Asset Management Firm Vaneck Reveals 15 Crypto Predictions for 2024
Asset management firm Vaneck has recently unveiled its 15 crypto predictions for the year 2024. These predictions cover a wide range of topics, including the arrival of a US recession, the approval of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), and an anticipated historic rally for bitcoin. According to Vaneck, this rally could potentially be influenced by political events and regulatory shifts following a US presidential election.
Prediction 1: US Recession and Approval of Spot Bitcoin ETFs
The first prediction from Vaneck focuses on the US economy slipping into a recession and the SEC approving spot bitcoin ETFs. Vaneck stated on the social media platform X, "The US recession will finally arrive, but so will the first spot bitcoin ETFs. Over $2.4 billion may flow into these ETFs in Q1 2024 to support bitcoin’s price."
Vaneck is one of the companies that has filed an application with the SEC to launch a spot bitcoin ETF. Other applicants include Blackrock, Fidelity Investments, Ark Invest, and Bitwise.
Prediction 2: Bitcoin Halving and Post-Halving Rise in Price
The second prediction revolves around the Bitcoin halving that is expected to occur in April 2024. Vaneck anticipates minimal market disruption and a post-halving rise in bitcoin's price, which could result in significant gains for low-cost miners.
Prediction 3: Bitcoin's All-Time High in Q4 2024
Vaneck's third prediction suggests that bitcoin will reach an all-time high in the fourth quarter of 2024. This surge in price could be driven by political events and regulatory changes following a US presidential election.
Prediction 4: Ethereum Outperforming Major Tech Stocks
Vaneck predicts that Ethereum (ETH) will outperform major tech stocks in 2024, although it is not expected to surpass bitcoin. However, Ethereum's market dominance may face challenges from other smart contract platforms.
Prediction 5: Implementation of EIP-4844 and Improved Scalability
The fifth prediction focuses on the implementation of EIP-4844, also known as proto-danksharding. This implementation is expected to reduce transaction fees and enhance scalability for layer 2 chains, such as Polygon, Arbitrum, and Optimism.
Prediction 6: Rebound of Non-Fungible Token (NFT) Activity
Vaneck predicts that non-fungible token (NFT) activity will rebound to an all-time high, with Ethereum leading the way. Additionally, Bitcoin is expected to gain traction through the Ordinals protocol, resulting in a shift in the ETH-to-BTC NFT issuance ratio to 3-1 by the end of 2024.
Prediction 7: Competition Among Crypto Exchanges
Vaneck predicts that Binance, currently the top spot trading exchange, will lose its position to competitors such as Okx, Bybit, Coinbase, and Bitget. The asset management firm suggests that Coinbase's futures market could exceed $1 billion in daily volume due to regulated index inclusion becoming a key factor.
Prediction 8: Market Capitalization of Stablecoins and USDC's Market Share
The eighth prediction highlights the expected growth of the market capitalization of stablecoins, surpassing its previous peak and reaching a new high above $200 billion. Vaneck also foresees a resurgence in USDC's market share, indicating increased institutional adoption, particularly within emerging Layer 2 chains.
Prediction 9: Decentralized Exchanges (DEXs) and On-Chain Trading
Vaneck predicts that decentralized exchanges (DEXs) will experience all-time highs in spot trading market share. This growth will be driven by fast blockchains like Solana and wallets that enable automated transactions, promoting on-chain trading and self-custody.
Prediction 10: Blockchain Use for Remittances and Bitcoin Staking on Lightning Network
Vaneck suggests that remittances will boost blockchain use, with the Lightning Network offering yield opportunities through new and user-friendly staking tools. This prediction indicates a potential increase in the use of blockchain technology for remittance purposes.
Prediction 11: Emergence of a Popular Blockchain Game
Vaneck anticipates the emergence of a smash-hit blockchain game that will exceed 1 million daily players. This development is expected to propel Immutable X's market capitalization upwards. Key releases and the Immutable Passport are predicted to streamline wallet usage and enable wider adoption of blockchain gaming.
Prediction 12: Rise of Solana as a Top 3 Blockchain
The twelfth prediction focuses on Solana (SOL) and its projected growth to become a top 3 blockchain by market cap, Total Value Secured (TVS), and user base. Solana's Pyth oracle is expected to contribute to this growth, potentially surpassing Chainlink's TVS. The increasing popularity of decentralized finance (DeFi) and growing interest in ETFs are also mentioned as factors contributing to Solana's rise.
Prediction 13: Adoption of Decentralized Physical Infrastructure (Depin) Networks
Vaneck predicts a surge in adoption for decentralized physical infrastructure (Depin) networks. These networks are expected to play a significant role in supporting the growth and development of decentralized applications.
Prediction 14: Boost in Corporate Crypto Holdings and Quasi-Public Blockchains
The fourteenth prediction suggests that new accounting standards will lead to an increase in corporate crypto holdings. Coinbase is expected to report Layer 2 revenue as Base Protocol grows. Additionally, Vaneck speculates that by 2025, a major financial entity may launch a quasi-public blockchain with public chain connectivity.
Prediction 15: KYC-Compliant Defi Apps and Uniswap's Token Value
The final prediction by Vaneck revolves around know-your-customer (KYC) compliance. The asset management firm expects KYC-compliant DeFi apps, led by Uniswap, to surpass non-KYC apps in terms of attracting institutional volume and enhancing protocol fees. This shift could potentially boost the value of Uniswap's token.
What are your thoughts on Vaneck's 15 crypto predictions for 2024? Share your opinions in the comments section below.
Frequently Asked Questions
Can you hold precious metals in an IRA?
