Introduction
Crypto asset manager Bitwise has recently published a report titled "The Year Ahead: 10 Crypto Predictions for 2024." The report highlights several significant predictions for the crypto market in the coming years. Bitwise, known for its crypto index fund BITW and a range of crypto-focused investment products, expects a bullish future for Bitcoin, Ethereum, and other cryptocurrencies.
Prediction 1: Bitcoin to Reach New All-Time High
Bitwise's first prediction states that Bitcoin will trade above $80,000, setting a new all-time high. The firm believes that two major catalysts will contribute to this price surge. Firstly, the anticipated launch of a spot Bitcoin exchange-traded fund (ETF) in early 2024. Secondly, the halving of new Bitcoin supply around the end of April.
Prediction 2: Approval of Spot Bitcoin ETFs
Bitwise predicts that spot Bitcoin ETFs will be approved by the U.S. Securities and Exchange Commission (SEC) and collectively become the most successful ETF launch of all time. The firm estimates that within five years, spot Bitcoin ETFs could capture 1% of the $7.2 trillion U.S. ETF market, amounting to $72 billion in assets under management (AUM).
Prediction 3: Coinbase's Revenue to Double
Bitwise expects the revenue of Nasdaq-listed cryptocurrency exchange Coinbase to double, surpassing Wall Street expectations by at least 10 times. The firm attributes this growth to increased trading volumes during bull markets and the successful launch of various new products by Coinbase.
Prediction 4: Financial Advisors Allocating to Crypto
Bitwise anticipates that by the end of 2024, one in four financial advisors will allocate crypto in client accounts. The firm believes that once Bitcoin becomes easily accessible, more advisors will allocate cryptocurrencies in their clients' portfolios.
Prediction 5: Ethereum's Revenue to Double
Bitwise predicts that Ethereum's revenue will more than double to $5 billion in 2024. The firm attributes this growth to the increasing number of users flocking to crypto applications built on the Ethereum network.
Prediction 6: Ethereum's Average Transaction Cost to Drop
Bitwise expects a major upgrade to the Ethereum blockchain, resulting in a significant reduction in the average transaction cost to below $0.01. This upgrade, known as EIP-4844, could pave the way for the first truly mainstream applications in the crypto space.
Prediction 7: AI Assistants Using Crypto for Online Payments
Bitwise believes that AI assistants will start using cryptocurrencies to pay for online transactions, affirming crypto as the native currency of the internet. The firm expects AI assistants to prefer digitally native money, such as Bitcoin or stablecoins, starting from 2024.
Prediction 8: Stablecoin Settlement Surpassing Visa
Bitwise predicts that more money will settle using stablecoins than using Visa. This indicates the growing adoption and acceptance of stablecoins as a reliable form of digital payment.
Prediction 9: Tokenization of Real-World Assets
The firm anticipates JPMorgan to tokenize a fund and launch it on-chain, as Wall Street gears up to tokenize real-world assets. This move could revolutionize traditional finance and open new investment opportunities.
Prediction 10: NFTs and Prediction Markets
Bitwise expects Taylor Swift to launch non-fungible tokens (NFTs) to connect with her fans in new and innovative ways. Additionally, the firm predicts that prediction markets will emerge as a new killer app for crypto, with over $100 million being staked in these markets.
Conclusion
Bitwise's 10 crypto predictions for 2024 paint an optimistic picture for the future of cryptocurrencies. With expectations of Bitcoin reaching new all-time highs, the approval of spot Bitcoin ETFs, and Ethereum's significant revenue growth, the crypto market is poised for further expansion. The predictions also highlight the increasing adoption of crypto by financial advisors and the potential for AI assistants to utilize cryptocurrencies for online transactions. As the crypto industry continues to evolve, these predictions provide insights into the potential growth and developments that may shape the market in the coming years.
Frequently Asked Questions
How much of your portfolio should be in precious metals?
To answer this question, we must first understand what precious metals are. Precious metals have elements with an extremely high worth relative to other commodity. This makes them extremely valuable for trading and investing. Gold is currently the most widely traded precious metal.
