How to Use CryptoCurrencies for Asset Protection
It’s not possible to open a numbered Swiss account anymore. The Swiss government killed them off in 1992. In Lichtenstein, they were available until 1999. It was possible to get a Swiss lawyer to open a Swiss numbered account for you.
The bank had no idea who you were. There was no KYC or any of the hassles we have today when opening financial accounts. You could turn up in Zurich with cash and deposit it in your numbered account.
Whoever had the account number and codeword could use the account. It was the way banking should be. A Swiss numbered account offered complete privacy. There was no way that anybody could find your account. Even if someone found the number it nobody could link it to you.
The kind of privacy once offered by a Swiss numbered account is not available anywhere now. Of course, products exist that claim to offer numbered accounts. But they are a shadow of their former selves.
It’s impossible to open an account in Switzerland, or anywhere else without the bank knowing your identity. Period.
Crytpocurrencies are The New Swiss Numbered Accounts
All is not lost though. Cryptocurrencies offer the kind of financial privacy that used to be possible with Swiss numbered accounts. It’s possible to have an account identified only by a number and a password. It’s possible to get a crypto account without providing KYC info in some locations. So, are cryptocurrencies the new Swiss numbered account?
When Bitcoin was founded in 2010 a new monetary asset was born. The genius of Bitcoin is, of course, the Blockchain and the fact that there’s no central depository. Bitcoin is the monetary equivalent of the long since vanished Swiss numbered account. Bitcoin and other cryptocurrencies offer anonymity and privacy. But only if used in the right way.
Bitcoin is also a useful method for transferring money from one location to another. There is a risk in carrying a large number of gold coins or diamonds through the airport. But bitcoin can be transferred in a few clicks or stored on a pen drive.
Some people have tried to use bitcoin and other cryptos as day-to-day money. But it’s not practical yet. It’s difficult to pay rent with bitcoin, for example. You can’t pay for travel or buy food either although you can get a bitcoin debit card that lets you do that. It’s also possible to buy gold with bitcoin or trade your gold for bitcoin.
High Volatility is an Issue
I’m a fan of both Crypto and precious metals. I love the concept and hope that one day all money will look like this. The high volatility is a problem for some, though.
If the volatility concerns you, it’s possible to hedge against the price fluctuations by using Bitcoin futures. They are available on the CME and from spread betting companies.
If you wanted to own $1m of Bitcoin as a safe asset and didn’t want to bet on the price increasing, you could buy the Bitcoin and sell an equal amount of the futures. This would give you protection against price fluctuations but might prove expensive.
The most exciting thing about Bitcoin and other cryptos is that there’s no central depository. It’s impossible for a lawyer to serve papers on Bitcoin headquarters to freeze your account as they could with HSBC or Citibank. Bitcoin does not have any headquarters in any country. That is the beauty of Crypto from an asset protection standpoint.
I have no doubt the crypto is the future of money. Imagine a world where everyone is paid in crypto and worked for gig-type businesses like Uber? Governments would find it impossible to collect taxes. They wouldn’t be able to function in a meaningful way. They’d become irrelevant. The sooner the better I say!
Bitcoin started the cryptocurrency trend. But it’s worth noting that all transactions made on every wallet are public. Anybody can check out the balance and the transactions made on every Bitcoin wallet. The wallet number can’t be linked to any individual user. You can have as many wallets as you want.
To maintain privacy you would never keep your Bitcoin in the same wallet that receives money. That would link it directly to you.
An alternative is to use a privacy coin like Monero. The creators of Monero designed it for privacy. You can be sure that nobody will be able to see your transactions or wallet balance if you’re using Monero. Or any other privacy coin.
Privacy coins might well be the new Swiss numbered accounts.
How to buy Cryptocurrencies?
You have to buy crypto through an exchange service. You will wire them money and they will immediately send the bitcoin or other crypto to your account number. You should, of course, use a reputable exchange outside your home country. Consider buying your crypto through your offshore Company for an added layer of protection
See Bullet Proof Asset Protection for the ultimate guide to making your assets untouchable. We examine offshore companies and trusts, precious metals, and cryptocurrencies. We look in detail at how you can make yourself completely judgment-proof.