Nigeria's New Stance on Crypto Bodes Well for Africa
After a challenging start to the year for the African crypto and blockchain industry, there is renewed optimism as we head into 2024. Nigeria, in particular, stands out as a country with a more favorable outlook.
Since the appointment of Olayemi Cardoso as the new governor of the Central Bank of Nigeria (CBN), the country has seen a shift in approach. Cardoso has taken a more conciliatory stance, reversing some of the controversial policies implemented by his predecessor, Godwin Emefiele. This includes the lifting of the restrictions on crypto assets that were imposed in February 2021.
The removal of the ban on cryptocurrency transactions by the CBN has been widely celebrated by Nigerian crypto and blockchain influencers. Ophi Rume, the executive secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), sees this as a significant moment for the whole continent, as Nigeria is often seen as a leader in emerging technologies like cryptocurrency and blockchain.
Southern African Countries Seize the Initiative in 2023
Kenya, one of Africa's largest economies and crypto markets, faced a setback with the crackdown on Worldcoin. However, there are indications that the government's stance may change in early 2024, allowing Worldcoin to resume its activities. Additionally, the Kenyan parliament has taken steps to enable the taxation of crypto holders, signaling a regulatory framework.
In South Africa, another major crypto market, efforts are underway to establish regulations for virtual asset service providers (VASPs). Over 90 entities have applied for licenses to operate as VASPs, highlighting the country's commitment to industry oversight.
Angola's passage of a crypto law and Zimbabwe's launch of a gold-backed digital currency have also contributed to the positive momentum in the region.
Bitcoin Halving and the ETF Mania
While the developments in African countries are crucial, many industry players believe that the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) will have a significant impact. This approval is expected to trigger another bull run and attract capital inflows.
However, some experts, like Shaheer Karrim of Mzansi Web3 ICP Hub, anticipate that the benefits of ETF approval may be short-lived. Karrim suggests that institutions like Blackrock may seek to control the narrative or the top crypto asset itself.
Despite this, Ivaibi Festo, the founder of Mitroplus Labs, believes that the Bitcoin halving event in April 2024 will play a pivotal role in shaping the trajectory of the top crypto asset. Festo expects the upcoming bull run to be even bigger than previous ones and to have a significant impact on the international monetary system.
Nathaniel Luz, founder of Flincap, sees the approval of bitcoin ETFs as a way to bring legitimacy and restore trust in the crypto industry. He believes that the collapse of FTX and Luna has eroded confidence and that the SEC's approval will help to address these concerns.
In conclusion, the expected approval of bitcoin ETFs and Nigeria's more favorable stance on crypto are set to drive the revival of the African industry. These developments, along with the upcoming Bitcoin halving event, are expected to attract more interest and capital to the African crypto and blockchain space.
Frequently Asked Questions
Which precious metals are best to invest in retirement?
These precious metals are among the most attractive investments. Both are easy to sell and can be bought easily. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is stable and very secure. It is a good way for wealth preservation during uncertain times.
Silver: Silver has been a favorite among investors for years. This is a great choice for people who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. It is however more expensive than its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It's also used in jewelry making. And, it's relatively cheap compared to other types of precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It is also cheaper. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Can I buy Gold with my Self-Directed IRA?
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contracts are financial instruments based on the price of gold. You can speculate on future prices, but not own the metal. However, physical bullion is real gold or silver bars you can hold in your hands.
What is a Precious Metal IRA (IRA)?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These are called “precious” metals because they're very hard to find and very valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This means you'll receive dividends every year.
Precious metal IRAs have no paperwork or annual fees. Instead, you pay a small percentage tax on the gains. Additionally, you have access to your funds at no cost whenever you need them.
How much gold should you have in your portfolio?
The amount you make will depend on the amount of capital you have. Start small with $5k-10k. As you grow, you can move into an office and rent out desks. This way, you don't have to worry about paying rent all at once. You just pay per month.
Consider what type of business your company will be running. 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.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. So you might only get paid once every 6 months or so.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k to $2k of gold, and then growing from there.
Should You Get Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Experts think this could change quickly. They say that gold prices could rise dramatically with another global financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
Here are some things to consider if you're considering investing in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. You can save for retirement and not invest your savings in gold. However, you can still save for retirement without putting your savings into gold.
- Second, ensure you fully understand the risks involved in buying gold. Each account offers different levels of security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. Losing your gold coins could result in you never being able to retrieve them.
Don't buy gold unless you have done your research. And if you already own gold, ensure you're doing everything possible to protect it.
What are the pros and cons of a gold IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a great way to save money and not have to pay taxes on the interest you earn. This type of investment has its downsides.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
A disadvantage to managing your IRA is the fact that fees must be paid. Most banks charge 0.5% to 2.0% per annum. Other providers charge monthly management costs ranging from $10-50.
Insurance is necessary if you wish to keep your money safe from the banks. Most insurers require you to own a minimum amount of gold before making a claim. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit the amount of gold that you are allowed to own. Others let you choose your weight.
You'll also need to decide whether to buy physical gold or futures contracts. Physical gold is more costly than gold futures. Futures contracts provide flexibility for purchasing gold. Futures contracts allow you to create a contract with a specified expiration date.
You also need to decide the type and level of insurance coverage you want. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. It does offer coverage for natural disasters. You might consider purchasing additional coverage if your area is at high risk.
You should also consider the cost of storage for your gold. Storage costs will not be 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 don't have the right to sell assets. They must instead keep them for as long as you ask.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. It is also important to specify how much money you will invest each month.
After filling in the forms, please send them to the provider. The company will review your application and send you a confirmation letter.
You should consult a financial planner before opening a Gold IRA. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
Do you need to open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. It is impossible to get back money if you lose your investment. This includes all investments that are lost to theft, fire, flood, or other causes.
This type of loss can be avoided by investing in physical silver and gold coins. These coins have been around for thousands and represent a real asset that can never be lost. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
You should choose a reputable firm that offers competitive rates. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.
Remember that you will not see any returns unless you are retired if you open an Account. Do not forget about the future!
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- (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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
Tips to Invest in Gold
One of the most sought-after investment strategies is investing in gold. Because investing in gold has many benefits. There are several ways to invest in gold. Some people choose to purchase gold coins physically, while some prefer to invest with gold ETFs.
Before buying any type gold, it is important to think about these things.
- First, check to see if your country permits you to possess gold. If the answer is yes, you can go ahead. Or, you might consider buying gold overseas.
- Second, it is important to know which type of gold coin you are looking for. You have the option of choosing yellow, white, or rose gold.
- The third factor to consider is the price for gold. It is better to start small, and then work your way up. Diversifying your portfolio is a key thing to remember when purchasing gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- Remember that gold prices are subject to change regularly. It is important to stay up-to-date with the latest trends.
By: Terence Zimwara
Title: Bitcoin ETF Approval and Nigeria's Crypto Stance to Drive African Industry Revival
Sourced From: news.bitcoin.com/bitcoin-etf-mania-and-nigerias-new-stance-on-crypto-to-drive-the-industrys-revival-in-africa-experts/
Published Date: Sat, 30 Dec 2023 12:30:51 +0000