Bitcoin Reigns Supreme in 2023, Outpacing Ethereum in Several Metrics
In the year 2023, bitcoin has established its dominance over ethereum in various significant aspects. Over this period, the value of ether has experienced a decline of 27.65% in relation to bitcoin's price. It has fallen from 0.073 ether to its current level of 0.052 ether.
Bitcoin's Market Dominance and Capitalization
Bitcoin, the leading cryptocurrency by market capitalization, has unquestionably outperformed the second-ranked digital currency, ethereum, across multiple indicators. As of the end of December 2022, BTC held a market dominance of 40.1%, while ETH's share stood at 18.4%, according to data from coinmarketcap.com. Currently, BTC's market share has surged to 51.5% of the total crypto market value, while ETH's has slightly declined to 16.6%.
Ethereum's Diminishing Value Compared to Bitcoin
Over the past year, the comparative value of ethereum to bitcoin has diminished. In December 2022, it traded at 0.073 ETH per BTC. However, as of December 23, 2023, it has reduced to 0.052 ether, marking a drop of 27.65%. Bitcoin's market capitalization currently stands at $856 billion, significantly higher than ethereum's $275 billion. This makes BTC's market valuation roughly 3.11 times that of ETH.
Bitcoin's Dominance in NFT Sales
Recent data from cryptoslam.io indicates that non-fungible token (NFT) sales centered around bitcoin have surpassed those of ethereum. Bitcoin took the lead in November 2023 and maintained its dominance in the following 30 days. During this period, Bitcoin-based NFT sales reached $761,951,324, while Ethereum's amounted to $387,167,225.
Bitcoin's Superior Fee Generation and Trading Volume
Bitcoin continues to outperform ethereum in terms of fee generation. BTC miners collected $39,480,534 in fees from onchain transactions in the last 24 hours alone, which is significantly higher than the $551,880 collected by ETH validators. Bitcoin also consistently surpasses ethereum in daily global trading volume, with BTC transactions totaling $13.94 billion compared to ETH's approximately $9.58 billion within the same timeframe.
The Unlikelihood of the 'Flippening'
Despite the aspirations of ether advocates for the hypothetical "Flippening" – the overtaking of bitcoin by ethereum – the prevailing data paints a different picture. The hard statistics highlight bitcoin's enduring dominance, with its market cap and trade volumes far surpassing those of ethereum. Current trends and metrics suggest that the much-speculated "Flippening" remains a distant prospect and is unlikely to materialize in the near future.
What are your thoughts on bitcoin's market performance this year compared to ethereum's? Share your opinions in the comments section below.
Frequently Asked Questions
Does a gold IRA make money?
The answer is yes, but not as much as you think. It all depends on how risky you are willing to take. 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 investments is crucial. Inflation is a problem for gold. You want to make investments in an asset class that rises with inflation. Stocks excel at this because they rise with increased profits. Bonds are also able to do this. They pay interest each year. They are great during economic growth.
But what happens when there isn't any inflation? During deflationary periods, bonds fall in value while stocks fall further. Investors should refrain from putting all their savings into one type of investment such as a 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.
By doing so, they are exposed to both the positive and negative sides of the coin. Both deflation and inflation. They will see a return over time.
How does a gold IRA generate interest?
It all depends on how big your investment is. If you have $100,000, then yes. If your net worth is less than 100,000, no.
The amount you deposit into an IRA will affect its potential to earn interest.
If you invest more than $100,000 each year in retirement savings, you may want to open a regular brokerage instead.
You will likely earn more interest there, but you'll also be exposed to riskier investments. You don't want your entire portfolio to go bankrupt if the stock markets crash.
An IRA may be better for you if your annual income is less than $100,000. You can do this until the market grows again.
Can I take physical possession of gold in my IRA?
Many people ask themselves whether it is possible to physically own gold in an IRA. It is a valid question, as there is no legal way to possess gold in an IRA account.
