A Year of Resilience for USDC Amidst Market Shifts
In 2023, USDC, the USD Coin, faced significant challenges including a notable decline in circulating supply. However, a recent report by Circle, the issuer of USDC, reveals that the stablecoin has demonstrated resilience by experiencing a surge in real-world applications and a decrease in speculative trading.
Circle's "State of the USDC Economy" report provides insights into the current trends and shifting dynamics of USDC within the context of the "new internet financial system."
Over the course of 2023, USDC witnessed a decline in its circulating supply from $45 billion to $25 billion, representing a significant 44% decrease. This reduction can be attributed to a shift of assets from the crypto ecosystem to traditional markets. Factors such as rising interest rates, regulatory pressures, industry bankruptcies, and fraud incidents have contributed to this movement.
Despite these challenges, the number of wallets holding at least $10 of USDC experienced a remarkable 59% increase, reaching over 2.7 million. This growth occurred amidst a broader contraction in the crypto sector, indicating a strong vote of confidence in USDC. Throughout the year, over $197 billion worth of USDC was issued or burned, solidifying its role as a vital link between the crypto asset economy and traditional finance.
The Asia-Pacific region has witnessed a surge in the utilization of USDC for remittances, with a staggering $130 billion flowing into the region in 2022 alone. Circle has actively contributed to this growth through its partnership with Coins.ph, an exchange based in the Philippines. By targeting the $36 billion remittance market, USDC has become an integral part of addressing the $510 billion trade finance gap in emerging markets.
One noteworthy trend highlighted in the report is the significant increase in the practical use of USDC, particularly for remittances and trade finance. Simultaneously, speculative trading involving USDC has decreased by 90% over the past five years.
As we navigate the ever-evolving landscape of digital finance, it is essential to consider the role of stablecoins like USDC. Their resilience in challenging times and their ability to facilitate real-world transactions make them a crucial component of the global financial ecosystem.
We invite you to share your thoughts and preferences regarding stablecoins in the comments section below.
Frequently Asked Questions
What Is a Precious Metal IRA?
Precious Metals are a great way to invest in retirement funds. Precious metals have been around since Biblical times and still hold their value today. It is a great way of diversifying your portfolio and protecting against inflation by investing in precious metals like gold, silver, or platinum.
Many countries also permit citizens to store money in foreign currencies. You can buy Canada gold bars and keep them home. You can then sell the same gold bars to Canadian dollars when you return home to visit your family.
This is a quick and easy way of investing in precious metals. This is especially helpful if you don't live in North America.
What precious metals can be allowed in an IRA?
Gold is the most popular precious metal for IRA accounts. You can also invest in gold bullion bars and coins.
Precious metals are considered safe investments because they don't lose value over time. They are also a great way of diversifying your investment portfolio.
Precious metals include silver, platinum, and palladium. These three metals have similar properties. Each has its own purpose.
For instance, platinum can be used in jewelry manufacturing. For the creation of catalysts, palladium can be used. The production of coins is done with silver.
Consider how much you plan to spend on gold when deciding on which precious metal to buy. It may be more cost-effective to purchase gold at lower prices per ounce.
It is also important to consider whether you would like to keep your investment confidential. Palladium is the best option if you want to keep your investment private.
Palladium has a higher value than gold. But it's also less common. You'll probably have to pay more.
The storage fees of gold and silver are also important factors to consider when making a decision between them. You store gold by weight. So you'll pay a higher fee for storing larger amounts of gold.
Silver is stored according to its volume. You'll pay less if you store smaller quantities of silver.
Keep in mind all IRS rules when you store precious metals inside an IRA. This includes keeping track of transactions and reporting them to the IRS.
Are gold and Silver IRAs a good idea or a bad idea?
If you are looking for an easy way to invest in both gold and silver at once, then this could be an excellent option for you. However, there are many other options available as well. Please feel free to reach out to us with any questions. We are always available to assist you!
How does an IRA for gold and/or silver work?
An IRA for gold and/or silver allows you to invest without tax in precious metals such as silver and gold. This makes them an attractive investment for people who want to diversify their portfolios.
If you are older than 59 1/2, interest earned from these account does not attract income tax. Any appreciation in the account's worth does not attract capital gains tax. However, there are limitations on how much money you can put into this type of account. The minimum amount that you can invest is $10,000. You cannot invest at all if you are under age 59 1/2. The maximum annual contribution allowed is $5,500
If you die before retirement, your beneficiaries may receive less than the full amount in your account. After you have paid all your expenses, your estate should include sufficient assets to cover the balance of your account.
Some banks offer IRA options in gold and silver, while some require you to open a regular brokerage accounts through which you can purchase shares or certificates.
Which type of IRA could be used for precious metals
Many financial institutions and employers offer an individual retirement account (IRA) as an investment option. A IRA is a way to make money and allow it to grow tax-deferred, until you withdraw it.
