Crypto Asset Manager Bitwise Releases 10 Crypto Predictions for 2024
Crypto asset manager Bitwise has recently published a report titled "The Year Ahead: 10 Crypto Predictions for 2024." The firm, known for its crypto index fund BITW, offers a range of crypto-focused investment products, including exchange-traded funds (ETFs) and non-fungible tokens (NFTs).
Prediction 1: Bitcoin to Trade Above $80,000, Setting a New All-Time High
Bitwise predicts that bitcoin will surpass the $80,000 mark, reaching a new all-time high. The firm attributes this growth to two major catalysts: the anticipated launch of a spot bitcoin ETF in early 2024 and the halving of new bitcoin supply around the end of April.
Prediction 2: Spot Bitcoin ETFs to Capture $72 Billion in Assets Under Management
Bitwise believes that spot bitcoin ETFs will be approved by the U.S. Securities and Exchange Commission (SEC) and become the most successful ETF launch in history. The firm estimates that within five years, spot bitcoin ETFs could capture 1% of the $7.2 trillion U.S. ETF market, equivalent to $72 billion in assets under management (AUM).
Prediction 3: Coinbase's Revenue to Double, Beating Wall Street Expectations
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 various new products.
Prediction 4: One in Four Financial Advisors to Allocate to Crypto by 2024
Bitwise anticipates that by the end of 2024, one in four financial advisors will allocate client funds to cryptocurrencies. The firm believes that as bitcoin becomes more accessible, advisors will increasingly recognize the value of including crypto in their clients' investment portfolios.
Prediction 5: Ethereum Revenue to Double as Users Embrace Crypto Applications
Bitwise expects Ethereum revenue to more than double to $5 billion in 2024. The firm predicts that as more users flock to crypto applications, the demand for Ethereum will increase, resulting in significant revenue growth for the platform.
Prediction 6: Ethereum Blockchain Upgrade to Lower Transaction Costs
Bitwise believes that a major upgrade to the Ethereum blockchain will drive the average transaction cost below $0.01, making it more feasible for mainstream adoption. The firm highlights EIP-4844 as a potential upgrade that could reduce the cost to use Ethereum by over 90% and pave the way for mainstream applications in the crypto space.
Prediction 7: AI Assistants to Use Crypto for Online Payments
Bitwise predicts that AI assistants will start using cryptocurrencies to pay for online transactions, solidifying crypto as the native currency of the internet. The firm suggests that AI assistants will prefer digitally native money, such as bitcoin or stablecoins, and expects this trend to start in 2024.
Prediction 8: More Money to Settle Using Stablecoins Than Visa
Bitwise expects that stablecoins will surpass Visa in terms of settlement volume. As the adoption of stablecoins continues to grow, the firm predicts that more financial transactions will be settled using stablecoins rather than traditional payment systems like Visa.
Prediction 9: Tokenization of Real-World Assets and Taylor Swift NFT Launch
Bitwise predicts that JPMorgan will tokenize a fund and launch it on-chain, signaling the growing interest in tokenizing real-world assets. Additionally, the firm anticipates that Taylor Swift will enter the NFT market to connect with fans in innovative ways.
Prediction 10: Prediction Markets to Emerge as a New 'Killer App' for Crypto
Bitwise believes that prediction markets will gain significant traction, with over $100 million being staked in these markets. The firm sees prediction markets as a new and exciting application for cryptocurrencies, attracting users with the opportunity to make predictions and potentially earn rewards.
Bitwise's 10 crypto predictions for 2024 paint an optimistic picture of the future of the crypto industry. With expectations of bitcoin reaching new highs, the approval of spot bitcoin ETFs, and the growth of Ethereum and stablecoins, the coming years hold significant potential for the crypto market. As the industry continues to evolve, these predictions provide insights into the possible developments and trends that may shape the crypto landscape in the near future.
Frequently Asked Questions
Can the government take your gold
The government cannot take your gold because you own it. You worked hard to earn it. It belongs exclusively to you. This rule could be broken by exceptions. You could lose your gold if convicted of fraud against a federal government agency. Also, if you owe taxes to the IRS, you can lose your precious metals. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
Can I buy gold with my self-directed IRA?
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contract are financial instruments that depend on the gold price. You can speculate on future prices, but not own the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
How to open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Open the account by filling out Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should be completed within 60 days after opening the account. Once this has been completed, you can begin investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process is identical to an ordinary IRA.
To qualify for a precious-metals IRA, you'll need to meet some requirements. The IRS requires that you are at least 18 years old and have earned an income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Additionally, you must make regular contributions. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. You can only purchase bullion in physical form. This means you can't trade shares of stock and bonds.
However, there are two significant drawbacks to investing in precious metals via an IRA. They aren't as liquid as bonds or stocks. They are therefore more difficult to sell when necessary. Second, they are not able to generate dividends as stocks and bonds. So, you'll lose money over time rather than gain it.
Can I have a gold ETF in a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow for contributions from both employees and employers. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
An Individual Retirement Annuity (IRA) is also available. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions made to IRAs are not taxable.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- 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)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Tips for Investing In Gold
Investing in Gold is a popular investment strategy. There are many benefits to investing in gold. There are many ways to invest gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
Before buying any type gold, it is important to think about these things.
- First, check to see if your country permits you to possess gold. If your country allows you to own gold, then you are allowed to proceed. Or, you might consider buying gold overseas.
- Second, it is important to know which type of gold coin you are looking for. You can choose between yellow gold and white gold as well as rose gold.
- Third, consider the cost of gold. It is best to start small and work your way up. You should diversify your portfolio when buying gold. Diversify your investments in stocks, bonds or real estate.
- Remember that gold prices are subject to change regularly. Be aware of the current trends.
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