Bitcoin: A Shield Against Inflation Tax
Mexican billionaire Ricardo Salinas believes that bitcoin offers a unique solution to safeguard against the detrimental effects of inflation tax. He argues that the decentralized cryptocurrency cannot be debased, making it an effective measure to protect people's savings. Salinas emphasizes that individuals are unknowingly losing their hard-earned money to this tax, stating, "everybody would benefit from understanding that the debasement of currency is a very useful trick in the fraudsters' trick book to avoid raising taxes or debt."
Bitcoin's Impact on Latin American Economies
In an interview with Bitcoin Magazine, Grupo Salinas chairman Ricardo Salinas delves into the potential impact of bitcoin on economies, particularly in Latin America. He highlights the global rise in inflation tax and its adverse effects on people's savings, especially those relying on it for their retirement. Salinas asserts that bitcoin provides a reliable defense against this issue, particularly in hyperinflationary economies prevalent in Latin America.
Promoting Bitcoin Adoption in Mexico
When asked about mass bitcoin adoption in Mexico, Salinas emphasizes the need for people to recognize the scam and robbery perpetuated by both fraudulent individuals and the government. He criticizes the government's monetary policies, accusing them of stealing from the public. Salinas maintains that public awareness and understanding are crucial in combating this issue, asserting the importance of reclaiming power from the government to safeguard personal wealth.
Bitcoin ETF: A Barrier to Progress
Addressing the potential impact of a bitcoin exchange-traded fund (ETF) on BTC, Salinas acknowledges that an ETF could generate significant demand and ease bitcoin investments. However, he highlights that those in power, including the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, deliberately hinder its progress. Salinas suggests that their motives are driven by a desire to protect their own financing of government spending, rather than safeguarding investor interests.
The Voice of Dissent
Ricardo Salinas concludes by inviting readers to share their views on his perspective. He encourages individuals to critically analyze the debasement of currency as a tool utilized by fraudsters to avoid raising taxes or incurring debt. By shedding light on this issue, Salinas hopes to empower individuals to protect their financial well-being.
What are your thoughts on Ricardo Salinas' position? Share your opinions in the comments section below.
Frequently Asked Questions
Can the government seize your gold?
You own your gold and therefore the government cannot seize it. You worked hard to earn it. It belongs to your. However, there may be some exceptions to this rule. Your gold could be taken away if your crime was fraud against federal government. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, even if taxes are not paid, gold is still your property.
How to open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form must be submitted within 60 days of the account opening. After this, you are ready to start investing. You can also choose to pay your salary directly by making a payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will look identical to an existing IRA.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS requires that you are at least 18 years old and have earned an income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. And, you have to make contributions regularly. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. You can only purchase bullion in physical form. You won't have the ability to trade stocks or bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. This option may be offered by some IRA providers.
There are two main drawbacks to investing through an IRA in precious metallics. First, they're not as liquid as stocks or bonds. This makes them harder to sell when needed. Second, they don’t produce dividends like stocks or bonds. You'll lose your money over time, rather than making it.
Is gold a good investment IRA option?
If you are looking for a way to save money, gold is a great investment. You can also diversify your portfolio by investing in gold. But gold is not all that it seems.
It has been used throughout history as currency and it is still a very popular method of payment. It is often called “the oldest currency in the world.”
But gold, unlike paper currency, which is created by governments, is mined out from the ground. This makes it highly valuable as it is hard and rare to produce.
The supply and demand factors determine how much gold is worth. The economy that is strong tends to be more affluent, which means there are less gold miners. This results in gold prices rising.
The flip side is that people tend to save money when the economy slows. This causes more gold to be produced, which lowers its value.
This is why investing in gold makes sense for individuals and businesses. You'll reap the benefits of investing in gold when the economy grows.
In addition to earning interest on your investments, this will allow you to grow your wealth. You won't lose your money if gold prices drop.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (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)
- 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)
External Links
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads. Example. And Risk Metrics
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
How To
Investing in gold vs. investing in stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. Many people believe that investing in gold is not profitable. This belief is based on the fact that gold prices are being driven down by global economic conditions. They feel that gold investment would cause them to lose money. In reality, however there are still many significant benefits to gold investing. We'll be looking at some of these benefits below.
Gold is one of the oldest forms of currency known to man. It has been used for thousands of years. It is a valuable store of value that has been used by many people throughout the world. It continues to be used in South Africa, as a way of paying their citizens.
The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. You must determine how much gold bullion you can afford per gram before you consider buying it. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. Although gold's price has fallen, its production costs have not.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. It is worth considering if you intend to use it for long-term investment. Profitable gold can be sold at a lower price than it was when you bought it.
We hope this article has given you an improved understanding of gold investment tools. We strongly recommend that you research all available options before making any decisions. Only after doing so can you make an informed decision.
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By: Kevin Helms
Title: Ricardo Salinas: Bitcoin Protects Against Inflation Tax, Says Mexican Billionaire
Sourced From: news.bitcoin.com/mexican-billionaire-advocates-bitcoin-for-wealth-protection-people-need-to-realize-theyre-being-robbed/
Published Date: Tue, 24 Oct 2023 02:30:24 +0000
