If you weren’t there in person, it would be hard to accurately describe how long and winding the line was to see Donald Trump speak at the Bitcoin conference. The wait to even pass through security and find a seat in the auditorium was hours long and thousands of folks were scrambling to find seats at the Nakamoto Stage early in the day. As the line snaked through the expo hall, it was easy to find an even distribution of Bitcoiners and Trump supporters (some were both) all eager to hear Trump speak. There was an excitement in the atmosphere, and while I didn’t share in the excitement, it did permeate the air in Nashville. Uber drivers were quick to point out that Trump was speaking at the conference. Around the city were large images of Trump’s face next to Bitcoin symbols advertising the conference. Trump-mania surely had taken over the conference, but it also seemed to take over the city of Nashville, too.
Donald Trump's Speech: A Deeper Dive
I can’t deny that getting Donald Trump to speak at the Bitcoin Conference during an election year is a huge "get." It is an important moment for Bitcoin and we should all appreciate this development, in some sense, as a milestone that we can all be proud of as Bitcoiners. Trump's speech promised to lunge Bitcoin into the mainstream political conversation and thereby normalize an up and coming digital currency that most people still dismiss as "fake internet money". It was a moment we were all supposed to remember for the rest of our lives; this was Bitcoin’s chance to be included in serious conversations held by serious people.
Disappointment in Trump's Address
If Trump had shown up for his speech on time, we would have known an hour earlier that this wasn’t going to happen. Instead, we waited. Once Trump did start his speech, it didn’t take long to realize that the folks waiting for hours all day were sold a bill of goods. Trump’s speech was a rambling, at times incoherent, stump speech with a few little nods toward crypto, and… I guess… Bitcoin thrown in for good measure. The first mention of Bitcoin came about six and a half minutes into his remarks. I don’t blame Trump for speaking about crypto more than Bitcoin; most politicians do. But while he was speaking at the Bitcoin conference, I was expecting him to spend more time discussing Bitcoin than his genius uncle who used to work at MIT. Alas, sometimes you just can’t set the bar low enough.
Reflections on Trump's Understanding of Bitcoin
The most concrete take away from hearing Trump speak about Bitcoin was the not-so-shocking realization that Robert Kennedy Jr. thinks more deeply about Bitcoin while he has his first cup of coffee each morning than Donald Trump has thought about Bitcoin during his entire life. All of Trump's best moments during his speech (and there were some) were lifted, whole cloth, from RFK Jr's keynote address the day prior. The parts of the speech he didn’t copy from RFK Jr were dismissive, arrogant, pandering and ill informed. The value in watching the speech at all is that the single issue Bitcoin voters I keep hearing about now have an easy decision to make.
Challenges and Risks in Trump's Bitcoin Discussion
No doubt, there are plenty of Bitcoiners who love Trump and loved his speech. But there are also a surprising number of folks that see all this for what it is: a politician pandering for money and votes and an insecure Bitcoin community pandering for some borrowed legitimacy. Having a leading presidential candidate discuss Bitcoin has some positive effects, but the most serious people I know in the space also recognize there are some risks and dangers involved, too. Chief among these dangers is that by cozying up to Trump, the Bitcoin community risks alienating itself from pre-coiner audiences for the foreseeable future. This seems to be a point, I think, that is hard to comprehend if you already like Bitcoin or already like Trump. Try to remember, most people don’t fit into either category.
The Call for a Different Approach
I’ve publicly been in the Bitcoin space long enough to appreciate the massive cognitive dissonance that exists among many Bitcoiners. Some of these people are Libertarians who are fully committed to individual freedom, but are unwilling to respect a person’s gender identity. Some of these people are Conservatives who want to see the government get smaller while that same government polices what books get banned and what healthcare people are allowed to receive. Some of these people are Bitcoiners who want to see the government disintermediated from the financial system while they cheer uproariously for a politician promising to buy Bitcoin on behalf of the United States Government. If I can see the cognitive dissonance, why is it so hard for a community that prides itself on being heterodox, skeptical and don’t-trust-verify?
