The United States is steadily becoming a worse place for individuals to do business.
The financial services industry in particular faces onerous regulations imposed by the US government–under the auspices of security and combating terrorism.
While the efficacy of the US regulators’ draconian standards in preventing money laundering and terrorism is debatable–the impact on law abiding consumers is certain.
US consumers and investors alike are the victims of the US government’s attempt to control.
A recent example is that US citizens will no longer be allowed to have accounts on Bitfinex. Bitfinex announced earlier this month they would be dropping U.S. accounts and list the following reasons:
While we have been able to normalize banking for some corporate customers and individuals in certain jurisdictions, compliant banking solutions for U.S. individuals remain elusive. We have been slowly and selectively inviting users in particular jurisdictions who meet set criteria to start using banking channels that have come online. This process is ongoing.
A surprisingly small percentage of our revenues come from verified U.S. individual accounts while a dramatically outsized portion of our resources goes into servicing the needs of U.S. individuals, including support, legal and regulatory.
We anticipate the regulatory landscape to become even more challenging in the future.
Bitfinex is not based in the United States. Exchanges based in the U.S. are better positioned to properly service retail U.S. customers.
1) It’s difficult to comply with US banking regulations
2) It’s expensive to comply with US banking regulations
3) Bitfinex expects regulations to become more challenging (probably meaning more expensive and more difficult) in the future
If the United States wants to remain competitive in the future and the new economy regulators need to back off.
Margin funding on Bitfinex is one of the methods I use to grow and protect my wealth. Very soon this will no longer be an option.
The vast majority of money I’ve made has been working for someone else. Why were they willing to pay me? Because I created value for them. The work I did for my employer allowed the employer to make more money than would have otherwise been possible–even after paying for my labor.
That is really the key to wealth: creating value for others.
The vast majority of wealthy people have helped lots and lots of people. Sure there are exceptions, but most people who have wealth have created value in proportion to the money they’ve made.
So if you want to grow wealth, ask “How can I help people?” If you provide a product or service that helps people and it is available to them at an attractive price people will gladly pay you money for it.
I appreciate that can be hard to do.
But there are people and organizations (businesses) that have already figured out a product or service that people want and are willing to pay money for and they often hire others to help them run their business. That is of course the way that most people make money–by working for someone else. That is how I’ve made the majority of my money, by working as an employee.
But the value creation mindset is still there. I think that mindset helps me to be a valued employee. It prompts me to ask: What knowledge, skills and abilities to I need in order to help this company? How can I help make this business more successful? How can I help this business be more efficient and more profitable?
By creating value at a company and helping make the business more profitable I know that I’ll be rewarded as well. Does it always work that way? No. But it has worked that way for me more often than not.
I enjoy investing. Investing is a way to passively grow one’s wealth over the long term. But I need to make money to have money to invest.
The way to make money in business is by helping people. It’s by creating value. Wether you’re starting or running your own business or working for someone else creating value is the key to growing wealth.