Brian Armstrong: Bitcoin Could Extend Western Civilization, Says Coinbase CEO

The Role of Bitcoin in Western Civilization

Brian Armstrong, the CEO of Coinbase, a leading crypto exchange based in the United States, believes that Bitcoin could play a significant role in extending Western civilization. In a recent post on X, Armstrong shared his thoughts on the potential impact of Bitcoin on the future of Western society. He argues that Bitcoin offers an alternative to fiat currencies, such as the U.S. dollar, and can serve as a hedge against inflation.

Bitcoin as an Alternative to Fiat Currencies

Armstrong points out that fiat currencies, including the U.S. dollar, are subject to inflation, which erodes their value over time. He suggests that Bitcoin could be a viable alternative to these fiat currencies, as it is not controlled by any central authority and is not subject to inflationary pressures. While most people have not yet considered Bitcoin as a replacement for traditional currencies, Armstrong believes that individuals may gradually shift from fiat to crypto as a way to protect their wealth from inflation.

Bitcoin and the U.S. Dollar

Contrary to popular belief, Armstrong does not foresee Bitcoin causing the downfall of the U.S. dollar. Instead, he sees crypto as a "natural check and balance" for the American currency. He believes that both fiat currencies and cryptocurrencies will coexist for a long time, as they serve different purposes and can complement each other.

Use Cases in Troubled Economies

Armstrong highlights the use of cryptocurrencies in countries facing economic challenges, such as Venezuela and Argentina. In these countries, citizens have turned to cryptocurrencies as a means to combat inflation and devaluation caused by the weaknesses of their fiat currencies. The importance of stablecoins pegged to the U.S. dollar is emphasized in Chainalysis' 2023 Geography of Cryptocurrency Report, which showcases the significance of crypto in troubled economies.

Conclusion

Brian Armstrong's perspective on the future role of Bitcoin and cryptocurrencies offers valuable insights into the potential of these digital assets. While Bitcoin may not replace traditional fiat currencies, it can serve as a hedge against inflation and offer individuals an alternative store of value. As the world becomes increasingly digital, it is crucial to explore the possibilities presented by cryptocurrencies and their potential to shape the future of Western civilization.

Frequently Asked Questions

Should You Open a Precious Metal IRA?

It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. If you lose money in your investment, nothing can be done to recover it. This includes losing all your investments due to theft, fire, flood, etc.

It is best to invest in physical gold coins and silver coins to avoid this type loss. These items are timeless and have a lifetime value. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.

Consider a reputable business that offers low rates and good products when opening an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.

Do not open an account unless you're ready to retire. Remember the future.

What are the advantages of a gold IRA

It is best to put your retirement money in an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You can decide how much money you withdraw each year. There are many types to choose from when it comes to IRAs. Some are better for those who want to save money for college. Some are for investors who seek higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account is a good option if you plan to retire early.

A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA you don't need to worry about taxes while you wait for your gains to be available. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.

Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. You won't have the hassle of making deposits each month. To make sure you don't miss any payments, you can also set up direct deductions.

Finally, gold remains one of the best investment options today. Because it isn't tied to any particular country its value tends be steady. Even during economic turmoil, gold prices tend to stay relatively stable. Therefore, gold is often considered a good investment to protect your savings against inflation.

What is the best way to hold physical gold?

Gold is money, not just paper currency or coinage. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.

Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.

Another reason is that gold has historically outperformed other assets in financial panic periods. Between August 2011 to early 2013, gold prices rose close to 100 percent while the S&P 500 fell 21 per cent. Gold was one asset that outperformed stocks in turbulent market conditions.

One of the best things about investing in gold is its virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.

Gold provides liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. Gold is liquid and therefore it makes sense to purchase small amounts. This allows you to take advantage of short-term fluctuations in the gold market.

What are the fees associated with an IRA for gold?

$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance fees and investment costs for your chosen investments.

If you wish to diversify your portfolio, you may need to pay additional fees. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free check accounts, but charge monthly fee for IRA accounts.

Most providers also charge an annual management fee. These fees range between 0% and 1 percent. The average rate per year is.25%. These rates are usually waived if you use a broker such as TD Ameritrade.

Can I hold a gold ETF in a Roth IRA?

You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).

Traditional IRAs allow contributions from both the employer and employee. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).

An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.

A Individual Retirement Annuity (IRA), is also available. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs do not have to be taxable

Should You Buy Gold?

Gold was a safe investment option for those who were in financial turmoil. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.

Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.

This could be changing, according to some experts. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.

They also pointed out that gold is gaining popularity due to its perceived value, and potential return.

Here are some things to consider if you're considering investing in gold.

Consider whether you will actually need the money that you are saving for retirement. You can save money for retirement even if you don't invest in gold. Gold does offer an extra layer of protection for those who reach retirement age.
Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each account offers different levels of security and flexibility.
Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.

Don't buy gold unless you have done your research. Make sure to protect any gold you already own.

Statistics

Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
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)

External Links

How To

A growing trend: Gold IRAs

Investors seek diversification and protection against inflation by using gold IRAs.

The gold IRA allows investors to purchase physical gold bars and bullion. It is a tax-free investment that can be used to grow wealth and offers an alternative investment option to those who are concerned about stocks or bonds.

A gold IRA allows investors to manage their assets without worrying about market volatility. They can use the gold IRA to protect themselves against inflation and other potential problems.

Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.

A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.

This is why the gold IRA has become increasingly popular with investors looking to provide financial security during times of financial uncertainty.

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By: Sergio Goschenko
Title: Brian Armstrong: Bitcoin Could Extend Western Civilization, Says Coinbase CEO
Sourced From: news.bitcoin.com/coinbase-ceo-brian-armstrong-bitcoin-may-be-the-key-to-extending-western-civilization/
Published Date: Wed, 06 Dec 2023 07:00:33 +0000