According to Chandler Guo, who initiated the latest Ethereum hardfork, the U.S. dollar price of the newly airdropped coin natively to the forked Ethereum Proof-of-Work (PoW), blockchain will be equal to that of ether. Guo stated that the token's value, currently "very low," will grow 100x over the next ten years.
Inflation in ETHW Trade Volumes
Chandler Guo, self-proclaimed organizer of the Ethereum hard fork, stated that Ether (ETH), and the newly airdropped proof-of-work ETHW, will have the same USD values in ten years. Guo claimed that the new token, currently trading at a fraction of its September 15 peak, still has the potential for growth by 100x.
Guo stated that the current price for the forked currency is "very low," thus allowing it to grow 100x. Guo, an ex-ethereum and bitcoin miner, admits that there is still much work to be done before the forked blockchain can grow 100x. He explained:
Currently, ETH prices are high due to the number of developers and more than 200 projects that run on top Ethereum PoS [proof–of-stake] blockchain. There are only 10 projects running on the ETHW.
Guo said that "the ETH proof of work chain already has two DEXs [decentralized exchanges], two bridges and two NFT [non-fungible token] exchanges" in four days. This is to show that the work to ensure the forked chain matches the PoS one has begun.
He said, "Things are happening slowly and I think after one year there will be more than 100 projects running on the PoW chain."
The protocol's daily trading volume has increased since The Merge, despite the addition of bridges and exchanges to the new chain. Although Coinmarketcap data on September 21st 2022 suggests that the ETHW's daily trade volume was just over $100 million, Guo insists that it is closer to $1billion.
"The trading volume for ETHW is enormous. It's now worth almost a billion dollars. [As of today], ETHW is supported by more than 20 mining pool and 2000 miners around the globe. The former miner claimed that ETHW has been listed on more than 30 exchanges.
Bitcoin.com News reported less than a month prior to The Merge that Guo's team had confirmed the imminent split of another Ethereum chain. Two alternative chains emerged as soon as PoS's migration was completed: the ETHW and Ethereumfair (ETF).
Guo commented on the prospects of the other coin. Guo gained fame after playing a role in the 2016 Ethereum blockchain hard fork.
Another team has forked ETH, but no one is mining there or listing their token. There are only a handful of mining pools and exchanges. The success of a fork depends on the person who forked the ETH. This was not to my benefit. Others fork for their benefit or personal gain. They get rich because of that. I don't do that.
It was widely reported that the Ethereum blockchain would see its energy use drop by more than 91%, before it switched from a PoW consensus mechanism to a PoS one. Climate change advocates applauded September 15 Merge as expected. However, some miners fear that this will encourage opponents to the PoW consensus mechanism.
The argument that bitcoin mining is harmful to the environment was raised by a former miner, who flatly denied it. He stated that instead of purchasing electricity from power companies, many bitcoin miners — especially from China — prefer to use "abandoned" energy which is often cheaper.
He said that abandoned energy could be hydroelectricity or natural gas which is not being used. Guo says that local communities have benefitted from the use of abandoned energy in areas like Russia and Kazakhstan where miners harness such energy to mine Bitcoin.
Guo made the following comment regarding reports that the Ethereum merger may have given grounds for the U.S. Securities and Exchange Commission to institute or launch proceedings against some of the blockchain's cofounders:
"I believe Vitalik [Buterin] is the boss. His name is Joseph Lubin. Because he is connected to Wall Street, this guy can solve the problem. He is able to deal with the SEC."
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Frequently Asked Questions
How much tax is gold subject to in an IRA
The fair market price of gold when it is sold determines the tax due on its sale. Gold is not subject to tax when it's purchased. It isn't considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
Gold can be used as collateral for loans. When you borrow against your assets, lenders try to find the highest return possible. This usually involves selling your gold. It's not guaranteed that the lender will do it. They may keep it. Or, they may decide to resell the item themselves. You lose potential profits in either case.
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.
How much should you have of gold in your portfolio
The amount that you want to invest will dictate how much money it takes. Start small with $5k-10k. As your business grows, you might consider renting out office space or desks. This will allow you to pay rent monthly, and not worry about it all at once. Rent is only paid per month.
Consider what type of business your company will be running. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. So if you do this kind of thing, you need to consider how much income you expect from each client.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. This means that you may only be paid once every six months.
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-$2k of gold and growing from there.
How much of your portfolio should you hold in precious metals
To answer this question we need to first define precious metals. Precious elements are those elements which have a high price relative to other commodities. They are therefore very attractive for investment and trading. The most traded precious metal is gold.
There are many other precious metals, such as silver and platinum. The price of gold fluctuates, but it generally remains stable during times 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. However, they may not always move in synchrony with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower interest rates, making bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors choose safe assets such Treasury Bonds over precious metals. They are more rare, so they become more expensive and less valuable.
To maximize your profits when investing in precious metals, diversify across different precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
How to Open a Precious Metal IRA
The first step is to decide if you want an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form must be submitted within 60 days of the account opening. Once this has been completed, you can begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS stipulates that you must have earned income and be at least 18-years old. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. You must also contribute regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, you won't be able purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option may be offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they're not as liquid as stocks or bonds. This makes them harder to sell when needed. They also don't pay dividends, like stocks and bonds. Therefore, you will lose money over time and not gain it.
What is a Precious Metal IRA (IRA)?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals are sometimes called “bullion.” Bullion is the physical metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
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. You pay only a small percentage of your gains tax. Additionally, you have access to your funds at no cost whenever you need them.
Can the government take your gold?
Your gold is yours, so the government cannot confiscate it. You have earned it by working hard for it. It belongs exclusively to you. But, this rule is not universal. You could lose your gold if convicted of fraud against a federal government agency. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
What precious metals can you invest in for retirement?
Silver and gold are two of the most valuable precious metals. 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: Gold is one the oldest forms currency known to man. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Investors have always loved silver. It's a good choice for those who want to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. However, it's much more expensive than either of its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It is also used in jewelry-making. And, it's relatively cheap compared to other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It is also cheaper. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
- (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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
Investing In Gold vs. Investing In Stocks
These days, it might seem quite risky to invest your money in gold. This is because many people believe that gold investment is no longer profitable. This belief comes from the fact most people see gold prices falling due to the global economy. People believe that investing in gold would result in them losing money. However, investing in gold can still provide significant benefits. Let's take a look at some of the benefits.
Gold is one of the oldest forms of currency known to man. It has been used for thousands of years. People around the world have used it as a store of value. It is still used as a payment method by South Africa and other countries.
Consider the price per gram when you decide whether you should invest in or not. You must determine how much gold bullion you can afford per gram before you consider buying it. You can always ask a local jeweler what the current market rate is if you don't have it.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. Although the price of gold has dropped, production costs have not.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. If you plan to do so as long-term investments, it is worth looking into. You can profit if you sell your gold at a higher price than you bought it.
We hope you have gained a better understanding about gold as an investment tool. Before making any investment decisions, we strongly advise that you thoroughly research all options. Only then will you be able to make an informed decision.
By: Terence Zimwara
Title: Ethereum Hard Fork Instigator Chandler Guo Claims the Value of ETH and Forked ETHW Will Be the Same in 10 Years
Sourced From: news.bitcoin.com/ethereum-hard-fork-instigator-chandler-guo-claims-the-value-of-eth-and-forked-ethw-will-be-the-same-in-10-years/
Published Date: Fri, 23 Sep 2022 07:30:32 +0000