There is no shortage of opinions when it comes to the stunning launch of President Donald Trump’s Solana memecoin. The news and staggering performance of $TRUMP in the days leading up to his Inauguration have all but confirmed the dawn of a new era for our industry, emphatically declaring that the rules are now very different. In the midst of all the drama, confusion and hot takes, I’m left wondering: did Bitcoiners fumble the bag?
The Rise of Runes Metaprotocol
Last year, at block height 840,000, a significant change went into effect on the Bitcoin network –– and I’m not talking about the halving. The Runes metaprotocol launched, making it possible to etch and trade fungible tokens on Bitcoin. This event was met with a record influx of volume, and briefly sent the mempool to thousands of sats/vb. While the mania was short lived, the existence of Runes and initial signal of product-market fit demonstrated there was appetite for Bitcoin to attract significant capital for the tokens and memecoins use case, currently being dominated by Solana, Base and Ethereum.
Community Division and Criticisms
Bitcoin miners could have also benefited (beyond the brief spike) from the increased transaction fees, and the urgency of lowering network congestion may have hastened even more rapid progress towards realizing new solutions for faster, cheaper Bitcoin transactions. In short, more people would be using and learning about Bitcoin. Instead, our community was bitterly divided on the topic. Some expressed concerns, labeling supporters of Runes and tokens on Bitcoin as "shitcoiners."
Exploring New Frameworks
Had we properly anticipated and prepared for the reality that Bitcoin could attract the economic activity taking place on other chains, then we would have been better positioned to encourage yesterday’s $8.5B of $TRUMP transaction volume and nearly 1M new users to do business on Bitcoin rather than on Solana. Many will say "memecoins are not a business and that type of degeneracy has no place on bitcoin" –– but that assertion does not change the fact that by ignoring this economic phenomena, we are ceding ground and effectively forfeiting the opportunity to onboard users to Bitcoin by the millions.
The Evolution of Memecoins
Our PTSD of rug pulls, ICOs and pump and dumps may be limiting our imagination. The truth is, no one knows where all of this bizarre economic activity is headed or how (if?) it will end. Many Bitcoiners believed DOGE would have been long dead by now, yet it currently boasts a $54B market cap and is entering its 10th year in existence. It’s possible that what we call "memecoins" are becoming a fixture in the new, emergent economy, whether you like them or not.
Future Possibilities
The memecoin ecosystem undeniably has its pitfalls– scams, rug pulls and degenerate gambling to name a few. But I believe a reasonable case could be made to suggest a deeper explanation for the market’s appetite to place unfettered bets on what participants find funny, provocative, witty, timely, useful or popular. At the end of the day, much of our modern economy has been reduced to various forms of gambling with varying degrees of sophistication and abstraction.
Embracing Innovation
Bitcoin has always thrived when its community embraces challenges with creativity and conviction. Instead of dismissing memecoins as a passing fad, I’m interested in how Bitcoin can become the foundation for a better token ecosystem – one rooted in security, transparency and user empowerment under a Bitcoin standard. Rather than miss the forest for the trees or throw the baby out with the bath water, it seems prudent to consider a more enterprising approach to address the clear market demand for memecoins.
By embracing innovation and thoughtfully addressing these emerging trends, Bitcoin can maintain its position not just as the hardest money, but as the bedrock for a dynamic economy, without compromising its core principles.
Frequently Asked Questions
Who is entitled to the gold in a IRA that holds gold?
The IRS considers any individual who holds gold “a form of income” that is subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
Consult a financial advisor or accountant to determine your options.
Can I keep physical gold in an IRA?
Not only is gold paper currency, but it's also money. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Many Americans now invest in precious metals. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, gold is liquid. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
How much gold should your portfolio contain?
The amount of capital that you require will determine how much money you can make. For a small start, $5k to $10k is a good range. As you grow, you can move into an office and rent out desks. Renting out desks and other equipment is a great way to save money on rent. Only one month's rent is required.
It's also important to determine what type business you'll run. My website design company charges clients $1000-2000 per month depending on the order. You should also consider the expected income from each client when you do this type of thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. Therefore, you might only get paid one time every six months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I suggest starting with $1k-2k gold and building from there.
Statistics
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- (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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
bbb.org
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's not exactly legal – WSJ
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
A rising trend in gold IRAs
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
Owners can invest in gold bars and bullion with the gold IRA. It is a tax-free investment that can be used to grow wealth and offers an alternative investment option to those who are concerned about stocks or bonds.
An investor can use a gold IRA to manage their assets and not worry about market volatility. The gold IRA can be used to protect against inflation or other potential problems.
Investors also benefit from physical gold's unique properties, such as durability and portability.
In addition, the gold IRA offers several other advantages, including the ability to quickly transfer ownership of the gold to heirs and the fact that the IRS does not consider gold a currency or a commodity.
This is why the gold IRA has become increasingly popular with investors looking to provide financial security during times of financial uncertainty.
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By: George Mekhail
Title: Exploring the Impact of Memecoins on the Bitcoin Ecosystem
Sourced From: bitcoinmagazine.com/takes/bitcoin-missed-a-54-billion-opportunity-by-neglecting-runes
Published Date: Tue, 21 Jan 2025 16:48:07 GMT
