Asset management firm Vaneck has revealed its 15 crypto predictions for 2024. These predictions cover a wide range of topics, including the arrival of the US recession, the approval of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), and an anticipated historic rally for bitcoin, which could be influenced by political events and regulatory changes following a US presidential election.
15 Crypto Predictions for 2024
Vaneck recently published its 15 crypto predictions for 2024. The first prediction focuses on the US economy entering a recession. Simultaneously, the SEC is expected to approve spot bitcoin ETFs. Vaneck shared on social media platform X:
"The US recession will finally arrive, but so will the first spot bitcoin ETFs. Over $2.4 billion may flow into these ETFs in Q1 2024 to support bitcoin's price."
Vaneck is one of the companies that have applied to launch a spot bitcoin ETF with the SEC. Other applicants include Blackrock, the world's largest asset manager, Fidelity Investments, Ark Invest, and Bitwise.
The second prediction revolves around the upcoming Bitcoin halving in April 2024. Vaneck anticipates minimal market disruption and expects a post-halving increase in bitcoin's price, which will benefit low-cost miners. The third prediction predicts a significant surge in bitcoin's price and states:
"Bitcoin will reach an all-time high in Q4 2024, potentially driven by political events and regulatory changes following a US presidential election."
The next predictions focus on Ethereum. Vaneck predicts that ETH will outperform major tech stocks in 2024, although it won't surpass BTC. However, Ethereum's market dominance will face challenges from other smart contract platforms. Additionally, the implementation of EIP-4844 (proto-danksharding) will reduce transaction fees and improve scalability for layer 2 chains such as Polygon, Arbitrum, Optimism, and others, as described by Vaneck.
The sixth prediction states that non-fungible token (NFT) activity will rebound to an all-time high, with Ethereum leading the way. Bitcoin will also gain traction through the Ordinals protocol, shifting the ETH-to-BTC NFT issuance ratio to 3-1 by the end of 2024. Vaneck expects crypto exchange Binance to lose its number one spot for spot trading, with competitors like Okx, Bybit, Coinbase, and Bitget contending for leadership. Vaneck shared its seventh prediction:
"Coinbase's futures market may exceed $1 billion daily volume as regulated index inclusion becomes key."
The eighth prediction explains that the market capitalization of stablecoins is expected to surpass its previous peak and reach a new high above $200 billion. This growth will be accompanied by a resurgence in USDC's market share, indicating increased institutional adoption, particularly within emerging Layer 2 chains. The ninth prediction highlights that decentralized exchanges (DEXs) will hit all-time highs in spot trading market share. This will be driven by fast blockchains like Solana and wallets enabling automated transactions, promoting on-chain trading and self-custody. The tenth prediction states:
"Remittances will boost blockchain use, with 'Bitcoin Staking' on the Lightning Network offering yield opportunities through new, user-friendly staking tools."
Vaneck also anticipates the emergence of a highly successful blockchain game with over 1 million daily players. This will propel Immutable X's market capitalization, thanks to key releases and the Immutable Passport, which streamlines wallet usage and enables wider adoption.
The twelfth prediction highlights that Solana (SOL) is projected to become a top 3 blockchain by market cap, TVL, and users. It may potentially surpass Chainlink's TVS (Total Value Secured) with its Pyth oracle, as Defi (decentralized finance) TVL surges and ETF interest grows.
Furthermore, the asset management firm predicts a surge in adoption for decentralized physical infrastructure (Depin) networks. The thirteenth prediction states that new accounting standards will boost corporate crypto holdings, with Coinbase reporting Layer 2 revenue as Base Protocol grows. By 2025, a major financial entity may launch a quasi-public blockchain with public chain connectivity, as outlined in the fourteenth prediction.
The final prediction by Vaneck relates to know-your-customer (KYC) compliance. The asset management firm explains:
"KYC-compliant Defi apps, led by Uniswap, will likely surpass non-KYC ones. This will attract institutional volume and enhance protocol fees, which may boost Uniswap's token value."
What are your thoughts on Vaneck's 15 crypto predictions? Please share your opinions in the comments section below.
Frequently Asked Questions
What is the benefit of a gold IRA?
There are many advantages to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You have control over how much money goes into each account.
You can also rollover funds from other retirement accounts to a gold IRA. This makes for an easy transition if you decide to retire early.
The best part is that you don't need special skills to invest in gold IRAs. They are readily available at most banks and brokerages. You do not need to worry about fees and penalties when you withdraw money.
However, there are still some drawbacks. Gold is known for being volatile in the past. Understanding why you invest in gold is crucial. Is it for growth or safety? Do you want to use it as an insurance strategy or for long-term growth? Only after you have this information will you make an informed decision.
You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce isn't enough to cover all of your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. Even a single ounce can suffice. However, you will not be able buy any other items with those funds.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. But, this type of investment comes with its own set of disadvantages.
You may lose all your accumulated savings if you take too much out of your IRA. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
Another problem is the cost of managing your IRA. Many banks charge between 0.5% and 2.0% per year. Others charge management fees that range from $10 to $50 per month.
Insurance is necessary if you wish to keep your money safe from the banks. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. You might be required to buy insurance that covers losses up to $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. You may be limited in the amount of gold you can have by some providers. Others allow you the freedom to choose your own weight.
You'll also need to decide whether to buy physical gold or futures contracts. Physical gold is more expensive than gold futures contracts. However, futures contracts give you flexibility when buying gold. They enable you to establish a contract with an expiration date.
It is also important to choose the type of insurance coverage that you need. The standard policy does NOT include theft protection and loss due to fire or flood. It does offer coverage for natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
In addition to insurance, you'll need to consider the cost of storing your gold. Insurance doesn't cover storage costs. Banks charge between $25 and $40 per month for safekeeping.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians don't have the right to sell assets. Instead, they must hold them as long as you request.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. It is also important to specify how much money you will invest each month.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. After receiving your application, the company will review it and mail you a confirmation letter.
A financial planner is a good idea when opening a gold IRA. A financial planner can help you decide the type of IRA that is right for your needs. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
Can I hold 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).
A traditional IRA allows contributions from both employee and employer. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
You can also get an Individual Retirement Annuity, or IRA. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions made to IRAs are not taxable.
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
Investing In Gold vs. Investing In Stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because most people believe that it is no longer economically profitable to invest gold. This belief stems from the fact that most people see gold prices being driven down by the global economy. They fear that investing in gold will result in a loss of money. There are many benefits to investing in gold. Below we'll look at some of them.
One of the oldest forms known of currency is gold. Its use can be traced back to thousands of years ago. It has been used as a store for value by people all over the globe. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. You must determine how much gold bullion you can afford per gram before you consider buying it. You could contact a local jeweler to find out what their current market rate is.
It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. Although gold's price has fallen, its production costs have not.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. It is sensible to avoid buying gold if you are only looking to cover the wedding rings. However, if you are planning on doing so for long-term investments, then it is worth considering. Selling your gold at a higher value than what you bought can help you make money.
We hope our article has given you a better understanding of gold as an investment tool. We strongly recommend that you research all available options before making any decisions. Only after you have done this can you make an informed choice.
By: Kevin Helms
Title: Vaneck Unveils 15 Crypto Predictions: Spot Bitcoin ETF Approvals, US Recession, BTC’s Historic Rally
Sourced From: news.bitcoin.com/vaneck-unveils-15-crypto-predictions-spot-bitcoin-etf-approvals-us-recession-btcs-historic-rally/
Published Date: Sun, 10 Dec 2023 00:30:13 +0000