The answer to this question depends on whether the IRA owner wants to diversify his holdings into gold and silver or keep them for safekeeping.
He can choose to diversify if he so desires. He could purchase physical bars of gold or silver from a dealer and then sell these items to him at the end. However, suppose he isn't interested in selling back his precious metal investments. In this case, he should hold onto the investments as they are perfect for storing inside an IRA account.
Can I store my gold IRA at home?
An online brokerage account can be a great way to save your money. You have all the investment options you'd get if you had a traditional broker. However, you don't require any licenses or qualifications. There are no fees to invest.
In addition, many online brokers offer free tools to help you manage your portfolio. Online brokers will allow you to download charts so that you can see the performance of your investments.
How to Open a Precious Metal IRA
A self-directed Roth Individual Retirement Account is the best way to open a IRA for precious metals.
This account is better compared to other types because you don’t need to pay any taxes until you withdraw the investments.
This makes it very attractive to people who want to save money but also need a tax break.
You are not restricted to investing only in gold or silver. You can invest in whatever you like, provided it conforms to IRS guidelines.
Although most people think of gold and silver when they hear the term “precious metal,” there are many kinds of precious metals.
Examples include platinum, palladium and rhodium.
There are many ways to invest in precious materials. The two most popular options include buying bullion coins and bars and purchasing shares of mining companies.
Bullion Coins, Bars
One of the most straightforward ways to invest is to buy bullion coin and bars. Bullion is a generic term that refers only to physical ounces in gold or silver.
Bullion bars and bullion coins are actual pieces of the metal.
While you may not immediately see any change after buying bullion coins and bars in a store, there will be some long-term benefits.
For example, you will get a tangible piece of history. Every coin and every bar has a unique story.
If you compare the nominal value to face value, you will often find that it is worth much less than its nominal. When it was first introduced in 1986, the American Eagle Silver Coin cost only $1.00 per troy ounce. However, today, an American Eagle Silver Coin is more than $40.00 per 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.
If you are looking to invest in precious metals, there is another option: investing in mining shares. When you invest in mining businesses, you are investing in their ability to produce silver and gold.
In return, you will receive dividends based on the company's profits. These dividends are then used to pay shareholders.
Furthermore, the company has the potential to grow. As the demand for the product grows, the company's share price should increase.
These stocks can fluctuate in value so it is important to diversify your portfolio. This means you can spread your risk to multiple companies.
However, it's also important to remember that mining companies aren't immune to financial loss, just like any stock market investment.
Your share of ownership may be worthless if gold prices fall significantly.
The Bottom Line
Precious metals such silver and gold provide an economic refuge from uncertainty.
Both silver and gold are subject to extreme price swings. If you're looking to make a long-term, profitable investment in precious metallics, then consider opening a precious precious metals IRA Account with a reputable business.
By doing this, you can reap the tax benefits and still have physical assets.
What is the most valuable precious metal?
High returns on capital are possible with gold investments. It is also immune to inflation and other risk factors. As people become worried about inflation, the value of gold tends rise.
Gold futures are a great idea. These contracts ensure that you receive a set amount of gold at a fixed rate.
However, futures on gold aren't for everyone. Some people prefer to own physical gold instead.
They can trade their gold with other people. They can also sell it whenever they want.
Some people want to avoid paying tax on their gold. To avoid paying taxes on their gold, they purchase it directly from the government.
This will require several trips to your local Post Office. You will first need to convert any existing gold in coins or bars.
You will then need to obtain a stamp for the coins and bars. You then send them to US Mint. There they will melt the coins or bars into new ones.
These new coins, bars, and bars have the original stamps stamped onto them. These new coins and bars are legal tender.
However, if you purchase gold directly from the US Mint you won't be required to pay any taxes.
So, which precious metal would you like to invest in?
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.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)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
The Best Precious Metals Ira 2022: Things to Remember
Precious Metals Ira remains one of the most sought-after investment options. This article will provide information on how to understand the appeal of precious metals ira and make sound investment decisions.
The main attraction of these assets is their long-term growth potential. If we look at historical data, gold prices show incredible returns. In the last 200 years, gold prices have risen from $20 to $1900 an ounce over the past 200. The S&P 500 Index, however, grew by only around half of that amount.
During times of economic uncertainty, people consider gold a safety net. People tend to sell stocks when the stock market is in trouble and shift into gold for safety. Gold is also seen as a hedge against inflation. Many economists believe that there will always exist some level of inflation. As such, physical gold is an excellent way to protect your savings and prevent future price increases.
But before buying any precious metal like silver, gold, platinum, or palladium, there are certain things to consider. First, decide whether bullion bars are better than coins. Bullion bars can be bought in large quantities (like 100-ounces) and kept aside until required. Coins are smaller versions of bullion bars, which can then be used to buy small amounts of bullion.
Second, consider where you want to store your precious materials. Some countries are safer then others. For example, storing your precious metals overseas might make sense if you live in the US. If you intend to store them in Switzerland, though, you might need to question why.
Finally, you need to decide whether you want precious metals investments directly or through “precious Metals Exchange-Traded Funds” (ETFs). ETFs can be financial instruments that track different commodities' performance, such as gold. These are a way to have exposure to precious metals but not necessarily own them.
By: Kevin Helms
Title: Vaneck Unveils 15 Crypto Predictions: Spot Bitcoin ETF Approvals, US Recession, BTC’s Historic Rally
Sourced From: news.bitcoin.com/vaneck-unveils-15-crypto-predictions-spot-bitcoin-etf-approvals-us-recession-btcs-historic-rally/
Published Date: Sun, 10 Dec 2023 00:30:13 +0000