If you weren’t there in person, it would be hard to accurately describe how long and winding the line was to see Donald Trump speak at the Bitcoin conference. The wait to even pass through security and find a seat in the auditorium was hours long and thousands of folks were scrambling to find seats at the Nakamoto Stage early in the day. As the line snaked through the expo hall, it was easy to find an even distribution of Bitcoiners and Trump supporters (some were both) all eager to hear Trump speak. There was an excitement in the atmosphere, and while I didn’t share in the excitement, it did permeate the air in Nashville. Uber drivers were quick to point out that Trump was speaking at the conference. Around the city were large images of Trump’s face next to Bitcoin symbols advertising the conference. Trump-mania surely had taken over the conference, but it also seemed to take over the city of Nashville, too.
Significance of Trump's Speech
I can’t deny that getting Donald Trump to speak at the Bitcoin Conference during an election year is a huge "get." It is an important moment for Bitcoin and we should all appreciate this development, in some sense, as a milestone that we can all be proud of as Bitcoiners. Trump's speech promised to lunge Bitcoin into the mainstream political conversation and thereby normalize an up and coming digital currency that most people still dismiss as "fake internet money". It was a moment we were all supposed to remember for the rest of our lives; this was Bitcoin’s chance to be included in serious conversations held by serious people.
Evaluation of Trump's Speech
If Trump had shown up for his speech on time, we would have known an hour earlier that this wasn’t going to happen. Instead, we waited. Once Trump did start his speech, it didn’t take long to realize that the folks waiting for hours all day were sold a bill of goods. Trump’s speech was a rambling, at times incoherent, stump speech with a few little nods toward crypto, and… I guess… Bitcoin thrown in for good measure. The first mention of Bitcoin came about six and a half minutes into his remarks. I don’t blame Trump for speaking about crypto more than Bitcoin; most politicians do. But while he was speaking at the Bitcoin conference, I was expecting him to spend more time discussing Bitcoin than his genius uncle who used to work at MIT. Alas, sometimes you just can’t set the bar low enough.
Reflection on Trump's Understanding of Bitcoin
The most concrete take away from hearing Trump speak about Bitcoin was the not-so-shocking realization that Robert Kennedy Jr. thinks more deeply about Bitcoin while he has his first cup of coffee each morning than Donald Trump has thought about Bitcoin during his entire life. All of Trump's best moments during his speech (and there were some) were lifted, whole cloth, from RFK Jr’s keynote address the day prior. The parts of the speech he didn’t copy from RFK Jr were dismissed, arrogant, pandering and ill informed. The value in watching the speech at all is that the single issue Bitcoin voters I keep hearing about now have an easy decision to make.
Implications of Trump's Alignment with Bitcoin
No doubt, there are plenty of Bitcoiners who love Trump and loved his speech. But there are also a surprising number of folks that see all this for what it is: a politician pandering for money and votes and an insecure Bitcoin community pandering for some borrowed legitimacy. Having a leading presidential candidate discuss Bitcoin has some positive effects, but the most serious people I know in the space also recognize there are some risks and dangers involved, too. Chief among these dangers is that by cozying up to Trump, the Bitcoin community risks alienating itself from pre-coiner audiences for the foreseeable future. This seems to be a point, I think, that is hard to comprehend if you already like Bitcoin or already like Trump. Try to remember, most people don’t fit into either category.
Call for Action
I’ve publicly been in the Bitcoin space long enough to appreciate the massive cognitive dissonance that exists among many Bitcoiners. Some of these people are Libertarians who are fully committed to individual freedom, but are unwilling to respect a person’s gender identity. Some of these people are Conservatives who want to see the government get smaller while that same government polices what books get banned and what healthcare people are allowed to receive. Some of these people are Bitcoiners who want to see the government disintermediated from the financial system while they cheer uproariously for a politician promising to buy Bitcoin on behalf of the United States Government. If I can see the cognitive dissonance, why is it so hard for a community that prides itself on being heterodox, skeptical and don’t-trust-verify?
I consider it a personal responsibility to orange pill as many people as I can, and I have been serious about doing that. This means, I want to expose the 57% of Americans that don’t like Trump to Bitcoin as a force for good in this world; my job is hard and since Nashville, it just got harder. Let’s be real: Bitcoin is the perfect combination of "internet" and "money" that should make anyone skeptical. There is no shortage of FUD dismissing Bitcoin as pretend money or a scam or a ponzi scheme or money for criminals. Experienced Bitcoiners may not be worried about any of that, but the pre-coiners I know certainly are hyper aware of the reputation. If my job is to convince them to take a second look, that gets harder when Bitcoiners are falling over themselves to align with a known con artist, philanderer, fraud, and convicted felon.
Proposed Course of Action
To be sure, Bitcoin will attract its share of con artists, philanderers, frauds and felons. Bitcoin is for them, too. But we shouldn’t capitulate and rebrand Bitcoin as something Trumpian. This is simply bad marketing. The most compelling argument I’ve heard in support of seeking out Trump’s approval is that it will force other politicians to support Bitcoin and his policies would force other nations to take Bitcoin seriously. This could prove to be true, but it is just as likely that the opposite will happen. Normie pre-coiners, if they are paying attention at all, will so easily be able to hold up the "scam" Bitcoin next to the "scam" Trump and walk away from the whole thing and sleep easily. Meanwhile, Trump will have no genuine affinity toward Bitcoin after the votes are counted.
Conclusion and Recommendations
After so much effort going toward ensuring Bitcoin is non-partisan, bi-partisan and non-political, it was our community (really a handful of influential and connected Bitcoiners) that sought out an alliance with the most polarizing political figure in generations. It would be one thing if Trump found Bitcoin on his own, but that’s not the case. We committed this unforced error ourselves, or more accurately, we allowed the leaders in our leaderless movement to err on our behalf.
