The Price of Bitcoin in 2024: AI Chatbots’ Predictions

Introduction

In November 2023, six AI-driven chatbots were queried to forecast the value of bitcoin by year-end. Their projections ranged from $15,000 to $45,000 per bitcoin. However, as of the initial week of January 2024, bitcoin's trading value reached $47,000, coinciding with the approval of 11 spot bitcoin exchange-traded funds (ETFs) in the U.S. With the bitcoin halving event approaching, we revisited these chatbots to gather their updated predictions for bitcoin's price at the close of the year.

Revisiting the AI Chatbots

On January 11, 2024, Bitcoin.com News reached out to Openai's Chatgpt 3.5, Chatgpt 4, Bing's Co-Pilot Creative, Google's Bard (Gemini), Anthropic's Claude Instant, and Inflection AI's Pi. We inquired about their projections for bitcoin's value by the end of 2024. The prompt mirrored our previous test but incorporated a few modifications, including the current date, the countdown to the next BTC reward halving, and the recent approval of 11 spot bitcoin ETFs.

Claude Instant's Prediction

Claude Instant expects bitcoin's price to reach $85,000 by December 31, 2024. This projection is based on increased institutional adoption, regulatory clarity, and the decreasing new supply resulting from the 2024 halving. The approval of ETFs and growing recognition as an inflation hedge are expected to boost demand. However, potential global economic headwinds could limit the upside. Overall, Claude Instant believes that bitcoin's fundamentals and its role as digital gold point to continued price appreciation in 2024.

Pi's Prediction

Pi predicts that the price of bitcoin could reach around $75,000 by December 31, 2024. Pi highlights the approval of 11 spot bitcoin ETFs as a game-changer for the cryptocurrency market. This approval is likely to attract new investors who were previously hesitant due to the lack of regulated investment products. Additionally, the upcoming halving event, which reduces the supply of new bitcoins, is expected to contribute to the price increase. Pi finds the current price of bitcoin at $47,000 and the recent developments in the market highly promising.

Bard's (Gemini) Prediction

Bard's prediction for bitcoin's price by December 31, 2024, falls within the range of $75,000 to $85,000. Bard acknowledges the potential for growth with new ETF approvals and the current bitcoin price of $47,000. However, Bard advises caution due to the volatile nature of cryptocurrencies and the influence of various factors like macroeconomic conditions, regulatory changes, and market sentiment. While the projected price range seems plausible, it is not guaranteed.

Chatgpt 4's Prediction

Chatgpt 4 provides a conservative estimate, suggesting a price range of $40,000 to $60,000 for bitcoin by December 31, 2024. This estimate takes into account potential market fluctuations and investor caution. On the more optimistic side, fueled by increased adoption and investment following the ETF approvals and halving event, the price could potentially range between $60,000 and $80,000. However, these estimates should be interpreted with caution, given the inherent unpredictability of cryptocurrency markets.

Bing AI (Co-Pilot Creative Mode)'s Prediction

Bing AI predicts that the price of bitcoin on December 31, 2024, will be around $75,000 per unit. However, it is important to note that this prediction is not financial advice, and individuals should conduct their own research before making any investment decisions. Bing AI arrives at this prediction based on information gathered from various sources.

Increased Responsiveness and Bullish Stance

Compared to our previous experiment, the AI chatbots demonstrated increased responsiveness and a greater willingness to offer price predictions. They provided more bullish forecasts this time, in contrast to their cautious predictions in November. However, these updated predictions still remain relatively conservative when compared to some individuals' expectations of triple-digit BTC prices by year-end.

What are your thoughts on the predictions made by the AI chatbots for bitcoin's price by the end of 2024? Share your opinions in the comments section below.

Frequently Asked Questions

What are the pros and cons of a gold IRA?

An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. However, there are disadvantages to this type investment.

You may lose all your accumulated savings if you take too much out of your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. A penalty fee will be charged if you decide to withdraw funds.

Another problem is the cost of managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.

Insurance will be required if you would like to keep your cash out of banks. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.

You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers limit how many ounces you can keep. Others let you pick your weight.

Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Gold futures contracts are more expensive than physical gold. Futures contracts offer flexibility for buying gold. They enable you to establish a contract with an expiration date.

Also, you will need to decide on the type of insurance coverage you would like. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. It does provide coverage for damage from natural disasters, however. You may consider adding additional coverage if you live in an area at high risk.

You should also consider the cost of storage for your gold. Insurance doesn't cover storage costs. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.

