Share This Story!Let friends in your social network know what you are reading aboutTwitterGoogle+LinkedInPinterestPosted!A link has been posted to your Facebook feed.Bitcoin certainly has lots of potential, but that doesn't mean you should risk your future to buy it.Bitcoin has performed extremely well in 2017, up more than 200% year-to-date as I write this.Even more significantly, the digital currency is becoming more widely accepted around the world.So, it may seem like a good idea to buy some bitcoin while it's still in the early stages as part of your retirement investing strategy.Is bitcoin in a bubble, or is it just getting started?Just before I wrote this article, bitcoin traded above $3,000 for the first time, with this latest leg up mainly fueled by high demand from Asian investors.There are some who say that bitcoin could now be in a bubble.For example, billionaire Mark Cuban recently said that the digital currency is in a bubble and that it's headed for a correction."When everyone is bragging about how easy they are making (money) = bubble," Cuban said on Twitter.

"Everyone always thinks that this time is different..."However,Cuban also emphasized that he's not saying bitcoin is worthless.The underlying blockchain technology, Cuban says, is very valuable and will be in widespread use in the future."I'm not questioning value.I'm questioning valuation," said Cuban.On the other hand, there's also a good case to be made that bitcoin could potentially go much higher.litecoin good investmentAs I wrote in a recent article, it's possible for bitcoin to rise to $1 million under the right circumstances -- specifically, if the currency gets widespread mainstream acceptance and becomes a major player in the global currency market.bitcoin 51 percentTo be clear, I don't think it's particularly likely to get anywhere near that amount, but it's certainly possible.Don't be blinded by bitcoin's potentialHere's the main point of this discussion.online litecoin wallet

Just because something has the potential for massive growth doesn't make it a good investment, especially for retirement.When it comes to retirement investing, slow and steady is the way to go.You want stocks and bonds that aren't going to make you rich overnight, but are likely to grow at a steady pace and compound into a nice nest egg over time.An investment that could potentially make you a millionaire quickly, and is as volatile as bitcoin is should be avoided with retirement savings.windows rdp bitcoinIt's important not to confuse investing with speculating or gambling.bitcoin billionaire appThink of bitcoin as a $3,000 lottery ticket that could potentially win you a lot more money.Now, lottery tickets can be fun, and I confess to buying Powerball tickets myself when the jackpot gets big.litecoin global

However, I'm not going to pursue lottery winnings at the risk of my own financial comfort in retirement.While the odds of success are certainly higher with bitcoin than with Powerball, the same concept still applies.Sure, it could go to $1 million -- or it could drop back down to one-tenth of its current value, or less.Either scenario is possible, and it's just too much of a gamble to take with money you'll need in the future.The right way to invest in bitcoinThe short answer to "Is bitcoin a good investment for retirement?"bitcoin market nederlandis a resounding no.Having said that, however, there's nothing wrong with doing a bit of speculating in assets like bitcoin if and only if you're already doing a good job of saving and investing for retirement.bitcoin atm machine near meIn other words, if you're actively contributing to an IRA or are setting aside 10% or more of your salary in your employer's retirement plan, have a properly allocated retirement portfolio, and want to put a small amount of money into bitcoin in addition to this, there's nothing wrong with this approach.I view this as a similar situation to investing some of your capital in risky stocks, but only as a compliment to a rock-solid "base."bitcoin koop

As a personal example, I own shares of Fitbit, which I consider to be highly speculative, but my largest stock positions are in well-established companies that won't make me rich quickly, but also have little risk of making me broke.If you buy bitcoin with the idea that it's a speculative investment in mind, you're setting yourself up to take advantage if the price keeps going up, without putting your own retirement at risk if you're wrong.Matthew Frankel owns shares of Fitbit and Twitter.The Motley Fool owns shares of and recommends Fitbit and Twitter.The Motley Fool has a disclosure policy.The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives.Its content is produced independently of USA TODAY.Offer from the Motley Fool: The $16,122 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings.

But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.For example: one easy trick could pay you as much as $16,122 more... each year!Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.Simply click here to discover how to learn more about these strategies.DEAL: For $25 - Add A Second Phone Number To Your Smartphone for life!Use promo code SLASHDOT25.Also, Slashdot's now on IFTTT.Check out the new SourceForge HTML5 Internet speed test!× Legal Sparring Continues in Bitcoin User's Battle with IRS Tax Sweep In a strange twist, Coindesk reports that the IRS has, somewhat indirectly, removed one target from its broad request for data about U.S.users of the Bitcoin exchange Coinbase.It no longer wants data about Jeffrey Berns, a lawyer who also happens to be fighting the IRS's "John Doe" request in court.From a report on Fortune: Berns originally filed a motion on December 13th asking the U.S.

District Court for Northern California to stop the IRS' subpoena of Coinbase records.The IRS believes that its request, filed in November, is justified because Bitcoin owners "may fail, or may have failed, to comply with one or more provisions of the internal revenue laws."Berns is represented by his own law firm, Berns Weiss, whose motion argues that the IRS data search is "an abuse of process" and "overbroad."Berns has said his motion is intended to defend not only himself, but all targeted users.But according to a December 28th court filing by the IRS, Berns is no longer a target of its records request because he identified himself in his own filing, and the request is only for unidentified users.Therefore, the IRS argues, Berns is not a party to proceedings and his request to block the data grab should be thrown out of court.In response, Berns Weiss had its own spin, telling Coindesk that "The IRS's willingness to withdraw the summons as to Mr.Berns only because it is now aware of his identity," and without the additional information they're seeking about many other Coinbase users, "Makes it clear that the IRS does not have a legitimate purpose in seeking substantial personal and financial information concerning approximately 3 million Americans."