Crypto Market Sizing Report Reveals Significant Increase in Crypto Ownership
A new report published by Crypto.com, a leading crypto trading platform, highlights a remarkable surge in the number of global cryptocurrency owners in 2023. Despite various challenges, such as monetary tightening by Western central banks, ongoing conflicts, and the lingering impacts of the pandemic, the number of crypto owners worldwide increased by 34%, reaching an impressive 580 million by December.
Bitcoin Ownership Soars by 33%
Of the total global crypto owners, Bitcoin (BTC) accounted for a significant portion, with ownership growing by 33% throughout the year. In January, there were 222 million Bitcoin owners, and this number climbed to 296 million by December. This increase represents 51% of the global crypto ownership base.
Ethereum Witnesses Remarkable Growth of 39%
Ethereum (ETH) also experienced a substantial surge in ownership, with a growth rate of 39% in 2023. In January, there were 89 million Ethereum owners, and by December, this figure rose to 124 million. Ethereum ownership now accounts for 21% of the global crypto ownership base.
Key Drivers of Bitcoin Adoption Growth
The report attributes the significant growth in Bitcoin adoption to the approval of spot bitcoin exchange-traded funds (ETFs) and the introduction of the Bitcoin Ordinals protocol. The development of bitcoin ETFs and the ability to mint non-fungible tokens (NFTs) and fungible tokens on the Bitcoin network played a crucial role in driving the adoption of Bitcoin.
Institutional Interest Fuels Bitcoin Adoption
In addition to the aforementioned factors, strong interest from institutional investors played a pivotal role in driving the increase in Bitcoin adoption. The involvement of institutional investors further solidified Bitcoin's position as a prominent digital asset.
Ethereum's Growth Driven by Liquid Staking
The report also highlights the growth of Ethereum, which was primarily fueled by liquid staking. After Ethereum's Shanghai Upgrade, which facilitated the transition to the Proof of Stake (PoS) blockchain, the ability to withdraw staked ETH contributed to Ethereum's adoption growth.
Spot Bitcoin ETFs Gain Regulatory Approval
The U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs, including one from Grayscale, on January 10. Grayscale, which converted its bitcoin trust (GBTC) into an ETF, experienced substantial outflows since the launch. Conversely, spot bitcoin ETFs such as Blackrock's Ishares Bitcoin Trust witnessed significant inflows, indicating growing investor interest in Bitcoin.
As the crypto market continues to evolve and gain mainstream recognition, the surge in the number of global cryptocurrency owners highlights the growing acceptance and adoption of digital assets. The approval of bitcoin ETFs and the introduction of innovative protocols have played a crucial role in driving this adoption. With institutional investors also showing increasing interest, the future of cryptocurrencies looks promising.
What are your thoughts on the rising number of global crypto owners? Share your opinions in the comments section below.
Frequently Asked Questions
How does a Gold IRA account work?
Physical gold bullion coin can be purchased at any time. You don’t have to wait to begin investing in gold.
The beauty of owning gold as an IRA is you can hold on to it forever. You won't have to pay taxes on your gold investments when you die.
Your heirs will inherit your gold, and not pay capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
To open a IRA for gold, you must first create an individual retirement plan (IRA). After you do this, you will be granted an IRA custodian. This company acts as an intermediary between you and IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit required to purchase gold bullion coins is $1,000 However, you'll receive a higher interest rate if you put in more.
You'll have to pay taxes if you take your gold out of your IRA. You will be liable for income taxes and penalties if you take the entire amount.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. A violation of this rule can lead to severe financial consequences.
How is gold taxed within a Roth IRA
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
You don't pay tax if you have the money in a traditional IRA/401k. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
These accounts are subject to different rules depending on where you live. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to wait until April 1. And in New York, you have until age 70 1/2 . To avoid penalties, plan ahead so you can take distributions at the right time.
What Should Your IRA Include in Precious Metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. It doesn't matter how rich you are to invest in precious metals. You can actually make money without spending a lot on gold or silver investments.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. It is possible to also purchase shares in companies that make precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
Regardless of your choice, you'll still benefit from owning precious metals. These metals are not stocks, but they can still provide long-term growth.
They also tend to appreciate over time, unlike traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
What Precious Metals Can You Invest in for Retirement?
It is gold and silver that are the best precious metal investment. 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 of man's oldest forms of currency. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver is a popular investment choice. It's an ideal choice for those who prefer to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used for jewelry making. And, it's relatively cheap compared to other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also much more affordable. This is why it has become a favourite among investors looking for precious metals.
How much should you have of gold in your portfolio
The amount that you want to invest will dictate how much money it takes. Start small with $5k-10k. As your business grows, you might consider renting out office space or desks. So you don't have all the hassle of paying rent. Only one month's rent is required.
You also need to consider what type of business you will run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. You might get paid only once every six months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- 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)
- 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)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement plans
How to Keep Physical Gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. There is always the chance of them losing their money due to fluctuations of the gold price.
Another option is to purchase physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It's also easy to see how many gold you have. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You are also less likely to be robbed than investing in stocks.
There are however some disadvantages. For example, you won't benefit from banks' interest rates or investment funds. You can't diversify your holdings, and you are stuck with the items you have bought. Finally, the taxman may ask you about where you have put your gold.
BullionVault.com has more information about how to buy gold in an IRA.
By: Kevin Helms
Title: Number of Global Cryptocurrency Owners Surged 34% in 2023
Sourced From: news.bitcoin.com/number-of-crypto-owners-globally-reached-580-million-in-2023-report-shows/
Published Date: Wed, 24 Jan 2024 05:00:03 +0000