A Resilient Year for USDC Amidst Market Shifts
A recent report from Circle, the issuer of the USD Coin (USDC), titled "State of the USDC Economy," reveals the current trends and changing dynamics in USDC and the "new internet financial system."
Despite facing challenges in 2023, USDC has proven to be resilient. The stablecoin, which is pegged to the U.S. dollar and backed by liquid cash and cash-equivalent assets, experienced a significant decline in its circulating supply, dropping from $45 billion to $25 billion, representing a 44% decrease. This decline was primarily due to the movement of assets from the crypto ecosystem to traditional markets. Factors such as rising interest rates, regulatory pressures, industry bankruptcies, and fraud incidents prompted this shift.
However, amidst these challenges, the number of wallets holding at least $10 of USDC increased by 59%, reaching over 2.7 million. This growth occurred despite a broader contraction in the crypto sector, indicating confidence in USDC. As an important bridge between the crypto asset economy and traditional finance, over $197 billion worth of USDC was issued or burned throughout the year.
USDC's Impact in the Asia-Pacific Region
The Asia-Pacific region has witnessed a significant surge in USDC usage for remittances, with $130 billion flowing into the region in 2022. Circle has actively pursued opportunities in this region, partnering with Coins.ph, a Philippines-based exchange, to target the $36 billion remittance market. The report also mentions USDC's role in addressing the $510 billion trade finance gap in emerging markets.
Shifting Focus from Speculative Trading to Real-World Applications
One notable trend highlighted in the report is the increased use of USDC for practical purposes such as remittances and trade finance. At the same time, the report reveals a substantial decline of 90% in USDC's role in speculative trading over the past five years.
What stablecoin do you prefer? Share your thoughts and opinions on this topic in the comments section below.
Frequently Asked Questions
Can I place gold in my IRA account?
The answer is yes You can add gold to your retirement plan. Gold is a great investment as it doesn't lose money over time. It is also resistant to inflation. It doesn't come with taxes.
Before you invest in gold, make sure to understand its differences from other investments. You cannot purchase shares of gold companies like bonds and stocks. They can't be sold.
Instead, you must convert your gold to cash. This means you will need to get rid. You can't just hold onto it.
This is what makes gold unique from other investments. Similar to other investments, gold can be sold at any time. With gold, this isn't true.
The worst part is that you cannot use your gold to secure loans. You may have to part with some of your gold if you take out mortgages.
What does this all mean? You can't keep your gold indefinitely. It will eventually have to be converted into cash.
You don't have to worry about this now. All you have to do is open an IRA account. Then, you are able to invest in gold.
Is a gold IRA worth it?
Yes, it is possible. But not as many as you might think. It all depends on how risky you are willing to take. If you are comfortable investing $10,000 annually for 20 years, you could potentially have $1 million at retirement age. If you try to put all your eggs into one basket, you will lose everything.
Diversifying your investments is essential. Gold does well when there is inflation. You should invest in an asset that increases with inflation. Stocks can do this well as they rise when profits are increased. This is also true of bonds. They pay interest each year. They're great for economic growth.
What happens when inflation is absent? In times of deflation, stocks are more valuable than bonds. Investors should refrain from putting all their savings into one type of investment such as a mutual fund or bond.
Instead, they should consider investing in a mixture of different types and funds. For example, they could invest in both stocks and bonds. They could also invest both in bonds and cash.
By doing so, they are exposed to both the positive and negative sides of the coin. Inflation or deflation? They will continue to see a rise over time.
What are the pros & 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 you to invest in precious metals such as gold, silver, and platinum without paying taxes on any gains until they're withdrawn from the account.
However, if you withdraw money before the due date, you will be subject to ordinary income tax. But because these funds are held outside of the country, there is little chance of them being seized by creditors when you default on your loan.
A gold IRA could be the best option for you if your goal is to have gold that you can own without worrying about taxes.
Statistics
- 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)
- 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 IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
External Links
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How To
How to determine if a Gold IRA works for you
Individual Retirement Account (IRA) is the most popular type. IRAs may be obtained from financial planners or banks as well as mutual funds and banks. The IRS allows individuals to contribute up to $5,000 annually without tax consequences. This amount is available to all IRAs, regardless of age. There are limitations on the amount of money that you can contribute to certain IRAs. For example, a Roth IRA contribution is not allowed if you are less than 59 1/2. For those who are younger than 50, contributions can only be made after you turn 70 1/2. Individuals who work for their employer could be eligible for matching employer contributions.
There are two types: Roth and Traditional IRAs. Traditional IRAs let you invest in stocks, bonds, and other investments. Roth IRAs only allow you to make after-tax money. Roth IRA contributions don't get taxed as soon as they are made. However, withdrawals from a Roth IRA will be taxed again. Some people may choose to use both. Each type is different. There are pros and con's to each. How do you choose the best type of IRA for you? These are the three main things you need to remember:
Traditional IRA Pros
- Companies have different options when it comes to contribution options
- Employer match possible
- You can save up to $5,000 per person
- Tax-deferred growth until withdrawal
- You may have income restrictions
- The maximum annual contribution limit is $5.500 (or $6.500 if married filing jointly).
- Minimum investment is $1,000
- After the age of 70 1/2, mandatory distributions must be taken.
- An IRA can only be opened by someone who is at least five years older than you.
- Transfer assets between IRAs is not possible
Roth IRA pros
- No taxes owed when contributing
- Earnings grow without paying taxes
- Minimum distribution not required
- There are only a few investment options available: stocks, bonds and mutual funds.
- There is no maximum contribution limit
- There are no restrictions on the transfer of assets between IRAs
- An IRA can only be opened by those 55 and older
Considering opening a new IRA, it's essential to know that not all companies offer the same IRAs. Some companies allow you to choose between a Roth IRA or a traditional IRA. Some will let you combine them. It is also important to note that different types IRAs will have different requirements. For example, a Roth IRA has no minimum investment requirement, whereas a traditional IRA requires a minimum investment of just $1,000.
The bottom line
It is important to decide whether you want taxes now or later when you choose an IRA. A traditional IRA is a good choice if you expect to retire within ten. Otherwise, a Roth IRA could be a better fit for you. In either case, it's a smart idea to speak with a professional about your retirement plans. It's important to have someone who is knowledgeable about the market and can suggest the best options for you.
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