Jim Cramer's Opinion on Bitcoin
Jim Cramer, the host of CNBC's Mad Money show, has recently expressed his belief that bitcoin is reaching its peak. Despite this, he acknowledges that bitcoin is an impressive technological advancement that is here to stay. Cramer's comments come as bitcoin continues to surge, surpassing $47,000 on Monday. This upward trend is fueled by the growing optimism surrounding the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
Cramer's Remarks on Mad Money
During Mad Money's Lightning Round on Monday, Jim Cramer shared his perspective on bitcoin. As a former hedge fund manager and co-founder of Thestreet.com, a financial news and literacy website, Cramer holds considerable influence in the investment community. Responding to a caller's question about stocks like Riot Platforms and Marathon Digital, which are associated with cryptocurrencies, Cramer advised investors to buy bitcoin directly if they are interested in the cryptocurrency. He also stated that he believes bitcoin is currently reaching its peak.
Investor Interest in Cryptocurrency-Related Stocks
Many investors are choosing to invest in stocks of companies associated with cryptocurrencies rather than purchasing digital coins directly. Stocks such as Riot Platforms, Marathon Digital, Microstrategy, and Coinbase are popular choices. This indirect approach allows investors to gain exposure to bitcoin and cryptocurrencies through these companies.
Bitcoin's Rally and SEC Approval
Bitcoin's recent surge, surpassing $47,000, is largely driven by the anticipation of the SEC granting approval for spot bitcoin ETFs. It is expected that the securities regulator will approve several applicants on Wednesday. This approval could further fuel the growth and adoption of bitcoin and cryptocurrencies.
Cramer's Changing Perspective on Bitcoin
Jim Cramer's opinion on bitcoin has evolved over time. While he was once a supporter of the cryptocurrency, recommending a 5% portfolio allocation to bitcoin in March 2021, he later divested his holdings due to concerns about ransomware and China's mining crackdown. He then disclosed an investment in ether (ETH) but raised alarms about Binance, FTX, and Tether. By December 2022, Cramer strongly advised investors to exit the crypto market, citing anticipated SEC actions against non-compliant crypto firms.
The "Cramer Effect" and Bitcoin's Future
The "Cramer effect" has become a popular meme in the crypto world, with many noticing that bitcoin often behaves in the opposite way to Cramer's predictions. If Cramer is bullish on bitcoin, a bearish swing may be expected, and vice versa. Following Cramer's statement about bitcoin topping out, some users expressed optimism about bitcoin's future, anticipating a significant price increase.
Final Thoughts
Jim Cramer's belief that bitcoin is reaching its peak adds to the ongoing debate about the future of cryptocurrencies. While his opinions have changed over time, Cramer's influential position and his past support for bitcoin should not be disregarded. As the crypto market continues to evolve, the approval of spot bitcoin ETFs by the SEC could have a significant impact on the future of bitcoin and the wider cryptocurrency market.
Frequently Asked Questions
How is gold taxed in an IRA?
The fair value of gold sold to determines the price at which tax is due. When you purchase gold, you don't have to pay any taxes. It is not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
As collateral for loans, gold is possible. Lenders seek to get the best return when you borrow against your assets. In the case of gold, this usually means selling it. This is not always possible. They may hold on to it. They might decide that they want to resell it. In either case, you risk losing potential profits.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. It's better to keep it alone.
How does a Gold IRA account work?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can purchase physical bullion gold coins at any point in time. You don't have a retirement date to invest in gold.
Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold holdings won't be subject to taxes when you pass away.
Your heirs can inherit your gold and avoid capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've done that, you'll receive an IRA custody. This company acts as an intermediary between you and IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reporting.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. Minimum deposit is $1,000 You'll get a higher rate of interest if you deposit more.
When you withdraw your gold from your IRA, you'll pay taxes on it. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. 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 shouldn't take out more then 50% of your total IRA assets annually. Otherwise, you'll face steep financial consequences.
How much should you have of gold in your portfolio
The amount of capital required will affect the amount you make. For a small start, $5k to $10k is a good range. As you grow, you can move into an office and rent out desks. You don't need to worry about paying rent every month. It's only one monthly payment.
It's also important to determine what type business you'll run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. This means that you may only be paid once every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k-$2k in gold and working my way up.
Statistics
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
cftc.gov
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not legal – WSJ
irs.gov
investopedia.com
How To
Three Ways to Invest In Gold For Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. If you have a 401(k) account at work, there are several ways you can invest in gold. It is also possible to invest in gold from outside of your work environment. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
If you do invest in gold, follow these three simple rules:
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, invest in cash. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. It's easier to sell physical gold coins rather than certificates. Physical gold coins don't require storage fees.
- Diversify your Portfolio – Don't put all your eggs in one basket. In other words, spread your wealth around by investing in different assets. This can reduce market volatility and help you be more flexible.
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By: Kevin Helms
Title: Jim Cramer Believes Bitcoin is Reaching its Peak
Sourced From: news.bitcoin.com/mad-money-host-jim-cramer-says-bitcoin-is-topping-out/
Published Date: Wed, 10 Jan 2024 03:30:36 +0000
