The year 2023 has seen bitcoin cementing its position as the leading cryptocurrency, surpassing ethereum in various significant aspects. Over the course of this year, the value of ether has experienced a decline of 27.65% compared to bitcoin's price. Starting the year at 0.073 ether, it has now dropped to its current level of 0.052 ether.
Bitcoin Reigns Supreme in 2023, Outpacing Ethereum in Several Metrics
Without a doubt, bitcoin, the top crypto asset by market capitalization, has outperformed the second-ranked digital currency across multiple indicators. According to archived data from coinmarketcap.com, as of December 2022, BTC held a market dominance of 40.1%, while ETH's share stood at 18.4%. Presently, BTC's market share has surged to 51.5% of the total crypto market value, while ETH's has slightly declined to 16.6%.
Over the past year, the comparative value of ethereum to bitcoin has decreased. In December 2022, it traded at 0.073 ETH per BTC, but as of December 23, 2023, it has dropped to 0.052 ether, marking a decline of 27.65%. Currently, bitcoin's market capitalization stands at $856 billion, compared to ethereum's $275 billion, making BTC's market valuation approximately 3.11 times that of ETH.
Recent data from cryptoslam.io reveals that bitcoin-centric non-fungible token (NFT) sales have surpassed those of ethereum. Bitcoin took the lead in November 2023 and has maintained its dominance in NFT sales ever since. Over a 30-day period, Bitcoin-based NFT sales reached $761,951,324, while Ethereum's sales amounted to $387,167,225.
Furthermore, bitcoin continues to outperform ethereum in terms of fee generation. BTC miners have collected $39,480,534 in fees from onchain transactions in the last 24 hours alone, which is significantly higher than the $551,880 collected by ETH validators. Bitcoin consistently surpasses ether in daily global trading volume as well, with BTC transactions totaling $13.94 billion and ETH's reaching approximately $9.58 billion within the same timeframe.
While supporters of ether anticipate the "Flippening" — a theoretical overtaking of bitcoin — the available data presents a different picture. Despite the aspirations, the hard statistics highlight bitcoin's enduring dominance, with its market cap and trade volumes far exceeding those of ethereum. Based on current trends and metrics, the much-speculated "Flippening" remains a distant possibility and is unlikely to materialize in the near future.
What are your thoughts on bitcoin's market performance compared to ethereum in the current year? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
How can I withdraw from a Precious metal IRA?
You first need to decide if you want to withdraw money from an IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, calculate how much money your IRA will allow you to withdraw. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities will accept bullion bars, others require you to buy individual coins. You will need to weigh each one before making a decision.
Bullion bars are easier to store than individual coins. However, you'll need to count every coin individually. However, keeping individual coins in a separate place allows you to easily track their values.
Some prefer to keep their money in a vault. Others prefer to place them in safe deposit boxes. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
Can I buy or sell gold from my self-directed IRA
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts are financial instruments based on the price of gold. They let you speculate on future price without having to own the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
What are the pros & cons of a Gold IRA?
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. There are some disadvantages to this investment.
You could lose all of your accumulated money if you take out too much from your IRA. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
You can purchase insurance if you want to keep your money out of a bank. Many insurers require that you own at least one ounce of gold before you can make a claim. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers limit the number of ounces of gold that you can own. Others let you pick your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. The price of physical gold is higher than that of gold futures. Futures contracts provide flexibility for purchasing gold. They allow you to set up a contract with a specific expiration date.
You will also have to decide which type of insurance coverage is best for you. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does provide coverage for damage from natural disasters, however. You might consider purchasing additional coverage if your area is at high risk.
Apart from insurance, you should consider the costs of storing your precious metals. Insurance doesn't cover storage costs. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians aren't allowed to sell your assets. Instead, they must hold them as long as you request.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Your monthly investment goal should be stated.
After filling in the forms, please send them to the provider. After receiving your application, the company will review it and mail you a confirmation letter.
Consider consulting a financial advisor when opening a golden IRA. A financial planner can help you decide the type of IRA that is right for your needs. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Is gold a good investment IRA option?
Gold is an excellent investment for any person who wants to save money. It is also an excellent way to diversify you portfolio. But there is more to gold than meets the eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It's sometimes called “the world's oldest money”.
But unlike paper currencies, which governments create, gold is mined out of the earth. It is very valuable, as it is rare and hard to create.
The supply-demand relationship determines the gold price. If the economy is strong, people will spend more money which means less people can mine gold. This results in gold prices rising.
The flip side is that people tend to save money when the economy slows. This means that more gold is produced, which reduces its value.
This is why investing in gold makes sense for individuals and businesses. You will benefit from economic growth if you invest in gold.
You'll also earn interest on your investments, which helps you grow your wealth. Plus, you won't lose money if the value of gold drops.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
bbb.org
finance.yahoo.com
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. It is essential to save enough money each year in order to maintain a steady growth rate.
You also want to take advantage of tax-free opportunities such as a traditional 401(k), SEP IRA, or SIMPLE IRA. These savings vehicles enable you to make contributions while not paying any taxes on the earnings, until they are withdrawn. This makes them great options for people who don't have access to employer matching funds.
It's important to save regularly and over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
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By: Jamie Redman
Title: Bitcoin Solidifies Lead Over Ethereum in 2023 — Dominates in Market Cap, NFT Sales, and Fee Generation
Sourced From: news.bitcoin.com/bitcoin-solidifies-lead-over-ethereum-in-2023-dominates-in-market-cap-nft-sales-and-fee-generation/
Published Date: Sat, 23 Dec 2023 16:00:19 +0000
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