Microstrategy Chairman Michael Saylor anticipates that the demand for bitcoin will double following the halving and the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Saylor, an executive at Microstrategy, believes that the next 12 months will be highly favorable for the asset class. He also identified three key factors that he believes will drive the price of bitcoin to $5 million per coin.
Bitcoin Demand to Double, According to Saylor
In an interview with Fox Business on Monday, Microstrategy Chairman Michael Saylor discussed the future outlook for bitcoin. When asked about the factors that will contribute to the appreciation of bitcoin's price, Saylor explained that the supply and demand for BTC are currently balanced. However, he emphasized that two events will significantly boost the cryptocurrency's price: the halving in April next year, which will reduce the bitcoin supply by half, and the anticipated approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Saylor stressed that following the halving and the introduction of spot bitcoin ETFs:
The demand has to at least double. As a result, the only adjustment that will occur is the price, in order to reach the market.
Saylor advised investors to pay close attention to the halving and the approval of spot bitcoin ETFs, emphasizing that the next 12 months will be highly promising for the asset class.
Saylor firmly believes that the price of bitcoin will eventually reach an astonishing $5 million. During a recent discussion on X, he stated, "There are three significant catalysts that will drive an acceleration. These three factors will not take us to $500,000, but rather to $5 million per coin."
He went on to explain that the first catalyst is "A spot ETF where someone can invest $100 million in bitcoin through an ETF security." The second catalyst is "Your bank will safeguard it for you and provide loans against it," he added. Additionally, the third catalyst is the ability for businesses to mark their bitcoin investments up or down on their balance sheets based on fair value.
Microstrategy, a company listed on the Nasdaq, implemented a bitcoin strategy in August 2020 and has been actively accumulating BTC for its treasury ever since. The company recently stated, "As of October 31, 2023, we held 158,400 bitcoins acquired for a total cost of $4.69 billion, or $29,586 per bitcoin."
What are your thoughts on the predictions made by Microstrategy Chairman Michael Saylor about bitcoin? Share your opinions in the comments section below.
Frequently Asked Questions
What are the pros and cons of a gold IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. There are some disadvantages to this investment.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
Insurance will be required if you would like to keep your cash out of banks. Many insurers require that you own at least one ounce of gold before you can make a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers restrict the amount you can own in gold. Others allow you the freedom to choose your own weight.
It's also important to decide whether or not to buy gold futures contracts. Futures contracts for gold are less expensive than physical gold. Futures contracts, however, allow for greater flexibility in buying gold. They let you set up a contract that has a specific expiration.
You'll also need to decide what kind of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does include coverage for damage due to natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs are not covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians cannot sell your assets. They must instead keep them for as long as you ask.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). It is also important to specify how much money you will invest each month.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. The company will review your application and send you a confirmation letter.
Consider consulting a financial advisor when opening a golden IRA. A financial planner is an expert in investing and can help you choose the right type of IRA for you. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
What is the best precious-metal to invest?
This question depends on how risky you are willing to take, and what return you want. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if you need a quick profit, gold may not be for you. If you have time and patience, you should consider investing in silver instead.
If you don’t want to be rich fast, gold might be the right choice. Silver may be a better option for investors who want long-term steady returns.
How much gold do you need in your portfolio?
The amount you make will depend on the amount of capital you have. A small investment of $5k-10k would be a great option if you are looking to start small. As you grow, you can move into an office and rent out desks. So you don't have all the hassle of paying rent. You just pay per month.
It's also important to determine what type business you'll run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. So if you do this kind of thing, you need to consider how much income you expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. This means that you may only be paid once every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I suggest starting with $1k-2k gold and building from there.
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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
cftc.gov
finance.yahoo.com
bbb.org
irs.gov
How To
The growing trend of gold IRAs
The gold IRA trend is growing as investors seek ways to diversify their portfolios while protecting against inflation and other risks.
Owners can invest in gold bars and bullion with the gold IRA. It can be used for tax-free growth and provides an alternative investment option for those concerned about stocks and bonds.
A gold IRA allows investors the freedom to manage their wealth without worrying about volatility in the markets. Investors can protect themselves from inflation and other possible problems by using the gold IRA.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
The gold IRA also offers many other benefits, such as the ability to quickly transfer the ownership of the gold to heirs, and the fact the IRS doesn't consider gold a currency.
Investors looking for financial security are increasingly turning to the gold IRA.
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By: Kevin Helms
Title: Michael Saylor Expects Bitcoin Demand to Double After Halving and Spot Bitcoin ETF Approvals
Sourced From: news.bitcoin.com/michael-saylor-expects-bitcoin-demand-to-double-after-halving-and-spot-bitcoin-etf-approvals/
Published Date: Thu, 09 Nov 2023 02:30:05 +0000
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