There is also a possibility of its underlying technology failing. The majority of IRA custodians and trustees still either lack the technical capacity to add bitcoin to the options they offer, they are wary of its volatility, or they are waiting for clearer regulatory guidelines. As the public ledger uses cryptography to secure transactions, it is also a cryptocurrency. Another advantage of bitcoin as an investment is that you can hold it independent of a custodian. Then there is the fact that premature withdrawal may also result in individuals being taxed at the rate of capital gains.