The best type of investment is asymmetric, where you have a high upside and low risk. I love these types of investments. I view silver, uranium, and yes arguably Bitcoin this way.
Bitcoin City presents multiple investment options. You can invest in the municipal bond and get a nice yield as well as a Bitcoin dividend.
In case you haven’t heard…Bitcoin City is the most radical proposed jurisdiction in human history. Get the back story in this article entitled “Everything You Wanted To Know About Bitcoin City”.
Investors in any kind of investment in Bitcoin City pay zero taxes in capital gains if the proposed law passes in El Salvador.
Can you imagine how many high net worth investors will be setting up at least a shell existence in Bitcoin City in order to not pay capital gains?
I imagine those wealthy people are going to want to buy a lot of real estate there too.
You can lower your income taxes to zero by moving to Bitcoin City, depending on your rate of taxation in your jurisdiction, this could save you millions, especially over a lifetime.
You can also lower your property taxes to zero by moving your home and/or business to Bitcoin City. That is, you can sell your current property (that you may be paying thousands per year for the luxury of having your name on a deed) when in fact you are renting it from the government.
Since real estate prices are pretty high right now, you could lock in your profits and escape the possible downside of a real estate crash due to future lockdowns. This is especially relevant if you live in a tyrannically controlled jurisdiction or if you own commercial real estate where looting is trending. You also have online retail continuing to eat away at offline retail profits.
Once great cities like New York and San Francisco are experiencing a great migration to other jurisdictions with better safety, freedom, rule of law, and lower taxation rates.
The question is…is buying real estate in El Salvador a good idea?
It depends on how much trust you have in the president’s ability to implement his proposal for Bitcoin City.
So far, he’s followed through with some tall orders such as creating a nationwide Bitcoin ATM network and accepting Bitcoin as legal tender. The country has already successfully executed on Volcano powered geothermal energy for Bitcoin mining.
El Salvador has its major problems, with crime being a major one. Also it may lack a lot of the major comforts and conveniences of your home country.
Of course, if El Salvador was in a jurisdiction like Maui, you would be paying millions for beach front property instead of hundreds of thousands.
That’s the point. El Salvador is not a top location (YET!!!) It is a diamond in the rough. It is a place with tons of upside and not much downside for the future.
How much worse could it get in El Salvador? Not much worse! But how much worse can it get in these western city capitals with bursting real estate prices? A lot worse. Look at Australia. It has gone from a beacon of freedom to a fascist state in mere months.
How much better could it get in El Salvador? A lot better! If Singapore, Hong Kong, and other jurisdictions have become the richest in the world for their competitive business policies, then Bitcoin City could become the next “Singapore” of Latin America. The average citizen of Singapore is practically a millionaire. The average citizen of El Salvador isn’t even close. That is a lot of upside!
(To be precise there are 269,925 millionaires in Singapore).
How would you have liked to have purchased some Hong Kong or Singapore real estate back when they were just backwater villages? Bitcoin City is that kind of opportunity.
If companies don’t have to pay corporate taxes (not sure about this one) and they don’t have to pay payroll taxes or municipal taxes, then many companies, especially crypto related companies will be moving there shortly.
I mentioned Silver, Uranium, and Bitcoin as asymmetric investments.
Lets use silver as an example. Silver is industrial, you need it for solar panels, electric vehicles, and electronics. It has unique properties such as being highly reflective and conductive. It is hard to get silver mines into production, it takes a lot of time and investment. Its in demand for jewelry and money. Its scarce.
There is only one element in the world with those properties and its Silver. Bitcoin City is like that.
There is only one jurisdiction in the world proposed to run on Bitcoin.
There is only one jurisdiction in the world proposed to have that low of a tax rate.
There is only limited land and a limited number of people brave or crazy enough try something there before the city is fully built.
You could have purchased Bitcoin a decade ago for pennies, if you could have seen the implications.
Well, now the Bitcoin of jurisdictions is here and you have the ability to not only cash in on it as a monetary investment, but you can reap the rewards of freedom for yourself, your company, and your family and its future generations.
First movers will be rewarded handsomely with the cheapest priced goods and lands, access to the best locations, ability to establish their brands as well as government and investment contacts.
Bitcoin City is unique. I’ve been following proposed low tax jurisdictions in places like Honduras for years. The bureaucrats always end up delaying and messing it up.
I sincerely hope that other nations will follow in El Salvador’s foot steps. The more competition amongst jurisdictions, the more freedom and prosperity for all of us. But it will take years for others to organize and catch up to El Salvador’s pace. A political and financial revolution has to occur to get places to consider zero taxes and non central-bank controlled currency.
El Salvador is also positioned as one of the only countries in the world not enslaved by the World Bank or the American financial system. Or at least they have a fighting chance to get out of the chokehold through crowdfunding this multi-billion dollar city.
I’ll have to write another article about why the World Bank and IMF are evil and why being free from their predatory lending is such a good thing for this country’s sovereignty. In the mean time, watch this video or read this book.
El Salvador recently signed a deal with the Chinese for the construction of several major infrastructure projects and aid in turning underdeveloped seaside territories into major international tourist destinations.
President Bukele has insisted that the agreement is not predatory and will not result in the country being heavily indebted to China, though multiple nations throughout Africa and Latin America have found themselves in precarious situations following similar agreements with the Communist Party.
To summarize, Bitcoin City has a pretty good risk to reward profile. Getting involved is inexpensive and you don’t have to live there full time or make a multi-million dollar investment to plant your flag there and have an insurance policy in case things get worse in your home jurisdiction.
Currently you can attain citizenship by investment that costs 3 Bitcoins, however the president recently said that Bitcoin entrepreneurs will be given instant residency.
Foreigners are allowed to buy under a few hundred acres of real estate without limitation.
I’m designing a real estate project that I intend to build with other investor-migrants for us to live and work in.
In the next year, I will be traveling to El Salvador to get a more realistic perspective on the situation there and hopefully meeting with government officials as well as fellow adventure capitalists.
I’ve spent the last 3 years in Brazil navigating expat life, so I’m ready for the many expected challenges.
A few hundred years ago some brave Pilgrims risked their lives to flee the old world system of tyranny to establish American colonies. Then patriots threw a tea party to protest unjust taxation. Eventually blood was spilt and a decentralized system of government was established in America.
Now America and the rest of the West is in decline. We don’t have to spill any blood to become the new forefathers of a decentralized model that will guarantee economic freedom. We just need to go to Bitcoin City.
Follow my journey, contact me and socialize on the forum at http://BitcoinCity.Guide