A Surge in Bitcoin Ownership Among Americans
Unchained, a prominent Bitcoin financial services provider, has released a new report that reveals a fascinating surge in bitcoin ownership among Americans. According to their findings, one in four Americans, which accounts for 25% of the population, own bitcoin. Additionally, 55% of surveyed investors, defined by Unchained as those with at least one investment account between the ages of 18 and 78, also own bitcoin.
Increasing Holdings and Future Outlook
The study, which surveyed 402 US investors, further revealed that 95% of current BTC owners are considering increasing their holdings in 2024. Remarkably, almost half of non-BTC owners expressed a strong inclination towards purchasing bitcoin within the upcoming year.
The key drivers influencing potential BTC purchases in 2024 include increased regulatory clarity around digital assets. This factor was highlighted by 42% of current BTC owners and 35% of non-owners. Other influential elements identified were the potential approval of a bitcoin spot Exchange-Traded Fund (ETF) by the Securities and Exchange Commission (SEC) and the anticipation of a US economic recession.
Optimism Despite Price Volatility
Despite BTC's price being down over 50% from its peak, 79% of investors foresee BTC surpassing its all-time high of $69,000. More optimistically, over half of the surveyed investors (55%) predict a new all-time high for BTC in 2024, with a third believing BTC will outperform cash, gold, and the S&P 500.
Rise in Bitcoin Allocation in Retirement Portfolios
Unchained's survey also foresees a significant rise in bitcoin allocation within retirement portfolios. Nearly half of current BTC owners have BTC in their retirement accounts, and an additional 35% are considering adding it in 2024. Among non-BTC owners open to investing in the asset, 23% expressed interest in including BTC in their retirement accounts.
Unchained's Commitment to Bitcoin Investors
Joe Kelly, co-founder and CEO of Unchained, stated, "At Unchained, we are seeing an influx of bitcoin newcomers who now understand that the asset has longevity. As reflected in both Unchained’s survey results and the activity of our clients, US investors are eager to gain or expand bitcoin exposure — especially through tax-advantaged vehicles like Unchained’s bitcoin IRA. As more investors look to open or grow their bitcoin positions, Unchained looks forward to serving them whether it be through collaborative custody, the Unchained IRA, our trading desk, or our inheritance solutions."
Insights from a Representative Sample
With an estimated 158 million Americans owning investment accounts, Unchained's survey provides valuable insights into the sentiments and expectations of the US investor population. The survey was conducted digitally from October 26 to 28, 2023, during a period when the price of bitcoin ranged from $33,610 to $34,977. The survey represents the US investor population with a 5% margin of error at a 95% confidence level, making it a reliable source of information for understanding the trends in bitcoin ownership and investor sentiment.
Frequently Asked Questions
Who owns the gold in a Gold IRA?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
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 are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
How much should precious metals be included in your portfolio?
To answer this question, we must first understand what precious metals are. Precious metals have elements with an extremely high worth relative to other commodity. This makes them highly valuable for both investment and trading. Gold is currently the most widely traded precious metal.
There are also many other precious metals such as platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
In general, all precious metals have a tendency to go up with the market. That said, they do not always move in lockstep with each other. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rates which makes bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Since these are scarce, they become more expensive and decrease in value.
You must therefore diversify your investments in precious metals to reap the maximum profits. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
How much tax is gold subject to in an IRA
The fair value of gold sold to determines the price at which tax is due. When you purchase gold, you don't have to pay any taxes. It isn't considered income. If you sell it later, you'll have a taxable gain if the price goes up.
Gold can be used as collateral for loans. Lenders seek to get the best return when you borrow against your assets. This often means selling gold. There's no guarantee that the lender will do this. They may keep it. Or, they may decide to resell the item themselves. In either case, you risk losing potential profits.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. Otherwise, it's better to leave it alone.
What are the pros & con's of a golden IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't 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. But, this type of investment comes with its own set of disadvantages.
You could lose all of your accumulated money if you take out too much from your IRA. 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.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management costs ranging from $10-50.
Insurance is necessary if you wish to keep your money safe from the banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. It is possible that you will be required to purchase insurance that covers losses of up to $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 limit how many ounces you can keep. Others allow you to pick your weight.
You'll also need to decide whether to buy physical gold or futures contracts. Gold futures contracts are more expensive than physical gold. However, futures contracts give you flexibility when buying gold. They enable you to establish a contract with an 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. The policy does not cover natural disasters. If you live in a high-risk area, you may want to add additional coverage.
Apart from insurance, you should consider the costs of storing your precious metals. Insurance doesn't cover storage costs. Safekeeping costs can be as high as $25-40 per month at most banks.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians aren't allowed to sell your assets. Instead, they must maintain them for as long a time 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. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. Your monthly investment goal should be stated.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. The company will then review your application and mail you a letter of confirmation.
Consider consulting a financial advisor when opening a golden IRA. A financial planner can help you decide the type of IRA that is right for your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
How to Open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. 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. After this, you are ready to start investing. You might also be able to contribute directly from the paycheck through payroll deduction.
To get a Roth IRA, complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. The IRS states that you must be at least 18 and have earned income. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. And, you have to make contributions regularly. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. But, you'll only be able to purchase physical bullion. This means you can't trade shares of stock and bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option is offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. They aren't as liquid as bonds or stocks. This makes them harder to sell when needed. Second, they are not able to generate dividends as stocks and bonds. Therefore, you will lose more money than you gain over time.
Statistics
- 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)
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
External Links
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
bbb.org
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 Legal – WSJ
How To
Gold Roth IRA guidelines
The best way to invest for retirement is by starting early. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. You must contribute enough each year to ensure that you have adequate growth.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. They are a great option for those who do not have access to employer matching money.
It's important to save regularly and over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.
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By: Nik Hoffman
Title: One in Four Americans Own Bitcoin: Unchained Study
Sourced From: bitcoinmagazine.com/markets/one-in-four-americans-own-bitcoin-unchained-study
Published Date: Wed, 29 Nov 2023 20:00:00 GMT