Advocating for a Shift in Strategy
I consider it a personal responsibility to orange pill as many people as I can, and I have been serious about doing that. This means, I want to expose the 57% of Americans that don’t like Trump to Bitcoin as a force for good in this world; my job is hard and since Nashville, it just got harder. Let’s be real: Bitcoin is the perfect combination of "internet" and "money" that should make anyone skeptical. There is no shortage of FUD dismissing Bitcoin as pretend money or a scam or a ponzi scheme or money for criminals. Experienced Bitcoiners may not be worried about any of that, but the pre-coiners I know certainly are hyper aware of the reputation. If my job is to convince them to take a second look, that gets harder when Bitcoiners are falling over themselves to align with a known con artist, philanderer, fraud, and convicted felon.
Looking Towards a Balanced Approach
To be sure, Bitcoin will attract its share of con artists, philanderers, frauds and felons. Bitcoin is for them, too. But we shouldn’t capitulate and rebrand Bitcoin as something Trumpian. This is simply bad marketing. The most compelling argument I’ve heard in support of seeking out Trump’s approval is that it will force other politicians to support Bitcoin and his policies would force other nations to take Bitcoin seriously. This could prove to be true, but it is just as likely that the opposite will happen. Normie pre-coiners, if they are paying attention at all, will so easily be able to hold up the "scam" Bitcoin next to the "scam" Trump and walk away from the whole thing and sleep easily. Meanwhile, Trump will have no genuine affinity toward Bitcoin after the votes are counted.
Embracing a Different Path Forward
After so much effort going toward ensuring Bitcoin is non-partisan, bi-partisan and non-political, it was our community (really a handful of influential and connected Bitcoiners) that sought out an alliance with the most polarizing political figure in generations. It would be one thing if Trump found Bitcoin on his own, but that’s not the case. We committed this unforced error ourselves, or more accurately, we allowed the leaders in our leaderless movement to err on our behalf.
Proposing a New Direction
I can hear you screaming "Well, what’s your solution? Vote for the other guys?!" Fair question. Here’s my solution: Walk away from politicians and walk towards voters. Meet them where they are and educate them about the ways Bitcoin solves the problems they care about. That’s really it. The rest will take care of itself. Take a low time preference and it will happen from the ground up, without having to sacrifice your principles. This is the best way to promote Bitcoin adoption, protect the marginalized people Bitcoin can help, and attract policy makers who truly and deeply care about Bitcoin and eschew "crypto". If you do get to interact with politicians, advocate for protections for self custody, de minimis tax treatment so Bitcoin can be easily spent, and consumer protections imposed on exchanges and brokerages.
Final Thoughts on Trump's Allegiance
For those that think Trump is now one of us, he isn’t. He will drop our community the moment it serves him, and we will be worse off for it. Zoom out. One week after Trump appeared in Nashville, he sat for a disastrous interview with the National Association of Black Journalists. This, it turns out, did not make him a Black journalist. Nor did showing up in Nashville make him a Bitcoiner. We would, all of us, be well served to remember that.
This is a guest post by Jason Maier. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Frequently Asked Questions
How much do gold IRA fees cost?
An average annual fee for an individual retirement plan (IRA) is $1,000. There are many types of IRAs available, including traditional, Roth, SEP and SIMPLE IRAs. Each type has their own set of rules. If the earnings are not tax-deferred you could be subject to taxes. It is important to consider how long you plan on keeping the money. If you have a long-term goal of holding on to your money, you'll be able to save more money if you open a Traditional IRA.
Traditional IRAs allow you to contribute up $5,500 annually ($6,500 if 50+). A Roth IRA lets you contribute unlimited amounts each year. The difference is simple. With a traditional IRA you can withdraw the money when you retire and pay no taxes. With a Roth IRA, however, any withdrawals will be subject to taxes.
