As bitcoin, ethereum and other cryptocurrencies begin to develop further as the future of money and storage of value, many people are thinking about adding cryptocurrencies to their self-managed super fund (SMSF).
HiveEx offers this service for Australians with a SMSF, and can get you set up with no upfront fees and walk you through the setup to hold digital assets in your portfolio.
Cryptocurrencies are digital tokens that have a value, just like a $10 note is a physical token that happens to have $10 worth of value.
The problem with digital currencies is that they're purely electronic. Just like a photograph on the Internet can be copied and replicated over and over again until the original is worthless, the same thing could happen to a coin.
In order for a cryptocurrency to have value, a coin needs to be unique and unreplicable.This was made possible by the invention of blockchain technology.
On a very high level, a blockchain records and verifies information as it’s transacted over the internet, validating what happens and who truly owns each bit of data. In the case of bitcoin and cryptocurrencies, this validates that once person A has sent person B a bitcoin, that it now belongs to person B and person A now has no ownership of it.
Cryptocurrencies are seen by many as the future of money and transactional value. Bitcoin and other currencies such as ethereum, ripple and EOS all have different use cases, that can help multiple industries. For example:
Ultimately you should speak to your accountant or a finance professional to give you advice and direction around your super fund and how you should invest it. Cryptocurrencies are inherently very risky, and like any storage of value could drop to zero.
But the potential upside for the industry is also massive, with just about every industry in the world open for disruption with blockchain and cryptocurrencies. We are currently at ground zero of this disruption - think the old black and green DOS computer systems, compared to the latest iPhone XS. This is the difference between where we are and how far we still have to go.
Of course, feel free to get in touch and we can either talk to you on the phone or you can come into our Sydney office to learn more or get set up. We’re backed by the same crew behind finder, Australia’s largest comparison site and our team of traders has decades of traditional finance experience behind them. So we know what we’re doing.