Introduction
VanEck, an asset management firm, has recently unveiled its 15 crypto predictions for 2024. These predictions cover a range of topics, including the arrival of a US recession, the approval of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), and a potentially historic rally for bitcoin.
15 Crypto Predictions for 2024
VanEck has published its 15 crypto predictions for 2024, highlighting various events and developments that may shape the cryptocurrency landscape in the coming years.
US Recession and Bitcoin ETF Approvals
One of the key predictions from VanEck is that the US economy will slip into a recession, while the SEC will approve spot bitcoin ETFs. The firm anticipates that over $2.4 billion may flow into these ETFs in the first quarter of 2024, supporting the price of bitcoin.
Bitcoin Halving and Post-Halving Rise
The second prediction focuses on the upcoming Bitcoin halving in April 2024. VanEck expects minimal market disruption and a subsequent rise in bitcoin's price following the halving, benefiting low-cost miners.
Bitcoin's All-Time High
VanEck also predicts that bitcoin will reach an all-time high in the fourth quarter of 2024. This surge in price may be driven by political events and regulatory shifts following a US presidential election.
Ethereum's Performance and Challenges
VanEck's predictions also touch on Ethereum. The firm believes that Ethereum will outperform major tech stocks in 2024, although it may not surpass bitcoin. However, Ethereum's market dominance could face challenges from other smart contract platforms. Additionally, the implementation of EIP-4844 (proto-danksharding) is expected to improve scalability and reduce transaction fees for layer 2 chains like Polygon, Arbitrum, and Optimism.
NFT Activity and Spot Trading Competition
VanEck foresees a rebound in non-fungible token (NFT) activity, with Ethereum leading the way and bitcoin gaining traction through the Ordinals protocol. The firm also predicts that Binance, currently the largest spot trading exchange, may lose its position to competitors such as Okx, Bybit, Coinbase, and Bitget. It suggests that Coinbase's futures market could exceed $1 billion in daily volume due to regulated index inclusion becoming a key factor.
Stablecoin Market Capitalization and DEXs
VanEck's eighth prediction states that the market capitalization of stablecoins will surpass previous peaks and exceed $200 billion. This growth will likely be accompanied by a resurgence in USDC's market share, indicating increased institutional adoption on emerging Layer 2 chains. The firm also predicts that decentralized exchanges (DEXs) will achieve all-time highs in spot trading market share, driven by fast blockchains like Solana and user-friendly wallets that enable automated transactions and self-custody.
Remittances and Blockchain Games
VanEck believes that remittances will boost blockchain use, with the Lightning Network offering yield opportunities through Bitcoin Staking. The firm also anticipates the emergence of a popular blockchain game with over 1 million daily players, resulting in a market capitalization increase for Immutable X. Additionally, Solana is projected to become a top 3 blockchain by market cap, Total Value Secured (TVS), and user base, potentially surpassing Chainlink's TVS with its Pyth oracle as DeFi TVL surges and ETF interest grows.
Decentralized Physical Infrastructure and KYC Compliance
VanEck's 13th prediction highlights the expected surge in adoption for decentralized physical infrastructure (Depin) networks. The firm also predicts that new accounting standards will boost corporate crypto holdings, with Coinbase reporting Layer 2 revenue as Base Protocol grows. Furthermore, VanEck suggests that a major financial entity may launch a quasi-public blockchain with public chain connectivity by 2025. The final prediction focuses on know-your-customer (KYC) compliance, stating that KYC-compliant DeFi apps, led by Uniswap, will likely surpass non-KYC ones, attracting institutional volume and enhancing protocol fees, ultimately boosting the value of Uniswap's token.
Conclusion
VanEck's 15 crypto predictions for 2024 provide insights into potential developments and trends in the cryptocurrency market. These predictions cover a wide range of topics, from the US economy and bitcoin ETF approvals to Ethereum's performance and the rise of decentralized infrastructure. While these predictions are speculative, they offer valuable insights into the potential future of the crypto industry.
Frequently Asked Questions
How much of your IRA should include precious metals?
You should remember that precious metals are not only for the wealthy. You don't need to be rich to make an investment in precious metals. There are many ways to make money on silver and gold investments without spending too much.
