Can Crypto Be Used As A TrustFund?
Trust fund is an asset in the form of an entity which is legal to help protect someone financially and make sure that their future is taken care of. Trust funds come in form of valuable assets like real estate, stocks, heirloom, money, diamonds or precious metals, in a nutshell just think of anything valuable that can be used to secure a person’s future. Recipients of this trust funds get their lives and future financial taken care of, most times they don’t get access to these trust fund until they meet the requirements. These requirements could be getting to a certain age, or going to college, something like that. To be able to set a trustfund, you have to use a good lawyer to help you set it up so they can protect the asset and make sure the asset yields more value and is secured from loss and huge taxing.
source
TrustFund can be used to sort your financial needs, sometimes the thought of having trust funds just keeps you motivated knowing that you have a financial head start in life. Valuable assets have been used for so long as trust funds, but now we have crypto and bitcoin, do you think crypto can be used as trust fund? Crypto is quite valuable right now, but in terms of stability in value you can’t actually consider using crypto as a TrustFund. It’s not safe, it should be part of a TrustFund but not totally all part of the TrustFund.
Crypto currency is known as one of the most volatile assets right now, it can make you rich overnight and make you broke overnight. Crypto future and value can’t be evaluated and predicted because the future depends on how much effort the devs put into making the asset create value. If the asset stops creating value, people are going to stop demanding it and when they stop demanding it, the value starts reducing. Imagine investing $1 Million on Dogecoin or whatever crypto on TrustFund, but unfortunately in the next five years, the value dips and the crypto loses 70% of its value. Is that really what you can call a TrustFund? Is it really securing the future of the beneficiary? It’s just gambling with the future of the beneficiary.
Posted Using InLeo Alpha
I think it can, but you have to select the right portfolio. The only asset I would really put in a trust fund at this point is Bitcoin.
Me too, that's the only asset that has been proven to be sustainable
Perfect answer
I found out this summer that anyone can open a Trust fund and even read some political research about Trust funds for free citizens. Not in the sense that we know now what a trust fund is, but rather in a door to financial and identity freedom from the state. https://en.wikipedia.org/wiki/Sovereign_wealth_fund
Congratulations @readthisplease! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPI think crypto wouldnt be just like trustfunds that easily, because there are volatility you mentioned attached to the system. But, the merits gathered by the stocks or bonds that ensures future financial security - crypto can be the tool also to come to aid for the same purpose.
Although the two things arent the same and dont have similar potential, but they can certainly help to be utilized for same purpose, what I think.