YOUR IRA OR YOUR CRYPTOCURRENCY
IRA OR CRYPTOCURRENCY?
You may not have both your IRA and your crypto-currency.
A few days ago a rumor spread that Walmart will accept crypto-currency as payment… Really? Well, out there are over 10K different crypto-currencies. Which one will Walmart take? It was all fake news.
Walmart denied the rumor: https://www.cnbc.com/2021/09/13/walmart-to-accept-payments-with-cryptocurrencies-using-litecoin.html.
The crypto-currency commonly held is known as Bitcoin. It is mined and ledgerized by block-chain technology, all of which is created and maintained by electricity. Crypto-currency asset class requires electrical supply.
Where do you get electricity? You buy electricity from your electric company.
Electricity is not an entitlement program. You pay for your electricity usage in real US dollars.
Where do you get your US Dollars? It depends. You get US Dollars by selling your favorite crypto-currency holdings in return for US dollars.
Where do you buy and sell crypto-coins? You buy in a crypto-coin exchange agency called – Coinbase. How do you pay Coinbase Exchange? You can pay Coinbase with another crypto-coin: Ethercoin, or Dogecoin, or Litecoin to name a few.
How did you pay Coinbase Exchange for Ethercoin? You pay by selling your stock of the electricity company held in your IRA account.
You give the dollar proceeds of the shares you sold to the Coinbase Exchange.
Aha. Got it? If not - Read again.
This circle of transactions sounds to me like a Ponzi scheme.
The likely outcome is that you may lose the crypto-currency you own, and your IRA.
By the way – don’t forget to declare you crypto currency holdings to the taxman… The taxman wants a cut of your asset classes.
P.S. since June 8, 2021, you can buy smart contracts on Miami-Coin. Isn’t it cool?