The hash rate reached an all-time high. While miners appear to have stopped selling bitcoin, institutions seem still interested in the cryptocurrency and long-term holders keep stacking sats.
This transcript is an excerpt from the "Bitcoin Magazine podcast", hosted by P & Q. Sam Callahan joins them to discuss the three main reasons why he is bullish on Bitcoin, even in the depths the bear market.
You can watch this episode on YouTube or Rumble
Listen to the Episode Here
Sam Callahan, Hash rate rising to an all-time high is a positive sign. This is a function of the 2021 miners who had capital access and were able to make a lot of capital expenditures to expand their facilities. Now we see that those plans are starting to come into reality and they're actually bringing in the miners they had planned 9-12months ago.
Supply chain problems were another factor. The hash rate rise is more due to large miners getting their stuff online than it is more miners turning on, so I believe that. This is a positive development for the Bitcoin network. Another positive development is that you are seeing the total supply of long-term HODLers at an all-time high.
It just shows that there is a convicted base HODLers who aren't moving coins. I believe it's everyone on this call right at the moment that's part. Another thing is that institutional interest remains throughout the bear market. These developments were not as evident in 2018's bear market bottom. It was very quiet, which was kind of sad. You now have news like Fidelity announcing that they are considering offering bitcoin to individual brokerage accounts in millions. Franklin Templeton is also there — almost like a trillion-dollar manager — they are still building infrastructure for the next bull market, despite bitcoin being down 70%.
This is why I find it bullish. This just shows that despite the price movement, there is still excitement at the institutional level. Infrastructure is being built. This is the kind of thing I love to see.
Those are the three things I would say: Hashrate all-time high, good; miners stop selling or at minimum for now; long-term HODLers hold on; institutional interests. These three factors are bullish developments. That's what I am excited about.
Frequently Asked Questions
Who holds the gold in a gold IRA?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
You should consult a financial planner or accountant to see what options are available to you.
How do I Withdraw from an IRA with Precious Metals?
First, determine if you would like to withdraw money directly from an IRA. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. This option will require you to pay taxes on the amount that you withdraw.
Next, calculate how much money your IRA will allow you to withdraw. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Before you choose one, weigh the pros and cons.
Bullion bars require less space, as they don't contain individual coins. However, each coin will need to be counted individually. You can track their value by keeping individual coins.
Some people prefer to keep their coins in a vault. Others prefer to store them in a safe deposit box. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
What is a Precious Metal IRA (IRA)?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These are called “precious” metals because they're very hard to find and very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers to the actual physical metal itself.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This ensures that you will receive dividends each and every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, your gains are subject to a small tax. You also have unlimited access to your funds whenever and wherever you wish.
What precious metal is best for investing?
Answering this question will depend on your willingness to take some risk and the return you seek. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. For example, if your goal is to make quick money, gold may not suit you. If you have the patience to wait, then you might consider investing in silver.
If you're not looking to make quick money, gold is probably your best choice. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
Is buying gold a good option for retirement planning?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
The most popular form of investing in gold is through physical bullion bars. There are other ways to invest gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. Owning gold stocks should work well if you need cash flow from your investment.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads and Example. Risk Metrics
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not legal – WSJ
Investing In Gold vs. Investing In Stocks
These days, it might seem quite risky to invest your money in gold. Many people believe that investing in gold is not profitable. This belief is due to the fact that many people see gold prices dropping because of the global economy. They believe they would lose their money if they invested gold. There are many benefits to investing in gold. Below we'll look at some of them.
The oldest form of currency known to mankind is gold. There are thousands of records that show gold was used over the years. It is a valuable store of value that has been used by many people throughout the world. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. The first thing you should do when considering buying gold bullion is to decide how much you will spend per gram. You could contact a local jeweler to find out what their current market rate is.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. Although gold's price has fallen, its production costs have not.
The amount of gold that you are planning to purchase is another important consideration when deciding whether or not gold should be bought. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. However, if you are planning on doing so for long-term investments, then it is worth considering. You can profit if you sell your gold at a higher price than you bought it.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. We strongly recommend that you research all available options before making any decisions. Only then will you be able to make an informed decision.
By: Bitcoin Magazine
Title: Why This Bear Market Is Especially Bullish
Sourced From: bitcoinmagazine.com/business/why-this-bear-market-is-especially-bullish
Published Date: Fri, 23 Sep 2022 07:00:00 GMT