The Controversial Heroes of the Free Market
What do prostitutes, blackmailers, slumlords, and Bitcoin miners who censor transactions all have in common? Surprisingly, they are considered by some to be modern-day heroes of the free market economy. Despite facing universal scorn and outlawry, these individuals provide their economic services bravely. To truly understand their heroism, we must remove the shackles that society has placed upon them. Let's explore how these controversial figures challenge conventional perceptions and shed light on the principles of individual autonomy, property rights, and the unintended consequences of government intervention.
Provocative Examples from "Defending the Undefendable"
In his 1976 book, "Defending the Undefendable," economist Walter Block challenges societal norms by examining figures often vilified by society. Block explores the realms of libertarianism and economic theory through controversial examples such as the prostitute, blackmailer, and slumlord.
The Prostitute: An Archetype of Individual Autonomy
Contrary to societal condemnation, Block argues that a consenting transaction between a sex worker and a client is a mutual agreement that should be protected, not prohibited. This emphasis on individual autonomy and the right to engage in activities that do not infringe upon the rights of others is a cornerstone of the free market.
The Blackmailer: Challenging Preconceived Notions
Block challenges the perception of the blackmailer as a manipulative extortionist. While morally questionable, the act of threatening to reveal damaging information falls under free speech and negotiation, rather than inherent criminality. Distinguishing ethical concerns from legal prohibitions is crucial, as it allows us to advocate for the non-aggression principle and respect individual freedoms.
The Slumlord: Misunderstood Provider of Housing Options
The often-maligned slumlord serves as another thought-provoking example. Block argues that these individuals provide housing options to those with limited resources. Despite their misunderstood role, they fulfill a market need by offering affordable housing, albeit in less-than-ideal conditions. Through this example, Block highlights the importance of market dynamics and competition in driving improvements in living standards over time.
Lessons for the Bitcoin Community
If Walter Block were a Bitcoiner, he might include Bitcoin miners who censor transactions as part of his list of controversial economic heroes. The recent backlash against Ocean's mining pool for filtering inscription transactions has sparked a debate within the Bitcoin community. While some argue that such conduct undermines Bitcoin's core attribute of censorship resistance, others see it as a voluntary market behavior that accurately expresses and coordinates economic decisions.
Property Rights and the Free Market Mechanism
The issue at hand is fundamentally a matter of property rights, specifically the rights of individuals constructing block templates. While financial profit often guides block construction, other motivations, such as social or psychological profit, also come into play. By respecting the property rights of these individuals, we allow the free market mechanism to function properly, effectively coordinating economic decisions for network participants.
The Power of Market Sentiment
When block template creators align their actions with market sentiment, they can witness an increase in hashrate, leading to more frequent discovery of valid blocks and potential profits. Conversely, diverging from market sentiment can result in reduced profitability and potential financial instability. This alignment between individual actions and market sentiment is crucial for the resilience of the Bitcoin network.
The Dangers of Coercion and Interventionism
Advocating for coercion and interventionism in dictating block construction violates core property rights and jeopardizes the essence of decentralization and censorship resistance in Bitcoin. By restraining individuals from freely constructing blocks, we not only erode their autonomy but also create a vulnerability that could be exploited to undermine the network's integrity.
The Strength of the Bitcoin Network
The Bitcoin network operates with remarkable finesse, utilizing the freedom of market forces to prioritize transactions. Participants have the power to adjust fee rates, instantly influencing other miners to prioritize their transactions. This showcases the adaptability and potency of the network's free market dynamics in ensuring transactions find their way onto the base layer chain.
Core Principles: Individual Freedom and Free Market Efficiency
In conclusion, "Defending the Undefendable" challenges societal norms and perceptions, highlighting the value of individual freedom, respect for property rights, and the efficiency of free market mechanisms. The same principles can be applied to the realm of Bitcoin mining, emphasizing the need to respect the property rights of block template creators and the power of the free market in coordinating economic decisions.
