The value of bitcoin (BTC) has witnessed an impressive surge of over 38% against the U.S. dollar in the last six months, resulting in a remarkable 125% increase year-to-date. Scaling new heights not seen in 18 months, bitcoin's market capitalization has now reached the eleventh position among global assets, joining the ranks of precious metals, exchange-traded funds (ETFs), and corporate valuations.
Bitcoin's Market Cap Reaches 11th Place Globally
Bitcoin has demonstrated substantial growth throughout 2023, with its price soaring by 6.5% in the past week alone. Currently, BTC boasts a market valuation of approximately $726.95 billion, with trading prices hovering just above the $37,000 mark.
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 in terms of market valuation.
The digital currency has surpassed Tesla's market cap of $667.50 billion, but it remains below Berkshire Hathaway's valuation of $757.56 billion. A market cap increase of another $31 billion would propel BTC past Berkshire Hathaway's valuation.
BTC's market cap also surpasses assets such as Visa, TSMC, Walmart, and JPMorgan Chase. The nine assets above both Berkshire and BTC include Meta, Nvidia, Silver, Amazon, Google, Saudi Aramco, Microsoft, Apple, and Gold.
Gold's market cap of $12.876 trillion is approximately 17.72 times larger than bitcoin's market cap. Apple's market cap of $2.836 trillion is approximately 3.9 times larger 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 percentage gain of about 1,681.13% from its current price of just above $37,000.
In order to reach Apple's market cap of $2.836 trillion and secure the second position, a single bitcoin would have to be valued at approximately $145,151. This would result in a percentage gain of about 292.30% from the current price of $37,000.
With a market cap of $250 billion, the second-largest cryptocurrency by valuation, ethereum (ETH), ranks 38th among global assets. Ether's market cap is slightly higher than Costco's and slightly lower than Toyota's market valuation on Friday.
What are your thoughts on bitcoin (BTC) emerging as the 11th most valuable asset globally? Please share your opinions in the comments section below.
Frequently Asked Questions
Does a gold IRA make money?
Yes, it is possible. But not as many as you might think. It depends on what level of risk you are willing take. If you are comfortable investing $10,000 annually for 20 years, you could potentially have $1 million at retirement age. However, if all your eggs are in one basket, then you will lose everything.
Diversify your investments. Inflation makes gold a good investment. You want to invest in an investment asset that rises with inflation. Stocks excel at this because they rise with increased profits. Bonds also do this well. They pay interest each year. They're very useful during periods of economic growth.
But what happens if there's no inflation? When there is no inflation, stocks and bonds will lose even more value. Investors should avoid investing all of their savings into one investment like a stock mutual funds or bond.
Instead, they should diversify their investments by investing in different types of 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. They can see both the inflation and the deflation sides of the coin. They will continue to see a rise over time.
What precious metals will be allowed in an IRA account?
The most commonly used precious metal in IRA accounts is, of course, gold. As investments, you can also buy bars and bullion coins made of gold.
Precious and precious metals are considered safe investments, as they don’t lose their value over the course of time. They're also considered a great way to diversify an investment portfolio.
Precious metals are silver, palladium, and platinum. These metals all share similar properties. Each metal has its own unique uses.
One example is platinum, which is used to create jewelry. The catalysts are made from palladium. It is used for producing coins.
Consider how much you plan to spend on gold when deciding on which precious metal to buy. You might be better off buying gold that costs less per ounce.
It is also important to consider whether you would like to keep your investment confidential. If you have the desire to keep your investment private, palladium might be the best choice.
Palladium is worth more than gold. It is also more rare. It is likely you will need to pay more.
Their storage fees are another important factor to consider when choosing between sterling and gold. Gold is stored by weight. You will pay more if you store larger amounts.
Silver can be stored by volume. You'll be charged less for smaller amounts.
All IRS rules concerning gold and silver should be followed if your precious metals are stored in an IRA. This includes keeping track and reporting transactions to the IRS.
How do I choose an IRA?
Understanding the type of account you have is the first step towards finding an IRA that suits your needs. This is whether you want a Roth IRA, a traditional IRA, or both. Also, you should know how much money is available for investment.
The next step is to choose the best provider for you. Some providers offer both accounts while others are specialized in one.
The fees associated with each option should be considered. Fees vary widely between providers and may include annual maintenance fees and other charges. For example, some providers charge a monthly fee based on the number of shares you own. Others charge only once per quarter.
Are silver and gold IRAs a good idea for you?
