Bitcoin: A Digital Store of Value
Douglas Boneparth, the president and founder of Bona Fide Wealth, recently shared his perspective on bitcoin, likening it to digital gold or a store of value in the digital realm. In a discussion with Bloomberg's senior ETF analyst, Eric Balchunas, on the "Bloomberg ETF IQ" show, Boneparth described bitcoin as a simple yet powerful digital store of value.
According to Boneparth, bitcoin may not necessarily follow the same price action as traditional gold, but it serves as an alternative investment in a portfolio. Clients are always on the lookout for investments that are not correlated to traditional assets and have the potential to generate alpha. Boneparth believes that there will always be an appetite for such investments among clients.
The Rise of Bitcoin ETFs
During the discussion, Boneparth also touched upon the emergence of spot bitcoin exchange-traded funds (ETFs) and the classification of bitcoin as an asset class. When asked about the volume of inquiries coming from the 'baby boomer' generation regarding the new spot bitcoin ETF, Boneparth revealed that there has been a lack of significant interest.
Boneparth stated that he expected more baby boomers to show interest in allocating funds to cryptocurrency through an exchange. However, he noted that his clients, mainly in their mid to late 30s, have been engaging in educational conversations about cryptocurrency and bitcoin long before the introduction of such investment products.
The Clash Between Crypto Natives and Traditional Finance
Host Katie Greifeld also questioned Boneparth about the differences between native crypto companies like Bitwise and established trade finance firms such as Blackrock and Fidelity. Boneparth highlighted Bitwise's contributions to Bitcoin Core developers, suggesting that those who believe in blockchain and crypto may find a crypto-native fund more appealing.
Ultimately, Boneparth noted that it is still unclear which side, the traditional finance behemoths or the crypto natives, will come out on top as the digital landscape continues to evolve.
In conclusion, Douglas Boneparth's views on bitcoin as a digital store of value provide valuable insights into the world of cryptocurrency investments. As the popularity of bitcoin and other cryptocurrencies continues to grow, it is important to consider the perspectives of both traditional finance giants and crypto-native companies. Share your thoughts and opinions on this subject in the comments section below.
Frequently Asked Questions
How can I choose an IRA?
Understanding your account type will help you find the right IRA. This includes whether your goal is to open a Roth IRA (or a traditional IRA). You should also know how much money your have available to invest.
The next step is to choose the best provider for you. While some providers offer both accounts, others specialize in only one.
Last, consider the fees associated to each option. There are many fees that vary between providers. They may include annual maintenance fees or other charges. One example is that some providers charge a monthly subscription based upon the number of shares you hold. Others may only charge one quarter.
How can you withdraw from a Precious metal IRA?
If your account is with a precious metal IRA firm such as Goldco International Inc., you may want to consider withdrawing funds. You can sell your metals at a higher price if they are still in the account than if you left them there.
This article will help you understand how to withdraw funds from an IRA that holds precious metals.
First, check to see if your precious metal IRA provider permits withdrawals. This option is available from some companies, but not all.
Second, determine whether you can take advantage of tax-deferred gains by selling your metals. Many IRA providers provide this benefit. However, some don't.
Third, verify with your precious Metal IRA provider if you are charged any fees for taking these steps. There may be an additional charge for withdrawing.
Fourth, you should keep track of precious metal IRA investments for at minimum three years after they are sold. To put it another way, you should wait until January 1st every year to calculate capital gains from your investment portfolio. You will then need to file Form 8949 which contains instructions on how to calculate the amount of gain that you have realized.
The IRS requires that you report your sale of precious metals. This ensures you pay tax on any profits from your sales.
Finally, consult a trusted accountant or attorney before selling your precious metals. These professionals can ensure that you adhere to all procedures and avoid costly errors.
What type of IRA are you using to buy precious metals stocks?
A Individual Retirement Account (IRA), is an investment vehicle offered by most financial institutions and employers. An IRA lets you contribute money that will grow tax-deferred to the time it is withdrawn.
An IRA lets you save taxes and pay them off later. This means more money deposited into your retirement plan today versus having to pay taxes on that money tomorrow.
An IRA has the advantage of allowing contributions and earnings to grow tax-free until you withdraw your funds. When you do, there are penalties for early withdrawal.
You can also make additional contributions to your IRA after age 50 without penalty. If you decide to withdraw your IRA from retirement, you will owe income taxes as well as a 10% federal penalty.
Withdrawals made before age 59 1/2 are subject to a 5% IRS penalty. There is a 3.4% penalty for withdrawals between the ages 70 1/2 and 59 1/2.
A 6.2% IRS penalty applies to withdrawals exceeding $10,000 per annum.
Statistics
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- 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)
External Links
regalassets.com
wsj.com
investopedia.com
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Things to Remember about the Best Precious Metals Ira of 2022
Precious Metals Ira is one of the most popular investment options among investors. This article will teach you what makes precious metals so attractive, and how to make informed decisions about investing in precious materials.
The main attraction of these assets is their long-term growth potential. Historical data shows that gold prices have experienced incredible returns. Over the past 200 years, gold has increased from $20 per ounce to almost $1900 per ounce. In comparison, the S&P 500 Index only grew by around 50%.
When economic uncertainty is high, gold can be considered a reliable financial asset. People will sell stocks to move to safety and security in gold when the stock exchange is experiencing a downturn. Also, gold is considered a hedge against inflation. Many economists believe there will always be inflation. As such, physical gold is an excellent way to protect your savings and prevent future price increases.
There are a few things you need to remember before purchasing precious metals like silver, gold or platinum. First, determine whether you are interested in investing in bullion bar coins or coins. Bullion bars are typically purchased in large quantities, like 100 ounces, and kept away until they are needed. These coins can be used for small amounts of bullion.
You should also consider where your precious metals will be stored. Some countries are more safe than others. For example, you might consider storing precious metals overseas if your home country is the United States. However, if you plan on keeping them in Switzerland you may want to think about why.
Finally, you should decide whether you want to invest directly in precious metals or through “precious metals exchange-traded funds” (ETFs). ETFs track the performance of various commodities such as gold and are financial instruments. You can use these to get exposure to precious metals without having to own them.
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