Cryptocurrency is one of the most important inventions in human history with the capacity to empower every person on the planet.
That’s what Roger Ver claimed in a recent interview with Andrew Henderson, the CEO of Nomad Capitalist, as they dove deep into a wide array of cryptocurrency topics. You can watch that video here; this article is just a small taste of what to expect from the interview.
Roger Ver is the founder of Bitcoin.com and has been a huge supporter of and investor in cryptocurrency from the beginning. In fact, he was dubbed the “Bitcoin Jesus” because of his role in spreading the message of Bitcoin and “converting” others to cryptocurrency.
Today, Ver is a strong proponent of Bitcoin Cash as opposed to Bitcoin.
In this article, we’ll look at Ver’s arguments in favor of Bitcoin Cash, compare it to Bitcoin, and then look at the challenges that cryptocurrency investors face in the US and the offshore strategies that Ver has used to live a life of greater freedom overseas.
What is Bitcoin Cash?
In 2017, Bitcoin chose to address issues of scalability by introducing the controversial segregate witness technology, SegWit2x. In response, miners and developers created Bitcoin Cash (BCH) as an entirely new cryptocurrency that solved many of the blockchain limitations of Bitcoin, increasing the block size to 8 MP to make the verification process faster and more sustainable as the currency grows.
Because of its increased transactional capacity, Roger Ver and many other crypto users now favor Bitcoin Cash over Bitcoin. Bitcoin Cash fills the need for those with an entrepreneurial or libertarian mindset. It frees you from using other currencies and allows you to make transactions with anyone without permission from a third party.
Ver invests in cryptocurrency because of a hope to create a freer economy where any human on the planet can send and receive money from anyone else to anywhere else on the planet without having to get permission.
Bitcoin Cash makes transactions between individuals easier and provides this freedom.
In Antigua, where Ver spends much of his time, many people and businesses are using Bitcoin Cash as currency. You can use Bitcoin Cash to pay at restaurants, buy gas, book a villa, or even pay for a taxi. And since banks in Antigua can be difficult, Bitcoin Cash has become an appealing alternative.
More places throughout the world are accepting Bitcoin Cash, including Antigua, Singapore, and Japan. Some countries even allow people to pay for citizenship by investment with Bitcoin. Ver hopes more people and countries around the world adopt Bitcoin Cash into their economies in similar ways.
This is because Bitcoin Cash also provides economies greater financial freedom. For example, much of the Antiguan economy relied on online gaming and poker. When the United States shut it down by blocking US dollar payments, it was a huge hit to the economy. Bitcoin Cash, on the other hand, cannot be shut down by the US government.
This is just one more reason why people in Antigua are very open to cryptocurrencies like Bitcoin Cash and the opportunities they provide.
Bitcoin vs. Bitcoin Cash
But why use Bitcoin Cash vs. Bitcoin?
According to Roger Ver, Bitcoin Cash is more usable than Bitcoin. Other cryptocurrency investors, such as Michael Saylor who Andrew interviewed just last week, believe that it’s important to invest in Bitcoin, but Ver believes that Bitcoin Cash is a more viable option because it allows direct transfers without the need for a cash app such as Paypal and without incredible fees.
For Ver, the Bitcoin vs. Bitcoin Cash debate is all about utility. If another cryptocurrency seemed to work better than Bitcoin Cash, Ver says he would be more than willing to make the switch. However, he feels Bitcoin Cash is the best and most usable cryptocurrency right now.
Bitcoin, on the other hand, is currently unusable because of the difficulty in transactions and the large fees. The user experience for Bitcoin is no longer there. It only remains popular because it’s a brand name – it’s the same brand name trap that we regularly discuss here at Nomad Capitalist that people fall for when it comes to countries.
As Ver puts it, if a cryptocurrency is not usable as cash, it’s not usable as a store of value long-term.
Conversely, Bitcoin Cash is an operable currency. Ver was even able to send Michael Saylor money in Bitcoin Cash through Twitter without having to pay a large fee or wait a long time for the transfer to go through.
Despite being the “Bitcoin Jesus”, Ver turned away from Bitcoin in 2017 when the fees got ridiculous. For a $5 Bitcoin transaction, you need to pay a $10 fee. This makes Bitcoin unusable. He compares using Bitcoin to using ice cubes as currency. It melts in your hand when you try to spend it, due to the high fees.
Bitcoin Cash, on the other hand, is a usable currency, which makes it more valuable to Ver. And if you don’t believe him, just try to make a Bitcoin transaction and then try to make a Bitcoin Cash transaction. The difference is staggering and may be the only evidence you need to know where you stand in the Bitcoin vs. Bitcoin Cash debate.
But what about the investment value of each cryptocurrency?
Many cryptocurrency investors hold on to Bitcoin as they wait for it to become more valuable later on. Ver says that if you hold it and never do anything with it, it’s not useful.
He compares this to buying a new iPhone now or waiting for the next one to come out. If you wait, you can spend the same amount of money to get a newer and improved iPhone. At the same time, the year you are waiting, you don’t have an iPhone to use. If you buy the iPhone now, you can use it. The ability to use the iPhone makes it valuable.
The same argument can be applied to the utility of Bitcoin vs. Bitcoin Cash.
Those investing in Bitcoin are waiting for it to get more valuable, to get better, or to become perfected. Ver calls this a software developer mindset. The ability to use Bitcoin Cash is what makes it valuable and the superior option over Bitcoin.
The IRS, Bitcoin, and Renouncing US Citizenship
Now, let’s switch gears and look at the challenges crypto investors face, especially in the United States.
The US is not as accepting of Bitcoin.
According to the IRS, owning Bitcoin is considered the same as owning property rather than currency. This means that you have to pay capital gains tax on Bitcoin. It is also required that you report your Bitcoin possession on your tax forms.
And don’t think you’ll get away with failing to report. The US government will find you and the consequences are severe.
This is one reason Nomad Capitalist has long argued the benefits of getting a second passport as a crypto investor. Going offshore gives you greater cryptocurrency freedom and even opens up the possibility of leaving the US and all of its regulations, reporting requirements, taxes, and penalties behind.
In the interview, Ver talks about his own personal experience spending time in federal prison and later leaving the US and renouncing his US citizenship. He says that the day he renounced his US citizenship was one of the happiest days of his life.
And because of the offshore strategies that Ver put into place, he is still able to travel to the US, even without citizenship and with a criminal record. He says if he can still travel to the US, you shouldn’t have to worry about never being able to return after you renounce.
Ver advises that if you want to leave the US, you should get a second passport and leave sooner rather than later. Renouncing your US citizenship is getting more difficult and expensive as time goes on.
Overall, Ver encourages everyone to give cryptocurrency a try. He believes cryptocurrency provides more freedom and can improve lives throughout the world.
Ver hopes that Bitcoin Cash will one day be adopted as the official currency of a nation, which will give it more credibility. As the Coronavirus has decimated economies, people have become more receptive to the opportunities of this borderless peer-to-peer currency.
All in all, the future looks bright for the role of cryptocurrencies in the world – especially Bitcoin Cash.
You can find Roger Ver on bitcoin.com or rogerver.com as well as on Twitter @rogerkver