I can hear you screaming "Well, what’s your solution? Vote for the other guys?!" Fair question. Here’s my solution: Walk away from politicians and walk towards voters. Meet them where they are and educate them about the ways Bitcoin solves the problems they care about. That’s really it. The rest will take care of itself. Take a low time preference and it will happen from the ground up, without having to sacrifice your principles. This is the best way to promote Bitcoin adoption, protect the marginalized people Bitcoin can help, and attract policy makers who truly and deeply care about Bitcoin and eschew "crypto". If you do get to interact with politicians, advocate for protections for self custody, de minimis tax treatment so Bitcoin can be easily spent, and consumer protections imposed on exchanges and brokerages.
For those that think Trump is now one of us, he isn’t. He will drop our community the moment it serves him, and we will be worse off for it. Zoom out. One week after Trump appeared in Nashville, he sat for a disastrous interview with the National Association of Black Journalists. This, it turns out, did not make him a Black journalist. Nor did showing up in Nashville make him a Bitcoiner. We would, all of us, be well served to remember that.
This is a guest post by Jason Maier. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Frequently Asked Questions
How much should your IRA include precious metals
Protect yourself from inflation by investing in precious metallics like silver and gold. It’s not just for retirement. It can also be used to prepare for economic downturns.
Although gold and silver prices have risen significantly in the past few years they are still considered safe investments. They don’t fluctuate quite as much like stocks. These materials are in constant demand.
Silver and gold prices are typically predictable and stable. They are more stable when the economy is growing than they are during recessions. This makes them great money-savers and long-term investments.
You should invest 10 percent of your total portfolio into precious metals. This percentage can be increased if your portfolio is more diverse.
How much should precious metals be included in your portfolio?
To protect yourself from inflation, investing in physical metals is the best option. Because precious metals are a long-term investment, you can not only buy in to the current value but also the future potential of these assets. The value of your investment increases with rising prices.
Gains will be taxed if you keep your investments for at minimum five years. And if you sell them after this period, you will have to pay capital gains taxes. Our website has more information about how to purchase gold coins.
Can you hold precious metals in an IRA?
This depends on the IRA’s owner’s desire to diversify or keep his holdings in silver and gold.
Two options are available for him if diversification is something he desires. He could either buy bars of physical gold and/or sterling from a dealer or simply sell these items back at the end. He doesn’t wish to sell any of his precious metal investments. He should keep them, as they are perfectly safe to be stored in an IRA account.
Statistics
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- The IRS also allows American Eagle coins, even though they do not meet gold’s 99.5% purity standard. (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)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
External Links
wsj.com
en.wikipedia.org
investopedia.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
How To
How to Open a Precious Metal IRA
Precious metals are one of the most sought-after investment vehicles today. They are so popular because they allow investors to earn higher returns than traditional investments like stocks and bonds. However, you need to be careful when investing in precious materials. Here are the basics to help you open your precious metal IRA account.
There are two main types in precious metal accounts. These are physical precious metals and paper gold or silver certificates (GSCs). Each type of account has its own advantages and disadvantages. GSCs and physical precious metals accounts can offer diversification, but they are difficult to trade and easy to access. To learn more about these options, keep reading below.
Physical precious metals accounts are comprised of bullion and bars as well as coins. This option offers diversification benefits but also has some drawbacks. Precious metals can be expensive to store, buy and sell. Moreover, their large size can be difficult to transport them from one location to another.
However, silver and gold certificates made of paper are quite affordable. These certificates can also be traded online, and they are easy to access. They are ideal for those who don’t wish to invest in precious metals. They aren’t as diversifiable as their physical counterparts. Because they are supported by government agencies such the U.S. Mint the value of these assets may decrease if inflation rates increase.
If you open a precious metal IRA, choose the right account for your financial situation. The following are important factors to consider before opening an IRA.
- Your tolerance level
- Your preferred asset allocation strategy
- How much time do you have to invest
- Whether or not you plan on using the funds for short-term trading purposes
- Which tax treatment would you prefer?
- Which precious metals would you prefer to invest in
- How liquid is your portfolio?
- Your retirement age
- Where you’ll store your precious metals
- Your income level
- Your current savings rates
- Your future goals
- Your net worth
- Any other special circumstances that may impact your decision
- Your overall financial position
- You choose between paper and tangible assets
- You are willing to take chances
- Your ability manage losses
- Your budget constraints
- Your desire to be financially independent
- Your investment experience
- Your familiarity with precious and rare metals
- Your knowledge of precious metals
- Your confidence in the economy
- Your personal preferences
After you’ve decided on the best type of precious metal IRA for you, you can start to open an accounts with a reputable broker. These companies can also be found online, through word-of mouth or referrals.
Once you’ve opened your precious metal IRA, you’ll need to determine how much money you want to put into it. Each precious metal IRA account requires a minimum initial deposit. Some accounts require $100 while others allow you to invest up $50,000.
As mentioned above, you can decide how much money you want to invest in your precious metal IRA. You might choose to make a larger initial investment if your goal is to build wealth over the long-term. If you are planning to invest small amounts each month, a lower initial investment might be better.
You can buy any type of investment, regardless of the amount of precious metals in your IRA. Here are some of the most common:
- Bullion bars, rounds and coins in gold – Gold
- Silver – Rounds, and coins
- Platinum – Coins
- Palladium – Round and bar forms
- Mercury – Bar and round forms
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By: Jason Maier
Title: Analysis of Donald Trump’s Speech at the Bitcoin Conference
Sourced From: bitcoinmagazine.com/culture/trump-and-the-future-of-bitcoin
Published Date: Mon, 05 Aug 2024 12:52:00 GMT
