A Swiss Bitcoin exchange, Relai, has revealed that a significant 75% of its Over-The-Counter (OTC) revenue in the final quarter of 2023 came from private clients who redirected funds from real estate sales to Bitcoin. This highlights a remarkable change in investment strategies among investors, who are flocking to Bitcoin due to the current turmoil in the real estate market.
Bitcoin's Appeal in a Crisis-Hit Real Estate Market
Bitcoin expert and real estate specialist, Leon Wankum, explains that Bitcoin offers higher growth potential compared to the real estate market, which is currently experiencing a crisis and a decline in demand. As an emerging asset class, Bitcoin has become an attractive option for investors seeking better opportunities.
Relai points out that the shift towards Bitcoin is not limited to real estate alone. Bitcoin is also diverting capital from traditional assets such as securities and bonds. Experts predict a similar trend once Bitcoin spot Exchange-Traded Funds (ETFs) receive regulatory approval from the Securities and Exchange Commission in the United States.
Relai's Impressive Year-Over-Year Growth
Relai's Over-The-Counter (OTC) volume has experienced a staggering increase of over 100% year-over-year, illustrating this transition. The surge is primarily driven by high-net-worth individuals and companies, with monthly volumes through Relai Private and Relai Business rising by 30% in Q3 2023.
Julian Liniger, CEO and co-founder of Relai, believes that if this trend continues, Bitcoin's market capitalization and price will witness a significant surge in the coming months and years. Relai is dedicated to providing investors with the necessary tools and resources to navigate this evolving market, as the demand for their services continues to grow.
The Swiss Market's Growing Interest in Bitcoin
The shift from real estate to Bitcoin is particularly prominent in Switzerland, where awareness of Bitcoin's unique properties is steadily increasing. Leon A. Wankum, Head of Bitcoin Strategies at oneVest Developments, emphasizes how easy it is for investors to convert their real estate capital into Bitcoin. With services like Relai, the transaction can be completed in as little as one day.
A Monumental Paradigm Shift in Financial Investments
The movement of investment capital from real estate to Bitcoin represents a potentially monumental shift in financial paradigms. As this trend gains momentum, the Bitcoin industry prepares itself for the influx of wealth from traditional asset classes into Bitcoin, solidifying its position as a lucrative investment option.
Frequently Asked Questions
Can I keep a Gold ETF in a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
Traditional IRAs allow contributions from both the employer and employee. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
Also available is an Individual Retirement Annuity. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs can be made without tax.
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These metals are known as “precious” because they are rare and extremely valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Precious metals are sometimes called “bullion.” Bullion refers actually to the metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. You'll get dividends each year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, you pay a small percentage tax on the gains. Additionally, you have access to your funds at no cost whenever you need them.
What is the benefit of a gold IRA?
A gold IRA has many benefits. You can diversify your portfolio with this investment vehicle. You decide how much money you want to put into each account, and when you want it to be withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This allows you to easily transition if your retirement is early.
The best part is that you don't need special skills to invest in gold IRAs. They are offered by most banks and brokerage companies. You do not need to worry about fees and penalties when you withdraw money.
That said, there are drawbacks too. Gold has historically been volatile. It is important to understand why you are investing in gold. Are you looking for growth or safety? Do you want to use it as an insurance strategy or for long-term growth? Only when you are clear about the facts will you be able take an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. You won't need to buy more than one ounce of gold to cover all your needs. Depending on your plans for using your gold, you may need multiple ounces.
You don't need to have a lot of gold if you are selling it. Even one ounce is enough. But you won't be able to buy anything else with those funds.
What precious metals do you have that you can invest in for your retirement?
Gold and silver are the best precious metal investments. Both can be easily bought and sold, and have been around since forever. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: Gold is one of man's oldest forms of currency. It is stable and very secure. It's a great way to protect wealth in times of uncertainty.
Silver: Investors have always loved silver. It's a great option for those who want stability. Silver is more volatile than gold. It tends to rise rather than fall.
Platinum: A new form of precious metal, platinum is growing in popularity. Like gold and silver, it's very durable and resistant to corrosion. It's also more expensive than the other two.
Rhodium – Rhodium is used to make catalytic conversions. It is also used for jewelry making. And, it's relatively cheap compared to other types of precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also much more affordable. This is why it has become a favourite among investors looking for precious metals.
Can I buy gold using my self-directed IRA
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contract are financial instruments that depend on the gold price. These financial instruments allow you to speculate about future prices without actually owning the metal. You can only hold physical bullion, which is real silver and gold bars.
Can the government steal your gold?
Because you have it, the government can't take it. You have earned it by working hard for it. It belongs exclusively to you. This rule could be broken by exceptions. If you are convicted of fraud against the federal government, your gold can be forfeit. You can also lose precious metals if you owe taxes. 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.
Statistics
- 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)
- 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)
- 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)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- You want to keep gold in your IRA at home? It's not legal – WSJ
irs.gov
finance.yahoo.com
bbb.org
How To
Tips for Investing in Gold
Investing in Gold has become a very popular investment strategy. This is because there are many benefits if you choose to invest in gold. There are many ways to invest gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
Before you purchase any type or gold, here are some things to think about.
- First, you must check whether your country allows you to own gold. If you have permission to possess gold in your country, you can then proceed. Otherwise, you can look into buying gold from abroad.
- The second thing you need to do is decide what type of gold coins you want. You can choose between yellow gold and white gold as well as rose gold.
- You should also consider the price of gold. It is better to start small, and then work your way up. Diversifying your portfolio is a key thing to remember when purchasing gold. Diversify your investments in stocks, bonds or real estate.
- Don't forget to keep in mind that gold prices often change. Be aware of the current trends.
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By: Nik Hoffman
Title: Real Estate Investors Are Embracing Bitcoin as a Lucrative Investment Option
Sourced From: bitcoinmagazine.com/markets/real-estate-investors-are-flocking-to-bitcoin-in-record-numbers-says-swiss-exchange
Published Date: Mon, 18 Dec 2023 14:00:00 GMT
