The hash rate reached an all-time high. While miners appear to have stopped selling bitcoin, institutions seem still interested in the cryptocurrency and long-term holders keep stacking sats.
This transcript is an excerpt from the "Bitcoin Magazine podcast", hosted by P & Q. Sam Callahan joins them to discuss the three main reasons why he is bullish on Bitcoin, even in the depths the bear market.
You can watch this episode on YouTube or Rumble
Listen to the Episode Here
Sam Callahan: A hash rate that is constantly high is a positive sign. This is a function of the 2021 miners who had capital access and were able to make a lot of capital expenditures to expand their facilities. Now we see that those plans are starting to come into reality and that miners are actually being hired.
Supply chain problems were another factor. The hash rate rise is more due to large miners getting their stuff online than it is more miners turning on, so I believe that. This is a positive development for the Bitcoin network. Another positive development is that you are seeing the total supply of long-term HODLers at an all-time high.
It just shows that there is a convicted base HODLers who aren't moving coins. I believe it's everyone on this call right at the moment that's part. Another thing is that institutional interest remains throughout the bear market. These developments were not as evident in 2018's bear market bottom. It was very quiet, which was quite sad. You now have news like Fidelity announcing that they are considering offering bitcoin to individual brokerage accounts in millions. Franklin Templeton is also there — almost like a trillion-dollar manager — they are still building infrastructure for the next bull market, despite bitcoin being down 70%.
This is why I find it bullish. This just shows that despite the price movement, there is still excitement at the institutional level. Infrastructure is being built. This is the kind of thing I love to see.
Those are the three things I would say: Hashrate all-time high, good; miners stop selling or at minimum for now; long-term HODLers hold on; institutional interests. These three factors are bullish developments. That's what I am excited about.
Frequently Asked Questions
How can you withdraw from an IRA of Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, figure out how much money will be taken out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs permit you to withdraw your funds tax-free once you turn 59 1/2. Roth IRAs have income taxes upfront, but you can access the earnings later on without paying additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage areas will accept bullion, while others require you to purchase individual coins. Before you choose one, weigh the pros and cons.
Bullion bars are easier to store than individual coins. However, you'll need to count every coin individually. You can track their value by keeping individual coins.
Some prefer to keep their money in a vault. Others prefer to place them in safe deposit boxes. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
How much of your portfolio should be 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. This makes them very valuable in terms of trading and investment. The most traded precious metal is gold.
But, there are other types of precious metals available, including platinum and silver. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is not affected by inflation or deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, they may not always move in synchrony with each other. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. This is because investors expect lower interest rates, making bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. Since these are scarce, they become more expensive and decrease in value.
Diversifying across precious metals is a great way to maximize your investment returns. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
Should You Invest Gold in Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. If you are unsure of which option to invest in, consider both.
Gold is a safe investment and can also offer potential returns. It's a great investment for retirees.
Gold is more volatile than most other investments. Because of this, gold's value can fluctuate over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. You should just factor the fluctuations into any overall portfolio.
Another advantage of gold is its tangible nature. Gold is much easier to store than bonds and stocks. It can be easily transported.
You can always access gold as long your place it safe. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold tends to rise when the stock markets fall.
Another advantage to investing in gold is the ability to sell it whenever you wish. You can also liquidate your gold position at any time you need cash, just like stocks. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Do not buy too much at one time. Start by purchasing a few ounces. You can add more as you need.
It's not about getting rich fast. It is to create enough wealth that you no longer have to depend on Social Security.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
What are the benefits of a gold IRA
Many benefits come with a gold IRA. You can diversify your portfolio with this investment vehicle. You decide how much money is put in each account and when it is withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This makes for an easy transition if you decide to retire early.
The best part? You don’t need to have any special skills to invest into gold IRAs. They're readily available at almost all banks and brokerage firms. Withdrawals are made automatically without having to worry about fees or penalties.
That said, there are drawbacks too. Gold is historically volatile. So it's essential to understand why you're investing in gold. Do you want safety or growth? Do you want to use it as an insurance strategy or for long-term growth? Only once you know, that will you be able to make an informed decision.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. One ounce won't be enough to meet all your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don’t necessarily need a lot if you’re looking to sell your gold. You can even get by with less than one ounce. But, those funds will not allow you to buy anything.
Which precious metal is best to invest in?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. You might not want to invest in gold if you're looking for quick returns. If patience and time are your priorities, silver is the best investment.
If you don’t desire to become rich quickly, gold may be your best option. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
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. They don't require you to be wealthy to invest in them. There are many methods to make money off of silver and gold investments.
You may consider buying physical coins such as bullion bars or rounds. You could also buy shares in companies that produce precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. Although they aren’t stocks, they offer the possibility for long-term gains.
Their prices rise with time, which is a different to 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.
Is buying gold a good way to save money for retirement?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
The most popular form of investing in gold is through physical bullion bars. However, there are many other ways to invest in gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. Owning gold stocks should work well if you need cash flow from your investment.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs usually include stocks of precious metals refiners or gold miners.
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- 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)
- 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)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
Investing with gold or stocks
This might make it seem very risky to invest gold as an investment tool. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief arises because most people believe that the global economy is driving down gold prices. They feel that gold investment would cause them to lose money. There are many benefits to investing in gold. Let's take a look at some of the benefits.
One of the oldest forms known of currency is gold. Its use can be traced back to thousands of years ago. It was used by many people around the globe as a currency store. As a means of payment, South Africa and many other countries still rely on it.
You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. The price of gold may have fallen, but the production costs haven’t.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. This is not a wise decision if you're looking to invest in long-term assets. Selling your gold at a higher value than what you bought can help you make money.
We hope our article has given you a better understanding of 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: Bitcoin Magazine
Title: Why This Bear Market Is Especially Bullish
Sourced From: bitcoinmagazine.com/business/why-this-bear-market-is-especially-bullish
Published Date: Fri, 23 Sep 2022 07:00:00 GMT