Cardano's Lack of Meaningful Use and Fabricated Blockchain Activity
According to a recent research note by K33 Research, the Cardano network is facing criticism for its lack of meaningful use and a perceived fabrication of blockchain activity. The research note suggests that nothing substantial is happening on the network apart from exchange transfers and a group of bagholders creating the illusion of blockchain activity.
Renowned Cardano founder, Charles Hoskinson, responded to these claims with skepticism, stating, "Who? Never heard of them."
The Absence of Stablecoins and its Implications
K33 Research highlights the absence of stablecoins, such as USDT and USDC, on the Cardano network as evidence of its lack of purposeful activity. Stablecoins are widely used as a unit of exchange in decentralized finance (defi) altcoin trading, particularly on networks other than Ethereum. The absence of these stablecoins suggests a dearth of meaningful defi activity on the Cardano network.
K33 Research elaborates on this point, stating, "No USDT or USDC in a network generally means that no meaningful defi occurs AND that Tether and Circle attest to this because if something went on, they would issue stablecoins there."
Doubts About Cardano's Future
In addition to the lack of stablecoin activity, the K33 Research note predicts a bleak future for Cardano. The research firm claims that without any significant traction, Cardano will ultimately drift into irrelevance over time. The note cites examples of other networks, including IOTA, NEO, EOS, and Concordium, that have faced a similar fate.
Regarding Cardano's native token ADA, which currently holds a market value of around $19 billion, the research note attributes its popularity to Cardano's "scientific mumbo-jumbo story." However, the research suggests that even Cardano's claim of being a "peer-reviewed research-driven blockchain network" will not prevent ADA from gradually disappearing from the cryptocurrency landscape.
Share Your Thoughts
What are your thoughts on K33 Research's criticisms of Cardano and its native token ADA? Share your opinions in the comments section below.
Frequently Asked Questions
What Should Your IRA Include in Precious Metals?
You should remember that precious metals are not only for the wealthy. You don't need to be rich to make an investment in precious metals. There are many methods to make money off of silver and gold investments.
You may consider buying physical coins such as bullion bars or rounds. Also, you could buy shares in companies producing precious metals. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Even though they aren't stocks, they still offer the possibility of long-term growth.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
Is it possible to hold a gold ETF within a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
A traditional IRA allows for contributions from both employer and employee. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
An Individual Retirement Annuity (IRA) is also available. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs don't have to be taxable
What amount should I invest in my Roth IRA?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. You can't withdraw money from these accounts before you reach the age of 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, your principal (the original deposit amount) cannot be touched. This means that you can't take out more money than you originally contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that your earnings cannot be withheld without income tax. So, when you withdraw, you'll pay taxes on those earnings. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's say you earn $10,000 each year after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. So you would only have $6,500 left. Because you can only withdraw what you have initially contributed, this is all you can take out.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
Two types of Roth IRAs are available: Roth and traditional. A traditional IRA allows for you to deduct pretax contributions of your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs are not allowed to allow you deductions for contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal limit, unlike traditional IRAs. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
How much do gold IRA fees cost?
A monthly fee of $6 for an Individual Retirement Account is charged. 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. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge annual management costs. These fees can range from 0% up to 1%. The average rate per year is.25%. These rates can be waived if the broker is TD Ameritrade.
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 take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
finance.yahoo.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
bbb.org
How To
Three Ways to Invest In Gold For Retirement
It's essential to understand how gold fits into your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. You may also be interested in investing in gold beyond your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. Or, if you don't already own any precious metals, you may want to consider buying them directly from a reputable dealer.
These are three easy rules to remember if you invest in gold.
- Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, instead, transfer cash to your accounts. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. It's easier to sell physical gold coins rather 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 can reduce market volatility and help you be more flexible.
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By: Terence Zimwara
Title: The Cardano Network Faces Criticism Over Lack of Meaningful Use, According to K33 Research
Sourced From: news.bitcoin.com/k33-research-note-claims-cardano-network-lacks-meaningful-use-native-token-value-at-risk/
Published Date: Fri, 19 Jan 2024 12:30:38 +0000
