Introduction
The U.S. Securities and Exchange Commission (SEC) has made history by approving 11 spot bitcoin exchange-traded funds (ETFs) for trading on U.S. stock exchanges. This long-awaited move has generated excitement in the cryptocurrency market. However, the response has been lukewarm, with ethereum stealing the spotlight and outperforming bitcoin. Additionally, a mysterious transfer of $1.19 million worth of bitcoin to Satoshi Nakamoto's genesis address has sparked intrigue. Renowned financial expert Robert Kiyosaki has also increased his bitcoin holdings following the SEC's approval. In this article, we will explore the impact of these developments and discuss the future prospects of spot bitcoin ETFs.
Ethereum Rallies While Bitcoin Stagnates
Despite the approval of spot bitcoin ETFs, the price of bitcoin has seen minimal movement. In contrast, ethereum experienced a significant rally, with a 9.1% increase on Wednesday. This rise in ethereum's value has overshadowed bitcoin's underperformance, raising questions about the market's perception of these two leading cryptocurrencies.
Mysterious Transfer to Satoshi Nakamoto's Genesis Address
On the 15th anniversary of Bitcoin's creation, an unidentified wallet made a transfer of approximately 26.917 bitcoin, equivalent to $1.19 million, to Satoshi Nakamoto's genesis address. This address, which originated on January 3, 2009, has historically received only small transactions. The sudden large transfer has sparked curiosity and speculation about the motives behind it.
Impressive Trading Volume for Spot Bitcoin ETFs
On the first day of trading, U.S. spot bitcoin ETFs recorded a total trading volume of $4.6 billion. Blackrock's Ishares Bitcoin Trust alone accounted for over $1 billion in trading volume, making it a significant player in this market. Grayscale's spot bitcoin ETF, which converted from the Grayscale Bitcoin Trust, also registered a substantial trading volume of $2.3 billion. This massive response to the launch of spot bitcoin ETFs demonstrates the market's appetite for investment opportunities in the cryptocurrency sector.
Robert Kiyosaki Expands Bitcoin Holdings
In light of the SEC's approval of spot bitcoin ETFs, Robert Kiyosaki, the author of Rich Dad Poor Dad, has increased his bitcoin holdings. This move reflects his confidence in the future growth and potential of bitcoin as an investment asset. Kiyosaki's endorsement further validates the legitimacy and potential of spot bitcoin ETFs.
Conclusion
The approval of 11 spot bitcoin ETFs by the SEC marks a significant milestone in the cryptocurrency industry. However, the market response has been mixed, with ethereum outperforming bitcoin in the wake of this announcement. The mysterious transfer to Satoshi Nakamoto's genesis address adds intrigue to the already dynamic cryptocurrency landscape. Despite these developments, spot bitcoin ETFs have attracted substantial trading volume, indicating strong investor interest. With Robert Kiyosaki's endorsement and increased holdings, the future of spot bitcoin ETFs looks promising. It remains to be seen how these ETFs will impact the overall inflow of capital into the cryptocurrency market. Share your thoughts and opinions on this subject in the comments section below.
Frequently Asked Questions
Should you Invest In Gold For Retirement?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. Consider investing in both.
You can earn potential returns on your investment of gold. This makes it a worthwhile choice for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. Its value fluctuates over time.
However, this does not mean that gold should be avoided. 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 more convenient than bonds or stocks because it can be stored easily. It can also be 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. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. When the stock market drops, gold usually rises instead.
Investing in gold has another advantage: you can sell it anytime you want. Just like stocks, you can liquidate your position whenever you need cash. 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 of your eggs in one basket.
You shouldn't buy too little at once. Start small, buying only a few ounces. Add more as you're able.
Remember, the goal here isn't to get rich quickly. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
How does a gold IRA work?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
Physical gold bullion coin can be purchased at any time. To invest in gold, you don't need to wait for retirement.
