Bitcoin's Market Dominance and Potential
Bitcoin (BTC), the leading cryptocurrency by market cap, has garnered significant attention in the digital currency realm due to its robustness and dominant position. Currently, its value hovers just below the $34,000 mark. A recent report by finder.com provides valuable insights into the future price trajectory of bitcoin, as predicted by industry specialists.
Insights from 31 Fintech and Crypto Experts
The report, titled "Bitcoin to Hit $87,000 by 2025," offers an in-depth analysis of potential price movements for bitcoin based on the perspectives of 31 experts and panelists within the sector. One of the key discussions in the report revolves around the possibility of a spot bitcoin exchange-traded fund (ETF) receiving approval. Surprisingly, 47% of the experts believe that such an endorsement could propel bitcoin to unprecedented heights. Additionally, around 60% of the participants anticipate the approval of a spot bitcoin ETF by 2024.
Bitcoin's Projected Value and ETF Approval
The consensus among the surveyed individuals suggests that BTC's value will reach $30,000 per unit by the end of 2023, surpassing its all-time high of $69,000, and eventually reaching $87,000 by 2025. Mitesh Shah, the founder of Omnia Markets, predicts that BTC will end this year at $35,000 and escalate to $105,000 by 2025. Shah represents the 20% of surveyed individuals who expect an ETF's approval within the current year. "There is a growing consensus that the SEC will eventually approve a bitcoin ETF, with Blackrock's application being the most likely candidate," Shah commented.
The CEO of Omnia further added, "The approval of any bitcoin ETF would open the floodgates for institutional investment, and the announcement of such approval would likely result in an immediate spike in bitcoin's price."
The Significance of the 2024 BTC Halving Event
The upcoming BTC halving event in 2024 is seen as a critical milestone in bitcoin's history, with 57% of Finder's experts predicting a moderate increase in its price leading up to the event. This trend aligns with historical patterns where bitcoin's value typically experiences an upswing after halving events due to a decreased rate of new BTC entering circulation. Damian Chmiel, the senior analyst and editor at Finance Magnates, anticipates that BTC will stabilize at $30,000 this year and rise to $50,000 by 2025.
"Next year's halving could be an event that shifts the balance of power in favor of bitcoin. I still believe that the digital asset will ultimately reach new all-time highs and attain a six-figure value," Chmiel expressed. While 57% of experts anticipate a moderate increase prior to the halving, 30% expect a more substantial upswing, and 3% foresee no price fluctuation before the event. The report also explores bitcoin's global influence, highlighting its role as a market leader and its impact on the broader financial landscape.
Differing Perspectives on Bitcoin's Future
Desmond Marshall, the managing director at Rouge International and Rouge Ventures, presents a less optimistic outlook compared to many of his peers. He attributes his bearish forecast to recent regulatory actions by SEC chairman Gary Gensler and "rumors of a recession." Marshall predicts that by 2025, bitcoin's value will remain at $35,000, mirroring its current price trajectory.
"BTC is still the strongest cryptocurrency, so I don't think the dip will be as severe as other tokens," Marshall said. "The halving timeline should provide a boost, but interference from U.S. policies will prevent it from reaching the moon."
Finder's Report and Expert Recommendations
Interestingly, this latest report from Finder takes a more cautious stance compared to its previous editions, where some experts projected bitcoin valuations in the six-figure range. In conclusion, the report reveals that 66% of Finder's 31 fintech and crypto specialists consider the current moment to be opportune for acquiring BTC, while 24% advocate for holding onto existing holdings. Approximately 10% of the experts recommend selling BTC at this juncture.
What are your thoughts on Finder's latest report regarding bitcoin's future price? Share your opinions in the comments section below.
Frequently Asked Questions
What Should Your IRA Include in Precious Metals?
You should remember that precious metals are not only for the wealthy. They don't require you to be wealthy to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.
You might consider purchasing physical coins, such as bullion bars and rounds. You could also buy shares in companies that produce precious metals. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You'll still get the benefit of precious metals no matter which country you live in. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices are more volatile than traditional investments. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
How much money should I put into my Roth IRA?
Roth IRAs allow you to deposit your money tax-free. The account cannot be withdrawn from until you are 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, you cannot touch your principal (the original amount deposited). This means that you can't take out more money than you originally contributed. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.
The second rule is that your earnings cannot be withheld without income tax. So, when you withdraw, you'll pay taxes on those earnings. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. The federal income tax on your earnings would amount to $3,500. So you would only have $6,500 left. Because you can only withdraw what you have initially contributed, this is all you can take out.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types if Roth IRAs: Roth and Traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. You can withdraw your contributions plus interest from your traditional IRA when you retire. You can withdraw as much as you want from a traditional IRA.
Roth IRAs do not allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal amount, unlike traditional IRAs. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
Should You Open a Precious Metal IRA?
You should be aware that precious metals cannot be covered by insurance. There are no ways to recover the money you lost in an investment. All your investments can be lost due to theft, fire or flood.
This type of loss can be avoided by investing in physical silver and gold coins. These items have been around for thousands of years and represent real value that cannot be lost. You would probably get more if you sold them today than you paid when they were first created.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. You should also consider using a third party custodian to protect your assets and give you access at any time.
Remember that you will not see any returns unless you are retired if you open an Account. So, don't forget about the future!
How does a gold IRA account work?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
Physical gold bullion coin can be purchased at any time. To invest in gold, you don't need to wait for retirement.
You can keep gold in an IRA forever. You won't have to pay taxes on your gold investments when you die.
Your gold is passed to your heirs without capital gains tax. Your gold is not part of your estate and you don't have to include it in the final estate report.
First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've done that, you'll receive an IRA custody. 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 reporting.
Once your gold IRA is established, you can purchase gold bullion coins. The minimum deposit required to purchase gold bullion coins is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
When you withdraw your gold from your IRA, you'll pay taxes on it. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. There are exceptions. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus 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.
What are some of the benefits of a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You are in complete control of how much you take out each fiscal year. There are many types available. Some are better for those who want to save money for college. Others are made for investors seeking higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. You won't have the hassle of making deposits each month. To avoid missing a payment, direct debits can be set up.
Finally, the gold investment is among the most reliable. Because it's not tied to any particular country, its value tends to remain steady. Even in economic turmoil, gold prices tends to remain relatively stable. Gold is a good option for protecting your savings from inflation.
How much of your portfolio should you hold in precious metals
To answer this question we need to first define precious metals. Precious Metals are elements that have a very high relative value to other commodities. They are therefore very attractive for investment and trading. Gold is today the most popular precious metal.
There are however many other types, including silver, and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It also remains relatively unaffected by inflation and deflation.
In general, prices for precious metals tend increase with the overall marketplace. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. They are more rare, so they become more expensive and less valuable.
You must therefore diversify your investments in precious metals to reap the maximum profits. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement funds
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. Due to its value, it was also internationally traded. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This caused a drop in foreign currency demand which resulted in an increase of their prices. The United States began minting large quantities gold coins at this time, which led to a drop in the price. 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. The value of gold has significantly increased since then. Even though the price fluctuates, gold is still one of best investments.
By: Jamie Redman
Title: The Future of Bitcoin: Experts Predict BTC's Price to Reach $87,000 by 2025
Sourced From: news.bitcoin.com/finders-experts-predict-bitcoin-to-reach-87k-by-2025-settling-at-30k-by-years-end/
Published Date: Thu, 26 Oct 2023 23:30:04 +0000