Why Crypto Investors Need a Second Passport
For neophyte investors, cryptocurrency may be their first experience with a volatile investment vehicle. It’s easy to get seduced by the emotional rollercoaster — massive gains one day, massive losses the next day. Even the losses add to the appeal of this high-stakes financial game.
But seasoned investors know that there are other volatile assets they could choose. They don’t invest in crypto for the volatility — that’s not what makes it special.
And although they may not be aware of it yet, the reasoning that leads investors to crypto also leads to the importance of getting a second passport.
No Empire Lasts Forever
Cryptocurrencies like bitcoin attract serious investors because crypto is an asset independent of any government.
Fiat currencies, government bonds, real estate … these assets are intimately connected with their national or local jurisdictions. Even if you invest in private companies, those companies must register with governments and pay local taxes.
Geopolitics are a serious issue for everyone with assets tied to that geography. A localized war, depression, or natural disaster could put your wealth in jeopardy if your wealth is concentrated in that geography.
Crypto is often compared to gold and silver. Travel to any country or city in the world — if you have gold and silver, you have wealth. Jewelry, coins, silverware … doesn’t matter. Gold is money, wherever you are.
Disconnected from the fortunes of any one government, cryptocurrencies represent a healthy distrust in the longevity of empires.
History supports this distrust. The Romans, the Persians, the Mongols, the Ottomans … these empires spanned centuries and seemed invincible. All of them fell, leaving chaos and lawlessness in their wake. Those invested in them lost fortunes … and many even lost their lives.
Why a Second Passport Can Save Your Life
People who value cryptocurrency for its lack of government reliance need to consider a second passport.
Let’s be clear — by “second passport,” we mean citizenship in a second country, which entitles you to carry the travel documents authorized by that country and enjoy the benefits of that country’s diplomatic relationships.
This isn’t as hard to do as it sounds. Numerous countries offer paths to citizenship by investment. You don’t even need to learn the language, relocate or pass a test — invest the right amount of money in the right way, and you get your citizenship within months.
This citizenship may be transferable to your spouse and children. Some of these citizenships remain irrevocable, even if you sell the qualifying investment.
But why bother? And what does it have to do with crypto investing?
Wealth may be dangerously tied to geopolitics, but people are too. We may feel like we enjoy the freedom to travel. But in reality, our geography is largely dependent on the passport we carry.
Your passport dictates what countries you can visit without applying for a visa. If diplomatic relations break down, your passport could make the difference in getting a visa at all. In a worst-case scenario, it could make the difference between entering a country as a welcome guest vs. having to apply for refugee status.
Consider the recent refugee crises of the past few decades. Citizens of war-torn countries struggled to exit the country to protect themselves and their families. Benevolent countries had to impose stiff, passport-based restrictions on immigration and refugee status to prevent their systems from collapsing.
But imagine if an individual warzone resident also had citizenship and a passport from Antigua & Barbuda. Antigua & Barbuda is a British Commonwealth nation in the Caribbean Sea where you can obtain citizenship by making a monetary grant to the governments national development fund (NDF) or by making an approved real estate investment.
Because Antigua & Barbuda enjoys many visa-free arrangements around the world, this dual-citizenship individual would have a plethora of choices in terms of fleeing from a dangerous situation, rather than having to fight for refugee status.
If cryptocurrency can protect your wealth from geopolitical instability, a second passport can protect yourself and your family from geopolitical instability. It is one of the best investments you can make — an investment in keeping your family safe from harm in worst-case scenarios whether you need it today or in a decade from now.
Best of all, whereas cryptocurrency is currently volatile, many countries offer citizenship when you invest in more stable vehicles, like local real estate. This makes a second passport a viable part of a balanced and diversified financial strategy, as well as a strategy for personal risk management.
Even if you live in a superpower with a recent history of stability, remember — empires fall. If you invest in cryptocurrency, strongly consider investing in getting a second passport. They really go hand-in-hand — the same logic and reasoning that leads to one also leads to the other.
Contact Us now for a personalized consultation on how you and your family can obtain a second citizenship.
Author: Vito Magagnino — Managing Partner at Mirabello Consultancy.
Mirabello Consultancy is a Swiss-based company and a leading expert on residence & citizenship by investment solutions.