With less than 80 days until Bitcoin's fourth halving event, the cryptocurrency community is buzzing with anticipation. As we approach the scheduled date, speculation arises about how this halving will differ from its predecessors.
The Fourth Bitcoin Halving
According to current statistics and Bitcoin's intended ten-minute block average, the fourth halving is approximately 78 days away, expected to occur around April 21, 2024. However, the exact date remains uncertain due to the variable nature of block times.
For instance, the most recent block interval is currently around seven minutes and 31.8 seconds, suggesting that the halving could happen as early as April 4, 2024, just 58 days from now. The halving is a significant event embedded in Bitcoin's protocol, designed to maintain its status as a deflationary asset.
Impact on Bitcoin's Supply
The halving directly affects the rate at which new bitcoins are created and, consequently, the total supply of bitcoins in existence. These events occur approximately every 210,000 blocks, which translates to a four-year cycle based on the average block time of ten minutes.
The first halving took place 1,425 days or 3.9 years after Bitcoin's launch on November 28, 2012, reducing the block reward from 50 BTC to 25 BTC. The second halving occurred on July 9, 2016, at block height 420,000, reducing the block reward to 12.5 BTC. The most recent halving occurred on May 11, 2020, at block height 630,000, resulting in a block reward of 6.25 BTC.
Scarcity Beckons: Bitcoin's Future
Following the fourth halving, Bitcoin's scarcity will intensify, as the inflation rate drops from the current 1.69% annually to just 0.84% per year. Bitcoin enthusiasts have high expectations for this event, with some predicting that BTC will become scarcer than gold and real estate.
Plan B, a pseudonymous analyst, believes that Bitcoin's market cap, currently below $1 trillion, will surpass the market cap of gold, which exceeds $10 trillion. This projection implies a Bitcoin price of over $500,000. Other experts, such as strategic advisor Mando CT, highlight additional factors, including interest rate cuts and the approval of BTC ETFs, which could push prices higher.
The countdown to the halving has sparked a flurry of activity on social media, with enthusiasts eagerly marking off the days. While some express confidence in Bitcoin's resilience, others mock those who choose to sell their BTC holdings before the event unfolds.
As we approach Bitcoin's fourth halving, excitement and speculation continue to grow. This event, etched into Bitcoin's protocol, will further reduce the rate of new bitcoin creation and increase the cryptocurrency's scarcity. Investors and enthusiasts eagerly await the halving, hoping that history will repeat itself and drive prices to new heights.
What are your thoughts on the upcoming fourth Bitcoin halving? Share your opinions in the comments section below.
Frequently Asked Questions
How much tax is gold subject to in an IRA
The fair market value of gold sold is the basis for tax. You don't have tax to pay when you buy or sell gold. It isn't considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
As collateral for loans, gold is possible. Lenders seek to get the best return when you borrow against your assets. For gold, this means selling it. It's not guaranteed that the lender will do it. They may just keep it. Or they might decide to resell it themselves. You lose potential profits in either case.
If you plan on using your gold as collateral, then you shouldn't lend against it. You should leave it alone if you don't intend to lend against it.
Can I buy or sell gold from 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 have an existing retirement account, you can transfer funds to another one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts are financial instruments that are based on gold's price. These financial instruments allow you to speculate about future prices without actually owning the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
How Much of Your IRA Should Be Made Up Of Precious Metals
It's important to understand that precious metals aren't only for wealthy people. You don't have to be rich to invest in them. You can actually make money without spending a lot on gold or silver investments.
You may consider buying physical coins such as bullion bars or rounds. Stocks in companies that produce precious materials could be purchased. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
Regardless of your choice, you'll still benefit from owning precious metals. Although they aren’t stocks, they offer the possibility for long-term gains.
And unlike traditional investments, they tend to increase in value over time. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
- 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)
- 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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's not exactly legal – WSJ
Online buying gold and silver is the best way to purchase it.
First, understand the basics of gold. The precious metal gold is similar to platinum. It's rare and often used to make money due its resistance and durability to corrosion. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are designed for circulation in a country. They often have denominations like $1 or $5 or $10.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They can't be exchanged in currency exchange systems. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. Each dollar spent by the buyer is worth 1 gram.
When you are looking to purchase gold, the next thing to know is where to get it. There are a few options if you wish to buy gold directly from a dealer. First, go to your local coin shop. You can also go to a reputable website such as eBay. Finally, you can look into purchasing gold through private sellers online.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers charge a 10% to 15% commission per transaction. This means that you will get less back from a private seller than if you sell it through a coin shop or on eBay. This option is often a great choice for investing gold as it allows you more control over its price.
The other option is to purchase physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. 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 will be able to provide you with a loan for the amount of money you want to invest in gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks charge higher interest rates than those offered by pawn shops.
A third way to buy gold? Simply ask someone else! Selling gold can also be done easily. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
By: Jamie Redman
Title: The Countdown Begins: Anticipation Grows for Bitcoin's Fourth Halving
Sourced From: news.bitcoin.com/countdown-to-bitcoins-fourth-halving-a-shift-in-the-crypto-economy-looms/
Published Date: Sat, 03 Feb 2024 17:30:59 +0000