With recent uncertainty in the media about the stock market and gold prices, rumors of an upcoming crash, the worst since The Great Depression, and money being printed in the trillions, more and more, people are looking at options to retire with Bitcoin. With so many options ranging from trading, yield farming, interest bearing accounts and of course, dollar cost averaging. The possibilities of securing your wealth and growing it exponentially through cryptocurrency can be hard to understand.
In this article, we breakdown the basics of how and why people would choose to retire with Bitcoin and the safest ways of doing so.
U.S. Debt Clock
The U.S. Debt Clock is a website that displays a breakdown of real-time debt and liabilities of the United States of America, different departments, and averages of the amount of debt per citizen and per taxpayer. The debt is split between ‘government’ debt, approximately $7 trillion, and ‘public’ debt, which is around $19 trillion.
At the time of writing, the total debt amounts to more than $26.5 trillion, increasing by $1 million approximately every 20 seconds.
To put this into perspective, 1 million seconds ago was 11 days, 13 hours 46 minutes, and 40 seconds. 1 billion seconds ago is just over 31 and one-half years. 1 trillion seconds hasn’t even been recorded yet since the time of civilization. 1 trillion seconds ago would be back more than 31,688 years, around 29,679 B.C., roughly 24,000 years before the earliest civilizations began to take shape. This website is an incredible insight into the amount of debt in a lot of different countries, but only shows the detailed breakdown of where debt lies, in the U.S.
Why People Are Looking To Retire With Bitcoin
In the past, when citizens have turned away from fiat currency to store their wealth, they have turned to gold. Bitcoin is sometimes be referred to as ‘digital gold’, for the similar properties they both hold.
However, as exemplified several times over history, gold can have its drawbacks, namely the limitations around the possession of the precious metal. In 1933 the U.S. announced citizens must surrender their gold or face a hefty fine or imprisonment. In 1959 Australia put a law in place that allowed gold seizures from private citizens if “expedient to do so” to protect the currency of the Australian Commonwealth.
In 1966, the U.K. passed a law making it illegal for anyone to own more than 4 gold coins and closed off private gold imports. This was only temporary before the ban was lifted in 1979.
In addition to government intervention, gold also can be difficult in terms of physical practicalities, for example, the purchasing and storing process.
There are a couple of gold brokers online where you can purchase a chosen amount of weight in gold and have it delivered to your doorstep. It is then your responsibility to securely store this precious metal in your own safe or other means available.
Oftentimes, this isn’t the case. A lot of people feel vulnerable holding gold and therefore turn to services from others to store their wealth for them. More often than not, people who ‘purchase’ gold, never physically see it, but will hold a certificate of authentication which can be exchanged for gold at any time should they wish.
Bitcoin is gold alternative…
One of the main reasons people feel comfortable to retire with Bitcoin is because they have true, full ownership of their digital assets, that cannot be seized by governments.
There have been a few countries around the world, such as India and Russia, that have banned the use of Bitcoin and cryptocurrency within their borders. However, citizens are still able to purchase and access their Bitcoin funds online using a VPN (virtual private network and, although they may be unable to transact crypto withina their country, citizens still have a borderless store of wealth that can be used in millions of other places around the world.
Bitcoin is the easiest store-of-value asset to cross borders and travel the world with, as it is simply code that can be accessed anywhere with an internet connection.
Another reason people are looking to retire with Bitcoin may be due to the rumors of Bitcoin becoming the new world reserve currency.
There is an increasing demand for people looking to retire with Bitcoin, with people of all ages looking to purchase Bitcoin now and keep in a pension fund to access at some point later in life. Bitwage, the cryptocurrency payroll giant, has partnered with the most regulated exchange on the market, Gemini, to offer users in the U.S. a Bitcoin 401k, that allows employees to contribute to a fund from their salary alongside employer contribution.
The U.S. government Payment Protection Program means that businesses receiving financial support loans must spend at least 75% of their funds of employee payrolls, for businesses to receive 100% loan forgiveness as authorized by the federal authority of Small Business Administration (SBA). Fortunately, the employer retirement contribution is counted towards the 75% payroll expenses. This means that currently, businesses are incentivized by the government to offer healthier contributions to pension funds and 401ks.
Bitwage offers a custodial service through the Gemini wallet for employees to access pre-tax and post-tax Bitcoin contributions to a Bitcoin 401k.
According to the Bitwage website “a traditional 401k allows pre-tax dollar investments with deferrals on income taxes until withdrawal and a Roth 401k allows post-tax dollar investments with no tax obligations on capital gains for qualified withdrawals.” Bitwage can cater to both.