The value of bitcoin (BTC) has skyrocketed, surging over 38% against the U.S. dollar in the past six months and marking a remarkable 125% increase year-to-date. As a result, bitcoin has climbed to become the eleventh-largest global asset, reaching a market capitalization that surpasses various assets including precious metals, exchange-traded funds (ETFs), and corporate valuations.
Bitcoin's Market Cap Hits 11th Worldwide
Throughout 2023, bitcoin has shown consistent growth, with its price recently rising by 6.5% in just one week. Currently, BTC boasts a market valuation of approximately $726.95 billion, with trading prices hovering just above $37,000.
As the leading cryptocurrency in terms of market capitalization, BTC commands a 49% share of the $1.4 trillion crypto economy. As of Friday, November 10, BTC holds the eleventh position among the largest global assets by market valuation.
The digital currency's market cap surpasses that of Tesla, which stands at $667.50 billion, yet still falls short of Berkshire Hathaway's valuation of $757.56 billion. A mere $31 billion increase in BTC's market cap would push it above Berkshire Hathaway's valuation.
Furthermore, BTC's market cap also exceeds assets such as Visa, TSMC, Walmart, and JPMorgan Chase. The remaining nine assets that rank higher than both Berkshire and BTC include Meta, Nvidia, Silver, Amazon, Google, Saudi Aramco, Microsoft, Apple, and Gold.
Gold, with a market cap of $12.876 trillion, is approximately 17.72 times larger than bitcoin's market cap. Meanwhile, Apple's market cap of $2.836 trillion is approximately 3.9 times greater than bitcoin's valuation.
To match gold's market cap of $12.876 trillion, a single bitcoin (BTC) would need to be priced at around $659,016 per coin. This would represent a staggering percentage gain of about 1,681.13% from its current price of just above $37,000.
Similarly, in order to reach Apple's market cap of $2.836 trillion and secure the second position, a single bitcoin would need to be valued at approximately $145,151. This would result in a significant percentage gain of about 292.30% from the current price of $37,000.
On the other hand, ethereum (ETH), the second-largest crypto asset by valuation with a market cap of $250 billion, currently ranks 38th among global assets. Ether's market cap is just above Costco's and just below Toyota's market valuation on Friday.
As bitcoin (BTC) continues to rise and solidify its position as the 11th most valuable asset worldwide, it is clear that the cryptocurrency market is gaining significant traction. Share your thoughts and opinions on this subject in the comments section below.
Frequently Asked Questions
Can I get physical ownership of gold in my IRA
Many people ask themselves whether it is possible to physically own gold in an IRA. This is a legitimate concern because it is illegal.
However, if you examine the law carefully, you will see that there are no restrictions on gold ownership in an IRA.
Problem is, most people don’t realize how much they can save by putting gold in an IRA and not keeping it in their home.
It's easy for gold coins to be thrown away, but it's much more difficult to keep them in an IRA. If you decide to keep your gold in your own home, you'll pay taxes on it twice. Once for the IRS and once for the state where you live.
You can also lose your gold and have to pay twice the taxes. So why would anyone want to keep their gold in their home?
You might argue that you need the security of knowing that your gold is safe in your home. But to protect yourself against theft, you should consider storing your gold somewhere more secure.
If you intend to visit often, don't leave your gold unattended in your home. If you leave your gold unattended, thieves can easily steal it while you're out of town.
Better yet, store your gold inside 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. Instead, you will have to pay income tax for any gains you make selling your gold.
A IRA can be a great option if you want to avoid paying tax on your gold. You don't pay income tax on the interest you earn with an IRA.
Capital gains tax doesn't apply to gold. That means you have the right to cash your investment at whatever time you choose.
Federally regulated IRAs mean that you won't face any difficulties in transferring your gold to another bank if it moves.
The bottom line is that you can own gold in your IRA. Your fear of it being stolen is what holds you back.
What are the fees for an IRA that holds gold?