An IRA allows you to keep your gold forever. Your gold holdings will not be subject to tax when you are gone.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
To open a gold IRA, you will first need to create an individual retirement account (IRA). After you do this, you will be granted an IRA custodian. This company acts as an intermediary between you and IRS.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. The minimum deposit is $1,000. The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
When you withdraw your gold from your IRA, you'll pay taxes on it. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
Even if your contribution is small, you might not have to pay any taxes. However, there are some exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
It is best to not take out more than 50% annually of your total IRA assets. If you do, you could face severe financial consequences.
Can I buy or sell gold from my self-directed IRA
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
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 to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contract are financial instruments that depend on the gold price. These contracts allow you to speculate on future gold prices without actually owning it. But physical bullion refers to real gold and silver bars you can carry in your hand.
Is gold a good IRA investment?
Gold is an excellent investment for any person who wants to save money. You can diversify your portfolio with gold. There is much more to gold than meets your eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is sometimes called the “oldest currency in the world”.
Gold is not created by governments, but it is extracted from the earth. It's hard to find and very rare, making it extremely valuable.
The price of gold fluctuates based on supply and demand. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. As a result, the value of gold goes up.
On the flipside, people may save cash rather than spend it when the economy slows. This means that more gold is produced, which reduces its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you have gold to invest, you will reap the rewards when the economy expands.
Your investments will also generate interest, which can help you increase your wealth. Additionally, you won't lose cash if the gold price falls.
How much of your portfolio should you hold in precious metals
First, let's define precious metals to answer the question. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them extremely valuable for trading and investing. The most traded precious metal is gold.
There are many other precious metals, such as silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is also unaffected significantly by inflation and Deflation.
In general, all precious metals have a tendency to go up with the market. However, they may not always move in synchrony with each other. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors expect lower interest rates which makes bonds less appealing investments.
The opposite effect happens when the economy is strong. Investors favor safe assets like Treasury Bonds, and less precious metals. These precious metals are rare and become more costly.
To maximize your profits when investing in precious metals, diversify across different precious metals. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
How much gold should your portfolio contain?
The amount you make will depend on the amount of capital you have. If you want to start small, then $5k-$10k would be great. As you grow, it is possible to rent desks or office space. This will allow you to pay rent monthly, and not worry about it all at once. Rent is only paid per month.
It is also important to decide what kind of business you want to run. My website design company charges clients $1000-2000 per month depending on the order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. You might get paid only once every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I recommend starting with $1k-$2k of gold and growing from there.
Statistics
- (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)
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
forbes.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Lawful – WSJ
How To
Online buying gold and silver is the best way to purchase it.
First, understand the basics of gold. Gold is a precious metallic similar to Platinum. It's very rare, and it is often used as money for its durability and resistance. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins can be used for circulation within a country. These coins usually come in denominations such $1, $5 and $10.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They aren't circulated in any currency exchange systems. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. Each dollar spent earns the buyer 1 gram gold.
You should also know where to buy your gold. If you want to purchase gold directly from a dealer, then a few options are available. You can start by visiting your local coin shop. Another option is to go through a reputable site like eBay. You might also consider buying gold from an online private seller.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers typically charge 10% to 15% commission on each transaction. A private seller will usually return less money than a coin shop and eBay. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
Another way to buy gold is by investing in physical gold. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
When buying gold on your own, you can visit a bank or a pawnshop. A bank can give you a loan up to the amount you intend to invest in Gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks often charge higher interest rates then pawnshops.
Another way to purchase gold is to ask another person to do it. Selling gold is also easy. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
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By: Bitcoin.com
Title: SEC Approves 11 Spot Bitcoin ETFs, Ethereum Rises as Bitcoin Stagnates
Sourced From: news.bitcoin.com/spot-bitcoin-etf-approvals-ethereums-outperformance-btc-mystery-transfer-and-more-week-in-review/
Published Date: Sun, 14 Jan 2024 12:30:59 +0000