But, there are other types of precious metals available, including platinum and silver. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also unaffected significantly by inflation and Deflation.
In general, prices for precious metals tend increase with the overall marketplace. They do not always move in the same direction. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors choose safe assets such Treasury Bonds over precious metals. They are more rare, so they become more expensive and less valuable.
Diversifying across precious metals is a great way to maximize your investment returns. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
Can I keep a Gold ETF in a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
An IRA traditional allows both employees and employers to contribute. You can also invest in publicly traded businesses by creating an Employee Stock Ownership 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 tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
A Individual Retirement Annuity (IRA), is also available. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.
How do you withdraw from an IRA that holds precious metals?
You first need to decide if you want to withdraw money from an IRA account. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. This option will require you to pay taxes on the amount that you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. 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 have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. 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. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. Some storage facilities will accept bullion bars, others require you to buy individual coins. Before choosing one, consider the pros and disadvantages of each.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. You will need to count each coin individually. However, you can easily track the value of individual coins by storing them in separate containers.
Some people prefer to keep coins safe in a vault. Others prefer to store them in a safe deposit box. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
What should I pay into my Roth IRA
Roth IRAs can be used to save taxes on your retirement funds. The account cannot be withdrawn from until you are 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, your principal (the original deposit amount) cannot be touched. You cannot withdraw more than the original amount you contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
The second rule is that your earnings cannot be withheld without income tax. So, when you withdraw, you'll pay taxes on those earnings. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's say you earn $10,000 each year after contributing. The federal income tax on your earnings would amount to $3,500. So you would only have $6,500 left. Since you're limited to taking out only what you initially contributed, that's all you could take out.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow you to deduct pretax contributions from your taxable income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. There are no restrictions on the amount you can withdraw from a Traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
Can the government steal your gold?
Your gold is yours, so the government cannot confiscate it. It is yours because you worked hard for it. It belongs to your. But, this rule is not universal. You could lose your gold if convicted of fraud against a federal government agency. If you owe taxes, your precious metals could be taken away. However, even if taxes are not paid, gold is still your property.
How to Open a Precious Metal IRA?
It is important to decide if you would like an Individual Retirement Account (IRA). To open the account, complete Form 8606. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should not be completed more than 60 days after the account is opened. Once this is done, you can start investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS states that you must be at least 18 and have earned income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). You must also contribute regularly. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you can't purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. This option is offered by some IRA providers.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they are not as liquid or as easy to sell as stocks and bonds. They are therefore more difficult to sell when necessary. They also don't pay dividends, like stocks and bonds. Therefore, you will lose more money than you gain over time.
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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
cftc.gov
How To
The best way online to buy gold or silver
First, understand the basics of gold. Precious metals like gold are similar to platinum. It's rare and often used to make money due its resistance and durability to corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
Today, there are two types available in gold coins: one is legal tender and the other is bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren’t exchangeable in any currency exchange. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. Each dollar spent by the buyer is worth 1 gram.
The next thing you should know when looking to buy gold is where to do it from. There are a few options if you wish to buy gold directly from a dealer. You can start by visiting your local coin shop. You could also look into eBay or other reputable websites. You can also look into buying gold online from private sellers.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great choice for investing gold as it allows you more control over its price.
Another option for buying gold is to invest in physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
You can either visit a bank, pawnshop or bank to buy gold. A bank can offer you a loan for the amount that you need to buy gold. Customers can borrow money from pawnshops to purchase items. Banks typically charge higher interest rates than pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold can be as easy as selling. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
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By: Kevin Helms
Title: Bitwise Unveils 10 Crypto Predictions for 2024: Bitcoin to Trade above $80,000, Ethereum Revenue to Double
Sourced From: news.bitcoin.com/bitwise-unveils-10-crypto-predictions-for-2024-bitcoin-to-surpass-80000-spot-bitcoin-etfs-could-capture-72-billion/
Published Date: Fri, 15 Dec 2023 01:00:03 +0000
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