Economist and gold bug, Peter Schiff, has made a prediction that the Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, will soon introduce strict regulations for cryptocurrencies. According to Schiff, these new regulations will lead to a significant drop in the price of bitcoin. Unlike previous regulations, Schiff believes that Gensler's focus will be on anti-money laundering (AML) rather than securities law.
Peter Schiff's Prediction: Bitcoin Price Decline Due to New Regulations
Peter Schiff, well-known for his skepticism towards bitcoin, has shared his thoughts on the future of crypto regulations and the price of BTC. Schiff made his prediction following the recent approval of spot bitcoin exchange-traded funds (ETFs) by the SEC. In a post on the social media platform X, he stated:
Since Gary Gensler was pushed to approve spot bitcoin ETFs, I believe he will soon introduce new regulations that will significantly increase the cost of bitcoin transactions. This move will undermine bitcoin's use case and result in a sharp decline in its price.
Gensler has previously expressed his view that most crypto tokens, except for bitcoin, should be classified as securities. Schiff, in a follow-up post, highlighted the possibility of Gensler changing his stance on bitcoin, saying:
It is possible that Gensler's new regulations will focus on AML rather than securities law.
Many users on X responded to Schiff's predictions, offering their opinions. Some disagreed with Schiff's claim that Gensler was forced into approving spot bitcoin ETFs, stating that Gensler was merely following the law. Others questioned how Gensler would be able to increase bitcoin transaction costs, suggesting that Gensler does not have control over the Bitcoin mempool. One user asked:
How can Gary and the SEC increase the cost of bitcoin transactions? Will they spend a significant amount of money on bidding for block space?
Several users pointed out Gensler's previous statements regarding bitcoin as a commodity. One user mentioned:
Gary Gensler has consistently stated that bitcoin is a commodity. It will be challenging for him to regulate even the on-ramps and off-ramps, unless they deal with unregistered securities.
The same user noted that the SEC's primary focus is on enforcing securities laws and protecting investors in securities, while AML regulations are generally handled by other agencies like the Financial Crimes Enforcement Network (FinCEN).
What are your thoughts on Peter Schiff's predictions about Gary Gensler's plans to introduce strict crypto regulations that could impact the price of bitcoin? Share your opinions in the comments below.
Frequently Asked Questions
How much of your IRA should include precious metals?
It is important to remember that precious metals can be a good investment for anyone. You don't need to be rich to make an investment in precious metals. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might consider purchasing physical coins, such as bullion bars and rounds. Also, you could buy shares in companies producing precious metals. You might also want to use an IRA rollover program offered through 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.
They also tend to appreciate over time, unlike traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
What precious metals could you invest in to retire?
It is gold and silver that are the best precious metal investment. They are both simple to purchase and sell, and they have been around for a long time. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: This is the oldest form of currency that man has ever known. It's also very safe and stable. This makes it a good option to preserve wealth in uncertain times.
Silver: The popularity of silver has always been a concern for investors. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. However, it's much more expensive than either of its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It is also used to make jewelry. And, it's relatively cheap compared to other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also less expensive. It's a popular choice for investors who want to add precious metals into their portfolios.
Can I buy Gold with my Self-Directed IRA?
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contracts are financial instruments that are based on gold's price. They allow you to speculate on future prices without owning the metal itself. You can only hold physical bullion, which is real silver and gold bars.
What are the pros & con's of a golden IRA?
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. There are some disadvantages to this investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
Another problem is the cost of managing your IRA. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management charges ranging anywhere 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. Some insurers may require you to have insurance that covers losses up $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. You may be limited in the amount of gold you can have by some providers. Others allow you to pick your weight.
You will also have to decide whether to purchase futures or physical gold. Physical gold is more expensive than gold futures contracts. Futures contracts offer flexibility for buying gold. They allow you to set up a contract with a specific expiration date.
You will also have to decide which type of insurance coverage is best for you. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does offer coverage for natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
In addition to insurance, you'll need to consider the cost of storing your gold. Insurance won't cover storage costs. For safekeeping, banks typically charge $25-40 per month.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians don't have the right to sell assets. Instead, they must maintain them for as long a time as you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Your monthly investment goal should be stated.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. After reviewing your application, the company will send you a confirmation mail.
A financial planner is a good idea when opening a gold IRA. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Can I hold a gold ETF in a Roth IRA?
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows contributions from both employee and employer. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
Also available is an Individual Retirement Annuity. An IRA allows for you to make regular income payments during your life. Contributions to IRAs do not have to be taxable
What is the Performance of Gold as an Investment?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Due to their limited supply, gold prices fluctuate. You must also store physical gold somewhere to avoid the risk of it becoming stale.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
bbb.org
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- You want to keep gold in your IRA at home? It's not legal – WSJ
finance.yahoo.com
irs.gov
How To
Tips to Invest in Gold
Investing in Gold is one of the most popular investment strategies worldwide. There are many advantages to investing in Gold. There are several options to invest in the gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
You should consider some things before you decide to purchase any type of gold.
- First, check to see if your country permits you to possess gold. If the answer is yes, you can go ahead. If not, you may want to consider purchasing gold from overseas.
- Secondly, you should know what kind of gold coin you want. You have the option of choosing yellow, white, or rose gold.
- Thirdly, you should take into consideration the price of gold. It is best to begin small and work your ways up. You should diversify your portfolio when buying gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- Don't forget to keep in mind that gold prices often change. Be aware of the current trends.
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By: Kevin Helms
Title: Peter Schiff Predicts Bitcoin Price Decline as SEC Chair Gary Gensler Plans New Crypto Regulations
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
