Senator Cynthia Lummis, representing Wyoming, has unveiled a groundbreaking initiative to introduce a bill that would mandate the United States government to procure 1 million Bitcoin, valued at over $68 billion based on current market prices.
Strategic Bitcoin Acquisition Plan
During her address at the Bitcoin 2024 conference held in Nashville, Senator Lummis outlined her strategic vision for the bill. The proposed legislation would direct the U.S. Treasury to steadily accumulate Bitcoin over a span of 5 years. The objective behind this move is to establish Bitcoin as a strategic reserve asset that would bolster the strength of the U.S. dollar. Drawing a parallel to the government's strategic petroleum reserve, Lummis emphasized the significance of this endeavor.
Bitcoin as a Potential Game Changer
Senator Lummis expressed her confidence in Bitcoin's transformative potential, citing data analysis and previous Bitcoin trends. She believes that integrating Bitcoin into the government's financial reserves could significantly impact and improve the current state of the United States' debt and deficits.
Secure Custodianship and Usage Restrictions
Under the proposed bill, the U.S. government would assume self-custody of the acquired Bitcoin, distributing the assets across different secure locations. Importantly, these Bitcoin holdings would exclusively serve the purpose of reducing the national debt and would be mandated to be retained for a minimum of 20 years.
Advocacy for Bitcoin Adoption
Senator Cynthia Lummis has emerged as a prominent proponent of Bitcoin within the U.S. Congress. She argues that integrating Bitcoin into the nation's financial reserves would play a vital role in stabilizing the value of the U.S. dollar and combating inflation, particularly in the face of the country's escalating national debt, which recently surpassed $35 trillion.
Political Endorsements and Future Outlook
Former President Donald Trump publicly endorsed the concept of a U.S. Bitcoin reserve during the Nashville conference. He expressed his commitment to retaining the government's existing 210,000 Bitcoin holdings. Additionally, independent presidential candidate Robert F. Kennedy Jr. proposed the daily acquisition of 500 Bitcoins until amassing a substantial reserve of 4 million Bitcoins.
Despite acknowledging the potential challenges in passing her proposed legislation before the 2024 elections, Senator Lummis views the increasing political attention towards Bitcoin reserves as indicative of a significant shift in mindset. Bitcoin has now become a central topic in political discourse, with both major political parties actively engaging with the burgeoning cryptocurrency industry.
Potential Implications of Lummis' Bill
Senator Lummis' ambitious bill represents one of the most assertive governmental initiatives towards Bitcoin adoption to date. While the bill's fate remains uncertain, its enactment would confer legitimacy upon Bitcoin as a recognized economic asset. Lummis remains hopeful that additional Bitcoin-centric bills could gain traction in the current year, signaling Bitcoin's gradual integration into mainstream political and economic spheres.
Frequently Asked Questions
Can I hold a gold ETF in a Roth IRA?
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
An IRA traditional allows both employees and employers to contribute. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
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.
An Individual Retirement Annuity (IRA) is also available. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs will not be taxed
Can I purchase gold with my self directed IRA?
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
If you do decide to invest in gold, you’ll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. You can speculate on future prices, but not own the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
How much gold should your portfolio contain?
The amount of capital required will affect the amount you make. For a small start, $5k to $10k is a good range. You could then rent out desks and office space as your business grows. You don’t need to worry about paying rent every month. Rent is only paid per month.
It is also important to decide what kind of business you want to run. In my case, we charge clients between $1000-2000/month, depending on what they order. So if you do this kind of thing, you need to consider how much income you expect from each client.
If you are doing freelance work, you probably won’t have a monthly salary like I do because the project pays freelancers. You might get paid only once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I suggest starting with $1k-2k gold and building from there.
Is it a good idea to open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren’t covered by insurance. It is impossible to get back money if you lose your investment. This includes investments that have been damaged by fire, flooding, theft, and so on.
You can protect yourself against such losses by purchasing physical gold and silver coins. These coins have been around for thousands and represent a real asset that can never be lost. You would probably get more if you sold them today than you paid when they were first created.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. You should also consider using a third party custodian to protect your assets and give you access at any time.
When you open an account, keep in mind that you won’t receive any returns until your retirement. Remember the future.
Statistics
- 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)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item’s value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
investopedia.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
cftc.gov
irs.gov
How To
3 Ways To Invest in Gold For Retirement
It is important to understand the role of gold in your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. You may also be interested in investing in gold beyond your workplace. One example is opening a custodial accounts at Fidelity Investments if an IRA (Individual Retirement Account), if you already own one. If precious metals aren’t your thing, you may be interested in buying them from a dealer.
These are the rules for gold investing:
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, instead, transfer cash to your accounts. This will protect you from inflation and help keep your purchasing power high.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. The reason is that it’s much easier to sell physical gold coins than certificates. There are no storage fees for physical gold coins.
- Diversify Your Portfolio – Never put all of your eggs in one basket. This is how you spread your wealth. You can invest in different assets. This helps reduce risk and gives you more flexibility during market volatility.
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By: Vivek Sen
Title: Senator Cynthia Lummis Proposes Bill for US Government to Acquire 1 Million Bitcoin
Sourced From: bitcoinmagazine.com/business/senator-cynthia-lummis-announces-bill-for-us-to-buy-1-million-bitcoin
Published Date: Tue, 30 Jul 2024 10:30:07 GMT