A qualified custodian is required to help you open a Gold IRA. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians can't sell assets. Instead, they must maintain them for as long a time as you request.

After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Your monthly investment goal should be stated.

After filling in the forms, please send them to the provider. After reviewing your application, the company will send you a confirmation mail.

You should consult a financial planner before opening a Gold IRA. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.

How much money should I put into my Roth IRA?

Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. You cannot touch your principal (the amount you originally deposited). You cannot withdraw more than the original amount you contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.

You cannot withhold your earnings from income taxes. So, when you withdraw, you'll pay taxes on those earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's say you earn $10,000 each year after contributing. The federal income tax on your earnings would amount to $3,500. You would have $6,500 less. Because you can only withdraw what you have initially contributed, this is all you can take out.

The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. In addition, 50% of your earnings will be subject to tax again (half of 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.

There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow you to deduct pretax contributions from your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. You have the option to withdraw any amount from a traditional IRA.

A Roth IRA doesn't allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal requirement, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.

Do You Need to Open a Precious Metal IRA

You should be aware that precious metals cannot be covered by insurance. You cannot recover any money you have invested. This includes any loss of investments from theft, fire, flood or other circumstances.

This type of loss can be avoided by investing in physical silver and gold coins. These items have been around thousands of years and are irreplaceable. 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. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.

You won't get any returns until you retire if you open an account. Keep your eyes open for the future.

What tax is gold subject in an IRA

The fair market value at the time of sale is what determines how much tax you pay on gold sales. If you buy gold, there are no taxes. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.

As collateral for loans, gold is possible. Lenders try to maximize the return on loans that you take against your assets. This often means selling gold. However, there is no guarantee that the lender would do this. They might keep it. They might decide to sell it. The bottom line is that you could lose potential profit in any case.

To avoid losing money, only lend against gold if you intend to use it for collateral. Otherwise, it's better to leave it alone.

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 is tax-deferred until it's withdrawn. You can decide how much money you withdraw each year. There are many types available. Some are better suited for people who want to save for college expenses. Others are designed for investors looking for higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. However, once they begin withdrawing funds, these earnings are not taxed again. 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 you don't need to worry about taxes while you wait for your gains to be available. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.

Another advantage to owning gold via an IRA is the ease of automatic withdraws. It means that you don’t have to remember to make deposits every month. To ensure that you never miss a payment, you could set up direct debits.

Finally, the gold investment is among the most reliable. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even in times of economic turmoil, gold prices tend not to fluctuate. Gold is a good option for protecting your savings from inflation.

Who is entitled to the gold in a IRA that holds gold?

An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.

To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five years.

Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.

You will need to declare the value of gold if you intend on selling it one day. This could impact how capital gains taxes you owe for cash investments.

Consult a financial advisor or accountant to determine your options.

Statistics

  • 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)
  • You can only purchase gold bars at least 99.5% purity. (forbes.com)
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
  • 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

law.cornell.edu

finance.yahoo.com

irs.gov

wsj.com

How To

Investing In Gold vs. Investing In Stocks

It might seem risky to invest in gold as an investment vehicle these days. This is because many people believe that gold investment is no longer profitable. This belief comes from the fact most people see gold prices falling due to the global economy. They think that they would lose money if they invested in gold. In reality, however, there are still significant benefits that you can get when investing in gold. Below we'll look at some of them.

One of the oldest currencies known to man is gold. There are thousands of records that show gold was used over the years. It has been used as a store for value by people all over the globe. It's still used by countries like South Africa as a method of payment.

When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. You must determine how much gold bullion you can afford per gram before you consider buying it. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.

It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. The price of gold may have fallen, but the production costs haven’t.

You should also consider the amount of your intended purchase when considering whether you should buy or not. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. It is worth considering if you intend to use it for long-term investment. Selling your gold at a higher value than what you bought can help you make money.

We hope you have gained a better understanding about gold as an investment tool. We strongly recommend that you research all available options before making any decisions. Only after you have done this can you make an informed choice.

—————————————————————————————————————————————————————————————–
By: Jamie Redman
Title: The Price of Bitcoin in 2024: AI Chatbots' Predictions
Sourced From: news.bitcoin.com/6-ai-chatbots-forecast-bitcoins-2024-finale-predicting-60k-to-90k-amid-etf-inflows-and-halving-hype/
Published Date: Fri, 12 Jan 2024 16:00:32 +0000

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