Asset protection is an issue that is growing in importance, “thanks” to the recent economic turmoils happening across the world, particularly in Asia and Europe. Wherever we go, we can now (over)hear that people are ranting about the economy. And we can't blame them: Businesses close down, employees downsized, investors are losing money... Watching and reading news online or offline, we can tell that bad news are everywhere, overshadowing the good news – causing the negative sentiment that will put countries into deeper problems.
Indeed, it's a lingering problem. Now the big question is, how to protect my assets from such uncertainty?
There are many ways - available even for an average person – that you can take. In this article, let's talk about two hottest, non-mainstream solutions: One is offshore banking – something that we have expertise on – and another one is Bitcoin, the 'bad boy' of all currencies.
Let's talk about them, shall we?
We have talked about the reasons offshore banking is the right solution for protecting your asset. But here's to recap: It's only the right thing to do, taking your assets offshore. Why? Because the least thing that you want to happen to your assets is economic and political instability. Inflation, riots and other negative situations won't do your asset any good.
Are your assets in banks? I'm sorry to say, but yours are not safe. Not only that, when things go wrong with your home country, you could have your assets frozen, even claimed. Yes, you read that right: Your hard earned money and other assets can be 'locked down' or even 'confiscated' when things go so wrong.
Are your assets in the stock and forex markets? If your financial intelligence is adequate, you'll stay safe. But if your investing strategy is to give every penny that you have to a broker, then get ready for some bad news.
How about your real estate? Well, we are in a real estate bubble right now, and we all know that it will burst somehow, someday. That 'day' is getting closer. When that happens, you can't afford to lose your property value by half or even more. Furthermore, owning a hard asset like real estate means that when bad things happen (read: riots), your real estate is likely to be not the safest asset to own – when it's burned down, what would you do?
Offshore banks – plus offshore company formations, if your assets come in the form of a business – can keep you safe from all of those: Your assets will be located in a stable, neutral jurisdiction that can't be reached even by your home country. Indeed, your assets are secured in a legal institution that guarantees your privacy and secrecy.
Jurisdictions like St. Vincent and the Grenadines, Ras Al-Khaimah (RAK), and other popular offshore jurisdictions are probably your best bet during economic and political uncertainties.
Now let's talk about Bitcoin. The cryptocurrency keeps making the headlines due to the pros and cons that surround it.
If you think that offshore banking's reputation in the world is bad, wait until you learn more about Bitcoin. In short, Bitcoins are viewed as negative, because – partly due to the fact that it's driven by the free market, and not regulated by any Governments – everyone can use it for storing wealth, investing or transactions. 'Everyone' means that Bitcoins are open for average people and criminals alike.
Skepticism aside, more and more individuals and businesses are trusting Bitcoin as a way to simplify transactions, as well as a way to keep your liquid assets off Government's control. Those are several among many reasons why Bitcoin is growing in popularity.
However, due to the early stage of the cryptocurrency, there are growing pains involved. Stolen/lost Bitcoins, the frictions among large Bitcoin authorities, the unpredictability of the market, the erratic movements of the prices, and so on – all render Bitcoin into the category of 'risky' way to secure your assets in.
Where to protect your assets: Offshore banking vs. Bitcoin
Now, let's get into the core of this article: Considering our simplified explanations above, which one should you choose when it comes to asset protection?
The cliche answer is: Both - because each has its own set of pros and cons. Depending on your risk tolerance and vision for the future of your personal finance and wealth building plan, you may want to spread your risk and store your assets value on both.
Unlike what people assume, both accounts are easy to setup: Meet the requirements for signing up, provision the account, and you're done. Bitcoin account opening takes minutes, whereas offshore bank account opening takes three days or so.
However, if we should choose one for you, the way to go is offshore banking. Why? The answer is flexibility.
While Bitcoin is fast-moving way to protect your assets (you can buy/sell Bitcoins almost instantly), offshore banking can offer you more – buying precious metals, trade forex and stocks, have someone to manage your assets for you, and so on.
Here's an example: Our partner offshore bank in St. Vincent and the Grenadines can help you with virtually any legal ways in protecting your assets, such as gold- or silver-backed bank account denominated in gold or silver, an online trading platform, mutual funds, time deposits, and more.
Some words of caution
It's logical to think that securing your assets in both Bitcoin and an offshore bank account means that you can easily do transactions that involve both. In reality, it's not that ideal.
We learn that more and more offshore banks reject any wires coming from Bitcoin broker. In other words, they don't want anything related to Bitcoin because it's too difficult for them to identify the source of funds (which is the main concern for the bank). Furthermore, all the banks we are working with, will not accommodate anything for Bitcoin and will not accept any wires related to bitcoins.
With that said, if you decide to take both paths, be sure that you treat them as separate entities.
Now over to you
So, what's your next step? If you choose Bitcoin, you should seek for a trusted Bitcoin exchange platform. If you choose offshore banking, you can contact us for discussing the best options to take.
The choice is yours. Choose wisely.