How to Bitcoin in Kansas City
Disclosure: This article should not be construed as specific recommendation or investment advice. Always consult with your investment professional before making important investment decisions. Opinions expressed are entirely those of the author and do not necessarily reflect those of the Kansas City Financial Advisors Network.
When Brian Harrington of retirement services provider Choice IRA visited Kansas City in February of 2022, he boldly asserted our city to have his favorite group of “bitcoiners” on his Bitcoin is Local YouTube series.
In light of the rising credibility of this asset class happening amongst traditional financial services like Choice IRA, Fidelity, and even Big 4 Accounting powerhouse KPMG, it seems like a good time to check in on where adoption is locally.
Fortunately, there are now a number of ways to learn, allocate, and stay involved in bitcoin in KC.
Learn About Bitcoin in KC
I learned about bitcoin the same way as everyone else, that is through reading The Bitcoin Standard, listening to podcasts, and talking with slightly eccentric, reactionary buddies that spend too much time on reddit.
Fortunately, there is now a more formalized way to learn in person with the Kansas City Bitcoiners meetup group.
The group is led by Mitch Morse and Don Stuart and meets twice a month. I have been pleased to see the non sensational tone of the content and the lack of cringeworthy self-promotion. The group simply exists to talk about bitcoin. Look for their schedule of future events on meetup.
In addition, there are a number of podcasts produced locally that do a fine job of educating and entertaining. I have been attempting to do this myself on The Reformed Financial Advisor Podcast. My conversation with Venture Capital investor and Kansas City native Stephen Cole is a decent entry point into the saving concept of what bitcoin does. I have also tried to make some historical connections to Kansas City and bitcoin in the William Volker series.
Down the road in Lawrence, Brady Swenson has built a large audience with his Citizen Bitcoin and Swan Signal Live podcasts. I was particularly impressed with his presentation on monetary history and civilization at Bitcoin Day KC in 2021.
“Money is a language. It is one of the base products of human civilization... Money is a force for human advancement… and that’s why the quality of money matters. ”
Speaking of the KC Bitcoiners Meetup Group, they are in the game too with a podcast called Orange Pill Addicts that focuses on current issues in the space. I recently had the privilege of appearing on their show to talk about the intersection of bitcoin and personal finance with co-hosts Mitch, Don, and Brian.
It is worth pointing out of course that not every local influencer is optimistic about the prospects for this cryptocurrency. After all, bitcoin is still in a very early stage. Peter Mallouk of Creative Planning has consistently advocated against allocating to bitcoin, calling it “a ship of fools.”
I humbly think there are smarter versions of the bearish case for bitcoin than Mallouk’s (like this one). Regardless, there is no denying he is an important thought leader in Wealth Management and has done a lot of great things for the city. Needless to say, until Creative Planning’s advisors are allowed to get their laser eyes, I think we can confidently estimate that bitcoin has not yet reached full adoption in the RIA channel.
Allocate to Bitcoin in Kansas City
The best ways to allocate to bitcoin for most people are not locally, but through large exchanges like Strike and Swan Bitcoin. However, there are some credible ways to do it locally for those that see fit.
Unlike Creative Planning, Overland Park’s Mariner Wealth Advisors has gone in a different direction and become one of the first Registered Investment Advisors to offer direct exposure to bitcoin through Separately Managed Accounts (SMAs).
For an industry that isn’t particularly known for staying ahead of business trends, I think this is an innovative and bold step for Founder & CEO Marty Bicknell. In an interview with Steve Sanduski on the Digital Advisor podcast, Bicknell stated that he had owned bitcoin personally for a number of years and naturally wanted to make it available to his clients.
Furthermore, there are local younger advisors in the space like Trent Dudenhoeffer at Watchdog Capital and myself. Our focus is in planning as it relates to bitcoin in areas such as retirement and estate.
If you are curious you can always check out one of the many bitcoin ATMs that exist inside of random liquor stores, gas stations, and novelty shops around the city. Yes, the fees are high and the experience can be cumbersome. Consider it a hobbyist excursion.
On the other hand, there is a small tribe of enthusiasts that use these kiosks as a way to acquire non-KYC coins. It is bitcoin for the unbanked, an important development despite the current limitations.
Lastly, if you are selling any bitcoin, you will need to deal with those pesky taxes. In conversations with local tax professionals, dealing with the taxable gains and losses is one of the reasons many are wary of adopting this cryptocurrency at all. While I don’t advocate bitcoin holders to do a lot of trading, they have a point. Dealing with the taxes has been a hassle to date.
Luckily, KC-based CoinLedger is a software company that has now made the process easy, particularly for those that are doing a lot of trading. Their product organizes your buys and sells on exchanges to simplify the reporting for your tax professional.
Participate in Bitcoin in Kansas City
While the best use case for the orange coin today is simply to HODL (hold or hold on for dear life), there are other secondary ways to make use of it and participate in the community.
For starters, how about a date night with dinner at my favorite Northland restaurant Queen Sweets and Bakery? Pair dinner with a movie at KC-based AMC Theaters and dazzle your wife with the wizardry of paying for the date using sats (Satoshis—or the smallest unit of bitcoin).
That is because both of these establishments accept bitcoin as payment, as do a number of other (mostly small) businesses in the area. At least one local church, Blessed Sacrament Catholic in KCK, accepts bitcoin donations over the lightning network. You can make Fr. Blaha a happy priest by making a donation on their website.
On the political front, (as of the writing of this article) you can contact your local State Representative and voice your support for House Bill 2672.
This bill is modeled after similar legislation in WY and TX and would exempt bitcoin from local property taxes and securities regulation. Both of these states are currently viewed as being far ahead of Missouri (and all other states for that matter) as innovators in this industry.
Lastly, let me not forget about the social scene. The two events worth you paying attention to are the Bitcoin Block Party in April and another Bitcoin Day KC to look forward to in the fall. I will be there for both, so say hello!
In summary, I agree with Investment Manager Allen Farrington when he said that “bitcoin is a natural complement to localism.” As we can see, there are many opportunities now for Kansas Citians to implement this emerging protocol into their finances.
And as always, don’t hesitate to reach out to our advisors should you need assistance with your personal finances!
Disclosure: This article should not be construed as specific recommendation or investment advice. Always consult with your investment professional before making important investment decisions. Opinions expressed are entirely those of the author and do not necessarily reflect those of the Kansas City Financial Advisors Network.
