Economist Peter Schiff's Crypto Regulation Predictions
Economist and gold bug Peter Schiff, known for his skepticism towards bitcoin, has made predictions regarding the introduction of new crypto regulations by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. Schiff believes that these regulations will have a significant impact on the price of bitcoin, causing a sharp decline. He anticipates that the focus of these regulations will be on anti-money laundering (AML) rather than securities law.
Schiff's Thoughts on Gensler and Bitcoin
Schiff took to social media platform X to share his thoughts on the recent approval of spot bitcoin exchange-traded funds (ETFs) by the SEC. He believes that Gensler, who was backed into a corner due to this approval, will soon introduce new onerous crypto regulations. According to Schiff, these regulations will increase the cost of bitcoin transactions, undermining its use case and ultimately leading to a decline in price.
While Gensler has previously expressed his belief that most crypto tokens, excluding bitcoin, are securities, Schiff thinks that the new regulations will focus on AML rather than securities law. He even suggests that Gensler may change his mind on bitcoin.
Reactions to Schiff's Predictions
Many users on X responded to Schiff's posts, offering their opinions on the matter. Some questioned how Gensler could raise bitcoin transaction costs, wondering if he had control over the Bitcoin mempool or if the SEC would spend money on bidding for block space.
Others highlighted Gensler's past statements regarding bitcoin as a commodity. They noted that it would be challenging for him to regulate bitcoin, including the on ramps and off ramps, unless they dealt with unregistered securities.
One user pointed out that the SEC primarily enforces securities laws and protects investors in securities, while AML regulations fall under the jurisdiction of other agencies like the Financial Crimes Enforcement Network (FinCEN).
Final Thoughts
Peter Schiff's predictions about the introduction of new crypto regulations by SEC Chair Gary Gensler have sparked discussions among cryptocurrency enthusiasts. While some agree with Schiff's views, others question the extent to which Gensler can influence bitcoin transaction costs. Only time will tell how these regulations will unfold and their impact on the bitcoin market.
What are your thoughts on Peter Schiff's predictions? Do you believe that the new regulations will cause a decline in the price of bitcoin? Share your opinions in the comments section below.
Frequently Asked Questions
Are gold investments a good idea for an IRA?
For anyone who wants to save some money, gold can be a good investment. It can be used to diversify your portfolio. There is much more to gold than meets your eye.
It has been used as a currency throughout history and is still a popular method of payment. It's often referred to as “the world's oldest currency.”
Gold, unlike other paper currencies created by governments is mined directly from the earth. It is very valuable, as it is rare and hard to create.
Gold prices fluctuate based on demand and supply. The strength of the economy means people spend more, and so, there is less demand for gold. This results in gold prices rising.
The flip side is that people tend to save money when the economy slows. This means that more gold is produced, which reduces its value.
This is why gold investment makes sense for both individuals and businesses. You will benefit from economic growth if you invest in gold.
Your investments will also generate interest, which can help you increase your wealth. You won't lose your money if gold prices drop.
What does a gold IRA look like?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase physical gold bullion coins anytime. To start investing in gold, it doesn't matter if you are retired.
Owning gold as an IRA has the advantage of allowing you to keep it forever. You won't have to pay taxes on your gold investments when you die.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
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 a mediator between you, the IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reporting.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit required for gold bullion coins purchase 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. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
Even if your contribution is small, you might not have to pay any taxes. However, there are some exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
Avoid taking out more that 50% of your total IRA assets each year. You'll be facing severe financial consequences if you do.
Is the government allowed to take your gold
Your gold is yours, so the government cannot confiscate it. It's yours, and you earned it by working hard. It belongs entirely to you. But, this rule is not universal. You can lose your gold if you have been convicted for fraud against the federal governments. You can also lose precious metals if you owe taxes. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- 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
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement funds
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
finance.yahoo.com
How To
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. In addition, because of its value, it was traded internationally. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. This resulted in a decline of foreign currency demand and an increase in the price. The price of gold dropped because the United States began to mint large quantities of gold coins. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. They sold some of their excess gold to Europe to pay off the debt.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. After World War I, however, many European countries started using paper money to replace gold. Since then, the price of gold has increased significantly. Even though the price of gold fluctuates, it remains one the best investments you can make.
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By: Kevin Helms
Title: Peter Schiff Predicts New Crypto Regulations by SEC Chair Gary Gensler Will Cause Bitcoin Price Decline
Sourced From: news.bitcoin.com/peter-schiff-predicts-bitcoin-bloodbath-expects-sec-chair-gary-gensler-to-introduce-new-onerous-crypto-regulations/
Published Date: Fri, 19 Jan 2024 00:30:09 +0000
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