An average annual fee for an individual retirement plan (IRA) is $1,000. However, there are many different types of IRAs, such as traditional, Roth, SEP-IRAs, and SIMPLE IRAs. Each type has its own set of rules and requirements. If your investments are not tax-deferred, you might have to pay taxes on the earnings. Also, consider how long the money will be kept. If you are planning to hold onto your money for a longer time, you will likely save more money opening a Traditional IRA than a Roth IRA.
A traditional IRA lets you contribute up to $5,500 each year ($6,500 if your age is 50+). A Roth IRA allows for unlimited annual contributions. The difference is simple. With a traditional IRA you can withdraw the money when you retire and pay no taxes. On the other hand, you'll owe taxes on any withdrawals made from a Roth IRA.
What are the pros and cons of a gold IRA?
An excellent investment vehicle is a gold IRA. This is for people who wish to diversify but do not have access to traditional banking services. It allows you to invest freely in precious metals, such as gold, silver and platinum until they are withdrawn.
There is a downside to this: if you withdraw your earnings early, you'll be subject to normal income tax. However, creditors will not be able to seize these funds if you default on your loan.
A gold IRA could be the best option for you if your goal is to have gold that you can own without worrying about taxes.
How much should precious metals be included in your portfolio?
To protect yourself from inflation, investing in physical metals is the best option. Because precious metals are a long-term investment, you can not only buy in to the current value but also the future potential of these assets. As prices rise, so does your investment's value.
If you hold on to your investments for at least five years, you will receive tax benefits on any gains. Capital gains taxes will apply if you sell the investments within this time period. Our website has more information about how to purchase gold coins.
Can I invest in gold?
Yes, it is possible! It is possible to add gold to your retirement plans. Because it doesn't lose any value over time, gold is a great investment. It protects against inflation. It also protects against inflation.
Before you decide to invest in gold, it is important to understand that it isn't like other investments. You can't buy shares in companies that make gold unlike bonds or stocks. These shares can also be not sold.
Instead, you must convert your gold to cash. This means that you'll have to get rid of it. 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. 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 all this mean? It's not possible to keep your gold for ever. You will have the need to make it cash someday.
You don't need to worry. All you need to do is create an IRA. You can then invest in gold.
- 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)
- 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)
- Silver must be 99.9% pure • (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)
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to turn your IRA into a IRA with gold content
So you want to move your retirement savings from a traditional IRA into a gold IRA? This article will show you how to do it. This is how you can make the switch.
“Rolling over” is the act of transferring money from one type (traditional) to another type (gold). Rolling over an account offers tax advantages. In addition, some people prefer investing in physical assets like precious metals.
There are two types IRAs – Traditional IRAs and Roth IRAs. The difference between the two types is that Traditional IRAs let investors deduct taxes from earnings. Roth IRAs don’t allow this. If you invest $5,000 in a Traditional IRA now, then you'll be able only to withdraw $4,000. You would still be able to keep all your money if you had the same amount invested in a Roth IRA.
If you are looking to convert your traditional IRA into a gold IRA, here's what to know.
First, you must decide whether to move your balance into a new bank account or transfer funds from your existing account to the new one. You will pay income tax on earnings above $10,000 when you transfer money. You can rollover your IRA to avoid paying income tax until you are 59 1/2.
Once you have decided to open a new bank account, You will likely need to show proof of identity, such as a passport, Social Security card, or birth certificate. Then, you'll fill out paperwork showing that you own the IRA. Once you've completed the forms, you'll submit them to your bank. They will verify your identity as well as give instructions on how to send wire transfers and checks.
Now comes the fun part. You'll deposit cash into your new account and wait for the IRS to approve your requests. After approval is granted, you will receive a letter saying that you are now allowed to withdraw funds.
That's it! Now you can just sit back and enjoy the growth of your money. If you decide to convert your IRA you can close it and transfer the remaining balance into a different IRA.
By: Jamie Redman
Title: Bitcoin Soars to Become 11th Largest Global Asset, Nearing Berkshire Hathaway’s Valuation
Sourced From: news.bitcoin.com/bitcoin-soars-to-become-11th-largest-global-asset-nearing-berkshire-hathaways-valuation/
Published Date: Fri, 10 Nov 2023 15:30:19 +0000