Bitcoin IRA FAQ’s

Frequently asked questions

Who are we?

BitVest IRA is headed up by team of seasoned business professionals, high-tech entrepreneurs and Bitcoin enthusiasts. Founded in 2014 as Bitvest Digital Mining a bitcoin mining company that has mined over 18,000 bitcoins to date. In early 2016 our first spin off company, Bitvestmint.com began offering bitcoins for sale to the public at a discounted rate on a deferred delivery basis. BitvestIRA is a d.b.a of Bitvestmint LLC and is one of the only companies approved to offer bitcoin IRAs

What is a Self-Directed Individual Retirement Account (IRA) LLC?

Self-Directed IRA LLC is an IRS & Tax Court approved structure that allows you to use your retirement funds to make traditional as well as nontraditional investments.

The Self-Directed IRA LLC involves the establishment of a limited liability company (“LLC”) that is owned by the IRA (care of the IRA custodian) and managed by you or any third-party. As manager of the IRA LLC, you will have “checkbook control” over the IRA assets to make traditional as well as alternative asset investments, such as Cryptocurrencies, through a local bank account by simply writing a check.

Get Started is Easy & Quick!

We take care of everything for you and you will work directly with one of our  tax partners and CPAs. Once the structure is complete, you will have “checkbook control” over your retirement funds so you can make investments in Cryptocurrencies, and much more tax-free by simply writing a check or sending a wire transfer from your local LLC bank account.

What is buying Bitcoin forward?

Simply put, buying Bitcoin forward consists of an agreement between yourself and Bitvestmint LLC to purchase a portion of our Bitcoin production at a discounted price, to be delivered at a predetermined schedule in the near future. In this case Bitcoin transfers begin after 180 days from the date of your purchase. Forwards offer downside protection from short-term price manipulation and increased profitability for those who have an eye towards the future of Bitcoin

How does it work?

The proceeds from our forward sales will go primarily to the acquisition of additional mining computers. As the Company produces bitcoins at our established mining operations, a percentage of the Bitcoin production is allocated to fulfilling the Bitcoin forward sales contracts. This is a win-win scenario, whereby you benefit by purchasing Bitcoin at a locked-in discounted price in return for agreeing to a predetermined future delivery schedule.This is the same successful strategy used by large scale Asian Bitcoin miners in lieu of debt financing or dilutive equity sales. It has proven to be beneficial to both the miner’s and their clients.

What is a forward contract?

Forward Contract as defined by the CFTC: Is a cash transaction common in many industries, including commodities such as Gold, Gem Stones, Farmer’s production or Oil and Gas. Whereas a buyer and seller agree upon delivery of a specific quantity of goods at a specified price for delivery at a future date. Terms may be more “personalized” than is the case with standardized futures contracts (i.e., delivery time and amount are as determined between buyer and seller). A price may be agreed upon in advance or there may be agreement that the price will be determined at the time of delivery. (Reference; www.cftc.gov/ConsumerProtection/EducationCenter/CFTCGlossary/glossary_f)

What is the discount rate?

The current discount rate ranges between 10% and 20% below the spot price as established on the US-based exchange (GDAX) owned and operated by Coinbase Inc. www.coinbase.com at the time of purchase.

How can we afford to offer you bitcoins at such a large discount?

A simple mathematical formula is used by all Bitcoin miners to extrapolate the cost of producing each newly minted Bitcoin. Based upon the network hash rate, cost of mining equipment, and the electricity used in the “mining” process, we know how much it costs to produce each bitcoin. As such, we only sell a fraction of our projected overall Bitcoin production, which is then held in an offline cold storage wallet off the Blockchain until customer payments are due. A percentage of the remaining bitcoins are sold, in order to cover our capital costs for hosting and the electricity to run our mining equipment.

Eligibility

You should purchase Bitcoin forwards if:
You believe that the long-term trend for the price is bullish and your chosen strategy is to “buy and hold” bitcoins for a minimum of 6 months to two years.

 

You see Bitcoin as Gold 2.0 and want to add it as a hedge against inflation or as a safe haven, store of wealth to protect against government’s excessive printing of fiat currency and price manipulation.

 

You want to add Bitcoin as a new asset class to your investment portfolio.

 

You have a clear understanding of the technology and how world events could have a positive impact on the Bitcoin price.
You are content with a predetermined schedule for future delivery of your bitcoin(s).
You want to take advantage of the deep discount to maximize profit potential and protect against price volatility.

Who should not buy Bitcoin forwards?

Day traders, people who are uncertain as to whether or not Bitcoin the currency, as a unit of transfer, will continue to be a viable store of wealth.
Those that are primarily interested in short term gains or selling their coins within a six-month period.
People who don’t understand the inherent risks involved with buying cryptocurrencies in general.
People who cannot afford to lose the money they intend to use to buy their bitcoins.

When will my bitcoins be delivered?

Your first *1/18th of your purchase will be delivered after 180 days has elapsed and another 1/18th will be delivered each and every month until you have received your entire purchase. Note: disbursements are sent the first and third Thursday of each month to the Bitcoin wallet address provided by the customer. (*Option 1)

How can I pay for my bitcoin(s)?

We accept all major credit cards, bank wires, Bitcoins and cashier’s checks on the www.Bitvestmint.com website Simply press the “Buy Bitcoins Now” button.
IRA rollovers and transfers via BitvestIRA.com please fill in your contact information and one of our representatives will contact you to help you with your IRA/401K rollover to a Bitcoin IRA.
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