Microstrategy Chairman Michael Saylor predicts that the demand for bitcoin will double following the halving and the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Saylor believes that the next 12 months will be a prosperous period for the asset class and identifies three key factors that he thinks will drive the price of bitcoin to $5 million per coin.
Bitcoin Demand to Double, According to Saylor
During an interview with Fox Business, Microstrategy Chairman Michael Saylor discussed the future outlook for bitcoin. When asked about the factors that will contribute to an increase in the price of bitcoin, Saylor highlighted two significant events.
Saylor explained that currently, the supply and demand for BTC are balanced. However, he emphasized that two events will have a positive impact on the price of the cryptocurrency. The first event is the halving scheduled for April next year, which will reduce the bitcoin supply by half. The second event is the anticipated approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). Saylor stated that following the halving and the launch of spot bitcoin ETFs:
"The demand has got to at least double. So the only thing that's going to adjust there is the price in order to get to market."
Saylor advises investors to pay attention to the halving and the approval of spot bitcoin ETFs, as he believes that the next 12 months will be favorable for the asset class.
Saylor has a bold prediction that the price of bitcoin will eventually reach $5 million. He mentioned three significant catalysts that will accelerate this price growth. During a recent discussion on X, he stated, "Those three things don't take us to $500,000, they take us to $5 million per coin."
Saylor then proceeded to explain the three catalysts. The first catalyst is the availability of a spot ETF, which would enable investors to purchase $100 million worth of bitcoin through an ETF security. The second catalyst is the ability for banks to custody bitcoin and lend against it. Lastly, the third catalyst is the ability for businesses to mark their bitcoin investments up or down on their balance sheets based on fair value.
Microstrategy, a company listed on Nasdaq, implemented a bitcoin strategy in August 2020 and has been actively acquiring BTC for its treasury. As of October 31, 2023, the company holds 158,400 bitcoins, which were acquired for a total cost of $4.69 billion, or $29,586 per bitcoin.
What are your thoughts on the predictions made by Microstrategy Chairman Michael Saylor regarding bitcoin? Share your opinions in the comments section below.
Frequently Asked Questions
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These are called “precious” metals because they're very hard to find and very valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Bullion is often used for precious metals. Bullion refers simply to the physical metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This will ensure that you receive annual dividends.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. You pay only a small percentage of your gains tax. You also have unlimited access to your funds whenever and wherever you wish.
Can the government take your gold
You own your gold and therefore the government cannot seize it. You worked hard to earn it. It belongs entirely to you. There may be exceptions to this rule. You could lose your gold if convicted of fraud against a federal government agency. Your precious metals can also be lost if you owe tax to the IRS. You can keep your gold even if your taxes are not paid.
Should you Invest In Gold For Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. If you are unsure which option to choose, consider investing in both options.
Not only is it a safe investment but gold can also provide potential returns. Retirement investors will find gold a worthy investment.
While many investments promise fixed returns, gold is subject to fluctuations. Its value fluctuates over time.
This does not mean you shouldn’t invest in gold. This just means you need to account for fluctuations in 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 also be carried.
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. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
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.
Gold investment has another advantage: You can sell it anytime. Just like stocks, you can liquidate your position whenever you need cash. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Also, don't buy too much at once. Begin by buying a few grams. Continue adding more as necessary.
It's not about getting rich fast. It is to create enough wealth that you no longer have to depend on Social Security.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
Which precious metal is best to invest in?
This depends on what risk you are willing take and what kind of return you desire. Gold is a traditional haven investment. However, it is not always the most profitable. If you are looking for quick profits, gold might not be the right investment. If you have the patience to wait, then you might consider investing in silver.
If you don’t want to be rich fast, gold might be the right choice. If you want to invest in long-term, steady returns, silver is a better choice.
What does gold do as an investment?
The supply and demand for gold affect the price of gold. Interest rates are also a factor.
Due to limited supplies, gold prices are subject to volatility. You must also store physical gold somewhere to avoid the risk of it becoming stale.
How does a Gold IRA account work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase physical bullion gold coins at any point in time. To start investing in gold, it doesn't matter if you are retired.
You can keep gold in an IRA forever. When you die, your gold assets won't be subjected to taxes.
Your heirs inherit your gold without paying capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). After you have done this, an IRA custodian will be assigned to you. This company acts as a mediator between you, the IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.
Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit required for gold bullion coins purchase is $1,000 However, you'll receive a higher interest rate if you put in more.
Taxes will be charged on gold you have withdrawn from an IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
Even if your contribution is small, you might not have to pay any taxes. There are some exceptions, though. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. You could end up with severe financial consequences.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
bbb.org
irs.gov
cftc.gov
How To
Investing in gold or stocks
This might make it seem very risky to invest gold as an investment tool. This is because most people believe that it is no longer economically profitable to invest gold. This belief is based on the fact that gold prices are being driven down by global economic conditions. They believe they would lose their money if they invested gold. There are many benefits to investing in gold. We'll be looking at some of these benefits below.
Gold is one of the oldest forms of currency known to man. It has been used for thousands of years. It has been used as a store for value by people all over the globe. It is still used as a payment method by South Africa and other countries.
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 is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. Although the price of gold has dropped, production costs have not.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. It is worth considering if you intend to use it for long-term investment. 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. Before making any investment decisions, we strongly advise that you thoroughly research all options. Only after doing so can you make an informed decision.
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By: Kevin Helms
Title: Michael Saylor Expects Bitcoin Demand to Double After Halving and Spot Bitcoin ETF Approvals
Sourced From: news.bitcoin.com/michael-saylor-expects-bitcoin-demand-to-double-after-halving-and-spot-bitcoin-etf-approvals/
Published Date: Thu, 09 Nov 2023 02:30:05 +0000
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