Asset management firm Vaneck has recently unveiled its 15 crypto predictions for the year 2024. These predictions cover a range of topics, including the U.S. recession, the approval of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), and the potential for bitcoin's historic rally. Let's take a closer look at these predictions and what they mean for the future of the cryptocurrency market.
The U.S. Recession and Bitcoin ETFs
Vaneck's first prediction revolves around the U.S. economy slipping into a recession. Alongside this, the firm expects the SEC to approve spot bitcoin ETFs. According to Vaneck, over $2.4 billion may flow into these ETFs in the first quarter of 2024, providing support for bitcoin's price.
The Impending Bitcoin Halving
The second prediction focuses on the impending Bitcoin halving, set to occur in April 2024. Vaneck anticipates minimal market disruption and a post-halving rise in bitcoin's price, benefiting low-cost miners in particular.
Bitcoin's All-Time High
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 potentially driven by political events and regulatory shifts following a U.S. presidential election.
Ethereum's Performance and Challenges
Vaneck predicts that Ethereum (ETH) will outperform major tech stocks in 2024, although it won't surpass bitcoin in dominance. However, Ethereum's market dominance will face challenges from other smart contract platforms. Vaneck also highlights the implementation of EIP-4844, which will reduce transaction fees and improve scalability for layer 2 chains such as Polygon, Arbitrum, and Optimism.
NFT Activity and Spot Trading
The sixth prediction focuses on the rebound of non-fungible token (NFT) activity, with Ethereum leading the way. Vaneck expects the ETH-to-BTC NFT issuance ratio to shift to 3-1 by the end of 2024. Additionally, Vaneck predicts that Binance may lose its number one spot for spot trading, with competitors such as Okx, Bybit, Coinbase, and Bitget contending for leadership.
Market Capitalization of Stablecoins
Vaneck anticipates that the market capitalization of stablecoins will surpass its previous peak and reach a new high above $200 billion. This growth will be accompanied by a resurgence in USDC's market share, indicating increased institutional adoption, particularly within emerging Layer 2 chains.
Rise of Decentralized Exchanges
The ninth prediction states that decentralized exchanges (DEXs) will achieve all-time highs in spot trading market share. This will be driven by fast blockchains like Solana and the availability of wallets enabling automated transactions, promoting on-chain trading and self-custody.
Boost in Remittances and Lightning Network
Vaneck predicts that remittances will boost blockchain use in 2024, with "Bitcoin Staking" on the Lightning Network offering yield opportunities through new, user-friendly staking tools.
Smash-Hit Blockchain Game and Solana's Rise
The emergence of a smash-hit blockchain game exceeding 1 million daily players is anticipated, propelling Immutable X's market capitalization upwards. Vaneck also expects Solana (SOL) to become a top 3 blockchain by market cap, Total Value Locked (TVL), and users, potentially surpassing Chainlink's TVL with its Pyth oracle.
Decentralized Physical Infrastructure and KYC Compliance
In its 13th prediction, Vaneck highlights a surge in adoption for decentralized physical infrastructure (Depin) networks. Additionally, the firm suggests that KYC-compliant Defi apps, led by Uniswap, will likely surpass non-KYC ones, attracting institutional volume and enhancing protocol fees.
Vaneck's 15 crypto predictions for 2024 provide an interesting outlook on the future of the cryptocurrency market. While these predictions should be taken with caution, they offer valuable insights into potential trends and developments that may shape the industry in the coming years.
Frequently Asked Questions
Can you make money from a gold IRA
If you want to make money on an investment, you need to do two things firstly, understand how the market operates, and secondly, know what kind of products are available.
Trading should not be started if you don’t have sufficient information.
You should also find a broker who offers the best service for your account type.
Many different accounts are available, including standard IRAs and Roth IRAs.
A rollover may be an option if you have other investments like stocks or bonds.
Are gold IRAs a good idea?
You should buy shares in companies that produce gold. This is a good way to make money when you invest in gold and other precious metals like silver.
However, there are two drawbacks to owning shares directly:
You can lose money if you hold onto your stock too long. When stocks decline, they fall further than their underlying asset (like gold). This means that you might end up losing more money than you make.
You may also miss potential profits if the market recovers before you sell. Therefore, you might need patience and wait for the market recovery before making any profit from your gold investments.
However, if you want to separate your investments from your financial affairs, physical gold can still be a great investment option. A gold IRA will help protect your portfolio from inflation and diversify it.
Visit our website for more information on gold investing.
Can I take physical possession of gold in my IRA?
Many people ask themselves whether it is possible to physically own gold in an IRA. This is a legitimate question since there is no legal way.
