In the recent weeks, the stablecoin market has witnessed a period of relative stagnation, with the total valuation barely breaching the $123 billion mark as we draw closer to the third week of October. Notably, fiat-pegged token trading experienced a surge on October 13, with stablecoin transactions accounting for nearly 23% of the worldwide crypto economy's trading volume. This figure was significantly higher a day prior, when stablecoins represented a whopping 74% of all trades.
Market Volatility: Changes in Stablecoin Valuations and Trade Volumes
In the past month, the market for fiat-pegged tokens has faced several challenges. Tether (USDT), for instance, only experienced a slight increase in its supply, rising by a modest 0.5%. On the other hand, USD Coin (USDC) underwent a decrease, with a 4.3% cut in its supply. DAI, ranking third in terms of market cap among stablecoins, also saw a decrease in supply by 1.3%, while TrueUSD (TUSD) enjoyed an uptick of 6.5%. BUSD, the fifth largest stablecoin, had a significant 15.5% reduction in its supply.
Shifting Fortunes: An Analysis of Individual Stablecoins
At present, BUSD's market capitalization hovers around $2.13 billion, potentially threatening to fall below the $2 billion mark. Over the past month, Tron's USDD remained constant, while FRAX experienced a slight increase of 0.5%. Pax Dollar (USDP), however, wasn't as fortunate, losing 7.2% of its supply. The newcomer, First Digital USD (FDUSD), saw a significant increase in supply, spiking by 18.7%. As of October 13, 2023, Paypal's newly launched stablecoin stands as the 13th largest, with a circulation of 119 million.
Trade Volume Discrepancies and Leadership Transitions
On the morning of October 13, stablecoins accounted for almost 23% of the $62 billion global trade volume. This figure was in stark contrast to the 74% observed on October 12. That same evening, the stablecoin economy momentarily dropped below the $123 billion mark, with the global trade volume reducing to $34.13 billion. In other news, Tether announced a change in leadership: Paolo Ardoino, formerly the Chief Technology Officer, will step into the CEO role in December, with previous CEO Jean-Louis van der Velde moving into an advisory role.
Faltering Stablecoin: The Case of USDR
A lesser-known stablecoin, USDR, managed by Tangibledao, has suffered a setback this week, now trading at half of its previously established $1 parity. This coin, once stable, lost its parity on October 11 and has not yet recovered. Although the team has pledged to address the issue through a post on a social media platform, the post remains private, barring any public responses. This has led to USDR joining the growing list of fiat-pegged tokens that have lost their dollar pegs.
Share Your Thoughts
We invite you to share your perspectives on this week's developments in the stablecoin market and the news associated with it. Your thoughts and opinions about this subject are valuable to us.
Frequently Asked Questions
Should you Invest In Gold For Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you're unsure about which option to choose then consider investing in both.
In addition to being a safe investment, gold also offers potential returns. Retirement investors will find gold a worthy investment.
While many investments promise fixed returns, gold is subject to fluctuations. This causes its value to fluctuate over time.
This does not mean you shouldn’t invest in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit of gold is that it's a tangible asset. Gold can be stored more easily than stocks and bonds. It can also be transported.
You can always access gold as long your place it safe. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
A portion of your savings can be invested in something that doesn't go down in value. Gold usually rises when the stock market falls.
You can also sell gold anytime you like by investing in it. As with stocks, your position can be liquidated whenever you require cash. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.
Don't buy too many at once. Start with just a few drops. Then add more as needed.
Remember, the goal here isn't to get rich quickly. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
What does gold do as an investment?
The price of gold fluctuates based on supply and demand. Interest rates also have an impact on the price of gold.
Due to the limited supply of gold, prices for gold are highly volatile. You must also store physical gold somewhere to avoid the risk of it becoming stale.
How is gold taxed in Roth IRA?
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules that govern these accounts differ from one state to the next. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you to wait until April 1. New York offers a waiting period of up to 70 1/2 years. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
What is the tax on gold in an IRA
The fair value of gold sold to determines the price at which tax is due. Gold is not subject to tax when it's purchased. It is not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
As collateral for loans, gold is possible. Lenders seek to get the best return when you borrow against your assets. This usually involves selling your gold. This is not always possible. They may just keep it. They might decide to sell it. You lose potential profits in either case.
If you plan on using your gold as collateral, then you shouldn't lend against it. It's better to keep it alone.
How do you withdraw from an IRA that holds precious metals?
First decide if your IRA account allows you to withdraw funds. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, you'll need to figure out how much money you will take out of your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs permit you to withdraw your funds tax-free once you turn 59 1/2. Roth IRAs have income taxes upfront, but you can access the earnings later on without paying additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Before choosing one, consider the pros and disadvantages of each.
Bullion bars, for example, require less space as you're not dealing with individual coins. But you will have to count each coin separately. However, you can easily track the value of individual coins by storing them in separate containers.
Some prefer to store their coins in a vault. Some prefer to keep them in a vault. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
Statistics
- 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)
- 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)
- (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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
finance.yahoo.com
irs.gov
bbb.org
investopedia.com
How To
A rising trend in gold IRAs
Investors seek diversification and protection against inflation by using gold IRAs.
The gold IRA allows investors to purchase physical gold bars and bullion. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or bonds.
A gold IRA allows investors the freedom to manage their wealth without worrying about volatility in the markets. They can use the gold IRA to protect themselves against inflation and other potential problems.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
Additional benefits of the gold IRA include the ability to quickly pass ownership to heirs. Additionally, the IRS does not consider gold a money or a commodity.
All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.
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By: Jamie Redman
Title: Examining the Fluctuating Landscape of Stablecoin
Sourced From: news.bitcoin.com/stablecoin-market-navigates-shifting-sands-as-tether-announces-new-ceo-and-usdr-depegs/
Published Date: Fri, 13 Oct 2023 18:30:29 +0000
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