Although the report doesn't propose any new regulations it sends a warning to miners of bitcoin.
This opinion editorial is by Robert Hall, who is a content creator and small-business owner.
A report by the White House Office of Science and Technology Policy warned that mining requires a lot of energy and demanded miners to become more green or face a ban. What can we do as plebs to protect Bitcoin against government overreach?
September 8, 2022 should be considered the date that the United States declared war on Bitcoin and its supporter. The White House and President Biden sent shockwaves through Bitcoin communities with their announcement that they were considering banning proof-of-work miners, which is what gives Bitcoin its power.
This is a clear indication of the severity of the attack. This is an obfuscating attack on Bitcoin, the asset, Bitcoin The Protocol, the industry that has organically grew since 2009, and more importantly, its supporters.
The Biden administration isn't concerned that Bitcoin's annual settlement volume exceeded Visa last year. Did you know that $13.1 trillion in transactions were made on-chain by 2021? The legacy financial system is suffering from this, and they are working overtime to stop Bitcoin.
The Federal Reserve, the Federal Government and the banks all have a symbiotic relationship. They need each other for survival. Each one draws power from the other until you are unsure who is in control most of the time.
The banks finance the campaigns to buy politicians they want, while the politicians pass laws that are in the bank's favor. This entire arrangement is made possible by the federal reserve, which acts as a middleman. This is how the system works, for both the banks and the politicians. Naturally, both parties are incentivized and encouraged to attack Bitcoin.
The federal government uses ESG (Environment, Social, and Governance narrative) as a convenient tool to condition the public into accepting government interference in business operations. Because Bitcoin is energy-secured, it makes it easy to denigrate the Bitcoin protocol. Here's a sample of FUD:
"Why Bitcoin is Bad for the Environment"
"Bitcoin Consumes More Electricity Than Argentina"
"Bitcoin mining operation In Finger Lakes Sparks Local Concerns"
Because Bitcoin is still a small asset class, compared to the stock and bond markets, this type of propaganda is not resisted. As of the time this article was written, Bitcoin's market cap is under $500 billion. So why are they trying to take Bitcoin down like this?
The world is changing rapidly lends credence the idea that they are trying to control the situation and block exits. This is a form of capital control function. The government does not want dollars flowing into assets they do not control. They know they can't let the ball drop.
Because they intend to implement this policy soon, I think the Biden administration has floated the idea of banning proof-of work mining. This is a situation that must be dealt with immediately. You must act if you care about Bitcoin.
How can Bitcoiners fight back?
We can take many actions as Bitcoiners to stop this policy being implemented. It is best to educate those who have the ability to stop it from happening.
This is what it looks like in practice. Contact your senator representatives and your house representatives to let them know that you are concerned about this issue. They will listen more if more people speak out. This tactic has worked in the past. A recent example is the rapid mobilization against last year's infrastructure bill. During this fight, forty thousand calls were made!
Despite all the support from the wider cryptocurrency industry, President Biden signed the infrastructure package last November. We lost the battle but the silver lining is that we were able mobilize thousands to make a call. This is a huge deal and something that could be built on.
Focus On The States
To prevent Bitcoin being taken away from us, we need to be more active in advocacy and educate. America has a decentralized government. This is the beauty of America. There are 50 state legislatures that must listen to Bitcoiners.
In my opinion, this is where we should focus our efforts. While advocacy and education at the federal level might be helpful, I believe it is a forgone conclusion that the current administration opposes Bitcoin and will not change their stance. They value control and power over American citizens' well-being.
The power of the 10th Amendment to the United States should be used by Bitcoiners to present their case to the state legislators. The 10th Amendment states that "The powers not delegated by the Constitution to the United States nor prohibited by it are to the States to the States" and that they are reserved for the States or the people.
The Constitution doesn't give the federal government power to regulate energy use by the people or states. The states should respond by nullifying a so-called ban of proof-of-work miners.
Incentives to support Bitcoin mining through the 10th Amendment include educating state legislators on both sides of each aisle about Bitcoin mining and the benefits it could generate for their state.
Citizens in these 26 states can vote to protect Bitcoin mining by not having to go through state legislatures.
Don't be afraid to ignore any bans that may occur and keep your miner's plugged in at work. Imagine a world in which every home has an S9 mining Bitcoin at home. There is nothing they can do.
As free individuals, we have the right and obligation to use the most money that has ever been created in order to preserve our wealth as well as our time. This money cannot be taken away by the government. Keep fighting the good fight! We will prevail in the end.
Robert Hall contributed this guest post. These opinions are not necessarily those of BTC Inc. and Bitcoin Magazine.
Frequently Asked Questions
How to Open a Precious Metal IRA?
First, you must decide if your Individual Retirement Account (IRA) is what you want. Open the account by filling out Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. You must complete this form within 60 days of opening your account. After this, you are ready to start investing. You can also choose to pay your salary directly by making a payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. The process for an ordinary IRA will not be affected.
To qualify for a precious-metals IRA, you'll need to meet some requirements. The IRS requires that you are at least 18 years old and have earned an income. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. Contributions must be made on a regular basis. These rules apply to contributions made directly or through employer sponsorship.
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.
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. This makes them harder to sell when needed. Second, they don't generate dividends like stocks and bonds. You'll lose your money over time, rather than making it.
Can I purchase gold with my self directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. They let you speculate on future price without having to own the metal. You can only hold physical bullion, which is real silver and gold bars.
What are the fees for an IRA that holds gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This includes the account maintenance fees and any investment costs associated with your chosen investments.
Diversifying your portfolio may require you to pay additional fees. These fees vary depending on what type of IRA you choose. Some companies offer free checking, but charge monthly fees for IRAs.
Many providers also charge annual management fees. These fees can range from 0% up to 1%. The average rate per year is.25%. These rates can be waived if the broker is TD Ameritrade.
How much gold should your portfolio contain?
The amount of capital required will affect the amount you make. If you want to start small, then $5k-$10k would be great. Then as you grow, you could move into an office space and rent out desks, etc. Renting out desks and other equipment is a great way to save money on rent. It's only one monthly payment.
It is also important to decide what kind of business you want to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. This means that you may only be paid once every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k-$2k of gold and growing from there.
What are the advantages of a IRA with a gold component?
Many benefits come with a gold IRA. You can diversify your portfolio with this investment vehicle. You control how much money goes into each account and when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. They're available at most banks and brokerage firms. You do not need to worry about fees and penalties when you withdraw money.
But there are downsides. Gold has always been volatile. It's important to understand the reasons you're considering investing in gold. Do you want safety or growth? Are you trying to find safety or growth? Only once you know, that will you be able to make an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce isn't enough to cover all of your needs. Depending on your plans for using your gold, you may need multiple ounces.
A small amount is sufficient if you plan to sell your gold. Even one ounce is enough. But, those funds will not allow you to buy anything.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
Three ways to invest in gold for retirement
It is crucial to understand how you can incorporate gold into your retirement plans. If you have a 401(k) account at work, there are several ways you can invest in gold. It is also possible to invest in gold from outside of your work environment. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
These are the three rules to follow if you decide to invest in gold.
- Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, instead, transfer cash to your accounts. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. You don't have to store physical gold coins.
- Diversify your Portfolio – Don't put all your eggs in one basket. This means that you should diversify your wealth by investing in different assets. This helps to reduce risk and provides more flexibility when markets are volatile.
By: Robert Hall
Title: Biden Administration Targets Bitcoin Mining In New Report
Sourced From: bitcoinmagazine.com/legal/biden-administration-targets-bitcoin
Published Date: Wed, 21 Sep 2022 23:20:00 GMT
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