Understanding Bitcoin Halving and Its Implications
BlackRock, the world's largest asset management firm overseeing over $10.5 trillion in assets, has introduced an educational series to elucidate Bitcoin, the concept of Bitcoin halving, and its implications. The series also provides insights into their approved spot Bitcoin ETF.
Insights from BlackRock's Thematic and Active ETFs Head
"April presents a flurry of rare events this year, with all eyes on the impending bitcoin halving – a unique occurrence that transpires only once every four years," remarked Jay Jacobs, U.S. Head of Thematic and Active ETFs at BlackRock. "Tune in below to grasp how this event influences bitcoin's value and gain deeper insights into investing in bitcoin ETFs."
Comprehensive Educational Videos on BlackRock's Official Website
BlackRock has released a series of four videos on their official website, delving into the fundamental facets of Bitcoin as an investment. These videos address common queries and apprehensions of investors seeking to comprehend and navigate the Bitcoin landscape. The topics covered include the foundational technology of Bitcoin, its role in investment portfolios, methods to secure Bitcoin, and the significance of events like the Bitcoin halving.
Bitcoin's Global Recognition and Adoption
"Bitcoin stands as the most globally recognized and widely adopted cryptocurrency – being the pioneer form of internet-native money to achieve extensive global adoption," as per BlackRock's statement on their webpage. "Bitcoin facilitates peer-to-peer transactions devoid of central intermediaries such as banks."
Spot Bitcoin ETF Approval and Educational Initiative
With the recent endorsement of their spot Bitcoin ETF, $IBIT, BlackRock's educational campaign aims to capitalize on the burgeoning mainstream acceptance and interest in Bitcoin. The initiative underlines the significance of education and well-informed decision-making for the new wave of investors entering this market. The ETF provides exposure to Bitcoin's price fluctuations without the necessity for direct ownership of the digital asset, catering to traditional investors seeking diversified investment avenues.
Frequently Asked Questions
What is a Precious Metal IRA?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These are “precious metals” because they are hard to find, and therefore very 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 actually to the metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This ensures that you will receive dividends each and every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you only pay a small percentage on your gains. Plus, you get free access to your funds whenever you want.
What does gold do as an investment?
Supply and demand determine the gold price. Interest rates also have an impact on the price of gold.
Because of their limited supply, gold prices can fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Is buying gold a good option for retirement planning?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
The best form of investing is physical bullion, which is the most widely used. You can also invest in gold in other ways. You should research all options thoroughly before making a decision on which option you prefer.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you are looking for cash flow from your investment, buying gold stocks will work well.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
How much of your portfolio should be in precious metals?
To answer this question we need to first define precious metals. Precious metals are those elements that have an extremely high value relative to other commodities. They are therefore very attractive for investment and trading. Today, gold is the most commonly traded precious metal.
There are also many other precious metals such as platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It also remains relatively unaffected by inflation and deflation.
All precious metals prices tend to rise with the overall market. However, they may not always move in synchrony with each other. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors choose safe assets such Treasury Bonds over precious metals. Since these are scarce, they become more expensive and decrease in value.
To maximize your profits when investing in precious metals, diversify across different precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Lawful – WSJ
bbb.org
investopedia.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Three ways to invest in gold for retirement
It's crucial to understand where gold fits in your retirement strategy. There are several options to invest in precious metals if your employer has a 401k. You may also want to consider investing in gold outside of your workplace. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
These are three easy rules to remember if you invest in gold.
- Buy Gold with Your Money – You don't need credit cards, or to borrow money to finance your investments. Instead, invest in cash. This will help to keep your purchasing power high and protect you against inflation.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. The reason is that it's much easier to sell physical gold coins than certificates. There are no storage fees for physical gold coins.
- Diversify your Portfolio – Don't put all your eggs in one basket. This is how you spread your wealth. You can invest in different assets. This reduces risk and allows you to be more flexible during market volatility.
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By: Nik Hoffman
Title: BlackRock Launches Bitcoin Education Series
Sourced From: bitcoinmagazine.com/business/blackrock-releases-bitcoin-education-series
Published Date: Wed, 17 Apr 2024 16:02:21 GMT
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