What are the pros and disadvantages of a gold IRA
The gold IRA is a great way to diversify your portfolio, but you don't have access the traditional banking services. It allows investors to invest in precious materials such as gold and silver without paying tax on gains until they are withdrawn.
The downside is that early withdrawals will result in ordinary income taxes on earnings. However, these funds are kept outside the country and cannot be seized by creditors if you default.
A gold IRA might be the right choice for you if you enjoy owning gold and don't worry about taxes.
Can I get physical ownership of gold in my IRA
Many people wonder if they are allowed to possess physical gold within an IRA account. This is a valid question as there is no legal route to it.
However, if you examine the law carefully, you will see that there are no restrictions on gold ownership in an IRA.
Problem is, most people don’t realize how much they can save by putting gold in an IRA and not keeping it in their home.
It's easy to throw away gold coins but not so easy to put them in an IRA. If you decide to keep your precious metal in your own home you will have to pay two taxes. Two taxes will be charged: one to the IRS, one to the state you live in.
It is possible to lose your gold and pay twice as much tax. Why would you keep your gold in the house?
You might argue that it is important to know that your gold remains safe in your house. You can protect your gold from theft by storing it somewhere more secure.
You shouldn't even leave your gold in your home unless you plan to visit often. Theft can easily take your gold when you're not home.
An insured vault is a better choice for gold storage. This will ensure that your gold is protected against fire, flood, earthquake and robbery.
A vault can also be beneficial because you don't need to pay property tax. Instead, income tax will be charged on any gains made from the sale of your precious metal.
If you prefer not to pay tax on your precious metals, an IRA may be a good option. An IRA allows you to keep your gold free from income taxes, even though it earns interest.
Capital gains tax is not a requirement for gold investments. You can cash out your entire investment anytime you wish.
Because IRAs have federal regulation, it won't be difficult to transfer your gold to another bank if there is a move.
Bottom line: An IRA can allow you to own gold. Your fear of it being stolen is what holds you back.
What are the best ways to choose an IRA.
Understanding your account type will help you find the right IRA. This includes whether you are looking for a traditional IRA or Roth IRA. You should also know how much money your have available to invest.
The next step is to choose the best provider for you. Some providers offer both accounts while others are specialized in one.
The fees associated with each option should be considered. There may be annual maintenance fees, as well as other fees. Fees for each provider can vary widely. Some providers charge a monthly cost based on how many shares you own. Others will only charge once a quarter.
How much of your portfolio should be in precious metals?
The best way to avoid inflation is to invest in physical gold. You can invest in precious metals to buy into their future value, and not just the current price. Your investment will increase in value as the prices rise.
You will be eligible for tax benefits if you keep your investments in place for at least five consecutive years. And if you sell them after this period, you will have to pay capital gains taxes. You can learn more about gold coins by visiting our website.
How to Open a Precious Metal IRA?
A self-directed Roth Individual Retirement Account is the best way to open a IRA for precious metals.
This type account is better than others because you don’t have any tax on the interest that you earn from investments until you remove them.
This makes it very attractive to people who want to save money but also need a tax break.
There are many other options than investing in gold and silver. If it meets the IRS guidelines, you can invest in any asset that interests you.
Many people think only of silver and gold when they hear the word “precious metallic” but there are other types.
Some examples include palladium, platinum, rhodium, osmium, iridium, and ruthenium.
There are many ways to invest in precious materials. You can buy bullion coins or bars, or shares in mining businesses.
Bullion Coins and Bars
One of the most straightforward ways to invest is to buy bullion coin and bars. Bullion is a generic term that refers only to physical ounces in gold or silver.
When you buy bullion coins and bars, you receive actual pieces of the metal itself.
While you may not immediately see any change after buying bullion coins and bars in a store, there will be some long-term benefits.
