Renowned whistleblower Edward Snowden has made a bold prediction regarding Bitcoin, suggesting that a national government will enter the Bitcoin market in 2024 by acquiring BTC.
Snowden's Prediction
Snowden stated, "Prediction: A national government will be revealed this year to have been buying Bitcoin—the modern replacement for monetary gold—without having disclosed that fact publicly."
Increasing Interest in Bitcoin
Snowden's prediction comes at a time of rising institutional, retail, and nation-state interest in Bitcoin. Major corporations and investment firms are allocating significant resources to this digital asset. While Snowden did not specify which government he believes will make the purchase, the potential for a second national government to acquire Bitcoin and declare it legal tender, similar to El Salvador's move in 2021, would mark a significant milestone for Bitcoin.
El Salvador's Success with Bitcoin
El Salvador President Nayib Bukele recently commented on Bitcoin's price surge, highlighting the country's success. He mentioned that despite the fluctuations in Bitcoin's market price, El Salvador's investment has proven profitable. The country's embrace of Bitcoin has not only increased the value of their investments but has also attracted tourism and investment opportunities from the global Bitcoin community.
Rising Interest in Bitcoin Among Other Nations
El Salvador's positive experience with Bitcoin may serve as a model for other countries looking to benefit from digital assets. Snowden's prediction reflects the growing acceptance of Bitcoin in mainstream discussions about its potential to transform traditional financial systems and its role in the global economy.
Frequently Asked Questions
What is the best precious metal to invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. Gold is a traditional haven investment. However, it is not always the most profitable. For example, if your goal is to make quick money, gold may not suit you. If patience and time are your priorities, silver is the best investment.
If you don't care about getting rich quickly, gold is probably the way to go. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
Can I buy gold using my self-directed IRA
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contract are financial instruments that depend on the gold price. They allow you to speculate on future prices without owning the metal itself. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
Who is entitled to the gold in a IRA that holds gold?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
A financial planner or accountant should be consulted to discuss your options.
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 isn't considered income. If you sell it later you will have a taxable profit if the price goes down.
You can use gold as collateral to secure loans. Lenders will seek the highest return on your assets when you borrow against them. This often means selling gold. The lender might not do this. They might keep it. They may decide to resell it. The bottom line is that you could lose potential profit in any case.
You should not lend against your gold if it is intended to be used as collateral. It is better to leave it alone.
Statistics
- 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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
cftc.gov
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads and Example. Risk Metrics
irs.gov
How To
Gold IRAs are a growing trend
As investors seek to diversify their portfolios while protecting themselves from inflation, the trend towards gold IRAs is on the rise.
Gold IRA owners can now invest in physical gold bullion or bars. It is a tax-free investment that can be used to grow wealth and offers an alternative investment option to those who are concerned about stocks or bonds.
Investors can manage their assets with a gold IRA without worrying about market volatility. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also have the benefit of physical gold, which has unique properties such durability, portability and divisibility.
Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.
This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.
—————————————————————————————————————————————————————————————–
By: Nik Hoffman
Title: Edward Snowden Predicts Government Purchase of Bitcoin in 2024
Sourced From: bitcoinmagazine.com/markets/edward-snowden-anticipates-government-acquisition-of-bitcoin-in-2024
Published Date: Wed, 28 Feb 2024 20:11:50 GMT
Did you miss our previous article…
https://altcoinirareview.com/vanguard-intensifies-its-anti-bitcoin-and-anti-crypto-policy-drawing-criticism-from-ark-invest-ceo/
Related posts:
Vaneck Unveils 15 Crypto Predictions: Spot Bitcoin ETF Approvals, US Recession, BTC’s Historic Rally
Zephyr Changes the Crypto Predictions Market – Are You In?
Paradigm Supports Kalshi’s Election Prediction Platform in Legal Battle Against CFTC
Bitwise Unveils 10 Crypto Predictions for 2024: Bitcoin to Surpass $80,000, Spot Bitcoin ETFs Could Capture $72 Billion
