Bitcoin Reigns Supreme in 2023, Outpacing Ethereum in Several Metrics
In the past year, bitcoin has established its dominance over ethereum in various important aspects. The value of ether has experienced a decline of 27.65% compared to bitcoin's price since the beginning of the year. It has dropped from 0.073 ether to its current level of 0.052 ether.
Undoubtedly, bitcoin, the leading cryptocurrency by market capitalization, has surpassed ethereum, the second-ranked digital currency, across multiple indicators. As of December 2022, BTC held a market dominance of 40.1%, while ETH's share stood at 18.4%, according to archived data from coinmarketcap.com. Currently, BTC's market share has surged to 51.5% of the total crypto market value, whereas ETH's has slightly declined to 16.6%.
Over the previous year, ethereum's value relative to bitcoin has diminished. In December 2022, it traded at 0.073 ETH per BTC, but as of Dec. 23, 2023, it has reduced to 0.052 ether, marking a drop of 27.65%. Currently, bitcoin's market capitalization towers at $856 billion compared to ethereum's $275 billion, making BTC's market valuation roughly 3.11 times that of ETH.
Recent data from cryptoslam.io reveals that BTC-centric non-fungible token (NFT) sales have surpassed those of ETH. Bitcoin overtook Ethereum in November 2023 and has maintained its lead in the subsequent 30 days. Over this period, Bitcoin-based NFT sales reached $761,951,324, while Ethereum's sales amounted to $387,167,225.
Furthermore, Bitcoin continues to outperform Ethereum in fee generation. BTC miners have collected $39,480,534 in fees from onchain transactions in the last 24 hours alone, significantly more than the $551,880 collected by ETH validators. Bitcoin also consistently surpasses ether in daily global trading volume, with BTC transactions totaling $13.94 billion and ETH's reaching around $9.58 billion in the same timeframe.
While ether advocates continue to anticipate the "Flippening," which refers to the hypothetical overtaking of bitcoin by ethereum, the current data presents a different reality. Despite aspirations, the hard statistics highlight bitcoin's enduring dominance, with its market cap and trade volumes far surpassing those of ethereum. Based on current trends and metrics, the much-speculated "Flippening" appears to be a distant prospect, unlikely to materialize in the near future.
What are your thoughts on bitcoin's market performance this year compared to ethereum's? Share your opinions in the comments section below.
Frequently Asked Questions
What are some of the advantages and disadvantages to 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 a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. 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. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
If you prefer your money to be kept out of a bank, then you will need insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers limit how many ounces you can keep. Others allow you the freedom to choose your own weight.
It is also up to you to decide whether you want to purchase physical gold or futures. The price of physical gold is higher than that of gold futures. However, futures contracts give you flexibility when buying gold. You can set up futures contracts with a fixed expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy does NOT include theft protection and loss due to fire or flood. It does offer coverage for 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. In addition, most banks charge around $25-$40 per month for safekeeping.
A qualified custodian is required to help you open a Gold IRA. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians can't 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. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Also, you should specify how much each month you plan to invest.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. The company will then review your application and mail you a letter of confirmation.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
Who is entitled to the gold in a IRA that holds gold?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five years.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
How much gold should your portfolio contain?
The amount of money you need to make depends on how much capital you are looking for. For a small start, $5k to $10k is a good range. As you grow, you can move into an office and rent out desks. You don't need to worry about paying rent every month. Rent is only paid per month.
Also, you need to think about the type of business that you are going to run. My company is a website creator. We charge our clients about $1000-2000 per monthly 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.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. So you might only get paid once every 6 months or so.
You need to determine what kind or income you want before you decide how much of it you will need.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Because of its intrinsic value, it was also widely traded. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This resulted in a decline of foreign currency demand and an increase in the price. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to return some of the gold they had left to Europe.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. Many European countries started to accept paper money as a substitute for gold after World War I. The value of gold has significantly increased since then. Although the price of gold fluctuates today, it remains one of your most safe investments.
By: Jamie Redman
Title: Bitcoin Solidifies Lead Over Ethereum in 2023 — Dominates in Market Cap, NFT Sales, and Fee Generation
Sourced From: news.bitcoin.com/bitcoin-solidifies-lead-over-ethereum-in-2023-dominates-in-market-cap-nft-sales-and-fee-generation/
Published Date: Sat, 23 Dec 2023 16:00:19 +0000