The Revelation of Bitcoin Scarcity
Jack Mallers, in his recent video, sheds light on the fundamental aspect of Bitcoin that sets it apart from traditional assets—its scarcity. While many tout Bitcoin as an inflation hedge, Mallers emphasizes that its true value lies in its finite supply.
The Unique Value Proposition of Bitcoin
Unlike other assets where increased demand leads to increased supply, Bitcoin operates on a different paradigm. Mallers eloquently articulates that Bitcoin's scarcity makes it the most performant asset in the world, demanding a higher price for more supply.
Bitcoin: Immune to External Influences
One of the key takeaways from Mallers' discourse is Bitcoin's immunity to the fluctuations of central banks and governments. Its finite nature ensures that it cannot be diluted, devalued, or manipulated, making it a reliable store of value in a volatile financial landscape.
Redefining Bitcoin's Role
Mallers challenges the perception of Bitcoin as merely a hedge against inflation, urging individuals to recognize it as a standalone solution for preserving value. In a world where financial stability is often precarious, Bitcoin stands as a beacon of stability and security.
The Essence of Bitcoin Scarcity
Bitcoin's scarcity is not a flaw but a feature that underpins its intrinsic value. Mallers aptly compares Bitcoin to a thread of gold in the grand tapestry of assets—immutable, enduring, and resistant to the whims of market forces.
Embracing the Power of Bitcoin
As Mallers advocates for a shift in mindset towards viewing Bitcoin as a primary investment rather than a supplementary asset, he emphasizes the importance of recognizing its scarcity as a defining characteristic that sets it apart in the financial realm.
Cheers to Jack Mallers for illuminating the significance of Bitcoin scarcity and encouraging us to reevaluate our approach to this transformative digital asset!
Watch the video:
Frequently Asked Questions
How Do You Make a Withdrawal from a Precious Metal IRA?
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.
An IRA is not the best option if you don't mind paying a penalty for early withdrawal. Instead, open a taxable brokerage. This option will require you to pay taxes on the amount that you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. Avoid unnecessary fees by opening an account with your debit card, rather than your credit card.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage facilities can accept bullion bar, while others require you buy individual coins. You will need to weigh each one before making a decision.
Bullion bars, for example, require less space as you're not dealing with individual coins. You will need to count each coin individually. On the flip side, storing individual coins allows you to easily track their value.
Some people prefer to keep their coins in a vault. Others prefer to place them in safe deposit boxes. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
How does a Gold IRA account work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
Physical gold bullion coin can be purchased at any time. To start investing in gold, it doesn't matter if you are retired.
Owning gold as an IRA has the advantage of allowing you to keep it forever. When you die, your gold assets won't be subjected to taxes.
Your heirs can inherit your gold and avoid capital gains taxes. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
First, an individual retirement account will be set up to allow you to open a golden IRA. After you have done this, an IRA custodian will be assigned to you. This company acts as an intermediary between you and IRS.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
Once your gold IRA is established, you can 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. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
If you only take out a very small percentage of your income, you may not need to pay tax. However, there are exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
It's best not to take out more 50% of your total IRA investments each year. Otherwise, you'll face steep financial consequences.
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. Open the account by filling out Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should be completed within 60 days after opening the account. Once you have completed this form, it is possible to begin investing. You can also choose to pay your salary directly by making a payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, it will be the same process as an ordinary IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). And, you have to make contributions regularly. 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.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option can be provided by some IRA companies.
However, investing in precious metals via an IRA has two serious drawbacks. First, they're not as liquid as stocks or bonds. It is therefore harder to sell them when required. Second, they are not able to generate dividends as stocks and bonds. Therefore, you will lose money over time and not gain it.
Is buying gold a good retirement plan?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
The most popular form of investing in gold is through physical bullion bars. There are other ways to invest gold. You should research all options thoroughly before making a decision on which option you prefer.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow to finance your investment, then gold stocks could be a good option.
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.
How much tax is gold subject to in an IRA
The fair market price of gold when it is sold determines the tax due on its sale. You don't have tax to pay when you buy or sell gold. It is not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
Loans can be secured with gold. Lenders will seek the highest return on your assets when you borrow against them. For gold, this means selling it. However, there is no guarantee that the lender would do this. They might just hold onto it. They might decide that they want to resell it. The bottom line is that you could lose potential profit in any case.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. If you don't plan to use it as collateral, it is better to let it be.
What precious metals could you invest in to retire?
The best precious metal investments are gold and silver. Both can be easily bought and sold, and have been around since forever. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: This is the oldest form of currency that man has ever known. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: The popularity of silver has always been a concern for investors. It's a good choice for those who want to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinum: A new form of precious metal, platinum is growing in popularity. It's resistant to corrosion and durable, similar to gold and silver. It is, however, more expensive than its competitors.
Rhodium: Rhodium can be used in catalytic convertors. It is also used to make jewelry. It is also quite affordable compared with other types of precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also less expensive. This is why it has become a favourite among investors looking for precious metals.
What Should Your IRA Include in Precious Metals?
You should remember that precious metals are not only for the wealthy. You don't have to be rich to invest in them. There are many methods to make money off of silver and gold investments.
You might think about buying physical coins such a bullion bar or round. Shares in precious metals-producing companies could be an option. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
And, unlike traditional investments, their prices tend to rise over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
Statistics
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- 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)
External Links
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
finance.yahoo.com
irs.gov
How To
Investing in gold or stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief arises because most people believe that the global economy is driving down gold prices. They fear that investing in gold will result in a loss of money. There are many benefits to investing in gold. Let's take a look at some of the benefits.
One of the oldest currencies known to man is gold. Its use can be traced back to thousands of years ago. It is a valuable store of value that has been used by many people throughout the world. It continues to be used in South Africa, as a way of paying their citizens.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. So, although gold prices have declined in recent years, the cost of producing it has not changed.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. However, if you are planning on doing so for long-term investments, then it is worth considering. It is possible to make a profit by selling your gold at higher prices than when you purchased it.
We hope our article has given you a better understanding of gold as an investment tool. We recommend that you investigate all options before making any major decisions. Only then can you make informed decisions.
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By: Mark Mason
Title: Jack Mallers: Decrypting Bitcoin Scarcity and Its Significance
Sourced From: bitcoinmagazine.com/takes/jack-mallers-new-video-about-bitcoin-scarcity-is-right-on-the-money
Published Date: Fri, 15 Nov 2024 16:52:09 GMT
