  That really helps us out a lot… it’s a primary way that we get new listeners, and that’s what motivates me to do more shows like this one, and the other 300 or so individual episodes from the past!  So reviews at iTunes or wherever you listen to this show would be really greatly appreciated.

And remember:  Invest wisely today, and live well forever!


Links & Resources

Get Exclusive
Investment Tips

Learn how to get more out of your self-directed IRA or 401k with exclusive tips and insights that I only share with my private newsletter subscribers.

What Do You Think

Have you jumped into Bitcoin investing?  Have you purposely steered clear?  Have you hit a home run?  Are you thinking of using your IRA funds for bitcoin investing? 

  • DAVID says:

    I have invested in BC, Etheium, and litecoin. It is ahead in the last 2 months but has been volatile. I jhave considered using my SD IRA funds, but Did not know how to do that safely and legally. The volatility is troublesome but [otential rewards are attractive.

  • DAVID says:

    I have considered using SD IRA funds but the volatility is troublesome I have the big three coins.

  • J. Carmichael says:

    J. Carmichael San Diego, Ca.

    I got started investing in Bitcoin in April of 2014 just after Mt. Gox got hacked for over 100 million. Price plummeted to $400. per
    BTC. I had been studying blockchain technology for six months and decided to take the extreme, but exciting risk of the down
    market. Like any commodity or stock, invest when there is blood in the street. I currently own 100+ BTC.
    I haven’t looked back since, I continue to trade in several cryptocurrencies.
    My advice to anyone investing in anything new, do your due diligence first. Figure out your risk tolerance and plan your strategy.
    In my opinion, the future of cryptocurrency investing is solid because it is becoming more main stream and more governments want to take control to get their cut. I have not used my self directed IRA for Bitcoin. That is reserved for real estate related tax liens and tax deeds.

  • M Jason Jennings, Martinez CA

    I jumped into Bitcoin and Ethereum in July of 2016 when they were valued at $675 and $12 per coin. Being a speculative move, I invested no more that I’d be willing to lose in the process – basically some sidelined rental income profits. It’s been a steep learning curve…and a roller-coaster ride of sorts. But no regrets! At last glance, I’ve seeing a 750% combined return.

  • Click here to subscribe

    Bryan Ellis

    I am host of Self Directed Investor Talk, which I'm told is America's #1 podcast and for affluent self-directed investors. I'm also something of an expert in self-directed IRA's, solo 401k's and 1031 exchanges. You can find more of my writing in some cool places like TheStreet.com, Entrepreneur.com, ThinkRealty and even Forbes (that was always one of my goals!). I live in metro Atlanta, Georgia with my wife and business partner Carole Ellis(she's a real business partner... not just because she's my wife... I'd want to work with her if I wasn't married to her... and I'd want to marry her, too). I also have 4 children ranging in age from 2 to 20 (yes, you read that correctly). It's my goal to be the name everybody thinks of when they think of Self-Directed IRA's and Solo 401(k)'s.