A Circular Economy and the Four Archetypes of Bitcoiners: A Deep Dive

Hey there! Have you ever thought about the fascinating world of Bitcoin and how it shapes different mindsets and visions? Let's explore a unique experiment that turned a Brazilian fishing village into a Bitcoin hub and delve into the intriguing archetypes of Bitcoiners. Join me on this exciting journey!

The Birth of Praia Bitcoin Jericoacoara

The Bitcoin Community Bank Experiment

Imagine creating a Bitcoin-based circular economy from scratch in a small Brazilian town. This is the story of Praia Bitcoin Jericoacoara, where we strived to integrate Bitcoin into the community's daily life. Despite facing challenges, we focused on education, inclusion, and infrastructure to establish a Community Bitcoin Bank.

Embracing Bitcoin: A Transformational Journey

Our journey was met with resistance, but we persisted. We believed in Bitcoin's power to drive community change beyond just being a currency. While traditional authorities hesitated, we continued our quest, aiming to foster a truly transformative experience through Bitcoin.

Exploring Bitcoin's Role and Future

The Four Distinct Bitcoin Personas

Let's dive into the fascinating world of Bitcoin archetypes, each with unique perspectives and priorities. From the Bitcoin Database Builders to the Bitcoin Minimalists, discover how these personas shape the future of decentralized currency.

Unveiling the Archetypes

1. **Bitcoin Database, Coordination Builders**
– **Core Belief:** Bitcoin is a neutral public record.
– **What They Prioritize:** Time-stamps, public records, and social protocols.
– **North Star Checks:** Useful apps, active developers, and a respectful L1 footprint.

2. **Bitcoin Central, Market Pragmatists**
– **Core Belief:** Bitcoin is money and an asset.
– **What They Prioritize:** Market liquidity, education, and market depth.
– **North Star Checks:** Market volumes, ETF participation, and security budget.

3. **Bitcoin Conservatives, Monetary Purists**
– **Core Belief:** Bitcoin is money. Protect the base layer.
– **What They Prioritize:** Self-custody, miner diversity, and long-term horizons.
– **North Star Checks:** Self-custody adoption, decentralized mining, and long-term holder supply.

4. **Bitcoin Minimalists: Digital Gold and Digital Cash**
– **Core Belief:** Bitcoin as digital gold for saving and cash for spending.
– **What They Prioritize:** On-chain savings, noncustodial spending, and privacy.
– **North Star Checks:** Non-custodial L2 usage, easy withdrawals, and high payment success.

A Fresh Perspective on Bitcoin's Future

By understanding and embracing these diverse archetypes, we can pave the way for a more inclusive and dynamic Bitcoin ecosystem. Let's join hands to shape the future of digital currency, one archetype at a time!

Ready to Dive Deeper into the World of Bitcoin?

As you embark on your Bitcoin journey, remember that each archetype brings a unique value to the table. Whether you resonate with the Database Builders or the Monetary Purists, there's a place for everyone in the ever-evolving realm of Bitcoin. Embrace your role, explore new possibilities, and be part of the exciting Bitcoin revolution!

Frequently Asked Questions

Can you hold precious metals in an IRA?

The answer depends on whether or not the IRA owner is looking to diversify his holdings in gold and silver, or to keep them for safekeeping.

There are two options for him if he wants to diversify. He could either buy bars of physical gold and/or sterling from a dealer or simply sell these items back at the end. Let's say he doesn’t want to sell back his precious metal investment. He could keep the precious metals as long as he wants to.

How to Open a Precious Metal IRA?

The best way to open an IRA for precious metals is by opening a self-directed Roth Individual Retirement Account (IRA).

This account is better compared to other types because you don’t need to pay any taxes until you withdraw the investments.

It is attractive for people who want to save money, but need a tax break.

You don't have to invest in silver or gold. You can put your money in almost any item that meets the IRS guidelines.

People often think of silver and gold when they hear “precious metal” but there are many other precious metals.

Some examples include palladium, platinum, rhodium, osmium, iridium, and ruthenium.

You have many options to invest in precious metals. Two of the most popular ways to invest in precious metals are buying bullion coin and bar coins, and also purchasing shares in mining corporations.

Bullion Coins & Bars

The easiest way to invest in precious materials is to buy bullion coins or bars. Bullion refers to physical ounces (or grams) of gold and/or silver.

When you buy bullion coins and bars, you receive actual pieces of the metal itself.

You might not notice any changes in your pocket when you buy bullion coins or bars from a store but you will see some benefits over the long-term.

You will receive a tangible piece if history, for example. Each coin or bar has its own story.

If you compare the nominal value to face value, you will often find that it is worth much less than its nominal. For example, in 1986 the American Eagle Silver Coin sold for $1.00 an ounce. Today, however, the price of an American eagle is closer to $40.00 per ounce.

