Bitcoin: Is it a ‘Stink Ball’ or ‘Exponential Gold’? Contrasting Views from Munger and Fidelity Director – Weekly Review

Charlie Munger Compares Bitcoin to a 'Stink Ball' Among Traditional Currencies

Charlie Munger, the vice chairman of Berkshire Hathaway and Warren Buffett's right-hand man, has expressed his concerns about the rising price of bitcoin. According to Munger, the cryptocurrency is like a "stink ball" when compared to traditional currencies. He believes that by introducing an artificial currency, you are disrupting a system that has been successful for many people over a long period of time.

Fidelity's Director Sees Bitcoin as 'Exponential Gold'

Jurrien Timmer, the director of global macro at Fidelity, has a different perspective on bitcoin. He describes it as "exponential gold." Timmer explains that gold, although valuable, is not practical as a medium of exchange due to its deflationary nature and lack of efficiency. In contrast, bitcoin offers investors a store of value and is often compared to gold for this reason.

Dubai Financial Authority Recognizes XRP as a Crypto Token

The Dubai Financial Services Authority has officially recognized XRP as a crypto token for use within the Dubai International Financial Centre. This approval allows licensed virtual asset firms located in the special economic zone to incorporate XRP into their services. Ripple, the company behind XRP, states that this recognition will enable faster and more efficient global value exchange for institutions within the zone.

Robert Kiyosaki on Bitcoin's Role in Financial Security and Freedom

Bestselling author Robert Kiyosaki, known for his book "Rich Dad Poor Dad," emphasizes the importance of tangible assets in achieving financial security and freedom. He highlights gold, silver, and bitcoin as examples of assets that offer lifelong financial stability. Kiyosaki believes that understanding and investing in these assets is crucial for building wealth.

So, what are your thoughts on bitcoin? Is it a "stink ball," "exponential gold," or something else entirely? Share your opinions and let us know your favorite cryptocurrency in the comments section below.

Frequently Asked Questions

How is gold taxed in an IRA?

The fair market value at the time of sale is what determines how much tax you pay on gold sales. When you purchase gold, you don’t have to pay any taxes. It’s not considered income. If you sell it later you will have a taxable profit if the price goes down.

Gold can be used as collateral for loans. Lenders look for the highest return when you borrow against assets. This often means selling gold. However, there is no guarantee that the lender would do this. They may just keep it. They might decide that they want to resell it. Either way you will lose potential profit.

So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. If you don’t plan to use it as collateral, it is better to let it be.

Is gold a good investment IRA option?

Anyone who is looking to save money can make gold an excellent investment. You can also diversify your portfolio by investing in gold. But gold is not all that it seems.

It has been used throughout the history of currency and remains a popular payment method. It is sometimes called the “oldest currency in the world”.

Gold, unlike other paper currencies created by governments is mined directly from the earth. It’s hard to find and very rare, making it extremely valuable.

The supply and demand factors determine how much gold is worth. If the economy is strong, people will spend more money which means less people can mine gold. As a result, the value of gold goes up.

On the flipside, people may save cash rather than spend it when the economy slows. This results in more gold being produced, which drives down its value.

This is why it makes sense to invest in gold for individuals and companies. You will benefit from economic growth if you invest in gold.

You’ll also earn interest on your investments, which helps you grow your wealth. If gold’s value falls, you don’t have to lose any of your investments.

What are the benefits of a Gold IRA?

An Individual Retirement Account (IRA) is the best way to put money towards retirement. It’s not subject to tax until you withdraw it. You can decide how much money you withdraw each year. There are many types of IRAs. Some are more suitable for students who wish to save money for college. Others are designed for investors looking for higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at 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.

The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA you don’t need to worry about taxes while you wait for your gains to be available. For people who would rather invest than spend their money, gold IRA accounts are a good option.

Another benefit to owning IRA gold is the ability to withdraw automatically. It means that you don’t have to remember to make deposits every month. To ensure that you never miss a payment, you could set up direct debits.

Finally, the gold investment is among the most reliable. 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. This makes it a great investment option to protect your savings from inflation.

Which precious metals are best to invest in retirement?

Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. These are great options to diversify your portfolio.

Gold: Gold is one the oldest forms currency known to man. It is very stable and secure. It is a good way for wealth preservation during uncertain times.

Silver: The popularity of silver has always been a concern for investors. It’s a great option for those who want stability. Silver tends instead to go up than down, which is unlike gold.

Platinum: This precious metal is also becoming more popular. It’s durable and resists corrosion, just like gold and silver. It’s also more expensive than the other two.

Rhodium – Rhodium is used to make catalytic conversions. It is also used in jewelry-making. And, it’s relatively cheap compared to other types of precious metals.

Palladium: Palladium is similar to platinum, but it’s less rare. It is also cheaper. This is why it has become a favourite among investors looking for precious metals.

Can I buy gold with my self-directed IRA?

You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.

The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.

You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contract are financial instruments that depend on the gold price. These financial instruments allow you to speculate about future prices without actually owning the metal. You can only hold physical bullion, which is real silver and gold bars.

Statistics

  • If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.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)
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
  • 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)
  • 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)

External Links

irs.gov

cftc.gov

investopedia.com

bbb.org

How To

The best way online to buy gold or silver

To buy gold, you must first understand how it works. It is a precious metal that is very similar to platinum. It’s rare and often used to make money due its resistance and durability to corrosion. It is hard to use, so most people prefer jewelry made of it to real bars of gold.

Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.

Bullion coins can only be used as investment currency. They increase in value due to inflation.

They aren’t circulated in any currency exchange systems. A person can buy 100 grams of gold for $100. Each dollar spent earns the buyer 1 gram gold.

When you are looking to purchase gold, the next thing to know is where to get it. There are many options for buying gold directly from dealers. First, you can visit your local coin store. You can also go to a reputable website such as eBay. You may also be interested in buying gold through private sellers online.

Individuals selling gold at wholesale prices and retail prices are known as private sellers. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. You would receive less money from a private buyer than you would from a coin store or eBay. This option is often a great choice for investing gold as it allows you more control over its price.

The other option is to purchase physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.

You can either visit a bank, pawnshop or bank to buy gold. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. These are small businesses that let customers borrow money against the items they bring to them. Banks tend to charge higher interest rates, while pawnshops are typically lower.

A third way to buy gold? Simply ask someone else! Selling gold is also easy. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.

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By: Bitcoin.com
Title: Bitcoin: Is it a ‘Stink Ball’ or ‘Exponential Gold’? Contrasting Views from Munger and Fidelity Director – Weekly Review
Sourced From: news.bitcoin.com/bitcoin-stink-ball-or-exponential-gold-munger-and-fidelity-director-at-odds-on-btc-week-in-review/
Published Date: Sun, 12 Nov 2023 15:00:19 +0000

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