According to Chandler Guo, who initiated the latest Ethereum hardfork, the U.S. dollar price of the newly airdropped coin natively to the forked Ethereum Proof-of-Work (PoW), blockchain will be equal to that of ether. Guo stated that the token's value, currently "very low," will grow 100x over the next ten years.
Inflation in ETHW Trade Volumes
Chandler Guo, self-proclaimed organizer of the Ethereum hard fork, stated that Ether (ETH), and the newly airdropped proof-of-work ETHW, will have the same USD values in ten years. Guo claimed that the new token, currently trading at a fraction of its September 15 peak, still has the potential for growth by 100x.
Guo stated that the current price for the forked currency is "very low," thus allowing it to grow 100x. Guo, an ex-ethereum and bitcoin miner, admits that there is still much work to be done before the forked blockchain can grow 100x. He explained:
Currently, ETH prices are high due to the number of developers and more than 200 projects that run on top Ethereum PoS [proof–of-stake] blockchain. There are only 10 projects running on the ETHW.
Guo said that "the ETH proof of work chain already has two DEXs [decentralized exchanges], two bridges and two NFT [non-fungible token] exchanges" in four days. This is to show that the work to ensure the forked chain matches the PoS one has begun.
He said, "Things are happening slowly and I think after one year there will be more than 100 projects running on the PoW chain."
The protocol's daily trading volume has increased since The Merge, despite the addition of bridges and exchanges to the new chain. Although Coinmarketcap data on September 21st 2022 suggests that the ETHW's daily trade volume was just over $100 million, Guo insists that it is closer to $1billion.
"The trading volume for ETHW is enormous. It's now worth almost a billion dollars. [ETHW] is supported by more that 20 mining pools and 2000 miners around the globe. The former miner claimed that ETHW has been listed on more than 30 exchanges.
Bitcoin.com News reported less than a month prior to The Merge that Guo's team had confirmed the imminent split of another Ethereum chain. Two alternative chains emerged as soon as PoS's migration was completed: the ETHW and Ethereumfair (ETF).
Guo commented on the prospects of the other coin. Guo gained fame after playing a role in the 2016 Ethereum blockchain hard fork.
Another team has forked ETH, but no one is mining there or listing their token. There are only a handful of mining pools and exchanges. The success of a fork depends on the person who forked the ETH. This was not to my benefit. Others fork for their benefit or personal gain. They get rich because of that. I don't do that.
It was widely reported that the Ethereum blockchain would see its energy use drop by more than 91%, before it switched from a PoW consensus mechanism to a PoS one. Climate change advocates applauded September 15 Merge as expected. However, some miners fear that this will encourage opponents to the PoW consensus mechanism.
The argument that bitcoin mining is harmful to the environment was raised by a former miner, who flatly denied it. He stated that instead of purchasing electricity from power companies, many bitcoin miners, especially from China prefer to use "abandoned" energy which is often cheaper.
He said that abandoned energy could be hydroelectricity or natural gas which is not being used. Guo says that local communities have benefitted from the use of abandoned energy in areas like Russia and Kazakhstan where miners harness such energy to mine Bitcoin.
Guo made the following comment regarding reports that the Ethereum merger may have given grounds for the U.S. Securities and Exchange Commission to institute or launch proceedings against some of the blockchain's cofounders:
"I believe Vitalik [Buterin] is the boss. His name is Joseph Lubin. Because he is connected to Wall Street, this guy can solve the problem. He is able to deal with the SEC."
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Frequently Asked Questions
How much gold should your portfolio contain?
The amount of capital required will affect the amount you make. You can start small by investing $5k-10k. As you grow, you can move into an office and rent out desks. So you don't have all the hassle of paying rent. You just pay per month.
It is also important to decide what kind of business you want to run. In my case, we charge clients between $1000-2000/month, depending on what they order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. You might get paid only once every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I suggest starting with $1k-2k gold and building from there.
What should I pay into my Roth IRA
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, your principal (the original deposit amount) cannot be touched. No matter how much money you contribute, you cannot take out more than was originally deposited to the account. If you take out more than the initial contribution, you must pay tax.
The second rule is that your earnings cannot be withheld without income tax. When you withdraw, you will have to pay income tax. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. You would owe $3,500 in federal income taxes on the earnings. You would have $6,500 less. Because you can only withdraw what you have initially contributed, this is all you can take out.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types: Roth IRAs that are traditional and Roth. A traditional IRA allows for you to deduct pretax contributions of your taxable income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal amount, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
What are the pros & con's of a golden IRA?
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. However, there are disadvantages to this type investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Others charge management fees that range from $10 to $50 per month.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers restrict the amount you can own in gold. Others allow you the freedom to choose your own weight.
You'll also need to decide whether to buy physical gold or futures contracts. The price of physical gold is higher than that of gold futures. However, futures contracts give you flexibility when buying gold. You can set up futures contracts with a fixed expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does offer coverage for natural disasters. You may consider adding additional coverage if you live in an area at high risk.
Apart from insurance, you should consider the costs of storing your precious metals. Insurance doesn't cover storage costs. For safekeeping, banks typically charge $25-40 per month.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians don't have the right to sell assets. Instead, they must hold them as long as you request.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Also, you should specify how much each month you plan to invest.
After filling in the forms, please send them to the provider. The company will review your application and send you a confirmation letter.
A financial planner is a good idea when opening a gold IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
How is gold taxed in Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
These rules vary from one state to another. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. In Massachusetts, you can wait until April 1st. New York has a maximum age limit of 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
What precious metals could you invest in to retire?
It is gold and silver that are the best precious metal investment. Both are easy to sell and can be bought easily. They are a great way to diversify your portfolio.
Gold: The oldest form of currency known to man is gold. It's also very safe and stable. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Investors have always loved silver. It's a great option for those who want stability. Silver tends to move up, not down, unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. It's like silver or gold in that it is durable and resistant to corrosion. It's also more expensive than the other two.
Rhodium – Rhodium is used to make catalytic conversions. It's also used in jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium is similar to platinum, but it's less rare. It's also more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
Three Ways to Invest In Gold For Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. You have many options for investing in gold if there is a 401K account at your workplace. You may also be interested in investing in gold beyond your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. Or, if you don't already own any precious metals, you may want to consider buying them directly from a reputable dealer.
These are the rules for gold investing:
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, invest in cash. This will help protect you against inflation and keep your purchasing power high.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. Physical gold coins can be sold much faster than paper certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio – Never put all of your eggs in one basket. This means that you should diversify your wealth by investing in different assets. This can reduce market volatility and help you be more flexible.
By: Terence Zimwara
Title: Ethereum Hard Fork Instigator Chandler Guo Claims the Value of ETH and Forked ETHW Will Be the Same in 10 Years
Sourced From: news.bitcoin.com/ethereum-hard-fork-instigator-chandler-guo-claims-the-value-of-eth-and-forked-ethw-will-be-the-same-in-10-years/
Published Date: Fri, 23 Sep 2022 07:30:32 +0000
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