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Did I miss the crypto boat? Am I too old? Is it real?

Updated: Dec 31, 2021

too old to fully understand it, and not something you should invest in, especially with your retirement approaching? (This author did.) Do you think that it's too speculative; that it could crash, losing everything you invested? Do you think it’s all a fad? A pyramid scheme?

(My father always told me never to invest in something I didn't understand. I think he stole that from Charles Schwab, or maybe Alberto Ponzi, but it's still good advice. His other major piece of investing advice was 'don't be a pig' and 'if it sounds too good to be true, it is'. The best piece of advice, which is probably ubiquitous, is “it's not the timing, it's the time in.”

Enough about the old man…

The point of this article is that all of the questions from the first paragraph can be answered in the negative. No it's not too late. No you're not too old to understand it; no your retirement isn't too close—in fact, a portion of your retirement account should have some crypto. Yes, crypto is a very speculative investment. But it is also possible to ensure and insure your initial investment while receiving 5, 7, 9 percent interest or more on your money.

father also said that if he could find someone to guarantee him a 10 percent return on all of his investment money, he’d close all of his accounts today and take the 10 points immediately).

might be a fad—but not the blockchain tech that was its byproduct. It could crash. (In fact, it has crashed five separate times and come back—each time changing 'expert' naysayer’s opinions). But Etherium and similar tech behind it won’t be a fad. Even if digital currencies crash, the technology behind blockchain and smart contracts and decentralized computing (which allows anyone to basically rent the power of supercomputers to create programs) is here to stay. And so is the currency behind it, which is crypto.

about security? If it's really stored on servers all over the planet, can't it be hacked? The answer is that it's actually more secure than any centralized server because it would be virtually impossible to be hacked. Every 1 or 2 minutes, all of the servers in the blockchain update, and if anything's wrong, the server that has been hacked, is taken off the board. Basically this means that hackers would have to simultaneously hack all of the servers all over the world at the same time, within a minute window.

What can it offer me?

stable coins that are backed by United States dollars offer 9 percent or more interest annually. One of the brokers insures its dollars with the FDIC and insures with a private company up to a few million USD per account. For me, the really high yield on my cash is a no-brainer. Also, these are not not locked-interms—you can take out your at anytime; most brokers calculate the interest daily. One connectS a Mastercard debitcard directly to the 9% APY stablecoins.

also put a small portion of your portfolio in cryptocurrencies—still realizing the aforementioned high yield interest rates. (Bitcoin for example offers 5.6 perpercent at my favorite broker, Voyager Digital). And you can enjoy any gains on the increase of the price of Bitcoin. We're talking a small percentage of your portfolio—something you could stand to lose—nobody is insuring you against losses in cryptocurrency investments. +But nobody really knows how high cryptocurrency will go—a 3 or 4% investment of your overall portfolio now could lead to serious money, not to mention the compounding high yield interest.)

What am I talking about? Depending on your age and time to retirement, it varies and you should talk to your financial planner about it. If they don't know how to get 9% APY on stablecoins, or even understand stablecoins, it's time for a new financial planner.

in stable coins with high interest rates just makes good sense.. A little bit of investment in cryptocurrencies could changee the quality of your life in retirement.

You should talk to your financial planner about it. You can even invest in cryptocurrencies in your IRA or your Roth IRA (and somebody that understands crypto—more and more financial advisors and finance companies take them seriously now—Goldman Sachs, Morgan Stanley, Bank of America—as well as Visa and MasterCard). If you are financial planner says that cryptocurrency is a joke and should be ignored, it's almost certainly because he doesn't understand it. Bitcoin's Market is about 1 trillion US dollars. Nothing that is 1 trillion dollars is a joke.

In no way, am I a financial planner, and you should not take anything I write as financial advice—I give only my opinion. I'm a tax lawyer. I don't even have a Series 7 My best opinion is to look into it on your own. YouTube has great, easy, and fast videos to educate yourself. I started with a YouTube series call 99 Bitcoins.

If you have questions, give us a call at Napa Business Solutions ltd. We'd be happy to answer them for you. My name is Jack, and I am the crypto-lawyer guy around here…if you have more traditional tax questions, questions about US or Thai law, give us a call.

get no commissions from you buying crypto. I am not a broker. I am an attorney specializing in taxes, specifically for Americans and other people with US taxes that are abroad. We are also crypto lawyers, helping people with cryptocurrency issues.

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