The Forecast for Bitcoin Price in 2024
In November 2023, six AI-driven chatbots were queried to forecast the value of bitcoin by year-end, with their projections spanning from $15,000 to $45,000 per bitcoin. 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 on the horizon, we revisited these chatbots to gather their predictions for bitcoin's price at the close of the year.
Querying the AI Chatbots
On Jan. 11, 2024, Bitcoin.com News embarked on another exploratory venture, posing a question 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. The inquiry focused on their projections for the value of bitcoin (BTC) by the conclusion of 2024. This question mirrored our previous test but incorporated a few modifications such as the current date, the countdown to the next BTC reward halving, and the recent approval of 11 spot bitcoin ETFs.
The prompt was:
"This experiment aims to determine the price of bitcoin by the end of 2024. As an expert in the field of bitcoin and crypto assets, you will evaluate the likelihood of bitcoin's price at the end of 2024 and provide an explanation for your prediction. The global macroeconomic landscape remains uncertain. The current date is Jan. 11, 2024, and bitcoin is currently trading at $47,000 per unit. A total of 11 spot bitcoin exchange-traded funds were approved in the United States on Jan. 10, 2024. There's less than 15,000 blocks until the next reward halving, expected to take place on April 20, 2024. In your expert opinion, what will be the price of bitcoin on December 31, 2024?"
Predictions from the AI Chatbots
Claude Instant: With increased institutional adoption, regulatory clarity, and decreasing new supply from the 2024 halving, I expect bitcoin's price to reach $85,000 by December 31, 2024. ETF approvals and growing recognition as an inflation hedge should boost demand. However, potential global economic headwinds could limit the upside. Overall, bitcoin's fundamentals and role as digital gold point to continued price appreciation in 2024.
Pi: What an exciting time for the cryptocurrency market! The approval of 11 spot bitcoin exchange-traded funds in the U.S. is certainly a game-changer, and the upcoming reward halving adds even more excitement to the mix. Given the current price of bitcoin at $47,000 and the recent developments, I would predict that the price of bitcoin could reach around $75,000 by December 31, 2024.
Pi continued:
The approval of the spot bitcoin ETFs is likely to bring in a flood of new investors who were previously hesitant to enter the market due to the lack of regulated investment products. This influx of capital could drive up the price of bitcoin significantly. Additionally, the halving of the block reward is a significant event in the bitcoin ecosystem, as it reduces the supply of new bitcoins entering the market. Historically, the price of bitcoin has risen in the months leading up to and following a halving event.
Bard's (Gemini): Given the volatile nature of cryptocurrencies and the influence of various factors like macroeconomic conditions, regulatory changes, and market sentiment, it's challenging to make precise predictions. As of now, with bitcoin at $47,000 and new ETF approvals, there's potential for growth. However, it's prudent to exercise caution. Considering these factors, a price of bitcoin (BTC) around $75,000 to $85,000 by December 31, 2024, seems plausible but not guaranteed.
Chatgpt 4: A conservative estimate might suggest a price range of $40,000 to $60,000, accounting for 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. These estimates are speculative and should be interpreted with caution, given the inherent unpredictability of cryptocurrency markets.
Bing AI (Co-Pilot creative mode): Thank you for your question. I am happy to share my expert opinion on the price of bitcoin by the end of 2024. Please note that this is not financial advice and you should do your own research before investing in any cryptocurrency. Based on the information I have gathered from various sources, I predict that the price of bitcoin (BTC) on December 31, 2024 will be around $75,000 per unit.
Increased Responsiveness and Bullish Stance
Echoing our previous experiment, the AI chatbots prefaced their predictions with a disclaimer, emphasizing that their so-called 'expert' insights were merely speculative and not guarantees of future outcomes. This time around, the six AI chatbots demonstrated increased responsiveness and a greater willingness to offer price predictions, a notable shift from November, when the Chatgpt 3 model refrained from providing a predictive price.
Additionally, the responses from the six AI chatbots exhibited a more bullish stance compared to their rather cautious forecasts in November. While these updated predictions are higher, they still remain relatively conservative, especially when contrasted with certain individuals anticipating triple-digit BTC prices by year-end.
What are your thoughts on the predictions made by the six AI chatbots for bitcoin's price by the end of 2024? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. It is also an excellent way to diversify you portfolio. But gold is not all that it seems.
It's been used as a form of payment throughout history. It is often called “the oldest currency in the world.”
But gold, unlike paper currency, which is created by governments, is mined out from the ground. This makes it highly valuable as it is hard and rare to produce.
The supply-demand relationship determines the gold price. The economy that is strong tends to be more affluent, which means there are less gold miners. The result is that gold's value increases.
On the other hand, people will save cash when the economy slows and not spend it. This causes more gold to be produced, which lowers its value.
This is why investing in gold makes sense for 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.
How much should precious metals make up your portfolio?
To answer this question, we must first understand what precious metals are. Precious elements are those elements which have a high price relative to other commodities. This makes them highly valuable for both investment and trading. Gold is by far the most common precious metal traded today.
There are however many other types, including silver, and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also unaffected significantly by inflation and 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. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. This is because investors expect lower interest rates, making bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Since these are scarce, they become more expensive and decrease in value.
You must therefore diversify your investments in precious metals to reap the maximum profits. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
What is the benefit of a gold IRA?
There are many benefits to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You decide how much money is put in each account and when it is withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. These IRAs are available at all banks and brokerage houses. You do not need to worry about fees and penalties when you withdraw money.
There are, however, some drawbacks. Gold is historically volatile. So it's essential to understand why you're investing in gold. Are you looking for safety or growth? Are you trying to find safety or growth? Only when you are clear about the facts will you be able take an informed decision.
You might want to buy more gold if you intend to keep your gold IRA for a long time. You won't need to buy more than one ounce of gold to cover all your needs. Depending on the purpose of your gold, you might need more than one ounce.
A small amount is sufficient if you plan to sell your gold. You can even live with just one ounce. But you won't be able to buy anything else with those funds.
Can I buy gold using my self-directed IRA
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. You can speculate on future prices, but not own the metal. You can only hold physical bullion, which is real silver and gold bars.
Can I hold a gold ETF in a Roth IRA?
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
Traditional IRAs allow contributions from both the employer and employee. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. 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 you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs will not be taxed
How much gold should your portfolio contain?
The amount of capital that you require will determine how much money you can make. Start small with $5k-10k. As you grow, you can move into an office and rent out desks. So you don't have all the hassle of paying rent. You just pay per month.
Consider what type of business your company will be running. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. So if you do this kind of thing, you need to consider how much income you expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. Therefore, you might only get paid one time every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k-$2k of gold and growing from there.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
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 plans
finance.yahoo.com
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
