The number of global cryptocurrency owners witnessed a significant increase in 2023, with a surge of 34%, according to the annual Crypto Market Sizing Report published by Crypto.com. By December, the total number of crypto owners reached an impressive 580 million. Notably, both Bitcoin (BTC) and Ethereum (ETH) experienced substantial growth, with Bitcoin ownership rising by 33% and Ethereum ownership by 39%.
Key Drivers of Bitcoin Adoption Growth
The report attributes the growth in Bitcoin ownership to two key drivers: the approval of spot Bitcoin exchange-traded funds (ETFs) and the introduction of the Bitcoin Ordinals protocol. The approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) played a significant role in driving adoption. These ETFs allowed investors to gain exposure to Bitcoin in a regulated and convenient manner. Additionally, the implementation of the Bitcoin Ordinals protocol facilitated the minting of non-fungible tokens (NFTs) and fungible tokens on the Bitcoin network, further boosting adoption.
Institutional Interest Spurs BTC Adoption
The report highlights the strong interest from institutional investors as a contributing factor to the increased adoption of Bitcoin. Institutional investors have recognized the potential of Bitcoin as a store of value and a hedge against inflation. This recognition has led to a surge in institutional demand for Bitcoin, further driving its adoption.
ETH Adoption Driven by Liquid Staking
Ethereum's adoption growth, on the other hand, was primarily driven by liquid staking after Ethereum's Shanghai Upgrade. This upgrade allowed users to withdraw staked ETH after the transition to the Proof of Stake (PoS) blockchain. This development increased the appeal of Ethereum and attracted more users to the platform.
Spot Bitcoin ETFs Gain Traction
The approval of spot Bitcoin ETFs by the SEC had a significant impact on the cryptocurrency landscape. Notably, Grayscale's Bitcoin Trust (GBTC) converted into an ETF, resulting in substantial outflows from their trust. At the same time, other spot Bitcoin ETFs, including Blackrock's Ishares Bitcoin Trust, experienced significant inflows. These developments indicate growing investor interest in gaining exposure to Bitcoin through regulated investment vehicles.
The increase in the number of global cryptocurrency owners reflects the growing acceptance and adoption of cryptocurrencies worldwide. The appeal of cryptocurrencies, particularly Bitcoin and Ethereum, continues to expand as more individuals and institutions recognize their potential. As the crypto market evolves, it is crucial to stay informed and explore the opportunities presented by this ever-growing digital asset class.
What are your thoughts on the surge in global crypto ownership? Let us know in the comments section below.
Frequently Asked Questions
Should You Invest in gold for Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you are unsure of which option to invest in, consider both.
Gold is a safe investment and can also offer potential returns. It is a good choice for retirees.
Gold is more volatile than most other investments. Therefore, its value is subject to change over time.
This does not mean you shouldn’t invest in gold. You should just factor the fluctuations into any overall portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold is much easier to store than bonds and stocks. It can be easily transported.
You can always access your gold if it is stored in a secure place. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold rises in the face of a falling stock market.
Another advantage to investing in gold is the ability to sell it whenever you wish. Just like stocks, you can liquidate your position whenever you need cash. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Don't buy too many at once. Start with just a few drops. Continue adding more as necessary.
It's not about getting rich fast. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
Should You Buy Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
This could be changing, according to some experts. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
Here are some things to consider if you're considering investing in gold.
- Before you start saving money for retirement, think about whether you really need it. It's possible to save for retirement without putting your savings into gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, be sure to understand your obligations before you purchase gold. Each account offers different levels of security and flexibility.
- Don't forget that gold does not offer the same safety level as a bank accounts. If you lose your gold coins, you may never recover them.
Don't buy gold unless you have done your research. And if you already own gold, ensure you're doing everything possible to protect it.
What precious metal should I invest in?
This depends on what risk you are willing take and what kind of return you desire. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. Gold may not be right for you if you want quick profits. If patience and time are your priorities, silver is the best investment.
If you don’t desire to become rich quickly, gold may be your best option. Silver might be a better investment option if steady returns are desired over a long period of time.
Which precious metals are best to invest in retirement?
It is gold and silver that are the best precious metal investment. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.
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: Silver has been a favorite among investors for years. It's a great option for those who want stability. Silver tends instead to go up than down, which is unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. It's however much more costly than any of its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used as a jewelry material. It is relatively affordable when compared to other types.
Palladium: Palladium is similar to platinum, but it's less rare. It is also cheaper. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Can the government take your gold
Your gold is yours, so the government cannot confiscate it. You worked hard to earn it. It belongs entirely to you. But, this rule is not universal. Your gold could be taken away if your crime was fraud against federal government. Your precious metals can also be lost if you owe tax to the IRS. 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.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Lawful – WSJ
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. It was also traded internationally due to its high value. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This led to a decline in demand for foreign currencies, which caused their price to increase. In this period, large amounts of gold coin were minted by the United States, which caused the gold price 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.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. Many European countries began to use paper money and stopped accepting gold as payment 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: Kevin Helms
Title: Global Crypto Ownership Surged 34% in 2023, Reaching 580 Million: Report
Sourced From: news.bitcoin.com/number-of-crypto-owners-globally-reached-580-million-in-2023-report-shows/
Published Date: Wed, 24 Jan 2024 05:00:03 +0000