Srinivasan Believes Bitcoin ETF Approval Reflects Major Financial Paradigm Shift
The recent approval of U.S. spot bitcoin exchange-traded funds (ETFs) signifies a significant shift from a century-long dominance of centralized monetary systems to the emerging realm of decentralized finance, according to Balaji Srinivasan, a distinguished figure in technology and the crypto industry. Srinivasan compares this shift to the reversal of the historical Executive Order 6102, which involved the confiscation of gold from U.S. citizens. He believes that the rise of crypto assets like bitcoin represents a pivotal moment, where power is transferred from central authorities back to individuals.
In 1935, during President Franklin D. Roosevelt's tenure, the U.S. government orchestrated a substantial gold confiscation, solidifying state-centric financial control. In a recent post, Srinivasan highlights this event as a milestone in the history of centralized financial dominance. He sees the approval of the spot bitcoin ETF as a radical departure from this long-standing centralized fiscal regime, opening the doors for decentralized digital currencies.
Srinivasan states, "Since FDR's seizure of gold, our lives have revolved around the centralized state rather than the decentralized market. The state has had control for so long that we've forgotten what freedom is like. But now gold is slipping out of their hands and back into yours. And history is running in reverse."
Technological Advancements and the Shift Towards Decentralization
Srinivasan also emphasizes the role of technological advancements in driving this shift. Unlike the previous century, where technologies like mass media favored centralization, today's innovations such as personal computers, end-to-end encryption, mobile technology, and notably cryptocurrencies, champion decentralization. This technological transformation plays a crucial role in redistributing financial authority from centralized institutions to individuals and decentralized systems.
"Srinivasan asserts, "Thus, top talent isn't being pulled into a government Brain Trust. It's being brain-drained *out* of the U.S. establishment. And as a consequence, the epic legal battles are, on balance, going our way."
Srinivasan reflects on the legal conflicts and changing dynamics within institutions, pointing to a steady move toward decentralization. The approval of the spot bitcoin ETF, decided by a narrow 3-2 vote, exemplifies this evolution. It represents a legal recognition of the growing impact and legitimacy of decentralized finance, marking a significant shift in institutional perspectives toward cryptocurrencies.
The Quest for Liberty and Global Freedom
At the core of Srinivasan's argument is the concept of liberty. He argues that Bitcoin and similar technologies symbolize more than just financial instruments; they are part of a larger crusade for global freedom. The resistance from traditional establishments, he notes, stems not only from the challenge of regulating a novel monetary system but also from the fear of losing control over an increasingly unregulated worldwide framework.
What are your thoughts on Srinivasan's perspective? Share your opinions in the comments section below.
Frequently Asked Questions
How to Open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should not be completed more than 60 days after the account is opened. Once you have completed this form, it is possible to begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
For a Roth IRA you will need to complete Form 8903. The process for an ordinary IRA will not be affected.
To qualify for a precious Metals IRA, there are specific requirements. The IRS states that you must be at least 18 and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Additionally, you must make regular contributions. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. But, you'll only be able to purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. Some IRA providers offer this option.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they aren't as liquid than stocks and bonds. It is therefore harder to sell them when required. They don't yield dividends like bonds and stocks. Therefore, you will lose money over time and not gain it.
What precious metals do you have that you can invest in for your retirement?
Gold and silver are the best precious metal investments. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It's also very safe and stable. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has been a favorite among investors for years. This is a great choice for people who want to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It is very durable and resistant against corrosion, much like silver and gold. It's also more expensive than the other two.
Rhodium – Rhodium is used to make catalytic conversions. It is also used to make jewelry. It is also very affordable in comparison to other types.
Palladium: Palladium is similar to platinum, but it's less rare. It's also less expensive. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
Can the government take your gold
Because you have it, the government can't take it. You have earned it by working hard for it. It belongs to your. This rule could be broken by exceptions. You could lose your gold if convicted of fraud against a federal government agency. Your precious metals can also be lost if you owe tax to the IRS. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
What are the fees for an IRA that holds gold?
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance fees and investment costs for your chosen investments.
To diversify your portfolio you might need to pay additional charges. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Many providers also charge annual management fees. These fees can range from 0% up to 1%. The average rate is.25% each year. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
Is gold a good choice for an investment IRA?
Anyone who is looking to save money can make gold an excellent investment. You can also diversify your portfolio by investing in gold. But gold is not all that it seems.
It's been used as a form of payment throughout history. It is sometimes called the “oldest currency in the world”.
But unlike paper currencies, which governments create, gold is mined out of the earth. That makes it very valuable because it's rare and hard to create.
The supply and demand for gold determine the price of gold. If the economy is strong, people will spend more money which means less people can mine gold. The value of gold rises as a consequence.
On the flip side, people save cash for emergencies and don't spend it. This results in more gold being produced, which drives down its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
Also, your investments will earn you interest which can help increase your wealth. If gold's value falls, you don't have to lose any of your investments.
How does a gold IRA work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can purchase physical bullion gold coins at any point in time. To start investing in gold, it doesn't matter if you are retired.
An IRA allows you to keep your gold forever. Your gold holdings will not be subject to tax when you are gone.
Your heirs inherit your gold without paying capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
To open a IRA for gold, you must first create an individual retirement plan (IRA). Once you've completed this step, an IRA administrator will be appointed to your account. This company acts like a middleman between the IRS and you.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
After you have established your gold IRA you will be able purchase gold bullion coin. Minimum deposit required is $1,000 You'll get a higher rate of interest if you deposit more.
Taxes will apply to gold that you take out of an IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
You may not be required to pay taxes if you take out only a small amount. There are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
Avoid taking out more that 50% of your total IRA assets each year. A violation of this rule can lead to severe financial consequences.
Can I have physical gold in my IRA
Gold is money. Not just paper currency. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
One reason is that gold historically performs better than other assets during financial panics. Between August 2011 to early 2013, gold prices rose close to 100 percent while the S&P 500 fell 21 per cent. Gold was one asset that outperformed stocks in turbulent market conditions.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. Even if your stock portfolio is down, your shares are still yours. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold is liquid. This means you can easily sell your gold any time, unlike other investments. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you to take advantage of short-term fluctuations in the gold market.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- 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)
- 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 some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads, Example, and Risk Metrics
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement account
How To
3 Ways To Invest in Gold For Retirement
It is important to understand the role of gold in your retirement plan. If you have a 401(k) account at work, there are several ways you can invest in gold. You may also be interested in investing in gold beyond your workplace. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
If you do invest in gold, follow these three simple rules:
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, put cash into your accounts. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. Physical gold coins can be sold much faster than paper certificates. You don't have to store physical gold coins.
- Diversify Your Portfolio. Never place all your eggs in the same basket. This is how you spread your wealth. You can invest in different assets. This helps to reduce risk and provides more flexibility when markets are volatile.
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By: Jamie Redman
Title: Balaji Srinivasan Equates Bitcoin ETF Move to Reversal of FDR’s Historic Gold Seizure
Sourced From: news.bitcoin.com/balaji-srinivasan-equates-bitcoin-etf-move-to-reversal-of-fdrs-historic-gold-seizure/
Published Date: Thu, 11 Jan 2024 18:30:07 +0000
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