If you take a closer look at the law, there is nothing that can stop you from having gold in your IRA.
The problem is that most people don't realize how much money they could save by putting their gold in an IRA instead of keeping it in their own homes.
It's very easy to dispose of gold coins, but much harder to make an IRA. If you decide to keep your precious metal in your own home you will have to pay two taxes. The IRS will collect once and the state where your residence is located will collect the other.
It is possible to lose your gold and pay twice as much tax. So why would anyone want to keep their gold in their home?
It might seem that you want the security of knowing your gold is safe inside your home. You can protect your gold from theft by storing it somewhere more secure.
If you're planning on visiting frequently, it is best to keep your gold safe at home. Theft can easily take your gold when you're not home.
An insured vault is a better choice for gold storage. Your gold will be protected against fire, floods, earthquakes, and robbery.
Another benefit to keeping your gold in vaults is that you won’t have to pay any property taxes. Instead, you will have to pay income tax for any gains you make selling your gold.
If you prefer not to pay tax on your precious metals, an IRA may be a good option. You won't be subject to income tax if you earn interest from your gold with an IRA.
You don't have to pay capital gains taxes on gold. This means that you can cash out the entire value of your investment at any time you like.
And because IRAs fall under federal regulation, you won’t have any problems getting your gold transferred to another institution if you move.
Bottom line: An IRA can allow you to own gold. Fear of losing it is the only thing that will hold you back.
Are you able to keep precious metals in your 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 has two options if he wishes to diversify. He could buy physical bars of gold and/or silver from a dealer or sell these items back to the dealer at the end of the year. Let's say he doesn’t want to sell back his precious metal investment. In this case, he should hold onto the investments as they are perfect for storing inside an IRA account.
What is the best precious-metal to invest?
High returns on capital are possible with gold investments. It is also immune to inflation and other risk factors. As inflation worries increase, gold prices tend to rise.
It's a good idea for you to purchase futures gold. These contracts assure you that you will receive a specified amount of precious metal at a fixed price.
But gold futures may not be right for everyone. Some prefer physical gold.
They can easily exchange their gold with other people. They can also easily sell it whenever they like.
Some people would rather not pay tax on their gold. They buy gold directly from government to do this.
This process requires you to make several trips to your local post office. You must first convert any existing gold into coins or bars.
Then, you need to get a stamp on those coins or bars. Finally, send them off to the US Mint. They melt the bars and coins into new coins.
These new coins, bars, and bars have the original stamps stamped onto them. These new coins and bars are legal tender.
But if you buy gold directly from the US Mint, you won't have to pay taxes.
Decide which precious metal you would like to invest.
What are some of the advantages and disadvantages to a gold IRA
For those who don't have the ability to access traditional banking services but want to diversify their portfolios, a gold IRA can be a great investment option. It allows investors to invest in precious materials such as gold and silver without paying tax on gains until they are withdrawn.
However, if you withdraw money before the due date, you will be subject to ordinary income tax. These funds are not held in the country so creditors cannot seize them if you default on your loan.
A gold IRA might be the right choice for you if you enjoy owning gold and don't worry about taxes.
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.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 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)
How to make your IRA a gold IRA
You want to convert your retirement savings from a traditional IRA to a gold IRA. This article can help you do exactly that. Here are some tips to help you switch.
Rolling over is the process of transferring money from one type of IRA to another. Rolling over an IRA account can provide tax advantages. In addition, some people prefer investing in physical assets like precious metals.
There are two types IRAs – Traditional IRAs and Roth IRAs. The difference is simple. Traditional IRAs allow investors the ability to deduct taxes whenever they withdraw their earnings. Roth IRAs are not. That means that if you invest $5,000 in a Traditional IRA today, then after five years, you'll only be able to take out $4,850. The Roth IRA would allow you to keep every cent if you invested the same amount.
Here's what you should know if you're looking to convert from a traditional IRA to a gold IRA.
First, you will need to decide whether your current balance should be transferred to a new account. Transferring money will result in income tax being paid at the normal rate for earnings greater than $10,000. But if you choose to roll over your IRA, you won't be taxed on those earnings until you reach age 59 1/2.
After making your decision, you can open a new financial account. You will likely need to show proof of identity, such as a passport, Social Security card, or birth certificate. Then, you'll fill out paperwork showing that you own the IRA. After you have completed the forms, submit them to your bank. They will verify your identity as well as give instructions on how to send wire transfers and checks.
The fun part is here. Now, deposit money into your account and wait for approval from the IRS. Once you have received approval, you will receive a letter that allows you to withdraw funds.
That's it! All you need to do now is watch your money grow. If you decide to convert your IRA you can close it and transfer the remaining balance into a different IRA.
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