Crypto asset manager Bitwise has recently released a report titled "The Year Ahead: 10 Crypto Predictions for 2024." The report outlines several key predictions for the crypto industry in the coming years. Bitwise, known for its crypto index fund BITW and a range of other investment products, expects significant growth in the value of bitcoin, Ethereum, and the overall adoption of cryptocurrencies.
Prediction 1: Bitcoin Will Set a New All-Time High
Bitwise predicts that the price of bitcoin will surpass $80,000, setting a new all-time high. The firm attributes this increase to two major factors: the launch of a spot bitcoin ETF in early 2024 and the halving of new bitcoin supply around the end of April. These catalysts are expected to drive increased demand and price appreciation for bitcoin.
Prediction 2: Spot Bitcoin ETFs Will Capture Billions in Assets
Bitwise believes that spot bitcoin exchange-traded funds (ETFs) will be approved by the U.S. Securities and Exchange Commission (SEC) and become the most successful ETF launch in history. The firm estimates that within five years, spot bitcoin ETFs could capture 1% of the $7.2 trillion U.S. ETF market, amounting to $72 billion in assets under management (AUM).
Prediction 3: Coinbase's Revenue Will Double
The report suggests that Coinbase, the Nasdaq-listed cryptocurrency exchange, will experience significant revenue growth. Bitwise expects Coinbase's revenue to double, surpassing Wall Street expectations by at least 10 times. The firm attributes this growth to increased trading volumes during bull markets and the successful launch of new products.
Prediction 4: Increased Allocation to Crypto by Financial Advisors
Bitwise predicts that by the end of 2024, one in four financial advisors will allocate cryptocurrencies in their clients' accounts. The firm believes that as bitcoin becomes more accessible, financial advisors will recognize the potential of crypto investments and allocate funds accordingly.
Prediction 5: Ethereum Revenue Will More Than Double
The report highlights the growing popularity of Ethereum and predicts that its revenue will more than double to $5 billion in 2024. Bitwise attributes this growth to the increasing number of users flocking to crypto applications built on the Ethereum platform.
Prediction 6: Ethereum Blockchain Upgrade and Mainstream Adoption
Bitwise expects a major upgrade to the Ethereum blockchain that will significantly reduce transaction costs. The firm predicts that the average transaction cost will fall below $0.01, paving the way for more mainstream uses of Ethereum. This upgrade, known as EIP-4844, could result in a 90%+ reduction in transaction costs and enable the development of truly mainstream applications in the crypto space.
Prediction 7: AI Assistants Using Crypto as Native Currency
According to Bitwise, AI assistants will start using cryptocurrencies, such as bitcoin or stablecoins, to pay for online transactions. This trend will affirm crypto as the native currency of the internet. The firm believes that this shift will begin to occur in 2024.
Prediction 8: Increased Use of Stablecoins and Tokenization of Real-World Assets
Bitwise predicts that more money will settle using stablecoins than using traditional payment methods like Visa. Additionally, the firm expects JPMorgan to tokenize a fund and launch it on-chain, signaling the growing trend of tokenizing real-world assets. Furthermore, Bitwise suggests that popular figures like Taylor Swift will launch NFTs to engage with their fans in new and innovative ways.
Prediction 9: Prediction Markets as the New "Killer App" for Crypto
Bitwise anticipates that prediction markets will gain significant traction in the crypto industry. The firm predicts that more than $100 million will be staked in prediction markets as they emerge as a new "killer app" for crypto. These markets provide a platform for users to bet on the outcomes of various events and could attract a substantial user base.
Bitwise's 10 crypto predictions for 2024 paint an optimistic picture of the future of cryptocurrencies. The firm expects significant growth in the value of bitcoin and Ethereum, as well as increased adoption by financial advisors and the mainstream use of cryptocurrencies. While these predictions are speculative, they provide insights into the potential direction of the crypto market in the coming years.
What are your thoughts on Bitwise's predictions? Let us know in the comments section below.
Frequently Asked Questions
Is gold buying a good retirement option?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
The best form of investing is physical bullion, which is the most widely used. You can also invest in gold in other ways. It is best to research all options and make informed decisions based on your goals.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you need cash flow to finance your investment, then gold stocks could be a good option.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs can include stocks of precious metals refiners and gold miners.
Should You Buy Gold?
Gold was once considered an investment safe haven during times of economic crisis. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Experts think this could change quickly. They believe gold prices could increase dramatically if there is another global financial crises.
They also point out that gold is becoming popular because of its perceived value and potential return.
These are some important things to remember if your goal is to invest in gold.
- Consider whether you will actually need the money that you are saving for retirement. You can save for retirement and not invest your savings in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each offers varying levels of flexibility and security.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. Losing your gold coins could result in you never being able to retrieve them.
Do your research before you buy gold. You should also ensure that you do everything you can to protect your gold.
Can I buy gold using my self-directed IRA
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts are financial instruments based on the price of gold. These financial instruments allow you to speculate about future prices without actually owning the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- (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)
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads, Example, and Risk Metrics
The best way to buy gold (or silver) online
First, understand the basics of gold. The precious metal gold is similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They are not exchangeable in any currency exchange system. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. Every dollar spent on gold purchases, the buyer receives one gram of gold.
The next thing you should know when looking to buy gold is where to do it from. If you want to purchase gold directly from a dealer, then a few options are available. First, go to your local coin shop. You can also try going through a reputable website like eBay. You might also consider buying gold from an online private seller.
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. A private seller will usually return less money than a coin shop and 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. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. Physical gold must be kept safe in an impassible container, such as a vault.
When buying gold on your own, you can visit a bank or a pawnshop. A bank will be able to provide you with a loan for the amount of money you want to invest in gold. These are small businesses that let customers borrow money against the items they bring to them. Banks charge higher interest rates than those offered by pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold is simple too. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
By: Kevin Helms
Title: Bitwise Unveils 10 Crypto Predictions for 2024: Bitcoin Trading at $80,000 and More
Sourced From: news.bitcoin.com/bitwise-unveils-10-crypto-predictions-for-2024-bitcoin-to-surpass-80000-spot-bitcoin-etfs-could-capture-72-billion/
Published Date: Fri, 15 Dec 2023 01:00:03 +0000