When we talk about Bitcoin, we often think of it as a speculative concept. However, the recent insights shared at the MENA conference by Bilal Bin Saqib, the CEO of the Pakistan Crypto Council, shed a different light on this digital currency. Bin Saqib, who also serves as the chief advisor to Pakistan’s finance minister, presented a compelling case for Bitcoin as a practical solution to address the deep-rooted economic challenges faced by millions in Pakistan.
Bitcoin's Role as a Financial Lifeline
Bin Saqib's argument resonates with many Pakistanis who see Bitcoin not as a theoretical concept but as a source of relief from longstanding financial issues. He highlighted the significant loss in Pakistan's currency value over the past five years, which has directly impacted the purchasing power of the population. In such a volatile economic environment, people are not interested in complex economic theories; they seek stability and security.
The Appeal of Bitcoin for Ordinary Citizens
- Bitcoin offers a reliable store of value unaffected by inflationary pressures.
- It serves as a hedge against political and economic uncertainties.
- Provides financial security without the need for traditional banking systems.
Access and Inclusion Through Bitcoin
One of the key pillars of Bin Saqib's argument is the issue of financial inclusion in Pakistan. With a large portion of the population remaining unbanked, traditional financial services have not reached everyone. Bitcoin emerges as a solution that offers financial identity without the barriers of bureaucracy and intermediaries, particularly beneficial for the youth seeking financial independence.
The Power of Permissionless Access
- Bitcoin provides financial access without the need for extensive paperwork or approvals.
- Empowers young individuals to engage in global financial systems.
Revolutionizing Cross-Border Earnings
For Pakistan's freelancers, receiving international payments has been a challenge. Bitcoin's borderless and efficient payment mechanisms have opened up new opportunities for these workers to connect with the global economy seamlessly.
Transforming Lives Through Global Payments
- Blockchain technology enables fast and secure cross-border transactions.
- Reduces transaction costs and processing times for international payments.
By integrating these grassroots use cases into a national strategy, Pakistan aims not just to follow trends but to create a new economic narrative, especially given its youthful demographic. Digital assets like Bitcoin are viewed as foundational infrastructure rather than mere speculative tools, paving the way for a new financial landscape in the Global South.
Energy Innovation and Economic Transformation
Bin Saqib also delved into the energy dynamics of Pakistan, emphasizing the potential of Bitcoin mining and AI to utilize excess energy capacity effectively. By converting idle energy into digital exports, Pakistan can leverage its resources for industrial growth.
Unlocking Economic Potential Through Energy Reimagination
- Bitcoin mining transforms wasted energy into valuable digital assets.
- Positions Pakistan to export computational power, a valuable resource in the digital age.
The future of Bitcoin adoption, according to Bin Saqib, lies not in traditional financial hubs but in emerging markets like Pakistan, where the impact of economic challenges is profoundly felt, offering immense growth opportunities.
If you're intrigued by the transformative power of Bitcoin in Pakistan, dive deeper into the discussion presented in Bitcoin Is a Relief, Not a Theory: Pakistan’s Case for Crypto Adoption on Bitcoin Magazine.
Frequently Asked Questions
What is a gold IRA account?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase physical bullion gold coins at any point in time. You don’t have to wait to begin investing in gold.
You can keep gold in an IRA forever. Your gold assets will not be subjected tax upon your death.
Your heirs can inherit your gold and avoid capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
First, an individual retirement account will be set up to allow you to open a golden IRA. After you do this, you will be granted an IRA custodian. This company acts as an intermediary between you and IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual returns.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. The minimum deposit is $1,000. You'll get a higher rate of interest if you deposit more.
You will pay taxes when you withdraw your gold from your IRA. You will be liable for income taxes and penalties if you take the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. 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.
It's best not to take out more 50% of your total IRA investments each year. You could end up with severe financial consequences.
How much should your IRA include precious metals
You should remember that precious metals are not only for the wealthy. They don't require you to be wealthy to invest in them. You can actually make money without spending a lot on gold or silver investments.
You may consider buying physical coins such as bullion bars or rounds. Shares in precious metals-producing companies could be an option. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. These metals are not stocks, but they can still provide long-term growth.
And unlike traditional investments, they tend to increase in value over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
How do you withdraw from an IRA that holds precious metals?
First, you must decide if you wish to withdraw money from your IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Finally, you'll need to open a brokerage account once these calculations are completed. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Before choosing one, consider the pros and disadvantages of each.
Bullion bars require less space, as they don't contain individual coins. You will need to count each coin individually. However, individual coins can be stored to make it easy to track their value.
Some prefer to store their coins in a vault. Others prefer to store their coins in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
Is it possible to hold a gold ETF within a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
A traditional IRA allows for contributions from both employer and employee. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
A Individual Retirement Annuity is also possible. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.
How much gold should you have in your portfolio?
The amount of capital required will affect the amount you make. Start small with $5k-10k. You could then rent out desks and office space as your business grows. So you don't have all the hassle of paying rent. You only pay one month.
It's also important to determine what type business you'll run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. This means that you may only be paid once every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I recommend starting with $1k-$2k in gold and working my way up.
Is gold a good IRA investment?
Gold is an excellent investment for any person who wants to save money. You can also diversify your portfolio by investing in gold. But gold is not all that it seems.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the oldest currency in the world.”
Gold is not created by governments, but it is extracted from the earth. It's hard to find and very rare, making it extremely valuable.
The supply and demand factors determine how much gold is worth. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. As a result, the value of gold goes up.
The flip side is that people tend to save money when the economy slows. This increases the production of gold, which in turn drives down its value.
This is why investing in gold makes sense for individuals and businesses. You will benefit from economic growth if you invest in gold.
Your investments will also generate interest, which can help you increase your wealth. You won't lose your money if gold prices drop.
Who is the owner of the gold in a gold IRA
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
You should consult a financial planner or accountant to see what options are available to you.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (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)
- 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)
External Links
bbb.org
forbes.com
finance.yahoo.com
irs.gov
How To
Tips for Investing in Gold
Investing in Gold has become a very popular investment strategy. Because investing in gold has many benefits. There are several ways to invest in gold. Some people choose to purchase gold coins physically, while some prefer to invest with gold ETFs.
Before you purchase any type or gold, here are some things to think about.
- First, make sure you check if your country allows you own gold. If your country allows you to own gold, then you are allowed to proceed. You might also consider buying gold in foreign countries.
- Second, it is important to know which type of gold coin you are looking for. You can choose between yellow gold and white gold as well as rose gold.
- You should also consider the price of gold. It is better to start small, and then work your way up. It is important to diversify your portfolio whenever you purchase gold. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- You should also remember that gold prices can change often. You need to keep up with current trends.
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By: Micah Zimmerman
Title: Why Bitcoin Offers Relief, Not Just Theory: A Convincing Argument for Crypto Adoption in Pakistan
Sourced From: bitcoinmagazine.com/conference/bitcoin-relief-not-theory-pakistan
Published Date: Tue, 09 Dec 2025 15:01:08 +0000
