North America Is the Largest Crypto Market Despite Regulatory Uncertainty, Reports Chainalysis

Introduction

Despite ongoing regulatory uncertainty, North America continues to be the leading region in terms of cryptocurrency usage, according to blockchain forensics firm Chainalysis. While stablecoin-related activity has been decreasing, the region's share in decentralized finance (defi) usage has also declined. In this article, we will explore the findings of Chainalysis' 2023 Geography of Cryptocurrency Report and discuss the impact of institutional crypto activity on the North American market.

North America: The World's Largest Crypto Market

Chainalysis' report 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 studied period. The report also highlights that institutions play a significant role in driving North America's crypto market, with nearly 77% of the transaction volume being driven by transfers of at least $1 million.

The United States: The Main Driver of Crypto Activity

The United States is the main driver of crypto activity in North America, contributing significantly to the region's transaction volume. The report emphasizes that the U.S. ranks first overall worldwide in terms of crypto activity. However, the overall crypto activity in North America has been declining, following negative events such as the collapse of the FTX crypto exchange and issues with crypto-friendly banks in the U.S. This decline has been largely attributed to institutional investors pulling back from the market.

Decrease in Stablecoin Usage

Stablecoin usage in North America has also witnessed a decrease. Between February 2023 and June 2023, stablecoins' share of North America's on-chain transaction volume fell from over 70% to below 49%. This decline can be attributed to activity shifting to non-U.S. licensed platforms. Although stablecoins remain the most widely used crypto asset on the continent, Chainalysis notes that more crypto users are pursuing stablecoin-related activity with trading platforms and issuers headquartered abroad. This trend suggests that the United States may be losing regulatory oversight of the stablecoin market.

Defi Usage in North America

While North America continues to be a leader in defi usage, its share of global defi activity has significantly declined during the examined period. The report reveals that the region's on-chain activity has been split evenly between defi and centralized exchanges.

The Future of Crypto in North America

Chainalysis' analysts believe that regulation will play a crucial role in the future growth of crypto in North America. As the region rebounds from the "crypto winter," regulatory measures will be essential for its recovery. However, the current regulatory approach by U.S. authorities, which favors enforcing existing rules through courts rather than adopting crypto-specific regulations, has faced criticism from the industry. This has led major U.S. players to seek expansion opportunities elsewhere.

Conclusion

Despite regulatory uncertainty, North America remains the largest crypto market globally. The region's crypto activity, driven by institutional investors, has declined over the past year. Stablecoin usage has also decreased, with activity shifting to non-U.S. licensed platforms. Although North America continues to lead in defi usage, its global share has fallen significantly. Moving forward, regulation will play a crucial role in shaping the future of crypto in North America, and it remains to be seen how the region will maintain its position as the leading region in terms of crypto usage.

Frequently Asked Questions

How much money should my Roth IRA be funded?

Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, your principal (the original deposit amount) cannot be touched. This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.

You cannot withhold your earnings from income taxes. When you withdraw, you will have to pay income tax. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's say you earn $10,000 each year after contributing. This would mean that you would have to pay $3,500 in federal income tax. That leaves you with only $6,500 left. The amount you can withdraw is limited to the original contribution.

Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.

There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow you to deduct pretax contributions from your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There is no limit on how much you can withdraw from a traditional IRA.

Roth IRAs don't allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.

What are the benefits of a gold IRA

The benefits of a gold IRA are many. It's an investment vehicle that lets you diversify your portfolio. You have control over how much money goes into each account.

Another option is to rollover funds from another retirement account into a IRA with gold. This is a great way to make a smooth transition if you want to retire earlier.

The best part? You don’t need to have any special skills to invest into gold IRAs. They're readily available at almost all banks and brokerage firms. You don't have to worry about penalties or fees when withdrawing money.

There are, however, some drawbacks. Gold is known for being volatile in the past. So it's essential to understand why you're investing in gold. Are you looking for safety or growth? Are you looking for growth or insurance? Only once you know, that will you be able to make an informed decision.

If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. One ounce doesn't suffice to cover all your needs. Depending on your plans for using your gold, you may need multiple ounces.

If you're planning to sell off your gold, you don't necessarily need a large amount. Even one ounce is enough. But, those funds will not allow you to buy anything.

How much should precious metals be included in your portfolio?

To answer this question, we must first understand what precious metals are. Precious metals have elements with an extremely high worth relative to other commodity. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.

There are many other precious metals, such as 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 also relatively unaffected both by inflation and deflation.

The general trend is for precious metals to increase in price with the overall market. They do not always move in the same direction. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.

In contrast, when the economy is strong, the opposite effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. Because they are rare, they become more pricey and lose value.

It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. 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?

This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you are unsure of which option to invest in, consider both.

In addition to being a safe investment, gold also offers potential returns. It's a great investment for retirees.

While most investments offer fixed rates of return, gold tends to fluctuate. This causes its value to fluctuate over time.

However, this does not mean that gold should be avoided. You should just factor the fluctuations into any overall portfolio.

Another advantage of gold is its tangible nature. Gold is much easier to store than bonds and stocks. It can also be transported.

As long as you keep your gold in a secure location, you can always access it. There are no storage charges for holding physical gold.

Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.

It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold usually rises when stocks fall.

Gold investment has another advantage: You can sell it anytime. You can easily liquidate your investment, just as with stocks. 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 small, buying only a few ounces. Add more as you're able.

It's not about getting rich fast. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.

While gold may not be the best investment, it can be a great addition to any retirement plan.

Statistics

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)
Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
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)
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)
You can only purchase gold bars at least 99.5% purity. (forbes.com)

External Links

How To

The History of Gold as an Asset

From the ancient days to the early 20th Century, gold was a common currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. In addition, because of its value, it was traded internationally. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.

In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This led to a decline in demand for foreign currencies, which caused their price to increase. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. They needed to pay off debt because they had too much money coming into circulation. To do this, they decided that some of their excess gold would be sold back to Europe.

Many European countries began accepting gold in exchange for the dollar because they did not trust it. After World War I, however, many European countries started using paper money to replace gold. The gold price has gone up significantly in the years since. Even though gold's price fluctuates, it is still one of the most secure investments you could make.

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By: Lubomir Tassev
Title: North America Is the Largest Crypto Market Despite Regulatory Uncertainty, Reports Chainalysis
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