Bitcoin, the leading cryptocurrency, has established its supremacy over Ethereum in various significant aspects in the past year. Since the beginning of the year until now, the value of ether has experienced a decline of 27.65% compared to bitcoin's price, dropping from 0.073 ether to its current level of 0.052 ether.
Bitcoin's Superiority in 2023: Outpacing Ethereum in Multiple Metrics
Undoubtedly, bitcoin, the top crypto asset in terms of market capitalization, has surpassed Ethereum, the second-ranked digital currency, across various indicators. According to archived data from coinmarketcap.com, as of the end of December 2022, BTC held a market dominance of 40.1%, while ETH accounted for 18.4%. Currently, BTC's market share has surged to 51.5% of the total crypto market value, while ETH's share has slightly declined to 16.6%.
Over the past year, the comparative value of Ethereum to bitcoin has diminished. In December 2022, it traded at 0.073 ETH per BTC, but as of December 23, 2023, it has reduced to 0.052 ether — a decrease of 27.65%. At present, bitcoin's market capitalization stands at $856 billion, whereas ethereum's market capitalization is $275 billion, making BTC's market valuation approximately 3.11 times that of ETH.
Recent data from cryptoslam.io reveals that BTC-focused non-fungible token (NFT) sales have surpassed those of ETH. Bitcoin took the lead in this domain in November 2023 and maintained its dominance in the subsequent 30 days. During this period, Bitcoin-based NFT sales reached $761,951,324, while Ethereum's NFT sales amounted to $387,167,225.
Furthermore, Bitcoin continues to outperform Ethereum in terms of fee generation. BTC miners have earned $39,480,534 in fees from on-chain transactions in the last 24 hours alone, significantly higher than the $551,880 collected by ETH validators. Moreover, Bitcoin consistently surpasses ether in daily global trading volume, with BTC transactions totaling $13.94 billion and ETH transactions reaching approximately $9.58 billion in the same timeframe.
While advocates of Ethereum anticipate the "Flippening" — a hypothetical scenario where Ethereum overtakes bitcoin — the current data presents a different reality. Despite these aspirations, the factual statistics highlight bitcoin's enduring dominance, evident through its market cap and trade volumes significantly surpassing those of ethereum. Based on current trends and metrics, it appears that the much-speculated "Flippening" remains a distant prospect unlikely to materialize in the near future.
What are your thoughts on bitcoin's market performance compared to ethereum's this year? Share your opinions in the comments section below.
Frequently Asked Questions
How to open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form should be filled within 60 calendar days of opening the account. You can then start investing once you have this completed. You can also contribute directly to your paycheck via payroll deduction.
To get a Roth IRA, complete Form 8903. Otherwise, the process will look identical to an existing 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. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. You must also contribute regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, physical bullion will not be available for purchase. You won't have the ability to trade stocks or bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option is offered by some IRA providers.
There are two main drawbacks to investing through an IRA in precious metallics. First, they don't have the same liquidity as stocks or bonds. They are therefore more difficult to sell when necessary. Second, they don't generate dividends like stocks and bonds. You'll lose your money over time, rather than making it.
What are the fees for an IRA that holds gold?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes account maintenance and any investment costs.
Diversifying your portfolio may require you to pay additional fees. These fees can vary depending on which type of IRA account you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
A majority of providers also charge annual administration fees. These fees range from 0% to 1%. The average rate is.25% each year. These rates are usually waived if you use a broker such as TD Ameritrade.
Which precious metal is best to invest in?
This depends on what risk you are willing take and what kind of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. If you are looking for quick profits, gold might not be the right investment. Silver is a better investment if you have patience and the time to do it.
If you don’t desire to become rich quickly, gold may be your best option. Silver may be a better option for investors who want long-term steady returns.
What are the advantages of a IRA with a gold component?
Many benefits come with a gold IRA. It is an investment vehicle that can diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best thing is that investing in gold IRAs doesn't require any special skills. These IRAs are available at all banks and brokerage houses. Withdrawals are made automatically without having to worry about fees or penalties.
However, there are still some drawbacks. Gold has historically been volatile. It is important to understand why you are investing in gold. Are you looking for safety or growth? Are you trying to find safety or growth? Only once you know, that will you be able to make an informed decision.
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. You could need several ounces depending on what you plan to do with your gold.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even manage with one ounce. These funds won't allow you to purchase anything else.
Is gold a good investment IRA option?
Any person looking to save money is well-served by gold. You can also diversify your portfolio by investing in gold. There's more to gold that meets the eye.
It's been used throughout history as a currency, and even today, it remains a popular form 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 is very valuable, as it is rare and hard to create.
The supply-demand relationship determines the gold price. The strength of the economy means people spend more, and so, there is less demand for gold. Gold's value rises as a result.
On the other hand, people will save cash when the economy slows and not spend it. 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. You will benefit from economic growth if you invest in gold.
Also, your investments will earn you interest which can help increase your wealth. You won't lose your money if gold prices drop.
What Precious Metals Can You Invest in for Retirement?
These precious metals are among the most attractive investments. They are both simple to purchase and sell, and they have been around for a long time. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: Gold is one the oldest forms currency known to man. It's stable and safe. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has been a favorite among investors for years. It is an excellent choice for investors who wish to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. It's also more expensive than the other two.
Rhodium: Rhodium is used in catalytic converters. It is also used in jewelry-making. It is also very affordable in comparison to other types.
Palladium: Palladium is similar to platinum, but it's less rare. It's also more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Lawful – WSJ
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
How To
Investing in gold vs. investing in stocks
Gold investing as an investment vehicle can seem extremely risky these days. This is because many people believe gold is no longer financially profitable. This belief is due to the fact that many people see gold prices dropping because of the global economy. They think that they would lose money if they invested in gold. In reality, however, there are still significant benefits that you can get when investing in gold. Let's take a look at some of the benefits.
Gold is the oldest known form of currency. Its use can be traced back to thousands of years ago. People around the world have used it as a store of value. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
Consider the price per gram when you decide whether you should invest in or not. The first thing you should do when considering buying gold bullion is to decide how much you will spend 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 also important to note that, although gold prices are down in recent months, the costs of producing it have risen. Although gold's price has fallen, its production costs have not.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. It is worth considering if you intend to use it for long-term investment. It is possible to make a profit by selling your gold at higher prices than when you purchased it.
We hope that this article has helped you gain a better understanding and appreciation for gold as an investment option. It is important to research all options before you make any decision. Only after you have done this can you make an informed choice.
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By: Jamie Redman
Title: Bitcoin Dominates over Ethereum in 2023: Market Cap, NFT Sales, and Fee Generation
Sourced From: news.bitcoin.com/bitcoin-solidifies-lead-over-ethereum-in-2023-dominates-in-market-cap-nft-sales-and-fee-generation/
Published Date: Sat, 23 Dec 2023 16:00:19 +0000