You might consider purchasing physical coins, such as bullion bars and rounds. Stocks in companies that produce precious materials could be purchased. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices are more volatile than traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
How much should you have of gold in your portfolio
The amount of capital that you require will determine how much money you can make. Start small with $5k-10k. As you grow, it is possible to rent desks or office space. Renting out desks and other equipment is a great way to save money on rent. You only pay one month.
It's also important to determine what type business you'll run. In my case, we charge clients between $1000-2000/month, depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. You might get paid only 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 recommend starting with $1k-$2k of gold and growing from there.
Should you Invest In Gold For Retirement?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. If you're unsure about which option to choose then consider investing in both.
You can earn potential returns on your investment of gold. It is a good choice for retirees.
Gold is more volatile than most other investments. Therefore, its value is subject to change over time.
This doesn't mean that you should not invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another advantage of gold is its tangible nature. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be transported.
You can always access your gold as long as it is kept safe. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold usually rises when the stock market falls.
Investing in gold has another advantage: you can sell it anytime you want. Like stocks, you can sell your position anytime you need cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
You shouldn't buy too little at once. Start by purchasing a few ounces. You can add more as you need.
The goal is not to become rich quick. 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.
Is gold a good choice for an investment IRA?
If you are looking for a way to save money, gold is a great investment. It's also a great way to diversify your portfolio. There's more to gold that meets the eye.
It has been used as a currency throughout history and is still a popular method of payment. It's sometimes called “the world's oldest money”.
But gold is mined from the earth, unlike paper currencies that governments create. That makes it very valuable because it's rare and hard to create.
Gold prices fluctuate based on demand and supply. The strength of the economy means people spend more, and so, there is less demand for gold. Gold's value rises as a result.
On the other hand, people will save cash when the economy slows and not spend it. This leads to more gold being produced which decreases its value.
This is why investing in gold makes sense for individuals and businesses. You will benefit from economic growth if you invest in gold.
Your investments will also generate interest, which can help you increase your wealth. Plus, you won't lose money if the value of gold drops.
How can you withdraw from an IRA of Precious Metals?
You first need to decide if you want to withdraw money from an IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, calculate how much money your IRA will allow you to withdraw. This calculation is affected by many factors, such as the age at which you withdraw the money, the amount of time the account has been owned, and whether your plans to continue contributing to your retirement fund.
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.
Once you have completed these calculations, you need to open your brokerage account. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Before you choose one, weigh the pros and cons.
Bullion bars, for example, require less space as you're not dealing with individual coins. But, each coin must be counted separately. However, you can easily track the value of individual coins by storing them in separate containers.
Some prefer to keep their money in a vault. Others prefer to store their coins in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
What are the benefits to having a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You are in complete control of how much you take out each fiscal year. There are many types of IRAs. Some are better suited for people who want to save for college expenses. Others are made for investors seeking higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. The earnings earned after they withdraw the funds aren't subject to any tax. This account may be worth considering if you are looking to retire earlier.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This means that you don't need to worry about making monthly deposits. To make sure you don't miss any payments, you can also set up direct deductions.
Finally, gold is one of the safest investment choices available today. It is not tied to any country so its value tends stay steady. Even during economic turmoil the gold price tends to remain fairly stable. It is therefore a great choice for protecting your savings against inflation.
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)
- 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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
finance.yahoo.com
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
cftc.gov
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
How To
Gold Roth IRA guidelines
It is best to start saving early for retirement. It is best to start saving for retirement as soon you can (typically at age 50). You must contribute enough each year to ensure that you have adequate growth.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles enable you to make contributions while not paying any taxes on the earnings, until they are withdrawn. This makes them a great choice for people who don’t have access employer matching funds.
Save regularly and continue to save over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.
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By: Kevin Helms
Title: VanEck Reveals 15 Crypto Predictions: Spot Bitcoin ETF Approvals, US Recession, BTC’s Historic Rally
Sourced From: news.bitcoin.com/vaneck-unveils-15-crypto-predictions-spot-bitcoin-etf-approvals-us-recession-btcs-historic-rally/
Published Date: Sun, 10 Dec 2023 00:30:13 +0000
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