Increased Probability of Bitcoin Reaching $1.5 Million
Ark Investment Management CEO, Cathie Wood, has reaffirmed her bullish bitcoin forecasts, now perceiving a higher probability of the cryptocurrency's price skyrocketing to $1.5 million per coin. Wood highlights that the recent approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has significantly increased the likelihood of her optimistic prediction.
Ark's Bullish Bitcoin Price Predictions
Following the SEC's approval of 11 spot bitcoin ETFs, Cathie Wood, the CEO of Ark Invest, has doubled down on her bitcoin price predictions. In the firm's annual report, known as Ark's Big Ideas 2023, Wood refers to the technological breakthroughs shaping the future and creating possibilities for exponential growth. She explains that their base case for the price of bitcoin is in the range of $600,000, while their bullish prediction places the price at $1.48 million per coin. Wood elaborates, stating, "We think the probability of the bull case has increased with this ETF approval, this is a green light. Our bull case is $1.5 million by 2030."
The Significance of Bitcoin as a Decentralized Monetary System
Wood emphasizes that bitcoin represents a monumental idea, being the first global decentralized digital and rules-based monetary system in history. She believes that this concept holds immense potential and could revolutionize the financial landscape. The Ark Invest executive expresses her enthusiasm for the cryptocurrency's future prospects.
Spot Bitcoin ETFs' Impacts on Institutional Flows
Ark Invest and 21shares' spot bitcoin ETF proposal was one of the 11 approved by the SEC. On the first day of trading, these ETFs collectively accumulated $4.6 billion in trading volume. Even Blackrock, the world's largest asset manager, made its debut in the bitcoin market with the Ishares Bitcoin Trust, generating $1 billion in trading volume.
Wood anticipates that spot bitcoin ETFs will attract substantial institutional investments, resulting in a significant surge in the price of bitcoin. However, it's important to note that despite the ETF approvals, SEC Chair Gary Gensler clarified that the agency does not endorse or approve bitcoin.
Let us know your thoughts on Cathie Wood's bitcoin price prediction in the comments section below.
Frequently Asked Questions
What Should Your IRA Include in Precious Metals?
Protecting yourself from inflation is best done by investing in precious metals such silver and gold. It's not just a way to save money for retirement.
Although gold and silver prices have risen significantly in the past few years they are still considered safe investments. They don't fluctuate quite as much like stocks. There is always demand for these materials.
The prices of gold and silver are generally predictable and stable. They are most likely to rise when the economy grows and fall during recessions. This makes them great long-term investors and money-savers.
10% of your total portfolio should be invested in precious metals. If you wish to diversify further, this percentage could be higher.
Which precious metal is best to invest in?
An investment in gold can yield high returns on its capital. It can also protect against inflation and other risks. As inflation worries increase, gold prices tend to rise.
Gold futures are a great idea. These contracts assure you that you will receive a specified amount of precious metal at a fixed price.
Gold futures are not for everyone. Some prefer to have physical gold.
They can easily exchange their gold with other people. They can also sell it whenever they want.
Some people would rather not pay tax on their gold. They buy gold directly from government to do this.
This requires that you make multiple trips to the local post office. First convert any gold that is already in circulation into coins or bars.
Then, you need to get a stamp on those coins or bars. Finally, send the coins or bars to the US Mint. They will then melt down the bars and coins to create new coins.
These new bars and coins have the original stamps stamped on them. This means they are legal tender.
But if you buy gold directly from the US Mint, you won't have to pay taxes.
What precious metal would your investment preference be?
Does a gold IRA make money?
Yes, but not as often as you think. It depends on how much you're willing to risk. It's possible to retire with $1 million if your retirement age is reached if you are able to put aside $10,000 per year for 20 consecutive years. You'll end up losing everything if you place all your eggs in the same basket.
Diversifying your investments is essential. When there is inflation, gold does well. You should invest in an asset that increases with inflation. Stocks excel at this because they rise with increased profits. This is also true for bonds. They pay interest each year. They are great in times of economic growth.
But what happens if there's no inflation? When there is no inflation, stocks and bonds will lose even more value. Investors should not put all of their savings in one investment such as a stock mutual fund or bond.
Instead, they should consider investing in a mixture of different types and funds. They could also invest in bonds and stocks. They could also invest in cash or bonds.
This way, they have exposure to both sides of the coin. Inflation and depression. They will continue to see a rise over time.
Are gold IRAs a good option for investment?
You should buy shares in companies that produce gold. These companies can make you money by investing in precious metals and gold.
The downside to owning shares is that you can't directly control them.
First, you can lose money by holding onto your stock for too long. Stocks will fall faster than the underlying asset (like a gold mine) when they drop. It could lead to you losing your money, instead of making it.
Second, waiting until the market recovers before selling can result in missing potential profits. It is possible to wait until the market recovers before selling your gold.
Physical gold can be beneficial if you prefer to keep investments separate from your finances. A gold IRA will help protect your portfolio from inflation and diversify it.
Visit our website to find out more about investing in gold.
How do you choose an IRA.
Understanding your account type is the first step in finding the right IRA for you. This includes whether your goal is to open a Roth IRA (or a traditional IRA). You should also know how much money your have available to invest.