Bullion's price has risen dramatically since its inception, so many investors would rather invest in bullion coins than futures.

Mining Companies

Another option for people who are interested in buying precious metals is to invest in shares of mining corporations. You are investing in the ability of mining companies to produce gold or silver.

You will then be entitled to dividends which are based upon the company’s profit. These dividends can then be used to pay out shareholders.

Furthermore, the company has the potential to grow. The share prices of the company should rise as more people buy the product.

These stocks can fluctuate in value so it is important to diversify your portfolio. This involves spreading your risk over multiple companies.

However, mining companies are not immune to financial loss just like any stock-market investment.

If gold prices plummet significantly, ownership of your shares could be worthless.

The Bottom Line

Precious metals like gold and silver can provide safety during economic uncertainty.

However, both gold and silver are subject to wild swings in price. If you're looking to make a long-term, profitable investment in precious metallics, then consider opening a precious precious metals IRA Account with a reputable business.

By doing this, you can reap the tax benefits and still have physical assets.

Is gold IRAs a good way to invest?

The best way to invest in gold is by buying shares in companies that mine for it. These companies can make you money by investing in precious metals and gold.

Two drawbacks exist when you own shares directly.

If you hold on to your stock for too much time, you risk losing money. Stocks that fall are less than their underlying asset (like silver) and can end up losing more money. This could mean that you lose money rather than making it.

You may also miss potential profits if the market recovers before you sell. Therefore, you might need patience and wait for the market recovery before making any profit from your gold investments.

However, if you want to separate your investments from your financial affairs, physical gold can still be a great investment option. An IRA with gold can diversify and protect your portfolio against inflation.

Visit our website for more information on gold investing.

How do you withdraw from an IRA that holds precious metals?

If you have a precious metal IRA account such as Goldco International Inc., it may be worth considering withdrawing your funds. This way, when you decide to sell your metals, they will still be worth much more than if you had left them inside the account.

Here is how to withdraw precious metal IRA funds.

First, you need to find out if the provider of your precious metal IRA allows withdrawals. This option is available from some companies, but not all.

Second, determine whether you can take advantage of tax-deferred gains by selling your metals. Many IRA providers provide this benefit. Some providers do not offer this benefit.

Third, verify with your precious Metal IRA provider if you are charged any fees for taking these steps. Extra fees may apply for withdrawals.

Fourth, you should keep track of precious metal IRA investments for at minimum three years after they are sold. To put it another way, you should wait until January 1st every year to calculate capital gains from your investment portfolio. Then file Form 8949, which provides instructions for calculating the amount of gain you realized.

Not only must you file Form 8949 but also have to report to the IRS the sale of precious metals. This will ensure that you pay taxes on any profit earned from your sale.

Finally, consult a trusted accountant or attorney before selling your precious metals. They will ensure you are following all the procedures and avoid making costly mistakes.

Statistics

If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
Silver must be 99.9% pure • (forbes.com)
To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)

External Links

How To

How to transfer your IRA into a gold IRA

You want to convert your retirement savings from a traditional IRA to a gold IRA. This article can help you do exactly that. This is how you can make the switch.

Rolling over is the process of transferring money from one type of IRA to another. Rolling over an account offers tax advantages. Others prefer to invest in tangible assets, such as precious metals.

There are two types of IRAs — Traditional IRAs and Roth IRAs. The main difference between the two types of IRAs is that Roth IRAs do not allow investors to deduct taxes from their earnings. If you put $5,000 into a Traditional IRA today, after five years you can only withdraw $4,850. If you invested the same amount in a Roth IRA, however, you'd be able to keep every penny.

Here's what you should know if you're looking to convert from a traditional IRA to a gold IRA.

First, you need to decide whether to roll over your current balance into a new account or simply transfer funds from your old account to your new one. Transferring money will result in income tax being paid at the normal rate for earnings greater than $10,000. However, if your IRA is rolled over, these earnings will not be subjected to income tax until age 59 1/2.

After making your decision, you can open a new financial account. You'll likely be required to provide proof of identities, such as a Social Security card, passport, and birth certificate. Once you are done, you will fill out paperwork proving ownership of your IRA. Once you have filled out the forms, your bank will receive them. After verifying your identity, they will give you instructions about where to send wire transfers or checks.

Now comes fun. Now, deposit money into your account and wait for approval from the IRS. You will be notified by mail that your request has been approved.

That's it! You can now relax and watch your money grow. You can also close your IRA and transfer the balance to a new one if you change your mind.

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By: Fernando Motolese
Title: A Circular Economy and the Four Archetypes of Bitcoiners: A Deep Dive
Sourced From: bitcoinmagazine.com/culture/bitcoin-archetypes-circular-economy-rev
Published Date: Sat, 13 Sep 2025 16:00:00 +0000