By embracing these principles, we can ensure the resilience of the Bitcoin network and safeguard its decentralization and censorship resistance ethos. Ultimately, the core principles remain the same, whether defending controversial figures or examining the intricacies of the Bitcoin network: individual freedom, property rights, and the remarkable efficiency of the free market in coordinating complex systems.
Frequently Asked Questions
How much of your IRA should include precious metals?
It's important to understand that precious metals aren't only for wealthy people. They don't require you to be wealthy to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You might think about buying physical coins such a bullion bar or round. You could also buy shares in companies that produce precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. These metals are not stocks, but they can still provide long-term growth.
And, unlike traditional investments, their prices tend to rise over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
What are the advantages of a IRA with a gold component?
There are many advantages to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You can control how much money is deposited into each account as well as when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This will allow you to transition easily if it is your decision to retire early.
The best part is that you don't need special skills to invest in gold IRAs. They're readily available at almost all banks and brokerage firms. You do not need to worry about fees and penalties when you withdraw money.
There are, however, some drawbacks. Gold is known for being volatile in the past. So it's essential to understand why you're investing in gold. Do you want safety or growth? Is it for security or long-term planning? Only once you know, that will you be able to make an informed decision.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
If you're planning to sell off your gold, you don't necessarily need a large amount. Even a single ounce can suffice. But, those funds will not allow you to buy anything.
How to open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form must be submitted within 60 days of the account opening. Once this is done, you can start investing. You may also choose to contribute directly from your paycheck using payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. Contributions must be made regularly. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. But, you'll only be able to purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option is offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they are not as liquid or as easy to sell as stocks and bonds. They are therefore more difficult to sell when necessary. They also don't pay dividends, like stocks and bonds. Therefore, you will lose more money than you gain over time.
How much money should my Roth IRA be funded?
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. The account cannot be withdrawn from until you are 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. You cannot touch your principal (the amount you originally deposited). This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. Also, taxes will be due on any earnings you take. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. You would owe $3,500 in federal income taxes on the earnings. So you would only have $6,500 left. You can only take out what you originally contributed.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. You can withdraw your contributions plus interest from your traditional IRA when you retire. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs do not allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal requirement, unlike traditional IRAs. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
Should You Get Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
Experts believe this could change soon. According to them, gold prices could soar if there is another financial crisis.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
These are some important things to remember if your goal is to invest in gold.
- Consider whether you will actually need the money that you are saving for retirement. It is possible to save for retirement while still investing your gold savings. However, when you retire at age 65, gold can provide additional protection.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each account offers different levels of security and flexibility.
- Remember that gold is not as safe as a bank account. If you lose your gold coins, you may never recover them.
You should do your research before buying gold. Make sure to protect any gold you already own.
How can I withdraw from a Precious metal IRA?
First, decide if it is possible to withdraw funds from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. Avoid unnecessary fees by opening an account with your debit card, rather than your credit card.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. You will need to weigh each one before making a decision.
Bullion bars, for example, require less space as you're not dealing with individual coins. However, you'll need to count every coin individually. You can track their value by keeping individual coins.
Some prefer to store their coins in a vault. Some prefer to keep them in a vault. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
Is gold buying a good retirement option?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
The most popular form of investing in gold is through physical bullion bars. However, there are many other ways to invest in gold. You should research all options thoroughly before making a decision on which option you prefer.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
bbb.org
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
cftc.gov
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was universally accepted and loved for its beauty, durability, purity and divisibility. Because of its intrinsic value, it was also widely traded. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. The result was a decrease in foreign currency demand, which led to an increase in their price. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. The U.S. government needed to find a solution to their debt because there was too much money in circulation. They decided to sell some excess gold to Europe in order to do this.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The value of gold has significantly increased since then. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
—————————————————————————————————————————————————————————————–
By: Michael Matulef
Title: Defending The Undefendable: The Censoring Miner
Sourced From: bitcoinmagazine.com/markets/defending-the-undefendable-the-censoring-miner
Published Date: Fri, 08 Dec 2023 17:33:59 GMT
Leave a Reply