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 is easy to toss gold coins, but it's not easy to place them in an IRA. You'll have to pay twice taxes if you keep your gold in your home. One for the IRS, and one for your state.
There are two ways to lose your gold: pay taxes twice and keep it in your house. Why would you want it to stay in your home?
It might seem that you want the security of knowing your gold is safe inside 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.
It is better to keep your gold in an insured vault. You can rest assured that your gold is safe from theft, fire, earthquake, flood, and other hazards.
One advantage of storing your gold safely in a vault is the fact that you don't have to worry too much about property tax. Instead, income tax will be charged on any gains made from the sale of your precious metal.
If you'd rather avoid paying taxes on your gold, you may want to consider putting it in an IRA. You don't pay income tax on the interest you earn with an IRA.
Capital gains tax is not required on gold. If you decide to cash it out, you will have full access to its value.
Federally regulated IRAs mean that you won't face any difficulties in transferring your gold to another bank if it moves.
Bottom line: You can have gold in an IRA. Your fear of it being stolen is what holds you back.
Can you make money in a gold IRA
You must first understand the market and then know which products are available to make money.
Trading is not a good idea if you don’t know what you need.
Find a broker that offers the best service to your account type.
There are many account options available, including Roth IRAs (standard IRAs) and Roth IRAs (Roth IRAs).
A rollover is also an option for those who already own stocks and bonds.
- 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)
- 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)
- 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)
- 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)
How to Buy Gold For Your Gold IRA
Precious metal can be used to refer to gold, silver or platinum as well as osmium and ruthenium. It is any element that has atomic numbers between 79 and 110 (excluding Helium), and which is valued because of its beauty and rarity. Gold and silver are the most popular precious metals. Precious Metals are often used for money, jewelry and industrial goods.
Due to supply and demand, the price of gold fluctuates every day. There has been a significant demand for precious metals over the past decade as investors look for safe havens in unstable economies. Prices have risen significantly due to this increased demand. But, investors in precious metals are becoming more cautious due to rising production costs.
Because it is rare and long-lasting, gold makes a great investment. Contrary to other investments, gold does not lose its value. Additionally, you can sell and buy gold without any taxes. You have two options to invest in gold. You can either purchase gold bars and coins or invest in futures gold contracts.
Physical gold coins and bars provide immediate liquidity. They are easy to store and trade. They aren't very effective in protecting against inflation. To protect yourself from rising gold prices, you can consider buying gold bullion. Bullion, also known as physical gold and available in different sizes, is physical. Bullion comes in a variety of sizes, including kilo bars and one-ounce pieces. Bullion is normally stored in vaults that are fire- and theft-resistant.
Consider buying gold futures if you would rather own shares than actual gold. Futures allow you to speculate as to how the gold price will change. You can expose yourself to the price of gold by buying gold futures without having to own the physical commodity.
For instance, if I wanted speculation on whether gold prices would go up or lower, I could buy a contract for gold. My position will change when the contract expires. It can be either “longer” or “shorter.” A long contract means I believe the gold price will rise, so I am willing to hand over money now in return for the promise of more money when the contract expires. A short contract, on the other hand, means I believe the price of gold is going to drop. So, I'm willing to take the money now in exchange for the promise that I'll make less money later.
When the contract expires, I'll receive the amount of gold specified in the contract plus interest. I am now exposed to the price of gold, without actually holding it.
Because they are extremely difficult to counterfeit, precious metals make great investments. Precious metals are more difficult to counterfeit than paper currency. This is why precious metals have always held their value well over time.
By: Jamie Redman
Title: Bitcoin Solidifies Lead Over Ethereum in 2023 — Dominates in Market Cap, NFT Sales, and Fee Generation
Sourced From: news.bitcoin.com/bitcoin-solidifies-lead-over-ethereum-in-2023-dominates-in-market-cap-nft-sales-and-fee-generation/
Published Date: Sat, 23 Dec 2023 16:00:19 +0000