Berkshire Hathaway billionaire Charlie Munger may think Bitcoin is a "stink ball," but Jurrien Timmer, the director of global macro at financial giant Fidelity, has a different perspective. He believes that Bitcoin is "exponential gold." Let's delve into the details in the latest Bitcoin.com News Week in Review.
Berkshire Vice Chair Charlie Munger Compares Bitcoin to a 'Stink Ball' Among Traditional Currencies
Charlie Munger, Warren Buffett's right-hand man and the vice chairman of Berkshire Hathaway, has expressed concern about the rising price of Bitcoin. Munger, who is 99 years old, compared the cryptocurrency to a "stink ball" when compared to traditional currencies. He stated, "When you start creating an artificial currency, you're throwing your stink ball into a recipe that's been around for a long time, that's worked very well for a lot of people."
Financial Giant Fidelity's Director Sees Bitcoin as 'Exponential Gold'
The director of global macro at financial services giant Fidelity views Bitcoin as "exponential gold." He argues that gold is too deflationary and clunky to be used as a medium of exchange, and investors primarily own it as a store of value. This is one of the reasons Bitcoin is often compared to gold.
Dubai Financial Authority Approves XRP as 'Recognized Crypto Token'
The Dubai Financial Services Authority, Dubai's financial regulator, has approved XRP as a recognized crypto token for use within the Dubai International Financial Centre (DIFC), a special economic zone. Ripple explained that licensed virtual asset firms within the DIFC can now incorporate XRP into their virtual asset services. Additionally, institutions located in the zone can utilize XRP to facilitate faster and more efficient global value exchange.
Robert Kiyosaki Breaks Down Rich Dad's First Lesson — Says Bitcoin Provides 'Lifelong Financial Security and Freedom'
Robert Kiyosaki, the author of Rich Dad Poor Dad, has discussed Rich Dad's lesson number one. He explains why the rich become richer in simple terms and emphasizes the importance of preserving tangible assets such as gold, silver, and bitcoin. According to Kiyosaki, these assets offer lifelong financial security and freedom.
What do you think? Is Bitcoin a "stink ball," "exponential gold," or something else entirely? Share your thoughts and let us know your favorite crypto in the comments section below.
Frequently Asked Questions
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should be filled within 60 calendar days of opening the account. Once you have completed this form, it is possible to begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process will be identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS requires that you are at least 18 years old and have earned an income. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Contributions must be made regularly. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, you won't be able purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option may be offered by some IRA providers.
There are two main drawbacks to investing through an IRA in precious metallics. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. Second, they are not able to generate dividends as stocks and bonds. Therefore, you will lose money over time and not gain it.
What is a Precious Metal IRA (IRA)?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These precious metals are extremely rare and valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Precious metals are often referred to as “bullion.” Bullion refers only to the actual metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This allows you to receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, your gains are subject to a small tax. Additionally, you have access to your funds at no cost whenever you need them.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. However, there are also disadvantages to this type of investment.
You may lose all your accumulated savings if you take too much out of your IRA. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
You can purchase insurance if you want to keep your money out of a bank. In order to make a claim, most insurers will require that you have a minimum amount in gold. Some insurers may require you to have insurance that covers losses up $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. Some providers restrict the amount you can own in gold. Some providers allow you to choose your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more costly than gold futures. However, futures contracts give you flexibility when buying gold. You can set up futures contracts with a fixed expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. It does provide coverage for damage from natural disasters, however. You may consider adding additional coverage if you live in an area at high risk.
Additional to your insurance, you will need to consider how much it costs to store your gold. Insurance doesn't cover storage costs. Safekeeping costs can be as high as $25-40 per month at most banks.
A qualified custodian is required to help you open a Gold IRA. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians don't have the right to sell 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. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. Also, you should specify how much each month you plan to invest.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. The company will then review your application and mail you a letter of confirmation.
A financial planner is a good idea when opening a gold IRA. Financial planners are experts at investing and can help you determine which type of IRA is best for you. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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
finance.yahoo.com
irs.gov
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
Investing gold vs. stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because many people believe gold is no longer financially profitable. This belief arises because most people believe that the global economy is driving down gold prices. They feel that gold investment would cause them to lose money. In reality, however there are still many significant benefits to gold investing. Let's take a look at some of the benefits.
One of the oldest forms known of currency is gold. There are thousands of records that show gold was used over the years. It has been used as a store for value by people all over the globe. As a means of payment, South Africa and many other countries still rely on it.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. When looking into buying gold bullion, you must decide how much you are willing to spend per gram. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
Noting that gold prices have fallen in recent years, it is worth noting that the cost to produce gold has gone up. So while the price of gold has declined, production costs haven't changed.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. However, if you are planning on doing so for long-term investments, then it is worth considering. It is possible to make a profit by selling your gold at higher prices than when you purchased it.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. We recommend you do your research before making any final decisions. Only after doing so can you make an informed decision.
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By: Bitcoin.com
Title: Bitcoin: Is it a ‘Stink Ball' or ‘Exponential Gold'? Munger and Fidelity Director at Odds on BTC — Week in Review
Sourced From: news.bitcoin.com/bitcoin-stink-ball-or-exponential-gold-munger-and-fidelity-director-at-odds-on-btc-week-in-review/
Published Date: Sun, 12 Nov 2023 15:00:19 +0000
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