Introduction
North America continues to dominate the cryptocurrency market, surpassing other regions in terms of usage, according to a report by blockchain forensics firm Chainalysis. The region has also seen a decline in stablecoin-related activity and decentralized finance (defi) usage.
The Largest Crypto Market
Chainalysis reveals that North America is the world's largest crypto market, with approximately $1.2 trillion in on-chain value received between July 2022 and June 2023. This represents 24.4% of the global transaction activity during the study period. Notably, institutional activity plays a significant role in driving North America's crypto market, with nearly 77% of the transaction volume driven by transfers of at least $1 million.
The United States Takes the Lead
The United States is the main driver of crypto activity in North America, contributing significantly to the transaction volume. Canada also plays a substantial role. The U.S. ranks first overall worldwide in terms of crypto activity, highlighting its dominance in the market.
Decline in Crypto Activity
North American crypto activity has experienced a decline in recent times. This trend is observed in other regions as well and is attributed to negative events such as the collapse of crypto exchange FTX and challenges faced by crypto-friendly banks in the U.S. Institutional investors pulling back from the market has also contributed to the overall decline.
Decrease in Stablecoin Usage
Stablecoin usage has also decreased in North America. Between February 2023 and June 2023, stablecoins' share of on-chain transaction volume fell from over 70% to below 49%. Activity has shifted to non-U.S. licensed platforms. While stablecoins remain widely used, with over 90% of activity associated with stablecoins pegged to the U.S. dollar, Chainalysis notes that the United States may be losing regulatory oversight of the stablecoin market.
Defi Usage in North America
North America remains a leader in defi usage, although its share of global activity in this space has declined significantly. The region's on-chain activity is evenly split between defi and centralized exchanges.
Regulation as a Key Factor
Chainalysis predicts that regulation will play a crucial role in the continued growth of crypto in North America. As the region recovers from the effects of the "crypto winter," regulation will be essential for its rebound. However, the current regulatory approach by U.S. authorities, which relies on enforcing existing rules through courts rather than adopting crypto-specific regulations, has drawn criticism from the industry and led major U.S. players to seek expansion elsewhere.
Conclusion
Despite regulatory uncertainty, North America remains at the forefront of cryptocurrency usage. Its dominance in the crypto market, institutional activity, and defi usage highlight its importance in the global crypto landscape. The region's decline in stablecoin-related activity and the need for comprehensive regulation pose challenges that will shape its future in the industry.
Frequently Asked Questions
How much should your IRA include precious metals
You should remember that precious metals are not only for the wealthy. You don't have to be rich to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.
You might also be interested in buying physical coins, such bullion rounds or bars. Stocks in companies that produce precious materials could be purchased. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. They are not stocks but offer long-term growth.
They also tend to appreciate over time, unlike traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
What is the value of a gold IRA
There are many benefits to a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. If you are planning to retire early, this makes it easy to transition.
The best part is that you don't need special skills to invest in gold IRAs. They are readily available at most banks and brokerages. Withdrawals are made automatically without having to worry about fees or penalties.
However, there are still some drawbacks. Gold has historically been volatile. It's important to understand the reasons you're considering investing in gold. Are you seeking safety or growth? Do you want to use it as an insurance strategy or for long-term growth? Only after you have this information will you make an informed decision.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. A single ounce isn't enough to cover all of your needs. You could need several ounces depending on what you plan to do with your gold.
You don’t necessarily need a lot if you’re looking to sell your gold. Even one ounce is enough. But you won't be able to buy anything else with those funds.
What proportion of your portfolio should you have in precious metals
To answer this question we need to first define precious metals. Precious Metals are elements that have a very high relative value to other commodities. This makes them very valuable in terms of trading and investment. The most traded precious metal is gold.
There are however many other types, including silver, and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is not affected by inflation or deflation.
The general trend is for precious metals to increase in price with the overall market. However, they may not always move in synchrony with each other. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rates which makes bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. Since these are scarce, they become more expensive and decrease in value.
Diversifying across precious metals is a great way to maximize your investment returns. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
Should You Invest in gold for Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. Consider investing in both.
Gold offers potential returns and is therefore a safe investment. Retirement investors will find gold a worthy investment.
Gold is more volatile than most other investments. Therefore, its value is subject to change over time.
This does not mean you shouldn’t invest in gold. It just means that you need to factor in fluctuations to your overall portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold is more convenient than bonds or stocks because it can be stored easily. 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. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold tends to rise when the stock markets fall.
Gold investment has another advantage: You can sell it anytime. As with stocks, your position can be liquidated whenever you require cash. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Don't purchase too much at once. Start small, buying only a few ounces. Add more as you're able.
Remember, the goal here isn't to get rich quickly. Instead, the goal is to accumulate enough wealth that you don't have to rely on Social Security.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
What Does Gold Do as an Investment Option?
The supply and demand for gold affect the price of gold. It is also affected negatively by interest rates.
Due to their limited supply, gold prices fluctuate. There is also a risk in owning gold, as you must store it somewhere.
What are the fees associated with an IRA for gold?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes the account maintenance fees and any investment costs associated with your chosen investments.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees can vary depending on which type of IRA account you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Most providers also charge annual management costs. These fees vary from 0% to 11%. The average rate per year is.25%. These rates are usually waived if you use a broker such as TD Ameritrade.
What are the benefits of having a gold IRA?
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). You can withdraw it at any time, but it is tax-deferred. You are in complete control of how much you take out each fiscal year. There are many types available. Some are better for those who want to save money for college. Some are better suited for investors who want higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. People who want to invest their money rather than spend it make gold IRA accounts a great option.
Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. This means that you don't need to worry about making monthly deposits. To avoid missing a payment, direct debits can be set up.
Finally, the gold investment is among the most reliable. It is not tied to any country so its value tends stay steady. Even during economic turmoil the gold price tends to remain fairly stable. As a result, it's often considered a good choice when protecting your savings from inflation.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
cftc.gov
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
How To
3 Ways to Invest in Gold for Retirement
It's essential to understand how gold fits into your retirement plan. If you have a 401(k) account at work, there are several ways you can invest in gold. You might also consider investing in gold outside your workplace. One example is opening a custodial accounts at Fidelity Investments if an IRA (Individual Retirement Account), if you already own one. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
If you do invest in gold, follow these three simple rules:
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, cash in your accounts. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. Physical gold coins are easier to sell than certificates. You don't have to store physical gold coins.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. This is how you spread your wealth. You can invest in different assets. This helps reduce risk and gives you more flexibility during market volatility.
—————————————————————————————————————————————————————————————–
By: Lubomir Tassev
Title: North America Leads the Way in Cryptocurrency Usage Despite Regulatory Uncertainty
Sourced From: news.bitcoin.com/north-america-is-largest-crypto-market-despite-regulatory-uncertainty-chainalysis-reports/
Published Date: Wed, 25 Oct 2023 10:00:28 +0000
Leave a Reply