Bitcoin investors are currently reaping the rewards of their investments, with an average profit of $67,000 per investor – and this is just the beginning of the journey.
The Potential Profit of Bitcoin
Whale Alert reports that the average profit per Bitcoin (BTC) has reached an all-time high of $67,088. This figure signifies the potential profit that holders could make per token if they decide to sell at a specific time. For more detailed calculations on this metric, Whale Alert provides additional information on their website.
Financial Perspective
To put this financial success into perspective, the average American salary in 2024 was $62,027. Just imagine witnessing your savings grow and surpassing your annual salary by simply owning a single bitcoin.
Shifting Financial Dynamics
Traditionally, individuals exchange hours of their lives at work for money, usually in the form of fiat currency. However, the value of fiat currency tends to depreciate over time, reducing purchasing power and necessitating longer work hours to compensate for the loss.
Bitcoin revolutionizes this dynamic by allowing individuals to see their money grow in value over time instead of depreciating. By holding bitcoin, individuals have the opportunity to increase their purchasing power significantly, enabling them to make significant purchases like homes, cars, university tuition, or simply have more leisure time with their loved ones. This newfound financial flexibility leads to true financial freedom.
Bitcoin as a Savings Vehicle
Utilizing bitcoin as a savings vehicle is crucial for attaining financial freedom and securing one's future. As the value of bitcoin continues to rise, surpassing even its current price of $100,000, investors have the potential to enhance their purchasing power further. This increased financial strength allows individuals to pursue their passions and interests with more time and resources at their disposal.
Consistent Investment Strategy
By consistently investing in bitcoin, securing your holdings, and practicing the "HODL" (Hold On for Dear Life) strategy, individuals can benefit from the increasing purchasing power of bitcoin over time. Even if you do not possess a whole bitcoin, incremental investments can still contribute to enhancing your financial stability and freedom.
Empowering Financial Independence
With the accessibility of bitcoin, individuals worldwide now have the opportunity to build their bitcoin reserves, witness its growth, and dictate how they wish to utilize the newfound time and resources at their disposal.
This article presents a perspective on the potential of bitcoin investments. The views expressed are solely those of the author and may not necessarily align with those of BTC Inc or Bitcoin Magazine.
Frequently Asked Questions
Can I have gold in my IRA.
The answer is yes! You can add gold to your retirement plan. Because gold doesn't lose its value over time, it is an excellent investment. It protects against inflation. You don't even have to pay taxes.
Before you invest in gold, make sure to understand its differences from other investments. You can't purchase shares in gold companies, unlike stocks and bonds. They can't be sold.
You must instead convert your gold into cash. This means you will need to get rid. You can't just hold onto it.
This is what makes gold unique from other investments. As with other investments you can always make a profit and sell them later. But that's not the case with gold.
The worst part is that you cannot use your gold to secure loans. For example, if you take out a mortgage, you may give up some of your gold to cover the loan.
What does that mean? Your gold can't be kept forever. You'll have to turn it into cash at some point.
There's no need to be concerned about this right now. Open an IRA account. Then, you are able to invest in gold.
Can I physically possess gold in my IRA account?
Many people wonder if they are allowed to possess physical gold within an IRA account. This is a fair question because there isn't any legal way to do it.
However, if you examine the law carefully, you will see that there are no restrictions on gold ownership in an IRA.
The problem is that most people aren't aware of how much money they could be saving by putting their precious gold in an IRA.
It's simple to throw out gold coins but difficult to put them into an IRA. If you decide to keep your precious metal in your own home you will have to pay two taxes. Two taxes will be charged: one to the IRS, one to the state you live in.
You can also lose your gold and have to pay twice the taxes. Why would you want it to stay in your home?
You may argue that it is necessary to have the assurance that your gold safe in your home. It is important to store your gold somewhere safer in order to prevent theft.
If you plan on visiting often, you shouldn't leave your precious gold at home. If you leave your gold unattended, thieves can easily steal it while you're out of town.
It is better to keep your gold in an insured vault. Then, your gold will be protected from fire, flood, earthquake, and robbery.
Another benefit to keeping your gold in vaults is that you won’t have to pay any property taxes. You will have to pay income taxes on any gains from the sale of your gold.
