Pyramid schemes are all the same. Some friend of yours that you haven’t seen since high school calls you or messages you that you haven’t seen each other for years. They invite you to catch up over a cup of coffee or over dinner.

When they ask how you’ve been, they start the rehearsed talk where they’re trying to make you a part of their multi-level marketing business. It’s always presented in a nice package where if you join, you’re going to make a lot of money fast. You just need to invite a few friends, and they need to invite some more friends.

The reason multi-level marketing scams are called pyramid schemes is that they resemble the monolithic structures that were built with a lot of labor. In Ancient Egypt, the pharaohs were the ones who controlled everything. Visit this page for more information https://economictimes.indiatimes.com/markets/cryptocurrency/crypto-as-commodity-what-does-it-mean-for-you-and-the-industry/articleshow/85892934.cms.

They were at the top, and then everyone else was working for them. It took a lot of hours to build a single one of those monumental buildings. Now, most people don’t understand the basic laws of economics, and that’s why they might be tricked into believing that getting rich is a quick process.

However, it takes a lot of time and effort to make something on your own. Speaking of pyramid schemes, most people are oblivious to the biggest one of all, which is fiat currencies. In one sense, it might be even good that most people don’t know how the system works exactly because if they did, then the whole world would catch on fire overnight. Let’s compare central banks to the top of a pyramid scheme and see how the systems are closely related.

Is the money we’re using a scam?

The people who profit from a pyramid scheme are the ones at the top. They make the most money at the expense of the people who enter last. Now, banks create money out of thin air. We used to work on the gold standard, but that’s long gone.

At the moment, the main goal of the government, along with the central banks, is to suppress the prices of precious metals since they’re the antithesis of fiat currency. The free market already decided that gold was the best option when it came to using money, and plenty of entrepreneurs still think the same.

The paper money that we use was meant to be an abstraction of the precious metal, making it easier to transact. It was never meant for the dollar to completely replace the yellow metal. Now that no one has the option to go to a bank and redeem an equal amount of gold as they have dollars, the central banks and governments have gained complete autonomy over the scarcity and the power that money can have.

They’re essentially taking the money from the poorest people and quickly distributing it upwards. If you’ve paid attention to the news, you might have heard the term quantitative easing. This is the process where new bills are created by the push of a button.

Whenever something like this happens, the multi-level marketing scheme gains another layer. The levels at the top create the interest rates, and it’s up to the people at the bottom of the money chain to repay it. If Robin Hood was to see this system, he’d want to fight it right away.

You might know that mathematically, every pyramid scheme must come to an end. What happens when everyone in the world is included. Well, the supply of fiat currency can increase, and it will continue to work as long as people remain productive and passive in their spending.

The things we’re going to see in the future are higher taxes and a higher amount of inflation. One of the reasons for this is the choice to issue out stimulus checks which could leave the United States of America into a state of hyperinflation.

Is there a solution?

One of the best inventions of the 21st century is the digital representation of gold, which is Bitcoin. This is the genius solution to the entire monetary economy since it’s going to destabilize the hold of the government and central banks. Each currency has the traits of a pyramid scheme.

The ones who adopted it first are going to have bigger rewards since they put their trust into the future. Well, the greatest thing about Bitcoin is that it’s capped at 21 million units. There’s not going to be a single one after that. This means that the rate of inflation for the next 130 years is going to be zero.

Compare that to the average inflation of the dollar, which can range anywhere from 2 to 7 percent per year. If we put all of the mediums of exchange on the free market and let it do its job, the only two options that would come out would be Bitcoin and gold.

The blockchain makes a level playing ground to earn pkt since everyone can take a look at what’s happening. It’s money that’s scarce, and no one can steal it. This makes it corruption-proof. At the moment, it’s controlled by the people, and governments can’t govern it.

You can think of this invention as the philosopher’s stone which can turn any metal it touches into gold. We can think of it as an agent of change which will revolutionize the monetary economic system back to the time where everyone had a chance.

Another revolution on the blockchain is the invention of PKT Cash, which is a project that wants to make the internet more accessible to everyone. Since Bitcoin is something that only works thanks to the power of the internet, the internet service providers can decide to shut it down.

This project aims for its users to use the same networks without relying on internet service providers. This will improve privacy, and there will be no restrictions when it comes to bandwidth. Thanks to the power of the blockchain, everyone can be a part of it.

It does not seem that long ago that Bitcoin was laughed at, and people who invested hid behind handles. A lot has changed since then, with cryptocurrency becoming quite popular. It is an alternate form of payment recognized by many companies, and governments are even allowing it to be used for retirement funds. There are hundreds of different types of digital coins available because it is based on open-source code, but they all run virtually the same.

What is Cryptocurrency?

Cryptocurrency is a form of digital money that is secured via a source code or cryptography. People cannot counterfeit it, but it can be stolen if other people know the passkeys. They are based on a blockchain and are not governed by any central authority. With that said, the taxation departments have the power to state whether funds can be used for taxable or tax-free items.

How Cryptocurrency Works with SMSF

The Australian Taxation Office decided in 2014 that people could use cryptocurrency to invest in Self-Managed Super Fund (SMSF) accounts. Accounts must follow a few guidelines to qualify.

