An In-Depth Analysis by K33 Research
The latest research note from K33 Research raises concerns about the Cardano network and its native token, ADA. According to the research firm, Cardano lacks meaningful use and a credible track record, which could potentially lead to its irrelevance in the future. Let's delve into the key points highlighted by K33 Research.
The Lack of Stablecoin Activity
K33 Research points out that Cardano's stablecoin situation is a cause for concern. The absence of popular stablecoins like USDT and USDC on the network indicates a lack of purposeful activity. Stablecoins are widely used in decentralized finance (defi) altcoin trading, especially on non-Ethereum chains. The fact that Tether and Circle, the issuers of USDT and USDC, have not introduced stablecoins on Cardano suggests that there is minimal defi activity happening on the network.
While there are approximately 20 million Cardano-collateralized stablecoins, the research notes that their trading value at 76 cents to the dollar reflects the lack of significant network activity.
The Threat of Irrelevance
In addition to the lack of stablecoin activity, K33 Research believes that Cardano's future is at risk due to its inability to gain traction. Despite its years of existence, the note suggests that Cardano may follow the footsteps of other networks like IOTA, NEO, EOS, and Concordium, which have drifted into irrelevance over time. The research questions whether Cardano's scientific and research-driven approach can save it from this fate.
According to the research note, Cardano's native token ADA, with a market valuation of approximately $19 billion, has attracted investors due to the network's claims of being a peer-reviewed research-driven blockchain. However, K33 Research predicts that over time, ADA may gradually disappear from the crypto map, as the network fails to deliver on its promises.
What's Your Take?
Now that you've heard K33 Research's perspective on Cardano and ADA, we'd like to know your thoughts. Do you agree with the assertions made by the research firm? Share your opinion in the comments below.
Frequently Asked Questions
Does a gold IRA earn interest?
It all depends upon how much money you invest. If you have $100,000 to spare, then yes. If your assets are less than $100,000, it is no.
The amount you invest in an IRA affects its ability to earn interest.
You should consider opening a regular brokerage account instead if you put in more than $100,000 per year for retirement savings.
Although you'll likely earn higher interest, there are greater risks. If the stock market crashes you don't wish to lose your entire investment.
An IRA may be better for you if your annual income is less than $100,000. At least until the market starts growing again.
What precious metals can you invest in for retirement?
First, you need to understand what you have and where you are spending your money. Take a look at everything you own to determine how much you have left. You should list all savings accounts, stocks and bonds, mutual funds certificates of deposit (CDs), annuities, life insurance policies, annuities 401(k), real estate investments, and any other assets like precious metals. To determine how much money is available to invest, add all these items.
If you are under 59 1/2 you should consider opening a Roth IRA Account. A traditional IRA allows you to deduct contributions from your taxable income, while a Roth IRA doesn't. However, you won't be able to take tax deductions for future earnings.
If you decide you need more money, you will likely need to open another investment account. Start with a regular brokerage.
What kind of IRA can you use to hold precious metals in?
An Individual Retirement Account (IRA) is an investment vehicle most employers and financial institutions offer. An IRA allows you to contribute money that is tax-deferred until it is withdrawn.
You can save taxes and pay them later with an IRA. This allows you to save more money today and pay less taxes tomorrow.
The beauty of an IRA is that contributions and earnings grow tax-free until you withdraw the funds. When you do, there are penalties for early withdrawal.
After 50 you can still make contributions to your IRA. There is no penalty. If you decide to withdraw funds from your IRA while you are still working, you'll owe income-taxes and a 10% penalty.
Withdrawals before age 59 1/2 will be subject to a 5% IRS penal. Withdrawals between ages 59 1/2 and 70 1/2 are subject to a 3.4% IRS penalty.
A 6.2% IRS penalty applies to withdrawals exceeding $10,000 per annum.
What are the pros and cons of a gold IRA?
The gold IRA is a great way to diversify your portfolio, but you don't have access the traditional banking services. It allows investors to invest in precious materials such as gold and silver without paying tax on gains until they are withdrawn.
The downside is that early withdrawals will result in ordinary income taxes on earnings. 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.
Can you make money on a gold IRA?
