In this episode of Adam Talks, IRA Financial’s Adam Bergman Esq. discusses how he was able to send a wedding gift in Bitcoin to Israel instantly and without huge fees.
When you hear the word Bitcoin, the first things that may come to mind are “fake money,” “black market,” “investment opportunity.” However, as Adam can attest to, it’s more than any of those. Yes, there is skepticism about cryptocurrencies. Many people cannot simply fathom a currency not backed by something, other than digital codes. As Adam talks about in this episode, Bitcoin made a difference for him. And, it may help you out, too!
What is Bitcoin?
Bitcoin is the first of the booming world of cryptocurrencies. They are “mined” just like gold. But, instead of using a pick axe and sifter, powerful computers are used. They solve complex problems using cryptography to unlock the coin. It is decentralized, meaning there is no government oversight. Instead, a blockchain, which is essentially a digital ledger of all transactions, is used to track the currency.
Developed by Satoshi Nakomoto in 2008, it is the original crypto and remains at the top of the heap. As per IRS guidelines, Bitcoin and other cryptos are treated as property, just like stocks and real estate. You can buy, hold and sell it as you would any type of investment. While some countries use Bitcoin to buy and sell goods and services, we look at as an investment. However, you can clearly go beyond that scope.
How Bitcoin Made a Difference
Adam has a cousin in Israel who was getting married. Obviously, the Bergman family wanted to attend the event. Due to COVID-19, they didn’t feel comfortable in making the flight. Many people can relate to this situation. Of course, you want to send a gift to the new couple, so what are your options?
You could send a check, but it may take weeks to get there. Plus, it would have to be converted from US dollars to the Israeli shekel. A wire could also take some time and comes with fees. Venmo or Zelle are not offered.
After considering options, Adam wondered if they had a Bitcoin wallet. Lo and behold, his cousin’s father had done some investing and did have a wallet. Adam was sent the wallet’s address and he plugged it into his Gemini account. In about 30 seconds, the Bitcoin was sent halfway around the world. Among receiving the coin, he was able to convert it to local currency. There is a small fee to transfer the funds, but nowhere near what a wire would cost.
What Does this Mean for You?
The one thing Adam took from this is the global reach of the cryptos. Previously, he only looked at it as a US investment. If you follow this podcast regularly, you know how much Adam touts the benefits of using retirement funds to invest in them. After seeing how Bitcoin made a difference in his life, he realizes even more benefits of holding at least some cryptos.
If you have family abroad, it would be great to be able to give them money. In Adam’s case, it was a wedding gift. In other cases, it may be imperative to get the funds there as soon as possible. Perhaps they need a medical procedure, or they have an expensive car repair. Whatever the case may be, sending cryptos may be the fastest and cheapest way to get funds into their hands.
If you have a smart device, you can securely send and receive cryptos anywhere and almost immediately. They can then be converted to fiat, such as the dollar, euro or shekel. It’s time to start looking at Bitcoin and other cryptos as a legit and legal currency.
The Moral of the Story
While you may not completely understand cryptocurrencies, they are legit and here to stay. Will the world eventually adopt it as a currency? Maybe not. However, more and more of our lives are done digitally. Why not our currency?
Just think, if your child needed $40 for an Uber across town, you can easily send the money. But what if they were stuck in Italy, Israel or Japan? How are you going to get them the money they need quickly and without spending an arm and leg in fees? It’s time to consider opening your own digital wallet for you and your loved ones. Even if it’s just to send a wedding gift!
As always, thanks for listening to Adam Talks. We hope you enjoyed this episode and it opened some eyes. Bitcoin made a difference in Adam’s life…can it make one in yours?