Microstrategy Chairman Michael Saylor is optimistic that the demand for bitcoin will double in the wake of the halving event and the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Saylor believes that the next 12 months will be highly favorable for the asset class and points to three key factors that he expects will drive the price of bitcoin to $5 million per coin.
Bitcoin Demand to Double, According to Saylor
During an interview with Fox Business on Monday, Microstrategy Chairman Michael Saylor discussed the future prospects of bitcoin. When asked about the factors that will contribute to the upward movement of bitcoin's price, Saylor expressed his views.
Saylor emphasized that the current supply and demand for BTC are currently in equilibrium. However, he highlighted two events that will significantly impact the price of the cryptocurrency: the halving event in April next year, which will result in the halving of the bitcoin supply, and the forthcoming approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). Saylor stressed that following the halving and the introduction of spot bitcoin ETFs:
The demand has to at least double. Consequently, the adjustment required will be reflected in the price to ensure market equilibrium.
The Microstrategy chairman suggested that investors keep an eye on the halving event and the approval of spot bitcoin ETFs, as he believes the next 12 months will be highly promising for the asset class.
Saylor has strong convictions that the price of bitcoin will eventually reach an astonishing $5 million. During a recent discussion on X, he stated, "There are three catalysts that will have a tremendous impact, not only taking us to $500,000, but to $5 million per coin."
He went on to explain that the first catalyst is the introduction of a spot ETF that allows investors to purchase $100 million worth of bitcoin through an ETF security. The second catalyst is the ability for banks to custody bitcoin on behalf of their clients and provide lending services against it. Lastly, Saylor mentioned that businesses should have the option to adjust the value of their bitcoin investments on their balance sheets based on fair value.
Microstrategy, a company listed on Nasdaq, implemented a bitcoin strategy in August 2020 and has been actively acquiring BTC for its treasury ever since. According to the firm, as of October 31, 2023, they hold 158,400 bitcoins acquired at an average cost of $29,586 per bitcoin, totaling $4.69 billion.
What are your thoughts on the predictions made by Microstrategy Chairman Michael Saylor regarding bitcoin? Let us know in the comments section below.
Frequently Asked Questions
How is gold taxed within a Roth IRA
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
You don't pay tax if you have the money in a traditional IRA/401k. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules governing these accounts vary by state. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you to wait until April 1. New York is open until 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
How much should your IRA include precious metals
It is important to remember that precious metals can be a good investment for anyone. You don't have to be rich to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.
You might consider purchasing physical coins, such as bullion bars and rounds. Also, you could buy shares in companies producing precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
You'll still get the benefit of precious metals no matter which country you live in. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices are more volatile than traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
Which precious metal is best to invest in?
This question depends on how risky you are willing to take, and what return you want. Gold is a traditional haven investment. However, it is not always the most profitable. For example, if your goal is to make quick money, gold may not suit you. If patience and time are your priorities, silver is the best investment.
If you don’t want to be rich fast, gold might be the right choice. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
Is it a good retirement strategy to buy gold?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion bars are the most popular way to invest in gold. There are other ways to invest gold. It's best to thoroughly research all options before you make a decision.
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 are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
Who is entitled to the gold in a IRA that holds gold?
The IRS considers an individual who owns gold as holding “a form of money” subject to 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.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going 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.
You should consult a financial planner or accountant to see what options are available to you.
- 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)
- 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)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
A growing trend: Gold IRAs
The gold IRA trend is growing as investors seek ways to diversify their portfolios while protecting against inflation and other risks.
Investors can have confidence in their investments and avoid market volatility with a gold IRA. They can also use the gold IRA as a protection against potential problems like inflation.
Investors also enjoy the benefits of owning physical gold, which includes its unique properties such as durability, portability, and divisibility.
A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.
All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.
By: Kevin Helms
Title: Michael Saylor Anticipates Doubling of Bitcoin Demand Following Halving and Spot Bitcoin ETF Approvals
Sourced From: news.bitcoin.com/michael-saylor-expects-bitcoin-demand-to-double-after-halving-and-spot-bitcoin-etf-approvals/
Published Date: Thu, 09 Nov 2023 02:30:05 +0000