Introduction
Cathie Wood, the CEO of Ark Investment Management (Ark Invest), has reaffirmed her bullish stance on bitcoin, predicting that the price of the cryptocurrency could soar to $1.5 million per coin. Wood's optimism is fueled by the recent approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), which she believes increases the likelihood of her bullish prediction coming true.
Ark Invest's Bitcoin Price Predictions
In Ark Invest's yearly report, titled "Big Ideas 2023," the asset management firm highlights the potential for super-exponential growth in various technological breakthroughs. Wood shared that their base case for the price of bitcoin is in the range of $600,000. However, their more optimistic "bull case" scenario envisions a price of $1.48 million per coin. Wood emphasized that the recent ETF approval has raised the probability of their bull case prediction, stating, "Our bull case is $1.5 million by 2030."
The Significance of Bitcoin
Wood expressed her belief that bitcoin represents a significant innovation, describing it as the first global decentralized digital monetary system in history. She sees it as a groundbreaking idea with immense potential. The approval of spot bitcoin ETFs by the SEC further validates the legitimacy and potential of bitcoin as a mainstream investment asset.
The Impact of ETF Approval
The recent approval of 11 spot bitcoin ETFs by the SEC has generated substantial excitement in the market. On the first day of trading, these ETFs recorded a trading volume of $4.6 billion. Blackrock, the world's largest asset manager, launched its Ishares Bitcoin Trust, which achieved $1 billion in trading volume. Wood anticipates that the introduction of spot bitcoin ETFs will attract significant institutional investment into bitcoin, thereby driving its price even higher.
SEC's Stance on Bitcoin
Despite approving the spot bitcoin ETFs, SEC Chair Gary Gensler has made it clear that the agency does not endorse or approve of bitcoin itself. The approval of these ETFs should not be misconstrued as an endorsement of the underlying cryptocurrency. However, the fact that the SEC has given the green light to these investment vehicles demonstrates a growing acceptance and recognition of the potential of bitcoin in the financial industry.
Conclusion
Cathie Wood's optimistic bitcoin price prediction of $1.5 million per coin has gained even more credibility with the recent approval of spot bitcoin ETFs by the SEC. As institutional interest in bitcoin continues to grow, the cryptocurrency's price is expected to rise significantly. Wood's bullish outlook reflects the increasing recognition of bitcoin's potential and its role in shaping the future of finance.
What are your thoughts on Cathie Wood's bitcoin price prediction? Share your views in the comments section below.
Frequently Asked Questions
What is a gold IRA account?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase physical bullion gold coins at any point in time. You don't have to wait until retirement to start investing in gold.
An IRA lets you keep your gold for life. Your gold holdings will not be subject to tax when you are gone.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). Once you've done that, you'll receive an IRA custody. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit required for gold bullion coins purchase is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
Taxes will apply to gold that you take out of an IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. If you do, you could face severe financial consequences.
Can I keep a Gold ETF in a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows contributions from both employee and employer. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
Also available is an Individual Retirement Annuity. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs do not have to be taxable
How much gold should you have in your portfolio?
The amount of capital required will affect the amount you make. Start small with $5k-10k. As your business grows, you might consider renting out office space or desks. You don't need to worry about paying rent every month. It's only one monthly payment.
Consider what type of business your company will be running. In my case, we charge clients between $1000-2000/month, depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. You might get paid only once every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I suggest starting with $1k-2k gold and building from there.
Do you need to open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. There are no ways to recover the money you lost in an investment. All your investments can be lost due to theft, fire or flood.
It is best to invest in physical gold coins and silver coins to avoid this type loss. These items are timeless and have a lifetime value. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
When you open an account, keep in mind that you won't receive any returns until your retirement. Don't forget the future!
What should I pay into my Roth IRA
Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, you can't touch your principal (the initial amount that was deposited). This means that you can't take out more money than you originally contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
You cannot withhold your earnings from income taxes. Withdrawing your earnings will result in you paying taxes. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's say you earn $10,000 each year after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. You would have $6,500 less. You can only take out what you originally contributed.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types: Roth IRAs that are traditional and Roth. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs don't allow you deduct contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal limit, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
forbes.com
finance.yahoo.com
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads. Example. And Risk Metrics
How To
Gold IRAs: A Growing Trend
The gold IRA trend is growing as investors seek ways to diversify their portfolios while protecting against inflation and other risks.
Owners of the gold IRA can use it to invest in physical bars and bullion gold. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.
A gold IRA allows investors the freedom to manage their wealth without worrying about volatility in the markets. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also benefit from physical gold's unique properties, such as durability and portability.
Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.
This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.
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By: Kevin Helms
Title: Ark Invest CEO Expects Bitcoin to Reach $1.5 Million, Cites Increased Probability
Sourced From: news.bitcoin.com/ark-invest-now-sees-higher-probability-of-bitcoin-soaring-to-1-5-million-ceo-says/
Published Date: Sat, 13 Jan 2024 02:00:00 +0000
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