Crypto exchange Coinbase's CEO, Brian Armstrong, believes that Bitcoin has the potential to play a crucial role in extending the reach of Western civilization. Armstrong sees Bitcoin as an alternative to traditional fiat currencies like the U.S. dollar, offering people a way to protect themselves from inflation.
Brian Armstrong: Crypto as an Antidote to Inflation
In a recent post on X, Coinbase CEO Brian Armstrong shared his thoughts on the future of Western civilization and the potential impact of Bitcoin. He suggests that Bitcoin could be the key to extending the influence and benefits of Western civilization. According to Armstrong, fiat currencies will continue to inflate until they lose their effectiveness as currencies. He specifically points out the challenges faced by the U.S. dollar and other fiat currencies, highlighting the lack of viable alternatives.
"The Yuan and Euro have their own issues and aren't viable alternatives currently, so the assumption is the U.S. can continue to inflate."
Armstrong believes that cryptocurrencies can serve as an alternative to these unstable fiat currencies, even though many people have yet to consider this option. He suggests that individuals may choose to move their funds from fiat into crypto as a way to protect themselves from inflation.
Contrary to some beliefs, Armstrong does not think that Bitcoin will lead to the demise of the U.S. dollar. Instead, he envisions cryptocurrencies serving as a natural check and balance for the American currency, safeguarding the interests of the American people and Western civilization in the long run.
"It's better to move from dollars to crypto than to another country or region's fiat. I also think both fiat and crypto will co-exist for a long time. They are more complements than substitutes."
Some citizens in troubled Latin American countries, such as Venezuela and Argentina, have already turned to cryptocurrencies to combat inflation and the devaluation of their fiat currencies. These unique use cases were highlighted in Chainalysis' 2023 Geography of Cryptocurrency Report, emphasizing the significance of dollar-pegged stablecoins in these contexts.
We would love to hear your thoughts on Coinbase CEO Brian Armstrong's views on the future role of Bitcoin and cryptocurrencies. Please share your opinions in the comments section below.
Frequently Asked Questions
Can I own a gold ETF inside a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow for contributions from both employees and employers. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
A Individual Retirement Annuity (IRA), is also available. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs don't have to be taxable
What are the pros and disadvantages of a gold IRA
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. However, there are disadvantages to this type investment.
You may lose all your accumulated savings if you take too much out of your IRA. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
The downside is that managing your IRA requires fees. Most banks charge 0.5% to 2.0% per annum. Other providers may charge monthly management fees, ranging between $10 and $50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. Many insurers require that you own at least one ounce of gold before you can make a claim. Some insurers may require you to have insurance that covers losses up $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. You may be limited in the amount of gold you can have by some providers. Others let you pick your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Futures contracts for gold are less expensive than physical gold. Futures contracts provide flexibility for purchasing gold. Futures contracts allow you to create a contract with a specified expiration date.
It is also important to choose the type of insurance coverage that you need. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. However, it does cover damage caused by natural disasters. You may consider adding additional coverage if you live in an area at high risk.
You should also consider the cost of storage for your gold. Storage costs will not be covered by insurance. For safekeeping, banks typically charge $25-40 per month.
To open a IRA in gold, you will need to first speak with a qualified custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians aren't allowed to sell your assets. Instead, they must hold them as long as you request.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. The plan should also include information about how much you are willing to invest each month.
After filling in the forms, please send them to the provider. Once the company has received your application, they will review it and send you a confirmation email.
When opening a gold IRA, you should consider using a financial planner. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
Can I buy gold with my self-directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. You can also transfer funds from an existing retirement fund.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts can be described as financial instruments that are determined by the gold price. These contracts allow you to speculate on future gold prices without actually owning it. However, physical bullion is real gold or silver bars you can hold in your hands.
How Much of Your IRA Should Include Precious Metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don't have to be rich to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.
You might consider purchasing physical coins, such as bullion bars and rounds. You could also buy shares in companies that produce precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
They also tend to appreciate over time, unlike traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
What precious metals can you invest in for retirement?
Silver and gold are two of the most valuable precious metals. Both can be easily bought and sold, and have been around since forever. These are great options to diversify your portfolio.
Gold: The oldest form of currency known to man is gold. It's stable and safe. It's a great way to protect wealth in times of uncertainty.
Silver: Investors have always loved silver. This is a great choice for people who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. It's resistant to corrosion and durable, similar to gold and silver. It's also more expensive than the other two.
Rhodium: The catalytic converters use Rhodium. It is also used to make jewelry. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more affordable. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Tips for Investing In Gold
Investing in Gold remains one of the most preferred investment strategies. This is because there are many benefits if you choose to invest in gold. There are many ways to invest gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
Before buying any kind of gold, you need to consider these things.
- First, find out if your country allows gold ownership. If it is, you can move on. Or, you might consider buying gold overseas.
- Secondly, you should know what kind of gold coin you want. You have the option of choosing yellow, white, or rose gold.
- Third, consider the cost of gold. Start small and build up. You should diversify your portfolio when buying gold. You should invest in different assets such as stocks, bonds, real estate, mutual funds, and commodities.
- Lastly, you should never forget that gold prices change frequently. Therefore, you have to be aware of current trends.
By: Sergio Goschenko
Title: Coinbase CEO Brian Armstrong: Bitcoin Could Hold the Key to Extending Western Civilization
Sourced From: news.bitcoin.com/coinbase-ceo-brian-armstrong-bitcoin-may-be-the-key-to-extending-western-civilization/
Published Date: Wed, 06 Dec 2023 07:00:33 +0000