Introduction
The year 2023 has been a remarkable one for the world of cryptocurrency and the global economy. With the rise of bitcoin and the ever-changing crypto markets, as well as significant economic shifts and geopolitical realignments, it's crucial to look back on the events that shaped the last 12 months. In this article, we will explore some of the most popular news stories from Bitcoin.com in 2023 and discuss the economic trends that have had a profound impact.
The Top 5 Most Read Bitcoin.com News Stories in 2023
1. US-Saudi Tensions Escalate as Report Says Crown Prince Is No Longer Interested in Pleasing the United States
In a surprising move, Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) implemented unexpected oil production cuts, signaling a shift away from U.S. policy preferences. Saudi Crown Prince Mohammed bin Salman openly expressed disinterest in appeasing the U.S., coinciding with global realignments and the reconsideration of economic ties by BRICS nations. This move also highlighted Saudi Arabia's consideration of trade in currencies other than the U.S. dollar.
2. Former Treasury Official Warns of Complete Economic Implosion if US Dollar Loses Global Reserve Currency Status
Monica Crowley, a former official at the U.S. Treasury, issued a stark warning about the grave repercussions of losing the global reserve currency status of the U.S. dollar. She emphasized the pivotal role of the dollar since World War II and its critical link to oil trade. Recent geopolitical tensions and policy missteps have significantly risked this position, potentially leading to an economic implosion and the loss of American superpower status.
3. Economist Peter Schiff Advises 'Get Rid of Your US Dollars Now' – Warns USD's Reserve Currency Status in Jeopardy
Economist Peter Schiff urged individuals to divest from U.S. dollars due to the escalating global shift away from USD reliance, particularly by nations in the Middle East and Southeast Asia. He warned about the risk to the dollar's reserve status and American living standards. Schiff's warnings pointed to an imminent economic disaster and devaluation, emphasizing the need to move away from the dollar to mitigate personal financial loss.
4. Economist Warns of 'Catastrophic' Fall in American Living Standard – Elon Musk Weighs in on De-Dollarization, US Dollar Weaponization
Economist Peter St Onge highlighted the rapid de-dollarization and the consequences of the U.S. leveraging the dollar as a political tool. He predicted severe inflation, a plummet in American living standards, and a diminished global role for the U.S. Recent sanctions and the decline in the dollar's reserve currency status have accelerated the shift away from the dollar in global markets. Elon Musk, CEO of Tesla and Twitter, echoed these sentiments, suggesting that continued currency weaponization will lead nations to abandon the dollar.
5. Elon Musk Shares 'Massive Incentive to Move Money out of Bank Accounts'
Elon Musk drew attention to a significant incentive for individuals and companies to shift funds from banks to Treasury Bills. He highlighted the large interest rate disparity created by the U.S. Treasury and the Federal Reserve, warning that this realization could lead to a rapid withdrawal of deposits from even large, traditionally secure banks. This issue raised concerns about the stability of the U.S. banking system amid recent crises and the potential risks faced by depositors.
Notable 2023 Stories
1. Blackrock Files for Bitcoin Trust – Analyst Calls It a 'Real Deal' Spot Bitcoin ETF Filing
Blackrock, the world's leading asset manager, made a significant move by filing for a spot bitcoin exchange-traded fund (ETF) despite the U.S. Securities and Exchange Commission's (SEC) crackdown on unregistered crypto platforms. The appointment of Nasdaq-listed company Coinbase as the custodian for the trust sparked both optimism and skepticism within the crypto community, with some viewing it as a bullish signal for cryptocurrencies and others expressing caution about its implications.
2. DC Circuit Court of Appeals Chastises SEC for Grayscale Denial
The U.S. Court of Appeals for the District of Columbia Circuit unanimously overturned the SEC's rejection of Grayscale's Bitcoin Exchange Traded Product. The court criticized the SEC for arbitrary and inconsistent decisions compared to similar cases, emphasizing the need for consistent and predictable regulatory actions. Grayscale now awaits the SEC's next move, which could include an appeal or a reassessment of the application, marking a significant moment in the ongoing dialogue between cryptocurrency ventures and regulatory bodies.
3. US Judge Rules XRP 'Not Necessarily a Security on Its Face' – Sending XRP Supporters Into Celebration
A U.S. judge ruled that the cryptocurrency XRP cannot definitively be classified as a security, specifically in relation to its "programmatic sales." This ruling partially granted and denied motions from both the SEC and Ripple Labs, reflecting the ongoing debate and complexity in determining the legal status of cryptocurrencies. The judge recognized the distinct nature of XRP's institutional and programmatic sales, but further proceedings are expected to address unresolved issues regarding its classification as a security.
4. Robert Kiyosaki Expects Bitcoin to 'Become Priceless' When the Fed Launches Central Bank Digital Currency
Robert Kiyosaki, author of "Rich Dad Poor Dad," expressed concerns about the potential launch of a central bank digital currency (CBDC) by the Federal Reserve. He warned that it could lead to the end of privacy and increased surveillance, making assets like bitcoin invaluable. Kiyosaki urged investors to accumulate bitcoin, gold, silver, and cash, echoing the concerns of various U.S. lawmakers who oppose the development of a CBDC due to its perceived threat to the American way of life. However, Federal Reserve Chairman Jerome Powell indicated that the decision to issue a CBDC is still far off, requiring extensive research and consideration.
