Have you ever considered Bitcoin as more than just a buzzword? In a recent address at the Bitcoin MENA conference, Bilal Bin Saqib, the CEO of Pakistan Crypto Council backed by the government and the chief advisor to Pakistan’s finance minister, shed light on how Bitcoin isn't merely a speculative concept but a tangible solution to the deep-rooted economic challenges faced by millions in Pakistan.
Unveiling Bitcoin's Financial Impact
Bin Saqib eloquently expressed that for many Pakistanis, Bitcoin isn't a theoretical notion—it's a lifeline. It's a direct response to the longstanding economic struggles that conventional financial systems have failed to address effectively.
The Power of Bitcoin for Financial Stability
Imagine this: Pakistan's currency losing half its value in just five years, leaving citizens grappling with diminished purchasing power. In such a scenario, Bin Saqib emphasized that people seek more than just economic theories; they seek security. Bitcoin offers a haven from inflation fueled by political whims, excessive money printing, and currency mismanagement. It's not about lectures, but about safeguarding your assets.
Empowering the Unbanked with Bitcoin
Despite Pakistan's vast population, over 100 million individuals remain unbanked. Traditional financial systems have overlooked this segment. Bitcoin steps in, providing financial inclusion sans the red tape, offering a sense of financial identity to those excluded from mainstream services.
Revolutionizing Cross-Border Transactions
Pakistan boasts a significant freelance workforce, yet receiving international payments swiftly and affordably has been a challenge. Bitcoin and blockchain technology pave the way for seamless, low-cost, and transparent global transactions. This opens doors for Pakistani workers to participate in the global economy like never before.
Energy Dynamics in Pakistan's Crypto Narrative
Energy dynamics took the spotlight in Bin Saqib's discourse. Pakistan grapples with energy shortages alongside surplus capacity, paying for unused electricity. He envisioned Bitcoin mining and AI as tools to harness this surplus energy, transforming it into productive assets. Every idle megawatt could fuel Bitcoin mining or AI computations, turning wasted energy into digital exports.
Bitcoin Mining for Economic Renewal
Bin Saqib painted a picture where Bitcoin mining isn't just about energy consumption but a pathway to industrial revitalization. By exporting computing power, Pakistan could diversify its exports beyond traditional commodities, tapping into one of the most valuable resources of the modern era.
Embracing a New Economic Horizon
Looking forward, Bin Saqib envisioned a future where emerging markets, not Wall Street, lead the charge in Bitcoin adoption. These markets, grappling with real economic challenges, stand to gain significantly from embracing cryptocurrencies as a means of economic empowerment.
From financial stability to cross-border transactions and industrial innovation, Pakistan's journey into the world of crypto showcases a nation embracing change and paving the way for a new era of economic resilience and growth.
Frequently Asked Questions
How do I open a Precious Metal IRA
The first step is to decide if you want an Individual Retirement Account (IRA). Open the account by filling out Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should not be completed more than 60 days after the account is opened. Once this has been completed, you can begin investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS requires that you are at least 18 years old and have earned an income. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. You must also contribute regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, physical bullion will not be available for purchase. You won't have the ability to trade stocks or bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option is offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. They aren't as liquid as bonds or stocks. They are therefore more difficult to sell when necessary. They don't yield dividends like bonds and stocks. Therefore, you will lose money over time and not gain it.
Can the government seize your gold?
Your gold is yours, so the government cannot confiscate it. You earned it through hard work. It belongs entirely to you. But, this rule is not universal. You can lose your gold if you have been convicted for fraud against the federal governments. If you owe taxes, your precious metals could be taken away. However, even if taxes are not paid, gold is still your property.
What precious metal should I invest in?
This depends on what risk you are willing take and what kind of return you desire. Gold has been traditionally considered a haven investment, but it's not always the most profitable choice. You might not want to invest in gold if you're looking for quick returns. If you have time and patience, you should consider investing in silver instead.
If you don’t want to be rich fast, gold might be the right choice. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
Is gold a good choice for an investment IRA?
For anyone who wants to save some money, gold can be a good investment. It is also an excellent way to diversify you portfolio. But gold has more to it than meets the eyes.
It has been used as a currency throughout history and is still a popular method of payment. It is sometimes called the “oldest currency in the world”.
But gold is mined from the earth, unlike paper currencies that governments create. This makes it highly valuable as it is hard and rare to produce.
Gold prices fluctuate based on demand and supply. 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, when the economy slows down, people hoard cash instead of spending it. This results in more gold being produced, which drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. You will benefit from economic growth if you invest in gold.
Also, your investments will earn you interest which can help increase your wealth. Plus, you won't lose money if the value of gold drops.
Can I buy or sell gold from my self-directed IRA
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. 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. But physical bullion refers to real gold and silver bars you can carry in your hand.
Statistics
- (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