This could be a good option for anyone looking to quickly invest in both silver or gold. However, there are many other options available as well. You can contact us at any time with questions about these types investments. We're always happy to help!
How Much of Your IRA Should Include Precious Metals?
Protect yourself against inflation by investing in precious metals like gold and silver. It's not just a way to save money for retirement.
While silver and gold have seen significant increases in the last few years, they are still safe investments since they don’t fluctuate as often as stocks. These materials are always in demand.
The prices of gold and silver are generally predictable and stable. They are most likely to rise when the economy grows and fall during recessions. This makes them great money-savers and long-term investments.
Ten percent should go into precious metals. That percentage could go higher if you want to diversify your portfolio further.
How to Open a Precious Metal IRA?
An IRA to hold precious metals can be opened by opening a Roth Individual Retirement Account (IRA) that is self-directed.
This type account is better than others because you don’t have any tax on the interest that you earn from investments until you remove them.
It is attractive for people who want to save money, but need a tax break.
You don't have to invest in silver or gold. You can put your money in almost any item that meets the IRS guidelines.
Most people associate “precious” metal with gold or silver, but there are many different types of precious metals.
Examples include platinum, palladium and rhodium.
You have many options to invest in precious metals. The two most popular options include buying bullion coins and bars and purchasing shares of mining companies.
Bullion Coins & Bars
One of the best ways to invest in precious metals is by buying bullion bars and coins. Bullion is a general term that refers to physical ounces of gold and silver.
You get actual bullion bars and coins when you purchase bullion coins.
You might not notice any changes in your pocket when you buy bullion coins or bars from a store but you will see some benefits over the long-term.
You'll be able to see a piece tangible of history. Every coin and every bar has a unique story.
When you look at face value of the coin, you'll often find that it's worth far less than its nominal value. The American Eagle Silver Coin cost $1.00 an ounce in 1986 when it was first introduced. Today, however, the price of an American eagle is closer to $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.
You will get dividends based off the company's profits in return. These dividends will then go towards paying out shareholders.
Furthermore, the company has the potential to grow. As demand for the product increases, so should the share prices of your company.
These stocks can fluctuate in value so it is important to diversify your portfolio. This is how you spread your risk across different companies.
But, remember that mining companies, like all stock market investments, are susceptible to financial loss.
Your share of ownership may be worthless if gold prices fall significantly.
The Bottom Line
Precious Metals such as gold or silver offer a safe haven in times of economic uncertainty.
Both silver and gold are subject to extreme price swings. A precious metals IRA account is a good option for long-term investment.
This allows you to benefit from tax advantages and physical assets.
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
- 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)
- 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 To Your Gold IRA
The term precious metal refers to gold, silver, palladium and rhodium. It's any element naturally occurring with atomic numbers 79 to 110 (excluding helium), that is valued for its rarity or beauty. Silver and gold are the most well-known precious metals. Precious metals can be used to make money, jewelry, industrial products, and art objects.
Gold's price fluctuates each day due to supply/demand. In the past decade, there has been a huge demand for precious metals as investors seek safe havens from unstable economies. Prices have risen significantly due to this increased demand. Some are concerned about the increased cost of production and have resisted investing in precious materials.
Gold is a solid investment as it is both rare and long-lasting. The value of gold is never lost, which is unlike many other investments. Additionally, you can sell and buy gold without any taxes. There are two ways you can 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're easy to trade and store. But they don't offer much protection against inflation. You can protect yourself against rising prices by purchasing gold bullion. Bullion can be defined as physical gold. It comes in different sizes. While some billions are sold in one-ounce portions, others come in larger pieces such as kilobars. Bullion is typically stored in vaults to protect it from theft and fire.
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. Buying gold futures exposes you to gold's price without owning the physical commodity itself.
A gold contract could be purchased if you wanted to speculate on the future price of gold. My position at the expiration of the contract will be either “long-term” or “short-term.” A long contract indicates that I believe the price for gold will rise. Therefore, I'm willing give money to someone now in exchange of the promise that I will get more money after the contract ends. A short contract on the other side means that I believe gold's price will fall. I'm willing and able to take the money now, in return for the promise that I will make less money later.
I'll get the contract's specified amount of gold plus interest when it expires. This way I have exposure to the gold's price without having to actually hold it.
Precious metals are great investments because they're extremely hard to counterfeit. Paper currencies can be easily faked by printing new bills. Precious metals are not easy to counterfeit. Precious metals have held their value over the years because of this.
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