5. Ethereum Co-Founder Vitalik Buterin's Address Sells Trillions of Airdropped Tokens, Causes Illiquid Coin Prices to Plummet
Vitalik Buterin, co-founder of Ethereum, reportedly sold a significant amount of various airdropped ERC20 tokens from his address, triggering a considerable market reaction. The sell-off resulted in the plummeting value of these relatively obscure tokens due to the shallow market liquidity. This move sparked debates within the crypto community about the motives behind such large-scale disposals, with some speculating tax compliance as a reason and others criticizing the impact on token prices.
2024 and the Path Forward
Overall, 2023 was a transformative year for the cryptocurrency landscape and the global economy. Shifting alliances among nations and warnings of economic upheaval dominated the headlines, shaping the path forward for bitcoin and the broader crypto economy. As we bid farewell to this eventful year, the lessons learned and challenges faced will undoubtedly influence the future of cryptocurrencies. In 2024, many crypto enthusiasts predict a bullish trend driven by widespread acceptance via spot bitcoin ETFs and the tokenization of tangible assets. Optimistic shifts in the broader economic landscape are also expected to enhance market morale, benefiting BTC and the
Frequently Asked Questions
What is the benefit of a gold IRA?
There are many benefits to a gold IRA. You can diversify your portfolio with this investment vehicle. You can control how much money is deposited into each account as well as when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This makes for an easy transition if you decide to retire early.
The best thing about investing in gold IRAs is that you don’t need any special skills. They are readily available at most banks and brokerages. You do not need to worry about fees and penalties when you withdraw money.
That said, there are drawbacks too. The volatility of gold has been a hallmark of its history. Understanding why you invest in gold is crucial. Are you looking for growth or safety? Is it for insurance purposes or a long-term strategy? Only after you have this information will you make an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. A single ounce isn't enough to cover all of your needs. You could need several ounces depending on what you plan to do with your gold.
You don’t necessarily need a lot if you’re looking to sell your gold. Even a single ounce can suffice. However, you will not be able buy any other items with those funds.
How to Open a Precious Metal IRA?
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. To open the account, complete Form 8606. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should be completed within 60 days after opening the account. Once this is done, you can start investing. You might also be able to contribute directly from the paycheck through payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process is identical to an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS says you must be 18 years old and have earned income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Contributions must be made on a regular basis. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you can't purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. This option is offered by some IRA providers.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they aren't as liquid than stocks and bonds. This makes them harder to sell when needed. They also don't pay dividends, like stocks and bonds. So, you'll lose money over time rather than gain it.
What does gold do as an investment?
Gold's price fluctuates depending on the supply and demand. Interest rates can also affect the gold price.
Due to the limited supply of gold, prices for gold are highly volatile. There is also a risk in owning gold, as you must store it somewhere.
What precious metal is best for investing?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. 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 time and patience, you should consider investing in silver instead.
If you're not looking to make quick money, gold is probably your best choice. If you want to invest in long-term, steady returns, silver is a better choice.
Should You Invest in gold for Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. Consider investing in both.
In addition to being a safe investment, gold also offers potential returns. Retirement investors will find gold a worthy investment.
While most investments offer fixed rates of return, gold tends to fluctuate. Its value fluctuates over time.
This doesn't mean that you should not invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another benefit of gold is that it's a tangible asset. Unlike stocks and bonds, gold is easier to store. It can be easily transported.
You can always access gold as long your place it safe. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold tends to rise when the stock markets fall.
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. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Don't buy too many at once. Start with just a few drops. Add more as you're able.
It's not about getting rich fast. Instead, the goal is to accumulate enough wealth that you don't have to rely on Social Security.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
What are the fees associated with an IRA for gold?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees will vary depending upon the type of IRA chosen. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Many providers also charge annual management fees. These fees are usually between 0% and 1%. The average rate is.25% per year. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement account
cftc.gov
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads. Example. And Risk Metrics
irs.gov
How To
Tips for Investing In Gold
Investing in Gold is one of the most popular investment strategies worldwide. There are many advantages to investing in Gold. There are many ways to invest gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
You should consider some things before you decide to purchase any type of gold.
- First, verify that your country permits gold ownership. If your country allows you to own gold, then you are allowed to proceed. If not, you may want to consider purchasing gold from overseas.
- Secondly, you should know what kind of gold coin you want. You can choose between yellow gold and white gold as well as rose gold.
- Third, consider the cost of gold. It is better to start small, and then work your way up. One thing that you should never forget when purchasing gold is to diversify your portfolio. You should invest in different assets such as stocks, bonds, real estate, mutual funds, and commodities.
- You should also remember that gold prices can change often. You need to keep up with current trends.
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By: Jamie Redman
Title: 2023 in Review: The Year’s Most Impactful Crypto News Stories and Economic Trends
Sourced From: news.bitcoin.com/2023-in-review-the-years-most-impactful-crypto-news-stories-and-economic-trends/
Published Date: Wed, 27 Dec 2023 07:30:01 +0000
