Increased Probability of Bitcoin Reaching $1.5 Million
Cathie Wood, the CEO of Ark Investment Management (Ark Invest), has reiterated her bullish bitcoin predictions, now stating that there is a higher probability of the price of bitcoin soaring to $1.5 million per coin. Wood's optimism stems from the recent approval of 11 spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
Ark Invest's Bitcoin Price Predictions
Wood referred to Ark's Big Ideas 2023 report, which highlights the potential for significant technological breakthroughs and exponential growth. She revealed that Ark's base case prediction for the price of bitcoin is in the $600,000 range. However, their more optimistic "bull case" scenario sees the price of BTC reaching $1.48 million per coin. Wood further elaborated, stating that the probability of the bull case has increased with the approval of spot bitcoin ETFs, and she expects the price to reach $1.5 million by 2030.
A Revolutionary Monetary System
Wood emphasized the significance of bitcoin, describing it as the first global decentralized digital monetary system in history. She believes that it is a groundbreaking concept that has the potential to revolutionize the financial landscape.
Spot Bitcoin ETFs Gain Significant Trading Volume
Ark Invest and 21shares' spot bitcoin ETF proposal was among the 11 approved by the SEC. On the first day of trading, these ETFs accumulated a total trading volume of $4.6 billion. Blackrock, the largest asset manager globally, also entered the market with its Ishares Bitcoin Trust, generating $1 billion in trading volume.
Institutional Flows Expected to Drive Bitcoin Price Higher
Wood anticipates that the approval of spot bitcoin ETFs will attract substantial institutional investment into bitcoin, resulting in a significant price surge. However, it is important to note that the SEC's approval does not constitute an endorsement of bitcoin, as emphasized by SEC Chair Gary Gensler.
In conclusion, Cathie Wood remains highly optimistic about the future price of bitcoin, with a bullish forecast of $1.5 million per coin. The recent approval of spot bitcoin ETFs by the SEC has further increased the probability of her prediction. As the cryptocurrency market continues to evolve, it will be interesting to see how these developments unfold and whether Wood's projections become a reality.
Frequently Asked Questions
What is the benefit of a gold IRA?
There are many benefits to a gold IRA. It is an investment vehicle that can diversify your portfolio. You decide how much money is put in each account and when it is withdrawn.
You also have the option to roll over funds from other retirement accounts into a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. They're available at most banks and brokerage firms. You do not need to worry about fees and penalties when you withdraw money.
That said, there are drawbacks too. Gold has always been volatile. So it's essential to understand why you're investing in gold. Are you looking for growth or safety? Do you want to use it as an insurance strategy or for long-term growth? Only by knowing the answer, you will be able to make an informed choice.
You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
You don’t necessarily need a lot if you’re looking to sell your gold. Even one ounce is enough. However, you will not be able buy any other items with those funds.
How to open a Precious Metal IRA
The first step is to decide if you want an Individual Retirement Account (IRA). Open the account by filling out Form 8606. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form must be submitted within 60 days of the account opening. Once this has been completed, you can begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.
To get a Roth IRA, complete Form 8903. 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. The IRS stipulates that you must have earned income and be at least 18-years old. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. And, you have to make contributions regularly. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. You can only purchase bullion in physical form. You won't have the ability to trade stocks or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option is available from some IRA providers.
There are two major drawbacks to investing via an IRA in precious metals. First, they aren't as liquid than stocks and bonds. It's also more difficult to sell them when they are needed. Second, they don’t produce dividends like stocks or bonds. So, you'll lose money over time rather than gain it.
What is the tax on gold in Roth IRAs?
The tax on an investment account is based on its current value, not what you originally paid. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
The rules that govern these accounts differ from one state to the next. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. Massachusetts allows you to wait until April 1. New York has a maximum age limit of 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
Is gold a good choice for an investment IRA?
Anyone who is looking to save money can make gold an excellent investment. It can be used to diversify your portfolio. There is much more to gold than meets your eye.
It has been used throughout history as currency and it is still a very popular method of payment. It is often called “the most ancient currency in the universe.”
Gold, unlike other paper currencies created by governments is mined directly from the earth. It's hard to find and very rare, making it extremely valuable.
The supply and demand factors determine how much gold is worth. The strength of the economy means people spend more, and so, there is less demand for gold. Gold's value rises as a result.
The flip side is that people tend to save money when the economy slows. This increases the production of gold, which in turn drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
In addition to earning interest on your investments, this will allow you to grow your wealth. You won't lose your money if gold prices drop.
Statistics
- 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)
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- You want to keep gold in your IRA at home? It's not legal – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement plans
cftc.gov
irs.gov
How To
The History of Gold as an Asset
From ancient times to the beginning of the 20th century, gold was used as a currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. Due to its value, it was also internationally traded. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. The result was a decrease in foreign currency demand, which led to an increase in their price. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to return some of the gold they had left to Europe.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. After World War I, however, many European countries started using paper money to replace gold. The price of gold rose significantly over the years. Today, although the price fluctuates, gold remains one of the safest investments you can make.
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By: Kevin Helms
Title: Ark Invest CEO Cathie Wood Doubles Down on Bullish Bitcoin Forecast, Sees $1.5 Million Price
Sourced From: news.bitcoin.com/ark-invest-now-sees-higher-probability-of-bitcoin-soaring-to-1-5-million-ceo-says/
Published Date: Sat, 13 Jan 2024 02:00:00 +0000
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