An IRA is a way to avoid paying taxes on gold. An IRA will allow you to avoid income tax while earning interest on your gold.
You don't have to pay capital gains taxes on gold. This means that you can cash out the entire value of your investment at any time you like.
And since IRAs are federally regulated, you won't have any trouble getting your gold transferred to another bank if you move.
The bottom line is: You can own gold in an IRA. Only thing stopping you from owning gold in an IRA is your fear of getting it stolen.
Can I store my gold IRA in my home?
Online brokerage accounts are the best way for you to invest your money. You will have the same investment options available as traditional brokers, but you won't need special licenses. Additionally, investing is free.
Many online brokers also offer tools that can help you manage your portfolio. Many online brokers allow you to download charts that will show how your investments are performing.
What is a Precious Metal IRA (IRA)?
Precious metals can be a good investment for retirement accounts. They have been around since biblical times and continue to hold value today. Investing in precious metals such as gold, silver, and platinum is also a great way to diversify your portfolio and protect against inflation.
In addition, some countries allow citizens to store their money in foreign currencies. You can buy gold bars in Canada and keep them at home. Then, when you go back to visit family, you can sell those same gold bars for Canadian dollars.
This is a quick and easy way of investing in precious metals. It's especially useful for anyone who lives outside North America.
How to Open a Precious Metal IRA
The best way to open an IRA for precious metals is by opening a self-directed Roth Individual Retirement Account (IRA).
This account is more advantageous than other types of IRAs, because you don’t have to pay taxes on any interest earned from your investments until they are withdrawn.
This makes it very attractive to people who want to save money but also need a tax break.
You don't have to invest in silver or gold. You can invest in anything you want if it fits the IRS guidelines.
Most people associate “precious” metal with gold or silver, but there are many different types of precious metals.
Some examples include palladium, platinum, rhodium, osmium, iridium, and ruthenium.
You can invest in precious and base metals in many different ways. These include purchasing bullion coins and bars, as well as shares in mining companies.
Bullion Coins & Bars
The easiest way to invest in precious materials is to buy bullion coins or bars. Bullion is a generic term that refers only to physical ounces in gold or silver.
Bullion bars and coins can be purchased to receive actual pieces.
Although you may not be able to see any change immediately after purchasing bullion bars and coins at a shop, you will soon notice some positive effects.
This is an example of a tangible piece in history. Each coin and bar is unique.
When you look at face value of the coin, you'll often find that it's worth far less than its nominal value. In 1986, the American Eagle Silver Coin was $1.00 per ounce. Today, however, the American eagle's price is closer to $40.00 per an ounce.
Bullion has had a tremendous increase in its value since its introduction. This is why many investors choose bullion bars and bullion coin over futures.
Mining Companies
A great way to get precious metals is by investing in shares in mining companies. You're investing in the company’s ability to produce precious metals.
You will get dividends based off the company's profits in return. These dividends will be used to pay shareholders.
Furthermore, the company has the potential to grow. The company's share prices should also increase as demand increases for the product.
You should diversify because these stocks have a tendency to fluctuate in their prices. This involves spreading your risk over multiple companies.
However, it's also important to remember that mining companies aren't immune to financial loss, just like any stock market investment.
If gold prices drop dramatically, your ownership share could be worthless.
The Bottom Line
Precious Metals such as gold or silver offer a safe haven in times of economic uncertainty.
But, silver and gold can be subject to price swings. If you are interested in long-term investing in precious metals, open a precious Metals IRA account at a reputable firm.
You can enjoy tax benefits while still owning tangible assets.
Does a gold IRA make money?
Yes, but not as often as you think. It depends on what level of risk you are willing take. A $10,000 investment per year for 20 years could lead to $1 million by retirement age. But if you put all your eggs in one basket, you'll lose everything.
You need to diversify your investments. Inflation makes gold a good investment. You want to invest in an asset class that rises along with inflation. Stocks can do this well as they rise when profits are increased. Bonds are also able to do this. They pay interest each year. They're very useful during periods of economic growth.
What happens when inflation is absent? In deflationary periods stocks and bonds both fall in value. This is why investors should avoid putting all their savings into one investment, such as a bond or stock mutual fund.
They should instead invest in a combination of different types of funds. They could also invest in bonds and stocks. They could also invest in cash or bonds.
