The approval of bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) and Nigeria's lifting of restrictions on the crypto industry are expected to boost interest in crypto among African users. Additionally, the upcoming Bitcoin halving event in April 2024 is anticipated to have a significant impact on the trajectory of the leading cryptocurrency.
Nigeria's New Crypto Stance
After a challenging first half of the year, marked by startup failures and increased regulatory scrutiny, the crypto and blockchain industry in Africa is set to enter 2024 with renewed optimism, particularly in Nigeria. Following the removal of the former governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, the new CBN boss, Olayemi Cardoso, has adopted a more conciliatory approach and reversed some of the previous controversial policies. The most significant decision made under Cardoso's leadership was the lifting of the crypto asset-related restrictions imposed in February 2021. This move has been widely praised by Nigerian crypto influencers and is seen as a positive development for the entire continent.
Southern African Countries Taking the Lead
In Kenya, the largest economy in East Africa, the freezing of Worldcoin's activities due to national security concerns was seen as a low point for the crypto industry in the region. However, there are indications that Worldcoin will be allowed to resume its operations in early 2024. In South Africa, one of the largest crypto markets in Africa, authorities have taken steps to establish a regulatory framework for virtual asset service providers (VASPs). Angola's passage of a crypto law and Zimbabwe's launch of a gold-backed digital currency have further contributed to the positive momentum in the region.
Bitcoin Halving and the Impact of ETFs
While these developments are significant for the African crypto industry, the potential approval of spot Bitcoin ETFs by the SEC is seen as a game-changer that could trigger a bull run and attract significant capital inflows. However, some experts believe that the benefits of ETF approval may be short-lived, as high-level institutions like Blackrock could seek to control the narrative or dominate the crypto market. Nevertheless, the upcoming Bitcoin halving event in April 2024 is expected to play a pivotal role in shaping the trajectory of the top cryptocurrency.
Ivaibi Festo, the founder of Mitroplus Labs, predicts that the upcoming bull run will be bigger and better than any seen before, with far-reaching effects on global incomes and value distributions. Nathaniel Luz, the founder of Flincap, believes that the approval of Bitcoin ETFs will bring legitimacy to the crypto industry and restore users' trust. However, Luz notes that the average African crypto user is more interested in the overall market ambience created by the approval and the potential impact of regulations set by first-world countries like the US.
In conclusion, the expected approval of Bitcoin ETFs and Nigeria's new stance on crypto are set to drive the revival of Africa's crypto industry. The upcoming Bitcoin halving event and the potential impact of ETFs will shape the industry's trajectory in 2024. With renewed optimism and regulatory developments across the continent, Africa is poised to become a prominent player in the global crypto landscape.
Frequently Asked Questions
How is gold taxed in an IRA?
The fair market price of gold when it is sold determines the tax due on its sale. If you buy gold, there are no taxes. It's not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
For loans, gold can be used to collateral. Lenders look for the highest return when you borrow against assets. For gold, this means selling it. There's no guarantee that the lender will do this. They may just keep it. They might decide that they want to resell it. You lose potential profits in either case.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. Otherwise, it's better to leave it alone.
Should You Purchase Gold?
In the past, gold was considered a haven for investors during economic turmoil. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
This could be changing, according to some experts. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
These are some things you should consider when considering gold investing.
- Consider first whether you will need the money to save for retirement. You can save money for retirement even if you don't invest in gold. The added protection that gold provides when you retire is a good option.
- Second, ensure you fully understand the risks involved in buying gold. Each type offers varying levels and levels of security.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. If you lose your gold coins, you may never recover them.
Don't buy gold unless you have done your research. If you already have gold, make sure you protect it.
What's the advantage of a Gold IRA?
A gold IRA has many benefits. It's an investment vehicle that lets you diversify your portfolio. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This allows you to easily transition if your retirement is early.
The best thing about investing in gold IRAs is that you don’t need any special skills. They are readily available at most banks and brokerages. You don't have to worry about penalties or fees when withdrawing money.
That said, there are drawbacks too. Gold has historically been volatile. It's important to understand the reasons you're considering investing in gold. Are you looking for growth or safety? Is it for security or long-term planning? Only then will you be able make informed decisions.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce will not be sufficient to meet all your requirements. Depending upon what you plan to do, you could need several ounces.
A small amount is sufficient if you plan to sell your gold. You can even manage with one ounce. These funds won't allow you to purchase anything else.
Should you Invest In Gold For Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. If you're unsure about which option to choose then consider investing in both.
You can earn potential returns on your investment of gold. Retirement investors will find gold a worthy investment.
Gold is more volatile than most other investments. Therefore, its value is subject to change over time.
However, this does not mean that gold should be avoided. You should just factor the fluctuations into any overall portfolio.
Another benefit to gold? It's a tangible asset. Gold can be stored more easily than stocks and bonds. It's also portable.
You can always access gold as long your place it safe. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
A portion of your savings can be invested in something that doesn't go down in value. Gold rises in the face of a falling stock market.
You can also sell gold anytime you like by investing in it. As with stocks, your position can be liquidated whenever you require cash. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Also, don't buy too much at once. Start small, buying only a few ounces. Continue adding more as necessary.
Keep in mind that the goal is not to quickly become wealthy. It is to create enough wealth that you no longer have to depend on Social Security.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
finance.yahoo.com
bbb.org
How To
Tips to Invest in Gold
Investing in Gold remains one of the most preferred investment strategies. There are many advantages to investing in Gold. There are many ways to invest gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
You should consider some things before you decide to purchase any type of gold.
- First, you must check whether your country allows you to own gold. If your country allows you to own gold, then you are allowed to proceed. Otherwise, you can look into buying gold from abroad.
- The second thing you need to do is decide what type of gold coins you want. There are many options for gold coins: yellow, white, and rose.
- The third factor to consider is the price for gold. It is better to start small, and then work your way up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Remember that gold prices are subject to change regularly. Keep an eye on current trends.
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By: Terence Zimwara
Title: Bitcoin ETFs and Nigeria's Crypto Stance to Drive Africa's Crypto Industry
Sourced From: news.bitcoin.com/bitcoin-etf-mania-and-nigerias-new-stance-on-crypto-to-drive-the-industrys-revival-in-africa-experts/
Published Date: Sat, 30 Dec 2023 12:30:51 +0000
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