According to a recent report by blockchain forensics firm Chainalysis, North America remains the largest cryptocurrency market in the world, despite ongoing regulatory uncertainty. The report also highlights a decline in stablecoin-related activity and decentralized finance (defi) usage in the region.
Institutional Crypto Activity Drives North America's Market
Chainalysis reveals that between July 2022 and June 2023, North America received approximately $1.2 trillion in on-chain value, representing 24.4% of the global transaction activity during that period. The report also states that nearly 77% of the transaction volume in the region was driven by institutional investors transferring at least $1 million.
The United States plays a significant role in North America's crypto market, with Canada also contributing to the region's transaction volume. In fact, the U.S. ranks first globally in terms of overall crypto activity, according to the report.
Decline in North American Crypto Activity
While North America remains the largest crypto market, the report shows a decline in overall activity during the studied period. This trend is not unique to the region and can be attributed to negative events, such as the collapse of the FTX exchange in November 2022 and issues with crypto-friendly banks in the U.S. Institutional investors pulling back from the market has also contributed to the decline.
Additionally, stablecoin usage in North America has decreased, falling from over 70% to below 49% of on-chain transaction volume between February 2023 and June 2023. This shift in activity is seen as users moving to non-U.S. licensed platforms.
North America's Role in Defi and Future Growth
Despite the decline in overall crypto activity, North America still leads in defi usage. However, the report reveals a significant decrease in the region's share of global defi activity during the studied period. On-chain activity in North America has been evenly split between defi and centralized exchanges.
On a positive note, Chainalysis analysts have observed a gradual increase in on-chain crypto activity since June 2023. They believe that regulation will play a crucial role in the continued growth of the crypto market in North America. The company emphasizes the importance of regulation in the region's recovery from the previous crypto winter.
However, there is criticism from the industry regarding the current regulatory approach by U.S. authorities. Many argue that the enforcement of existing rules through courts, rather than adopting crypto-specific regulations, has led major U.S. players to seek expansion opportunities elsewhere.
Despite the regulatory challenges, North America's position as the leading region in terms of crypto usage remains strong. What are your thoughts on the Chainalysis report? Share your opinions in the comments section below.
Frequently Asked Questions
What is the benefit of a gold IRA?
There are many advantages to a gold IRA. It is an investment vehicle that can diversify your portfolio. You have control over how much money goes into each account.
You can also rollover funds from other retirement accounts to a gold IRA. This makes for an easy transition if you decide to retire early.
The best part is that you don't need special skills to invest in gold IRAs. They're available at most banks and brokerage firms. Withdrawals can be made instantly without the need to pay fees or penalties.
That said, there are drawbacks too. Gold is known for being volatile in the past. It's important to understand the reasons you're considering investing in gold. Are you looking for safety or growth? Do you want to use it as an insurance strategy or for long-term growth? Only when you are clear about the facts will you be able take an informed decision.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. One ounce won't be enough to meet all your needs. Depending upon what you plan to do, you could need several ounces.
If you're planning to sell off your gold, you don't necessarily need a large amount. Even a single ounce can suffice. These funds won't allow you to purchase anything else.
Is it a good idea to open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes losing all your investments due to theft, fire, flood, etc.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items have been around thousands of years and are irreplaceable. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
You should choose a reputable firm that offers competitive rates. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
When you open an account, keep in mind that you won't receive any returns until your retirement. Remember the future.
How much tax is gold subject to in an IRA
The fair market value of gold sold is the basis for tax. You don't have tax to pay when you buy or sell gold. It's not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
Gold can be used as collateral for loans. Lenders try to maximize the return on loans that you take against your assets. Selling gold is usually the best option. It's not guaranteed that the lender will do it. They may keep it. Or, they may decide to resell the item themselves. Either way you will lose potential profit.
You should not lend against your gold if it is intended to be used as collateral. Otherwise, it's better to leave it alone.
Can I hold a gold ETF in a Roth IRA?
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
An IRA traditional allows both employees and employers to contribute. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
A Individual Retirement Annuity (IRA), is also available. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions made to IRAs are not taxable.
How much of your IRA should include precious metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. It doesn't matter how rich you are to invest in precious metals. You can actually make money without spending a lot on gold or silver investments.
You might consider purchasing physical coins, such as bullion bars and rounds. Shares in precious metals-producing companies could be an option. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. 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. You'll probably make more money if your investment is sold down the line than traditional investments.
How to Open a Precious Metal IRA?
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. You must complete Form 8606 to open an account. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should not be completed more than 60 days after the account is opened. After this, you are ready to start investing. You can also contribute directly to your paycheck via payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process will look identical to an existing IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. The IRS says you must be 18 years old and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Contributions must be made regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you can't purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option may be offered by some IRA providers.
However, investing in precious metals via an IRA has two serious drawbacks. First, they're not as liquid as stocks or bonds. It is therefore harder to sell them when required. They don't yield dividends like bonds and stocks. You'll lose your money over time, rather than making it.
Statistics
- 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
finance.yahoo.com
cftc.gov
bbb.org
How To
Online buying gold and silver is the best way to purchase it.
To buy gold, you must first understand how it works. The precious metal gold is similar to platinum. It is rare and used as money due to its durability and resistance against corrosion. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types currently available: legal tender and bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren’t exchangeable in any currency exchange. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. Every dollar spent on gold purchases, the buyer receives one gram of gold.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. If you want to purchase gold directly from a dealer, then a few options are available. First, your local currency shop is a good place to start. You can also go to a reputable website such as eBay. You might also consider buying gold from an online private seller.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers typically charge 10% to 15% commission on each transaction. This means that you will get less back from a private seller than if you sell it through a coin shop or on eBay. This option can be a good choice for investing in gold because it allows you to control the price.
The other option is to purchase physical gold. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
A bank or pawnshop can help you buy gold. A bank can offer you a loan for the amount that you need to buy gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks usually charge higher interest rates that pawn shops.
A third way to buy gold? Simply ask someone else! Selling gold is easy too. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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By: Lubomir Tassev
Title: North America Continues to Lead in Crypto Market Despite Regulatory Uncertainty
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