• Trust deeds allow for cryptocurrency.
• The investment strategy is followed.
• Held in the fund’s name, not the individuals on the deed.
• Properly valued.

Maintaining the Value of Currency

Unlike physical money, the value of cryptocurrency can rise and fall based on supply and demand. It works a lot like stocks, but it can inflate a lot higher. It is viewed as a high-risk investment because it is only secured via passkeys and prone to hacking. Using cryptocurrency offers you a way to diversify your funds, so make sure you do your research to reduce potential risks.

How Do I Buy and Sell Cryptocurrency with SMSF?

The only way to buy and sell cryptocurrency is through a digital wallet. They act like secure bank accounts that only handle virtual currency. In addition to a digital wallet, you will need an account with the crypto exchange associated with your selected currency form. These exchange sites are equivalent to a broker’s account that handles blockchain coins. There are dozens of wallets and exchange programs to choose from, so talk to a financial advisor to make sure you use a suitable company for large SMSF investing. Hot wallets are not a good option for storing large amounts of money, as they are more prone to attacks. However, cold storage options are secure and are compliant with all SMSF regulations. You will also need to keep your SMSF funds separate from your personal cryptocurrency. Therefore, it is best to have a hot wallet for your personal funds and store your investment funds in a cold storage option accessible offline with a private key.

Selecting the Best SMSF for Cryptocurrency

Financial advisors help people of all experience levels with making transactions with SMSF accounts. You will have additional trading fees that are on top of any account fees you pay. However, it is best to let them handle the record-keeping to make sure it is simple, accurate, and transparent.

Australian dollars in the SMSF account can be used to purchase the cryptocurrency, and then you can transfer funds back to dollar form after selling coins. The accounts will operate just like other trust and retirement funds in every other manner. You cannot access the funds until they are mature and are subject to tax laws. Therefore, allowing professionals to assist with the SMSF investing in cryptocurrencies is the best way to keep them legal.

Cryptocurrency had taken industries by storm in recent years, with the first-ever currency (bitcoin) started way back in 2009, when we barely have enough internet speed and computer data to actively mine for currencies. Several reasons spurred cryptocurrency to become very popular, especially among entrepreneurs and the two recent generations. Here are some Cryptocurrency facts you should already know.

Fact #1: Online Business Can Thrive Through Cryptocurrency

Setting aside the fact everything had turned digital because of the pandemic a year ago. Technology was already growing even in recent years. One way or another, we would have moved to the internet to do our jobs and continue our business. As for the latter, cryptocurrency has a specific benefit. If you add cryptocurrency as one of your modes of payment and transaction, then you’re already a leg up in the competition. This virtual currency has reached even third-world countries, where opening a bank is sometimes harder than setting up a crypto wallet.

Fact #2: No One Knows Who The Inventor Of Cryptocurrency Is

It seems being anonymous is a popular trope in the cryptocurrency industry, as even the inventor of said currency is unknown until today. However, he goes by the name Satoshi Nakamoto and is responsible for creating bitcoin. Nobody knows if his native race is Japanese, nor his location or face.

After Bitcoin, a lot of currencies have come forth in many different names and creators. One of them is PKT, which is mined using the Packet Crypt algorithm. This bandwidth and encryption combination is used to connect miners and their investments and insert them smoothly into the internet infrastructure. It makes sure there are efficient mining and communication flourishes between the miners.

Fact #3: Cryptojacking Is A Risk

Although going inside and taking cryptocurrencies is next to impossible thanks to a lot of secure coding and matching keys, there are still standing risks for these virtual coins. One of them is cryptojacking, an act of invading someone’s electronic devices or servers and use them to mine coins. This is a cybercrime even though they technically did not take any money from you. However, being cryptojacked will result in many negative changes in your electronic devices.

One of these results is your phone, tablet, or any handheld device having less battery efficiency. You can also experience a slower PC than usual or overheating and overworking of your device. To make sure this doesn’t happen, you either have to educate your IT team or install an ad-blocker.

Fact #4: It’s Impossible To Steal Your Virtual Wallet

Unlike those that keep cash in their wallets and purses, the thought of losing your hard-earned money physically because someone robbed you or from sheer carelessness is improbable. Compared to a traditional wallet you can hold and touch, your crypto-wallet or digital wallet holds codes and keys that are used to safeguard your money. Only you will have access to these keys, and you will be the one responsible if you lose them.

You are provided with the said key if you somehow lose access to your account. However, if you lose your private key as well, your currency is lost to the crypto-void, which means recovering your lost currency is no longer feasible. The bottom line is this: you’re responsible for your crypto wallet, and you’re the only person responsible if you lose it. Hacking is unthinkable as well, as cryptocurrencies have advanced blockchain technologies.

Fact #5: Cryptocurrency And Its Value Is Unpredictable

In the market, cryptocurrency is volatile, that even the most experienced miners couldn’t predict its trend. It can rise dramatically or fall out of your favor, and according to a professor in Queensland’s school of law (link:https://www.sbs.com.au/news/the-feed/cryptocurrency-what-you-should-know-before-you-buy), investing in this asset is gambling at its core, and people should expect to lose money at one point. He advises people shouldn’t invest in what they don’t thoroughly understand first.