Ark Invest Sees Increased Probability of Bitcoin Reaching $1.5 Million
Cathie Wood, the CEO of Ark Investment Management (Ark Invest), is standing firm in her optimistic bitcoin price predictions, now with an even higher probability of the cryptocurrency soaring to $1.5 million per coin. Wood's confidence has been bolstered by the recent approval of 11 spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
In Ark's Big Ideas 2023 report, which focuses on "technological breakthroughs evolving today and creating the potential for super-exponential growth tomorrow," Wood stated that their base case for the price of bitcoin is in the $600,000 range. However, their more bullish prediction sees the price of BTC reaching an impressive $1.48 million per coin. Wood elaborated on this, saying, "We think the probability of the bull case has increased with this ETF approval, this is a green light. Our bull case is $1.5 million by 2030."
Wood emphasized that the concept of bitcoin is a groundbreaking one, calling it "the first global decentralized digital… rules-based monetary system in history." She believes that this idea holds significant potential for future growth and innovation.
Ark Invest's spot bitcoin ETF proposal, in partnership with 21shares, was among the 11 spot bitcoin ETFs approved by the SEC. On their first day of trading, these ETFs generated a remarkable $4.6 billion in trading volume. Even Blackrock, the world's largest asset manager, entered the market with its Ishares Bitcoin Trust, accumulating $1 billion in trading volume.
Wood has expressed her expectation that spot bitcoin ETFs will attract substantial institutional flows into bitcoin, ultimately driving the price of BTC even higher. However, it is important to note that despite the approval of these ETFs, SEC Chair Gary Gensler has emphasized that the agency does not endorse or approve bitcoin.
In conclusion, Cathie Wood's bullish bitcoin forecast of $1.5 million per coin has gained further credibility with the approval of spot bitcoin ETFs by the SEC. With the potential for substantial institutional investment and the groundbreaking nature of bitcoin as a decentralized digital monetary system, the future looks bright for the leading cryptocurrency.
What are your thoughts on Cathie Wood's bitcoin price prediction? Share your opinions in the comments section below.
Frequently Asked Questions
Who is entitled to the gold in a IRA that holds gold?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
A financial planner or accountant should be consulted to discuss your options.
How much should precious metals be included in your portfolio?
To answer this question, we must first understand what precious metals are. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them highly valuable for both investment and trading. Gold is by far the most common precious metal traded today.
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.
The general trend is for precious metals to increase in price with the overall market. But they don't always move in tandem with one another. 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 expect lower interest rates which makes bonds less appealing investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Because they are rare, they become more pricey and lose value.
You must therefore diversify your investments in precious metals to reap the maximum profits. 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.
Is gold buying a good retirement option?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
The most popular form of investing in gold is through physical bullion bars. However, there are many other ways to invest in gold. It's best to thoroughly research all options before you make a decision.
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 need cash flow to finance your investment, then gold stocks could be a good option.
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 may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
Statistics
- (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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
External Links
bbb.org
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example and Risk Metrics
cftc.gov
How To
How to Buy Physical Gold in An IRA
The best way to invest in Gold is by purchasing shares of companies that produce it. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. There is always the chance of them losing their money due to fluctuations of the gold price.
An alternative option would be to buy physical gold itself. This means that you will need to open an account at a bank, bullion seller online, or purchase gold from a trusted seller. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It is easier to view how much gold has been stored. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You also have a lower chance of theft than stocks.
However, there are some disadvantages too. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, the taxman may ask you about where you have put your gold.
If you'd like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!
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By: Kevin Helms
Title: Ark Invest CEO Cathie Wood Doubles Down on Bullish Bitcoin Forecast, Sees $1.5 Million Price Potential
Sourced From: news.bitcoin.com/ark-invest-now-sees-higher-probability-of-bitcoin-soaring-to-1-5-million-ceo-says/
Published Date: Sat, 13 Jan 2024 02:00:00 +0000
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