They are exposed to both sides of a coin. Inflation and depression. They will see a return over time.
How much of your IRA should include precious metals?
Protect yourself from inflation by investing in precious metallics like silver and gold. It's more than just an investment in retirement. It also prepares you for any economic downturn.
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. These materials are in constant demand.
Prices for silver and gold are predictable and usually stable. They increase with economic growth and decrease in recessions. This makes them great money-savers and long-term investments.
Precious metals should make up 10 percent of your portfolio. You can increase this percentage if you want further diversification.
Statistics
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
- 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)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
External Links
en.wikipedia.org
regalassets.com
investopedia.com
forbes.com
How To
Precious Metals 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. You have many options to diversify your portfolio, protect yourself against inflation, and from silver coins to gold bars, there are many.
Precious metal investment products come in two main forms. Physical assets such as coins and bars are called physical bullion because they can be physically accessed. 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. While gold and silver are used in jewelry making and decoration, platinum and palladium are most commonly associated with luxury products. Palladium tends to hold its value better than platinum, which makes it ideal for industrial uses. While silver is used in industry, decorative uses are preferred over it.
Due to the expense of mining and refining natural materials, physical bullion is more expensive. But they are generally safer than traditional paper currencies and provide buyers with more security. Consumers may lose faith in the currency and seek out alternatives if the U.S. dollar falls in purchasing power. However, physical bullion products don't rely on trust between nations or companies. Instead, they are backed by governments and central banks, giving customers peace of mind.
Gold prices fluctuate based on supply and demand. When demand increases, the price rises; conversely, when supply exceeds demand, the price drops. This dynamic allows investors to profit when the gold price fluctuates. Physical bullion investors benefit because they have a greater return on their capital.
Contrary to traditional investments, precious metals can not be affected by economic recessions and interest rate changes. As long as the demand for gold remains strong, it will continue to rise. Because of this, precious metals are considered safe havens during times of uncertainty.
These precious metals are the most in demand:
- Gold – The oldest form of precious metal, gold is also known as “yellow” metal. Although gold is a common household name, it is a very rare element found naturally underground. The majority of the world's reserves of gold are located in South Africa, Australia and Peru.
- Silver – After gold, silver ranks second in precious metals. Silver is mined from the earth's natural resources. Silver, unlike gold, is often extracted from ore instead of rock formations. Silver is widely used in both industry and commerce due to its durability, conductivity and resistance against tarnishing. The United States produces over 98% of all global silver production.
- Platinum – Platinum is the third most valuable precious metal. It can be used in many industrial applications, including fuel cells, catalysts, and high-end medical devices. In dentistry, platinum is used to make bridges, crowns, and fillings.
- Palladium: Palladium is the 4th most valuable precious metallic. Manufacturers are gaining more interest in palladium due to its strength & stability. Palladium can also be used in electronics, military technology, and automobiles.
- Rhodium: Rhodium ranks fifth in the most valuable precious metals. Rhodium is very rare but is highly sought for its use in automotive catalysts.
- Ruthenium – Ruthenium is the sixth most valuable precious metal. Although palladium is scarce and platinum is rare, there are plenty of ruthenium. It is used to make steel and engines for aircraft, as well chemical manufacturing.
- Iridium: Iridium (the seventh most valuable precious metallic) is the seventh. Iridium has a significant role in satellite technology. It is used for the construction of satellites with orbital capabilities that transmit television signals and other communications.
- Osmium- Osmium ranks eighth in the list of most valuable precious metals. Osmium is commonly used in nuclear reactors because of its ability to withstand extreme temperatures. It's also used in jewelry, medicine and cutting tools.
- Rhenium – Rhenium is the ninth most valuable precious metal. Rhenium is used to refining oil and natural gas, in semiconductors, and rocketry.
- Iodine – Iodine is the tenth most valuable precious metal. Iodine's uses include radiography, photography and pharmaceuticals.
—————————————————————————————————————————————————————————————-
By: Nikolaus Hoffman
Title: Bitcoin Investment: How Investors Are Profiting and Securing Financial Freedom
Sourced From: bitcoinmagazine.com/takes/bitcoin-investors-are-now-up-67000-on-average-and-this-is-just-the-start
Published Date: Thu, 19 Dec 2024 21:26:36 GMT
