Frequently Asked Questions
The emergence of technology opened the doors to countless opportunities in streamlining individual and organisational transactions. In an effort to go cashless and make digital transactions more efficient without the middlemen, an anonymous person under the pseudonym Satoshi Nakamoto created bitcoin. On this page, we have listed some bitcoin FAQs, which may help you understand more about this cryptocurrency.
What Is Bitcoin Superannuation?
We at Bitcoin Superannuation help you set up your self-managed superannuation fund structure. This way, you can buy bitcoin with your superannuation with your retirement investments. Plus, we help our clients invest in bitcoin for their self-managed super fund in Australia.
Before we delve more into the specifics of bitcoin superannuation, let us first learn the basics of bitcoin.
1. What is bitcoin?
The year 2009 marks the creation of a digital currency named bitcoin. But since then, many questions still pop into people’s minds. So, let’s start with the basics. What is bitcoin?
Bitcoin or BTC is a virtual or digital currency, now commonly known as cryptocurrency. It eliminated the need for banks when making transactions since it is a decentralised peer-to-peer payment system. In simpler terms, you can refer to bitcoin as Internet cash.
2. How does bitcoin work?
Since bitcoin has no physical value like money, users of bitcoin utilise a mobile app or computer program to make transactions, such as sending or receiving bitcoins to and from their peers.
Meanwhile, bitcoin miners in the network run complex computer programs to confirm transactions. These groups of transactions are referred to as blocks, which will then be added to the blockchain record upon the completion of the computer rigs ran by miners. These miners who have extensive knowledge of the system’s technicalities will receive bitcoin rewards for their efforts.
3. Why should I invest in bitcoin?
Bitcoin investment in Australia or anywhere else in the world comes with various benefits, including having lesser transaction or credit card fees, paying cheaper international payments, and anonymously buying merchandise. One of the most common reasons people invest in bitcoin is that they are optimistic that its value will increase in the future.
Furthermore, transacting with bitcoin is hassle-free because the government or bank doesn’t control it.
4. Where are bitcoins stored?
Bitcoin is a cryptocurrency that you can store in a digital wallet. If you use bitcoin, you can find this wallet in the cloud or your computer. However, you have to be careful with your wallet since there are risks involved. Hackers may hack your wallet in the cloud, or you may accidentally delete your wallet if stored in your computer.
5. How can I put money on bitcoin?
If you have a bitcoin wallet, you can use your bank account to place your bitcoin order. Make sure to connect your wallet to your bank account for a successful transaction. After doing so, you can manage your bitcoin investments.
6. Can I transfer bitcoin to my bank account?
Amongst the most usual bitcoin FAQ is with regards to transferring bitcoin to a bank account, as some people wish to convert their virtual money to cash. However, it is not yet possible to withdraw or directly transfer your bitcoin to a bank account.
The way here is to sell bitcoin to another user who agrees to transfer money to your bank account. Then, you can now withdraw the amount from your bank account.
7. How long does it take to mine one bitcoin?
One of the methods to “earn” bitcoins is through mining. It is a process wherein miners solve complicated math puzzles through a computer rig. As of 2021, it takes approximately 10 minutes to complete a block.
1. What are superannuation funds?
Also known as super, a superannuation fund is the money paid by your employer so that you can have financial support during retirement. People in Australia employ this system so they can save enough money by the time they retire.
2. What are self-managed super funds (SMSFs)?
Bitcoin self-managed super funds or BTC SMSF allows Australians to incorporate cryptocurrencies for their retirement. If you are in Australia, SMSF cryptocurrency gives you the avenue to use bitcoin in the future as you invest part of your retirement savings into bitcoin.
3. How can I invest my superannuation in bitcoin?
The Australian government allows individuals to invest their SMSF in cryptocurrencies. Regardless, you still need to comply with the regulatory requirements mandated by the Superannuation Industry (Supervision) Act 1993 (SISA) and Superannuation Industry (Supervision) Regulations 1994 (SISR).
SMSF bitcoin investment or buying crypto using your SMSF can be a complicated process. But you can save yourself from the troubles of setting up a self-managed superannuation fund structure if you work with us. At Bitcoin Superannuation, we will assist you in going through the convoluted process of accessing bitcoin as a superannuation investment.
4. Is investing in superannuation a good idea?
Of course! When you invest in superannuation, you invest in a comfortable future when you grow old and are no longer employed. Moreover, it is a secure and well-managed investment, assuring you that you will have the funds you may need soon.
Talking about the years to come, investing a portion of your super in bitcoin will also pay off since this may be the future of transactions. While investing in SMSF bitcoin in Australia is safe and secure, make sure to keep track of your every transaction.
5. Can I withdraw my SMSF?
SMSF gives you the ability to invest in superannuation cryptocurrency in Australia, use your funds to invest in shares, or withdraw your money. Therefore, you can make a lump-sum withdrawal from your SMSF as long as you are over 60 years old and retiring from employment.
6. What are the two types of reportable superannuation contributions?
The two types of reportable superannuation contributions are:
- Employer super contributions – Your employer makes these contributions for you.
- Personal deductible contributions – You make these contributions for yourself.
7. Is my employer allowed to use my money from my superannuation account?
Although your employer has contributed to your superannuation, they don’t have the power to use the money they paid into your account.
Want to Invest Your Superannuation Fund in Bitcoin? Connect with Us!
If you are interested in investing your superannuation in bitcoin, we can help you buy this cryptocurrency. Just fill out the contact form on our website so we can assist you. Also, if there is a bitcoin FAQ we have overlooked, feel free to message us.