For example, you will get a tangible piece of history. Each coin or bar has its own story.
It is often worth less than its nominal price if you examine the face value. In 1986, the American Eagle Silver Coin was $1.00 per ounce. The price of an American Eagle is now closer to $40.00 a ounce.
Bullion's price has risen dramatically since its inception, so many investors would rather invest in bullion coins than futures.
Mining Companies
For those who want to purchase precious metals, another option is investing in shares of mining companies. When you invest in mining companies, you are investing in the company's ability to produce gold and silver.
You will get dividends based off the company's profits in return. These dividends will then go towards paying out shareholders.
The company's growth potential will also be of benefit to you. As demand for the product increases, so should the share prices of your company.
These stocks can fluctuate in value so it is important to diversify your portfolio. This is how you spread your risk across different companies.
However, it's also important to remember that mining companies aren't immune to financial loss, just like any stock market investment.
If gold prices plummet significantly, ownership of your shares could be worthless.
The bottom line
Precious Metals such as gold or silver offer a safe haven in times of economic uncertainty.
However, both gold and silver are subject to wild swings in price. If you're interested in making a long-term investment in precious metals, consider opening up a precious metals IRA account with a reputable firm.
This way, you can take advantage of tax advantages while benefiting from owning physical assets.
Are silver and gold IRAs a good idea for you?
This is a great option if you're looking for an easy way of investing in both silver and gold simultaneously. But there are other options. You can contact us at any time with questions about these types investments. We're always happy to help!
Statistics
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
External Links
takemetothesite.com
en.wikipedia.org
regalassets.com
wsj.com
How To
How to Buy Gold To Your Gold IRA
Precious metal is used to describe precious metals such as gold, silver (excluding helium), palladium, palladium or osmium), ruthenium, rose, rhenium, ruthenium and others. It refers to any naturally occurring element with atomic numbers 79 through 110 (excluding helium), which is considered valuable because of its rarity and beauty. Precious metals that are most commonly used include silver and gold. Precious metals are often used as money, jewelry, industrial goods, and art objects.
Gold prices fluctuate daily because of supply and demande. The demand for precious materials has increased dramatically over the last decade as investors seek to find safe havens in volatile economies. This increased demand has caused prices to rise significantly. Some are concerned about the increased cost of production and have resisted investing in precious materials.
Gold is a solid investment as it is both rare and long-lasting. Unlike many investments, gold never loses value. You can also sell or buy gold without paying any taxes. There are two methods to invest gold. You have two options: you can buy gold bars and coins, or you can invest in futures contracts.
Physical gold coins and bars provide immediate liquidity. They are easy to trade and keep. They don't provide much protection against inflation. You can protect yourself against rising prices by purchasing gold bullion. Bullion is physical, or pure gold. Some billions come in one-ounce pieces, while others come in larger sizes like kilo bars. Bullion is normally stored in vaults that are fire- and theft-resistant.
Consider buying gold futures if you would rather own shares than actual gold. Futures allow you to speculate as to how the gold price will change. You can expose yourself to the price of gold by buying gold futures without having to own the physical commodity.
A gold contract could be purchased if you wanted to speculate on the future price of gold. When the contract expires, my position will either be “long” or “short.” If I have a long contract, it means that I believe gold's price will rise. In exchange, I'll give money now and promise to get more when the contract ends. A shorter contract will mean that I expect the price to fall. I'm happy to accept the money right now in exchange of the promise that I'll make more money later.
I will receive the amount of gold in the contract, plus interest, when the contract ends. This way I have exposure to the gold's price without having to actually hold it.
Precious metals can be a great investment because they are very hard to counterfeit. While paper currencies can be easily counterfeited by printing new bills, precious metals cannot. Because of this, precious metals have traditionally held their value well over time.
—————————————————————————————————————————————————————————————-
Based on [POSTTITLE]
by [POSTAUTHOR]
