Tom Farley Optimistic about Bitcoin's Future
In an exclusive interview with CNBC, Tom Farley, the former President of the New York Stock Exchange (NYSE) and current CEO of Bullish, shared his optimistic outlook on the future of cryptocurrency, particularly Bitcoin, upon the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC).
Spot ETF Approval: A Game-Changer for Bitcoin
Farley emphasized the significance of a spot ETF approval, stating that it could be a game-changer for Bitcoin. A spot ETF would allow investors to gain direct exposure to the underlying asset, unlike futures-based ETFs currently available in the market.
"Everyone acknowledges Bitcoin is not a security, including the regulators," said Farley. "Money will flood into the industry with a Bitcoin ETF, it's just easy to buy it. People believe in Bitcoin. Bitcoin is a great invention. It is a store of value."
Confidence in Bitcoin's Long-Term Potential
Farley expressed confidence in Bitcoin's long-term potential and predicted a substantial inflow of capital into the market once a spot ETF receives regulatory approval. He cited the increasing interest among institutional investors and the broader financial community in gaining access to Bitcoin through traditional investment vehicles.
"This guy ran the New York Stock Exchange, he's all in on Bitcoin and crypto now," said Joe Kernen, co-anchor of CNBC's Squawk Box. "They use that as credibility for the asset class."
Growing Confidence in Bitcoin's Future
The former head of the NYSE's bullish sentiment echoes the growing confidence in Bitcoin's future trajectory. If the SEC approves a spot ETF, it could lead to a significant influx of capital into the market.
As the industry eagerly awaits the SEC's decision, Farley's insights provide further validation for Bitcoin's potential as a valuable investment.
Frequently Asked Questions
How does a gold IRA account work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase physical gold bullion coins anytime. To start investing in gold, it doesn't matter if you are retired.
An IRA allows you to keep your gold forever. When you die, your gold assets won't be subjected to taxes.
Your gold is passed to your heirs without capital gains tax. It is not required that you include your gold in the final estate report because it remains outside your estate.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). Once you've done that, you'll receive an IRA custody. This company acts as a mediator between you, the IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit is $1,000. The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
You will pay taxes when you withdraw your gold from your IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
You may not be required to pay taxes if you take out only a small amount. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. If you do, you could face severe financial consequences.
Should You Open a Precious Metal IRA?
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes all investments that are lost to theft, fire, flood, or other causes.
Protect yourself against this type of loss by investing in physical gold or silver coins. These items have been around thousands of years and are irreplaceable. These items are worth more today than they were when first produced.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
You won't get any returns until you retire if you open an account. Remember the future.
What should I pay into my Roth IRA
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, your principal (the original deposit amount) cannot be touched. This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. Withdrawing your earnings will result in you paying taxes. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. The remaining $6,500 is yours. You can only take out what you originally contributed.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow you to deduct pretax contributions from your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
finance.yahoo.com
bbb.org
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
irs.gov
How To
The History of Gold as an Asset
From ancient times to the beginning of the 20th century, gold was used as a currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. 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. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. The result was a decrease in foreign currency demand, which led to an increase in their price. The United States began minting large quantities gold coins at this time, which led to a drop in the price. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to sell some excess gold to Europe in order to do this.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. Many European countries started to accept paper money as a substitute for gold after World War I. The price of gold has risen significantly since then. Although the price of gold fluctuates today, it remains one of your most safe investments.
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