The next step is determining which provider fits your situation best. While some providers offer both accounts, others specialize in only one.
The fees associated with each option should be considered. Fees vary widely between providers and may include annual maintenance fees and other charges. Some providers charge a monthly fee depending on how many shares you have. Others only charge once per quarter.
Can I invest in gold?
The answer is yes You can include gold in your retirement plan. Because it doesn't lose any value over time, gold is a great investment. It also protects against inflation. It is also exempt from taxes.
Before you invest in gold, make sure to understand its differences from other investments. Unlike stocks or bonds, you can't buy shares of gold companies. They can't be sold.
You must instead convert your gold into cash. You will have to get rid. It is not possible to keep it.
This is what makes gold unique from other investments. With other investments, you can always sell them later. With gold, this isn't true.
The worst part is that you cannot use your gold to secure loans. If you get a mortgage, for example, you might have to give up some of the gold you own in order to pay off the loan.
What does that mean? You can't keep your gold indefinitely. You will have the need to make it cash someday.
You don't need to worry. You only need to open an IRA account. Then, you can invest in gold.
Statistics
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
External Links
en.wikipedia.org
wsj.com
takemetothesite.com
kitco.com
How To
Precious Metals that have been approved by the IRA
IRA-approved precious materials are excellent investments whether you're looking for ways to save money for retirement or to invest in your next business venture. Various options can help diversify your portfolio and protect against inflation from gold bars to silver coins.
Two main types of investment products in precious metals are available. Physical bullion products such as bars and coins are considered physical assets because they exist in tangible form. Exchange-traded Funds (ETFs), however, are financial instruments that track and report the price movements in an underlying asset. ETFs can track the movement of gold or other metals. ETFs work just like stock exchange stocks and can be bought directly by the company issuing them.
There are many kinds of precious metals you can buy. Silver and gold are frequently used for ornaments and jewelry making, while palladium and platinum are more often associated with luxury items. Palladium tends be more valuable than platinum which makes them ideal for industrial use. While silver is used in industry, decorative uses are preferred over it.
Due to the higher cost of mining and refining materials, physical bullion items tend to be more expensive. These products are generally safer and more secure than paper currencies. Consumers may lose faith in the currency and seek out alternatives if the U.S. dollar falls in purchasing power. Physical bullion products, on the other hand, do not depend on trust between companies or countries. They are instead backed by central banks and governments, which gives customers security.
According to supply and demand, gold prices can fluctuate. Demand rises, and the price goes up. On the other hand, supply falls when demand exceeds demand. This dynamic allows investors to profit when the gold price fluctuates. This fluctuation is good news for investors who own physical bullion items as they earn a higher return.
Precious metals are not affected by interest rate changes or economic recessions, unlike traditional investments. The price of gold will rise as long as there is strong demand. This is why precious metals are considered safe havens when times are uncertain.
These precious metals are the most in demand:
- Gold – This is the oldest kind of precious metal. It is often called “yellow gold”. While gold is a well-known element, it is very rare to find underground. Most of the world’s gold reserves can be found in South Africa and Peru, Canada, Russia and China.
- Silver – Silver, which is second in value after gold, is silver. Silver is mined from the earth's natural resources. Silver, unlike gold, is often extracted from ore instead of rock formations. Because of its durability and malleability, as well as resistance to tarnishing, silver is widely used in commerce and industry. The United States is responsible for 98% worldwide silver production.
- Platinum – The third most precious precious metal is platinum. It can be used for industrial purposes, such as in fuel cells and catalytic converters. Dental crowns, bridges, and fillings can also be made from platinum.
- Palladium – Palladium is the fourth most valuable precious metal. Its popularity is growing rapidly among manufacturers because of its strength and stability. Palladium can also be used in electronics, military technology, and automobiles.
- Rhodium – Rhodium is fifth most valuable precious metal. Rhodium is very rare but is highly sought for its use in automotive catalysts.
- Ruthenium – Ruthenium ranks sixth in the list of most valuable precious metals. Although palladium is scarce and platinum is rare, there are plenty of ruthenium. It is used in steelmaking, chemical manufacturing, and engine design.
- Iridium- Iridium, the seventh most precious precious metal, is also known as Iridium. Iridium has a significant role in satellite technology. It is used to create orbiting satellites which transmit television signals, telephone calls and other communications.
- Osmium – Osmium is the eighth most valuable precious metal. Osmium's ability to withstand extreme temperatures makes it a common metal in nuclear reactors. It's also used in jewelry, medicine and cutting tools.
- Rhenium – Rhenium has been ranked as the ninth most valuable precious metallic. Rhenium can also be used in rocketry, oil refinement, and semiconductor manufacturing.
- Iodine — Iodine has the highest value of all precious metals. Iodine's uses include radiography, photography and pharmaceuticals.
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By: Kevin Helms
Title: Ark Invest CEO: Higher Probability of Bitcoin Soaring to $1.5 Million
Sourced From: news.bitcoin.com/ark-invest-now-sees-higher-probability-of-bitcoin-soaring-to-1-5-million-ceo-says/
Published Date: Sat, 13 Jan 2024 02:00:00 +0000
