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Lately, cryptocurrency has been advancing quite rapidly despite the unwillingness of governments to legalize digital currency. The adoption of crypto has reached a new high as many well-known and established companies are getting on board the crypto train. The trend does not exclude Facebook and Google.
In an interview on The Crypto Show, Collin Plume, CEO of Noble Gold Investment Company, commented on why the Facebook cryptocurrency, Google cryptocurrency, and others were about to hit the public. He said that companies and countries have realized that they can’t control crypto and might as well get in. His comment suggests that the risks of staying out of the crypto market may be greater than the risks associated with investing in it.
So far, some of the many developments in the crypto industry are…
1. The Facebook Cryptocurrency
Recently, Facebook revealed its newest interest in adding Libra cryptocurrency to the crypto scene. The Libra would let you buy things and send money for almost zero fees. You can buy or cash out the Libra coin at local exchange points or online according to your preference.
Facebook plans to launch Calibra, a subsidiary company, to handle Facebook users’ crypto dealings and protect their privacy. This way, their actual identity will not be tied to their transactions visible to the public and cannot be used for ad targeting.
As with most digital currencies, patience is essential. Facebook is playing the long game by bringing payments to its online domain and not getting immediate returns from the Libra cryptocurrency.
2. Google Cryptocurrency Deal
On October 10, 2021, Google and Bakkt, a crypto marketplace based in the US, entered a new partnership. As a result of this deal, Bakkt users (with a population size of about ten million) will link virtual Visa cards to Google Pay. It will allow them to buy items online using cryptocurrency, including goods and services.
With every purchase using a linked Bakkt card, the digital currency gets converted seamlessly into fiat currency backed by the government. This new deal that Google has with Bakkt is coming when the US is actively exploring the world of cryptocurrency.
3. PayPal Accepting Crypto
PayPal deciding to accept crypto payments is a massive step of mainstream adoption of cryptocurrency.
Currently, the PayPal platform supports only four digital currencies.
- Bitcoin
- Ethereum
- Litecoin
PayPal allows its users (only in the US for now) to buy, sell, hold, and checkout with those digital currencies using their existing accounts. PayPal allows you to invest as little as $1.00 worth of crypto without opening a new or unique account for crypto coins.
Typically, when you purchase crypto, you get a public and private key pair, which give you official ownership. The public key serves as your wallet address, and the private key gives you control of the wallet. With PayPal, you can access your public key, but the company remains in possession of the private key. Therefore, customers cannot move their crypto to cold storage nor transfer tokens to any wallet outside the PayPal ecosystem.
Limit the Risks for Being Audited
Every taxpayer is worried about facing an audit; investing in a crypto IRA is one way to reduce the risk of getting audited.
The benefit of a crypto IRA (Individual Retirement Account) is that it allows people to invest in cryptocurrency using their retirement accounts. These platforms provide simple account setup and management, real-time trading, and high-profile security features. Once funds enter their account, they can trade within three to five days.
Most crypto IRA platforms support the trading of different types of cryptocurrency (the most common being Bitcoin). Instead of investing in a general IRA (which allows standard investments in stocks, mutual funds, etc.), invest in a self-directed crypto IRA that helps you invest in unique assets of your choosing like cryptocurrency, real estate, and precious metals.
These kinds of IRAs allow you to invest in cryptocurrency in a tax-advantaged way. Unlike traditional IRAs, crypto IRAs (specifically the self-directed IRAs), though requiring you to invest post-tax money, allow you to make tax-free withdrawals of your retirement funds after you meet specific requirements.
For years, many people have tried to circumvent the tax system while investing in crypto, but that is a waste of effort. Buying crypto in an IRA lets, financial managers do the tax auditing for you. In the end, you get all the information, including a document stating your profits without the headaches.
Conclusion
Many questions exist concerning this new surge of companies getting into the Crypto space. One question is that big companies venturing into crypto may unintentionally violate digital currency’s promised security and trust system.
Although many of these companies get their primary source of revenue from ads, they also want to venture into cryptocurrency (like Libra coin), which is supposed to be safe and protected. It does seem like a conflict of interest. They are creating a system where people exchange money within their ecosystem, which seems to be all that matters for now.
If you want to learn more about cryptocurrencies, download the 2021 Cryptocurrency Investment For Free: https://bit.ly/3yzMetg
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