An IRA allows for you to save taxes while still paying taxes when you retire. This allows for more money to be deposited in your retirement plan today than having to pay taxes tomorrow on it.
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.
You can also contribute to your IRA beyond age 50 without penalty. If you take out of your IRA during retirement you will owe income and a 10% federal penal.
A 5% IRS penalty is applicable to withdrawals made before the age of 59 1/2. For withdrawals made between the age of 59 1/2 & 70 1/2, a 3.4% IRS penalty will apply.
A 6.2% IRS penalty applies to withdrawals exceeding $10,000 per annum.
Which is more powerful: sterling silver or 14k gold?
Sterling silver, which contains 92% pure sterling silver instead of just 24%, is a stronger metal than gold or silver.
Sterling silver is also known as fine silver because it is made from a mixture of silver and other metals such as copper and zinc.
It is generally believed that gold is very strong. It takes tremendous pressure to split it apart. If you drop something on top of a chunk of gold it will shatter into thousands of pieces rather than breaking into two halves.
However, silver doesn't have the same strength as gold. If you dropped an item onto silver sheets, it would likely fold and bend without cracking.
Silver is usually used in jewelry and coins. Its value fluctuates based on demand and supply.
Are gold IRAs a good option for investment?
You can invest in gold by purchasing shares in companies that mine it. These companies are a great way to make money investing in precious metals like gold.
The downside to owning shares is that you can't directly control them.
If you hold on to your stock for too much time, you risk losing money. When stocks decline, they fall further than their underlying asset (like gold). This means that you might end up losing more money than you make.
Second, you could miss out on potential profit if you wait for the market to recover before you sell. Be patient and wait for the market's recovery before you make any profits from your gold holdings.
You can still enjoy the benefits of physical gold if your investments are separate from your finances. An IRA with gold can diversify and protect your portfolio against inflation.
Visit our website for more information on gold investing.
Statistics
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
External Links
investopedia.com
kitco.com
en.wikipedia.org
forbes.com
- Gold IRA, Add Some Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
How to Start Buying Silver with Your IRA
How to start buying Silver with Your IRA – The best method to invest directly in silver or gold is through the direct ownership of physical bullion. Bars and silver coins are the most common form of investment. They offer liquidity, diversification, and convenience.
There are many options to buy precious metals like silver and gold. You can either buy them directly from their producers like mining companies or refiners. You can also purchase them through a dealer, who buys and sellers bullion products, if you don’t want to deal directly with the producer.
This article will show you how to get started investing in silver using your IRA.
- Investing in Gold & Silver Through Direct Ownership – The first option for purchasing precious metals is to go straight to the source. This means that you can get the bullion straight from the source, and it will be delivered directly to your front door. Some investors store their bullion in their home. Others choose to store their bullion in a safe storage location that is insured and protected. When you hold onto your precious metal, ensure you're storing it properly. Many storage facilities offer insurance against fire, theft and damage. But even with insurance, you risk losing your investments due to natural disasters or human error. This is why it is a good idea for precious metals to be stored in a safe deposit container at a bank/credit union.
- Buy Precious Metals Online: If you don't want to carry around heavy boxes full of precious metals, there are other options. Bullion dealers can sell bullion in various forms, including bars or coins. Coins come in different sizes, shapes, and designs. Coins are usually easier to carry than bars, and they tend to be less expensive. There are many different sizes and weights available for bars. Some bars are heavy and weigh hundreds of pounds while others only weigh a few grams. A good rule of thumb when selecting which type of bar you should get is to look at what you plan to use it for. If you plan on giving it as gifts, you might choose something smaller. It might not be the best choice if you're looking to add it in your collection or display it proudly.
- Buying Precious metal from Dealers-A third option is buying bullion through a dealer. Most dealers are experts in one part of the market: gold or silver. Some dealers specialize in certain types of bullion, such as rounds or minted coins. Others are more skilled in certain regions. Others are specialists in bulk purchases. You'll find them all to be competitive in price and offer convenient payment methods.
- Buy Precious Metals Through Retirement Accounts. Although it is not considered an “investment”, investing in retirement accounts can provide exposure to precious metals. Investments in precious metals must be made through a qualified retirement plan to receive tax benefits as per Section 219 of IRS Code. These accounts can be IRAs, 401 (k)s or 403 (3(b) plans). These accounts are often set up to help you save more for retirement. They offer higher returns than most other investment vehicles. In addition, most of these accounts allow you to diversify your holdings across multiple metals. The problem? The drawback? These accounts can only, however, be accessed by those who work for an employer that sponsors them.
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By: David Sencil
Title: USDC: Navigating Challenges and Embracing Growth in 2023
Sourced From: news.bitcoin.com/circle-report-shows-usdc-navigating-challenging-waters-in-2023/
Published Date: Wed, 17 Jan 2024 11:00:11 +0000
