Economist and gold bug Peter Schiff is making a prediction about the future of Bitcoin. He believes that the Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, will soon introduce strict regulations for cryptocurrencies. According to Schiff, these new regulations will result in a significant decline in the price of Bitcoin. However, he expects the focus of the regulations to be on anti-money laundering (AML) rather than securities law.
Peter Schiff's Crypto Predictions: Onerous Regulations, Sharp Bitcoin Price Decline
Peter Schiff, an economist and well-known critic of Bitcoin, recently shared his thoughts on the future of crypto regulations and the price of Bitcoin. His predictions come in light of the SEC's approval of spot bitcoin exchange-traded funds (ETFs). In a post on the social media platform X, Schiff stated:
"Since Gary Gensler was backed into a corner on spot bitcoin ETF approval, I think he will soon introduce new onerous crypto regulations that will substantially increase the cost of Bitcoin transactions, further undermining its 'use' case, resulting in a sharp decline in price."
Previously, Gensler has expressed the view that most crypto tokens, excluding Bitcoin, should be classified as securities. Schiff suggested that Gensler might even change his mind about Bitcoin. However, Schiff believes that the new regulations will primarily focus on anti-money laundering rather than securities law.
Many users on X responded to Schiff's predictions with their own opinions. Some disagreed with Schiff's assertion that Gensler was "backed into a corner" regarding spot bitcoin ETF approval. Others questioned how Gensler could increase the cost of Bitcoin transactions. One user wrote, "Gary Gensler controls the Bitcoin mempool?" Another user asked, "Are they gonna spend a lot of money on bidding for block space?"
Several users pointed out Gensler's past statements regarding Bitcoin as a commodity. One user mentioned:
"Gary Gensler has repeatedly stated that Bitcoin is a commodity. It will be hard for him at the SEC to regulate, even the on ramps and off ramps (unless those on ramps and off ramps deal in unregistered securities)."
The same user noted that the SEC primarily enforces securities laws, while anti-money laundering regulations fall under the jurisdiction of other agencies like the Financial Crimes Enforcement Network (FinCEN).
What are your thoughts on Peter Schiff's predictions about Gary Gensler introducing strict crypto regulations that will impact the price of Bitcoin? Share your opinions in the comments section below.
Frequently Asked Questions
Is the government allowed to take your gold
Your gold is yours and the government cannot take it. It is yours because you worked hard for it. It is yours. But, this rule is not universal. If you are convicted of fraud against the federal government, your gold can be forfeit. Your precious metals can also be lost if you owe tax to the IRS. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
Is physical gold allowed in an IRA.
Not just paper money or coins, gold is money. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
Another reason is that gold has historically outperformed other assets in financial panic periods. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During these turbulent market times, gold was among few assets that outperformed the stocks.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. If your stock portfolio goes down, you still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, the liquidity that gold provides is unmatched. This allows you to sell your gold whenever you want, unlike many other investments. The liquidity of gold makes it a good investment. This allows for you to benefit from the short-term fluctuations of the gold market.
Can I hold a gold ETF in a Roth IRA?
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
A traditional IRA allows for contributions from both employer and employee. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
A Individual Retirement Annuity is also possible. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs will not be taxed
What is a Precious Metal IRA and How Can You Benefit From It?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These are called “precious” metals because they're very hard to find and very valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Bullion can be purchased via a variety of channels including online sellers, 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.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, you only pay a small percentage on your gains. Plus, you get free access to your funds whenever you want.
Should You Invest Gold in Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. Consider investing in both.
In addition to being a safe investment, gold also offers potential returns. It is a good choice for retirees.
While many investments promise fixed returns, gold is subject to fluctuations. This causes its value to fluctuate over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. It just means that you need to factor in fluctuations to your overall portfolio.
Another benefit of gold is that it's a tangible asset. Unlike stocks and bonds, gold is easier to store. It can be easily transported.
Your gold will always be accessible as long you keep it in a safe place. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
A portion of your savings can be invested in something that doesn't go down in value. Gold usually rises when stocks fall.
Gold investment has another advantage: You can sell it anytime. You can also liquidate your gold position at any time you need cash, just like stocks. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
You shouldn't buy too little at once. Start with a few ounces. Continue adding more as necessary.
Keep in mind that the goal is not to quickly become wealthy. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
What does gold do as an investment?
The price of gold fluctuates based on supply and demand. Interest rates are also a factor.
Due to limited supplies, gold prices are subject to volatility. There is also a risk in owning gold, as you must store it somewhere.
What is the cost of gold IRA fees
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
To diversify your portfolio you might need to pay additional charges. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Many providers also charge annual management fees. These fees vary from 0% to 11%. The average rate is.25% annually. These rates can be waived if the broker is TD Ameritrade.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (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)
- 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 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)
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Due to its value, it was also internationally traded. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. The price of gold dropped because the United States began to mint large quantities of gold coins. The U.S. government needed to find a solution to their debt because there was too much money in circulation. To do this, they decided that some of their excess gold would be sold back to Europe.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. After World War I, however, many European countries started using paper money to replace gold. The price of gold has risen significantly since then. Even though the price of gold fluctuates, it remains one the best investments you can make.
By: Kevin Helms
Title: Peter Schiff Predicts Bitcoin Bloodbath — Expects SEC Chair Gary Gensler to Introduce ‘New Onerous Crypto Regulations’
Sourced From: news.bitcoin.com/peter-schiff-predicts-bitcoin-bloodbath-expects-sec-chair-gary-gensler-to-introduce-new-onerous-crypto-regulations/
Published Date: Fri, 19 Jan 2024 00:30:09 +0000