Prediction 1: Bitcoin Trading Above $80,000
Crypto asset manager Bitwise has made 10 predictions for the crypto market in 2024. The first prediction states that Bitcoin will trade above $80,000, setting a new all-time high. Bitwise believes that two major factors will contribute to this price surge. The anticipated launch of a spot Bitcoin ETF in early 2024 and the halving of new Bitcoin supply around the end of April will drive the price upwards.
Prediction 2: Approval of Spot Bitcoin ETFs
Bitwise also predicts the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). The asset manager believes that spot Bitcoin ETFs will not only be approved but will also be the most successful ETF launch of all time. Within five years, Bitwise estimates that these ETFs could capture 1% of the $7.2 trillion U.S. ETF market, amounting to $72 billion in assets under management (AUM).
Prediction 3: Doubling of Coinbase's Revenue
Bitwise predicts that the revenue of Nasdaq-listed cryptocurrency exchange Coinbase will double, surpassing Wall Street expectations by at least 10 times. The firm attributes this growth to increased trading volumes during bull markets and the successful launch of new products by Coinbase.
Prediction 4: Financial Advisors Allocating to Crypto
According to Bitwise, one in four financial advisors will allocate funds to cryptocurrency in their clients' accounts by the end of 2024. The asset manager anticipates that as Bitcoin becomes more accessible, more advisors will recognize its potential and allocate funds accordingly.
Prediction 5: Ethereum's Growing Revenue
Bitwise expects Ethereum's revenue to more than double to $5 billion in 2024. The firm predicts that users will pay around $2.3 billion in fees to use Ethereum in 2023, and this amount will at least double as more users adopt crypto applications.
Prediction 6: Ethereum's Average Transaction Cost Reduction
Bitwise believes that a major upgrade to the Ethereum blockchain will significantly reduce the average transaction cost to below $0.01. This upgrade, known as EIP-4844, could pave the way for mainstream applications in the crypto space.
Prediction 7: AI Assistants Using Crypto
The asset manager predicts that AI assistants will start using cryptocurrencies like Bitcoin or stablecoins to pay for online transactions. Bitwise sees this as a step towards affirming crypto as the native currency of the internet. The firm expects this trend to begin in 2024.
Prediction 8: Stablecoins Settling More Money Than Visa
Bitwise believes that more money will be settled using stablecoins than using Visa. The asset manager sees stablecoins gaining popularity as a digital native currency that offers stability and efficiency in transactions.
Prediction 9: Tokenization of Real-World Assets
Bitwise predicts that JPMorgan will tokenize a fund and launch it on-chain, signaling Wall Street's increasing interest in tokenizing real-world assets. This move could potentially revolutionize traditional finance and open up new opportunities in the crypto market.
Prediction 10: Prediction Markets as the New 'Killer App' for Crypto
Bitwise expects that prediction markets will emerge as a new "killer app" for the crypto industry. The firm predicts that more than $100 million will be staked in prediction markets, showcasing their potential to attract users and drive engagement.
Last week, Vaneck, another asset management firm, released its own set of crypto predictions for 2024. Vaneck believes that Bitcoin will reach an all-time high in Q4 2024, potentially influenced by political events and regulatory changes following a U.S. presidential election. What are your thoughts on Bitwise's 10 crypto predictions for 2024? Let us know in the comments section below.
Frequently Asked Questions
Which precious metal is best to invest in?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. While gold is considered a safe investment option, it can also be a risky choice. If you are looking for quick profits, gold might not be the right investment. If you have time and patience, you should consider investing in silver instead.
If you don’t desire to become rich quickly, gold may be your best option. Silver might be a better investment option if steady returns are desired over a long period of time.
What are the advantages of a IRA with a gold component?
The benefits of a gold IRA are many. It is an investment vehicle that can diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This allows you to easily transition if your retirement is early.
The best thing is that investing in gold IRAs doesn't require any special skills. They're available at most banks and brokerage firms. You don't have to worry about penalties or fees when withdrawing money.
However, there are still some drawbacks. Gold has historically been volatile. So it's essential to understand why you're investing in gold. Are you looking for safety or growth? Is it for insurance purposes or a long-term strategy? Only then will you be able make informed decisions.
You might want to buy more gold if you intend to keep your gold IRA for a long time. One ounce won't be enough to meet all your needs. Depending on your plans for using your gold, you may need multiple ounces.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even manage with one ounce. However, you will not be able buy any other items with those funds.
How do I Withdraw from an IRA with Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities will accept bullion bars, others require you to buy individual coins. You will need to weigh each one before making a decision.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. But, each coin must be counted separately. However, you can easily track the value of individual coins by storing them in separate containers.
Some people prefer to keep their coins in a vault. Others prefer to store them in a safe deposit box. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
How much gold do you need in your portfolio?
The amount that you want to invest will dictate how much money it takes. A small investment of $5k-10k would be a great option if you are looking to start small. As you grow, you can move into an office and rent out desks. You don't need to worry about paying rent every month. You only pay one month.
You also need to consider what type of business you will run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. You may get paid just once every 6 months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k of gold and growing from there.
Should you open a Precious Metal IRA
It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. If you lose money in your investment, nothing can be done to recover it. This includes losing all your investments due to theft, fire, flood, etc.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items have been around thousands of years and are irreplaceable. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
When you open an account, keep in mind that you won't receive any returns until your retirement. Keep your eyes open for the future.
Can I buy or sell gold from my self-directed IRA
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts are financial instruments based on the price of gold. These contracts allow you to speculate on future gold prices without actually owning it. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
What is the Performance of Gold as an Investment?
The supply and demand for gold affect the price of gold. Interest rates also have an impact on the price of gold.
Because of their limited supply, gold prices can fluctuate. There is also a risk in owning gold, as you must store it somewhere.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- 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)
- 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)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- How do you keep your IRA Gold at Home? It's not exactly legal – WSJ
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example and Risk Metrics
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. Due to its value, it was also internationally traded. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This led to a decline in demand for foreign currencies, which caused their price to increase. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. To do this, they decided that some of their excess gold would be sold back to Europe.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The value of gold has significantly increased since then. Although the price of gold fluctuates today, it remains one of your most safe investments.
By: Kevin Helms
Title: Bitwise Unveils 10 Crypto Predictions for 2024: Bitcoin to Reach New All-Time High
Sourced From: news.bitcoin.com/bitwise-unveils-10-crypto-predictions-for-2024-bitcoin-to-surpass-80000-spot-bitcoin-etfs-could-capture-72-billion/
Published Date: Fri, 15 Dec 2023 01:00:03 +0000