It is important to first understand the market in order to be able to invest and secondly to identify what products are currently available.
If you don’t know anything, it is best to wait until you have enough information so that you can trade effectively.
It is important to find a broker who provides the best services for your account type.
You have many options, including Roth IRAs as well as standard IRAs.
You may also wish to consider a rollover if you already have other investments, such as stocks and bonds.
Statistics
- 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)
- 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)
- Silver must be 99.9% pure • (forbes.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
External Links
takemetothesite.com
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
regalassets.com
How To
Precious Metals Approved By the IRA
IRA-approved precious materials are excellent investments whether you're looking for ways to save money for retirement or to invest in your next business venture. There are many options available to diversify and protect your portfolio from gold bars through silver coins.
Precious metal investments products can be purchased in two forms. Physical assets such as coins and bars are called physical bullion because they can be physically accessed. However, exchange-traded fund (ETFs), which are financial instruments, track the price movement of an underlying assets, such as gold, and can be purchased directly from the company issuing them. ETFs are traded like stocks on stock markets, so investors can purchase shares directly from the company issuing them.
There are many precious metals to choose from. While gold and silver are used in jewelry making and decoration, platinum and palladium are most commonly associated with luxury products. Palladium is more stable than platinum and therefore better suited for industrial purposes. Silver is also useful for industrial purposes, although it is usually preferred for decorative applications.
Due to the expense of mining and refining natural materials, physical bullion is more expensive. However, they are generally safer than paper currencies and provide buyers with greater security. For example, consumers may lose confidence in the currency and look for alternatives when the U.S. dollar loses purchasing power. In contrast, physical bullion products do not rely on trust between countries or companies. Instead, they are backed by governments and central banks, giving customers peace of mind.
The supply and demand for gold affect the price of gold. If demand rises, the price will increase. Conversely, if supply exceeds demands, the price will drop. This dynamic allows investors to profit when the gold price fluctuates. Physical bullion investors benefit because they have a greater return on their capital.
Unlike traditional investments, precious metals cannot be affected by economic recessions or interest rate changes. The price of gold is likely to continue rising as long the demand for it remains strong. Precious metals, which are safe havens for times of uncertainty, are therefore considered to be safe havens.
These precious metals are the most in demand:
- Gold – It is the oldest form of precious metallic and is sometimes called “yellow material”. While gold is a familiar name, it is an extremely rare element that is found underground. The majority of the world's reserves of gold are located in South Africa, Australia and Peru.
- Silver – Silver, which is second in value after gold, is silver. Like gold, silver is mined from natural deposits. However, silver is more commonly extracted from ore than from rock formations. Because of its durability and malleability, as well as resistance to tarnishing, silver is widely used in commerce and industry. The United States accounts for more than 98% global silver production.
- Platinum – Platinum is the third most valuable precious metal. It has many industrial uses, including catalytic converters, fuel cells, and high-end medical equipment. You can also use platinum in dentistry to make dental crowns and bridges.
- Palladium- Palladium, the fourth most precious precious metal, is Palladium. Due to its strength and stability, it is quickly gaining popularity among manufacturers. You can also use palladium in electronics, automotives, and military technology.
- Rhodium – Rhodium is fifth most valuable precious metal. Although rhodium is extremely rare, it is highly sought after because of its use in automobile catalysts.
- Ruthenium – Ruthenium is the sixth most valuable precious metal. While palladium and platinum are scarce, ruthenium has a large supply. It is used in steel making, aircraft engines, and chemical manufacturing.
- Iridium: Iridium (the seventh most valuable precious metallic) is the seventh. Iridium is a key component in satellite technology. It is used to construct orbiting satellites that transmit television signals, telephone calls, and other communications.
- Osmium (Osmium) – Osmium has the eighth highest value precious metal. Osmium's ability to withstand extreme temperatures makes it a common metal in nuclear reactors. It's also used in jewelry, medicine and cutting tools.
- Rhenium – Rhenium is the 9th most valuable precious metal. Rhenium is used to refining oil and natural gas, in semiconductors, and rocketry.
- Iodine- Iodine ranks as the tenth most precious precious metal. Iodine is used in photography, radiography, and pharmaceuticals.
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