A Call for Bitcoin to be Recognized as Legal Tender
A member of the German Bundestag (federal parliament), Joana Cotar, has expressed her support for making Bitcoin a legal tender in Germany, in an exclusive interview with Cointelegraph. Cotar believes that Bitcoin should receive a "preliminary examination" to establish a legal framework that officially recognizes it as a valid form of currency within the country.
Ensuring Legal Security and Combating Risks
Cotar emphasizes the importance of ensuring legal security for both companies and citizens. She acknowledges the need to address potential risks such as money laundering, tax evasion, and other illegal activities associated with Bitcoin. However, she also emphasizes the importance of not stifling innovation and the freedom that Bitcoin offers.
An Initiative to Educate and Promote Bitcoin
To raise awareness and garner support within the German parliament, Cotar has launched the "Bitcoin in the Bundestag" initiative. This initiative aims to educate her colleagues about the benefits of Bitcoin, enabling them to make well-informed decisions regarding its acceptance and regulation. Cotar believes that it is crucial to promote the freedom aspects of Bitcoin, including privacy protection, security standards, and avoiding excessive regulation.
Dedication to Bitcoin
Cotar declares her exclusive focus on Bitcoin, stating that other cryptocurrencies on the market do not interest her. She advocates for the establishment of a formal Bundestag committee that recognizes the technological differences between Bitcoin and other crypto assets. This committee would primarily focus on the importance of Bitcoin for German society.
A Vocal Critic of the Digital Euro
Cotar has also expressed her opposition to the European Central Bank's digital currency plans. In a recent statement, she proudly wore a Bitcoin shirt while criticizing the Digital Euro and questioning its necessity. Cotar believes that the digital euro is unnecessary, except for the ECB and politicians with alternative agendas.
The Uncertain Role of Bitcoin in Germany
As the debate surrounding digital currency intensifies in Europe, the future role of Bitcoin in Germany remains uncertain. However, Cotar's endorsement of Bitcoin adds fuel to the ongoing discussion and draws attention to the increasing importance of Bitcoin within traditional financial systems. It also raises questions about how governments will respond to its growing influence.
Frequently Asked Questions
What are the benefits of having a gold IRA?
An Individual Retirement Account (IRA) is the best way to put money towards retirement. It is tax-deferred until it's withdrawn. You control how much you take each year. And there are many different types of IRAs. Some are better for those who want to save money for college. Some are better suited for investors who want higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. But once they start withdrawing funds, those earnings aren't taxed again. So if you're planning to retire early, this type of account may make sense.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. For people who would rather invest than spend their money, gold IRA accounts are a good option.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. You won't have the hassle of making deposits each month. To ensure that you never miss a payment, you could set up direct debits.
Gold is one of today's most safest investments. Because it isn't tied to any particular country its value tends be steady. Even in times of economic turmoil, gold prices tend not to fluctuate. Gold is a good option for protecting your savings from inflation.
Which precious metal is best to invest in?
This question depends on how risky you are willing to take, and what return you want. While gold is considered a safe investment option, it can also be a risky choice. For example, if you need a quick profit, gold may not be for you. If patience and time are your priorities, silver is the best investment.
If you're not looking to make quick money, gold is probably your best choice. If you want to invest in long-term, steady returns, silver is a better choice.
What Should Your IRA Include in Precious Metals?
It is important to remember that precious metals can be a good investment for anyone. They don't require you to be wealthy to invest in them. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You may consider buying physical coins such as bullion bars or rounds. Stocks in companies that produce precious materials could be purchased. 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.
And, unlike traditional investments, their prices tend to rise over time. If you decide to sell your investment, you will likely make more than with traditional investments.
How much money should I put into my Roth IRA?
Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts cannot be withdrawn until you turn 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, you can't touch your principal (the initial amount that was deposited). No matter how much money you contribute, you cannot take out more than was originally deposited to the account. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. When you withdraw, you will have to pay income tax. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's also assume that you make $10,000 per year from your Roth IRA contributions. The federal income tax on your earnings would amount to $3,500. This leaves you with $6,500 remaining. Because you can only withdraw what you have initially contributed, this is all you can take out.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types of Roth IRAs: Traditional and Roth. A traditional IRA allows for you to deduct pretax contributions of your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. You have the option to withdraw any amount from a traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal amount, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Do you need to open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. There are no ways to recover the money you lost in an investment. All your investments can be lost due to theft, fire or flood.
Protect yourself against this type of loss by investing in physical gold or silver coins. These coins have been around for thousands and represent a real asset that can never be lost. These items are worth more today than they were when first produced.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. You should also consider using a third party custodian to protect your assets and give you access at any time.
Remember that you will not see any returns unless you are retired if you open an Account. Don't forget the future!
Statistics
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
finance.yahoo.com
cftc.gov
investopedia.com
irs.gov
How To
How to Buy Physical Gold in An IRA
The best way to invest in Gold is by purchasing shares of companies that produce it. But this investment method has many risks as there is no guarantee of survival. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
An alternative option would be to buy physical gold itself. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It's also easier to see how much gold you've got stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You also have a lower chance of theft than stocks.
There are however some disadvantages. Bank interest rates and investment funds won't help you. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, the taxman may ask you about where you have put your gold.
BullionVault.com offers more information on buying gold for an IRA.
—————————————————————————————————————————————————————————————-
By: Nik Hoffman
Title: German Parliament Member Supports Making Bitcoin Legal Tender
Sourced From: bitcoinmagazine.com/markets/german-parliament-member-wants-to-make-bitcoin-legal-tender
Published Date: Thu, 16 Nov 2023 18:27:49 GMT
