The value of bitcoin (BTC) has surged by over 38% against the U.S. dollar in the past six months, resulting in a remarkable 125% increase year-to-date. This impressive growth has propelled bitcoin's market capitalization to become the eleventh-largest among global assets, surpassing various assets such as precious metals, exchange-traded funds (ETFs), and corporate valuations.
Bitcoin's Market Cap Reaches 11th Position Worldwide
Bitcoin has witnessed significant growth throughout 2023, with its price surging by 6.5% in the past week alone. Presently, BTC boasts a market valuation of approximately $726.95 billion, with trading prices hovering just above the $37,000 mark.
As the leading cryptocurrency in terms of market capitalization, BTC commands a 49% share of the $1.4 trillion crypto economy. As of Friday, November 10, BTC holds the eleventh position among the largest global assets by market valuation.
The digital currency currently stands just above Tesla's market cap of $667.50 billion, yet remains below Berkshire Hathaway's valuation of $757.56 billion. With an additional $31 billion added to BTC's market cap, it would surpass Berkshire Hathaway's valuation.
BTC's market cap also exceeds assets such as Visa, TSMC, Walmart, and JPMorgan Chase. The nine assets ranked above both Berkshire and BTC include Meta, Nvidia, Silver, Amazon, Google, Saudi Aramco, Microsoft, Apple, and Gold.
Gold's market cap of $12.876 trillion is approximately 17.72 times larger than bitcoin's market cap. Meanwhile, Apple's market cap of $2.836 trillion is about 3.9 times greater than bitcoin's valuation.
In order for bitcoin to match gold's market cap of $12.876 trillion, its price would need to reach approximately $659,016 per coin. This would represent a percentage gain of about 1,681.13% from its current price of just above $37,000.
Similarly, to reach Apple's market cap of $2.836 trillion and claim the second position, bitcoin would need to be valued at around $145,151 per coin. This would result in a percentage gain of about 292.30% from the current price of $37,000.
With a market cap of $250 billion, ethereum (ETH), the second-largest crypto asset by valuation, currently ranks 38th among global assets. Ether's market cap is slightly higher than Costco's and slightly lower than Toyota's market valuation on Friday.
What are your thoughts on bitcoin (BTC) becoming the 11th most valuable asset worldwide? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
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. You must complete Form 8606 to open an account. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form must be submitted within 60 days of the account opening. Once this is done, you can start investing. You might also be able to contribute directly from the paycheck through payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process will be identical to 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. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Contributions must be made on a regular basis. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. You can only purchase bullion in physical form. This means you won't be allowed to trade shares of stock or bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. Some IRA providers offer this option.
There are two main drawbacks to investing through an IRA in precious metallics. First, they aren't as liquid than stocks and bonds. They are therefore more difficult to sell when necessary. Second, they are not able to generate dividends as stocks and bonds. Therefore, you will lose money over time and not gain it.
What's the advantage of a Gold IRA?
There are many advantages to a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You also have the option to roll over funds from other retirement accounts into a gold IRA. This allows you to easily transition if your retirement is early.
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. Withdrawals can happen automatically, without any fees or penalties.
There are also drawbacks. Gold has always been volatile. It is important to understand why you are investing in gold. Is it for growth or safety? Is it for insurance purposes or a long-term strategy? Only when you are clear about the facts will you be able take 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 isn't enough to cover all of your needs. Depending upon what you plan to do, you could need several ounces.
A small amount is sufficient if you plan to sell your gold. Even a single ounce can suffice. But, those funds will not allow you to buy anything.
What are the pros and cons of a gold IRA?
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. But, this type of investment comes with its own set of disadvantages.
You may lose all your accumulated savings if you take too much out of your IRA. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
A disadvantage to managing your IRA is the fact that fees must be paid. Most banks charge 0.5% to 2.0% per annum. Other providers may charge monthly management fees, ranging between $10 and $50.
You can purchase insurance if you want to keep your money out of a bank. In order to make a claim, most insurers will require that you have a minimum amount in gold. Insurance that covers losses upto $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers restrict the amount you can own in gold. Others let you pick your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Physical gold is more expensive than gold futures contracts. Futures contracts, however, allow for greater flexibility in buying gold. They allow you to set up a contract with a specific expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. It does offer coverage for natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
Apart from insurance, you should consider the costs of storing your precious metals. Storage costs are not covered by insurance. For safekeeping, banks typically charge $25-40 per month.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians cannot sell your assets. Instead, they must keep your assets for as long you request.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. You should also specify how much you want to invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. The company will then review your application and mail you a letter of confirmation.
A financial planner is a good idea when opening a gold IRA. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
What are the benefits to having a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It is tax-deferred until it's withdrawn. You can decide how much money you withdraw each year. There are many types available. Some are more suitable for students who wish to save money for college. Some are better suited for investors who want higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. The earnings earned after they withdraw the funds aren't subject to any tax. This type account may make sense if it is your intention to retire early.
A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. That means you won't have to think about making deposits every month. You could also set up direct debits to never miss a payment.
Finally, the gold investment is among the most reliable. Its value is stable because it's not tied with any one country. Even during economic turmoil the gold price tends to remain fairly stable. Gold is a good option for protecting your savings from inflation.
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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
External Links
cftc.gov
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
The best way online to buy gold or silver
Understanding how gold works is essential before you buy it. It is a precious metal that is very similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
There are two types currently available: legal tender and bullion. Legal tender coins are designed for circulation in a country. They often have denominations like $1 or $5 or $10.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They aren’t exchangeable in any currency exchange. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. The buyer receives 1 gram of gold for every dollar spent.
You should also know where to buy your gold. There are a few options if you wish to buy gold directly from a dealer. First, you can visit your local coin store. You can also go to a reputable website such as eBay. You might also consider buying gold from an online private seller.
Individuals selling gold at wholesale prices and retail prices are known as private sellers. Private sellers charge a 10% to 15% commission per transaction. A private seller will usually return less money than a coin shop and eBay. This option is often a great choice for investing gold as it allows you more control over its price.
The other option is to purchase physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
When buying gold on your own, you can visit a bank or a pawnshop. A bank can provide you with a loan to cover the amount you wish to invest in gold. These are small businesses that let customers borrow money against the items they bring to them. Banks often charge higher interest rates then pawnshops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold is also easy. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
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By: Jamie Redman
Title: Bitcoin Soars to Become 11th Largest Global Asset, Approaching Berkshire Hathaway's Valuation
Sourced From: news.bitcoin.com/bitcoin-soars-to-become-11th-largest-global-asset-nearing-berkshire-hathaways-valuation/
Published Date: Fri, 10 Nov 2023 15:30:19 +0000
