The Importance of Bitcoin and Stablecoins in Today’s Investment Landscape

Bitcoin: A Crucial Asset in a Complex Geopolitical Environment

Circle CEO Jeremy Allaire asserts that, in the midst of a complex geopolitical and macroeconomic landscape, bitcoin is an asset that investors should consider including in their portfolios. As the largest digital commodity asset, bitcoin holds significant value and potential for growth. Many individuals who invest in bitcoin view it as a risk hedge asset that can offer protection against inflation and the volatility of traditional currencies. While it may not fit every investment strategy, bitcoin provides a unique opportunity for diversification and long-term growth.

Stablecoins: The Explosive Growth of Dollar-Based Digital Assets

Allaire also highlights the immense potential of stablecoins, particularly dollar-based stablecoins like USDC. With their ability to function as both a store of value and a medium of exchange, stablecoins offer the convenience and power of the internet in facilitating transactions. This innovation has already gained significant traction and is expected to experience explosive growth in the coming years. Stablecoins provide investors with a stable and reliable digital asset that can mitigate the volatility often associated with cryptocurrencies.

The Endorsement of Bitcoin as an Inflation Hedge

Jeremy Allaire's perspective on bitcoin aligns with that of other prominent figures in the investment world. Venture capitalist Tim Draper sees bitcoin as an excellent hedge against inflation, recognizing its potential to retain value in times of economic uncertainty. Hedge fund manager Paul Tudor Jones also favors bitcoin as an inflation hedge over gold. Additionally, Blackrock CEO Larry Fink emphasizes that bitcoin can protect against inflation and the devaluation of national currencies, making it an attractive investment option.

Overall, the statements made by Circle CEO Jeremy Allaire underscore the significance of bitcoin and stablecoins in today's investment landscape. As digital commodities continue to gain prominence, investors are encouraged to explore the potential benefits and diversification opportunities offered by these assets.

What are your thoughts on Jeremy Allaire's insights? Share your opinions in the comments below.

Frequently Asked Questions

How much tax is gold subject to in an IRA

The fair market value at the time of sale is what determines how much tax you pay on gold sales. When you purchase gold, you don't have to pay any taxes. It isn't considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.

Loans can be secured with gold. Lenders try to maximize the return on loans that you take against your assets. For gold, this means selling it. It's not guaranteed that the lender will do it. They might keep it. Or, they may decide to resell the item themselves. In either case, you risk losing potential profits.

You should not lend against your gold if it is intended to be used as collateral. You should leave it alone if you don't intend to lend against it.

Can I buy Gold with my Self-Directed IRA?

While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.

The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.

You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. They let you speculate on future price without having to own the metal. You can only hold physical bullion, which is real silver and gold bars.

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 ways that you can make money with gold and silver investments, even if you don't have much money.

You might also be interested in buying physical coins, such bullion rounds or bars. Also, you could buy shares in companies producing precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.

You can still get benefits from precious metals regardless of what choice you make. They are not stocks but offer long-term growth.

And unlike traditional investments, they tend to increase in value over time. You'll probably make more money if your investment is sold down the line than traditional investments.


  • You can only purchase gold bars at least 99.5% purity. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (
  • (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (

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Investing with gold or stocks

Gold investing as an investment vehicle can seem extremely risky these days. Many people believe that investing in gold is not profitable. This belief comes from the fact most people see gold prices falling due to the global economy. They feel that gold investment would cause them to lose money. In reality, though, gold investment can offer significant benefits. Below we'll look at some of them.

One of the oldest forms known of currency is gold. It has been in use for thousands of year. It has been used as a store for value by people all over the globe. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.

The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. When looking into buying gold bullion, you must decide how much you are willing to spend per gram. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.

Noting that gold prices have fallen in recent years, it is worth noting that the cost to produce gold has gone up. Although the price of gold has dropped, production costs have not.

Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. This is not a wise decision if you're looking to invest in long-term assets. If you sell your gold for more than you paid, you can make a profit.

We hope our article has given you a better understanding of gold as an investment tool. We recommend that you investigate all options before making any major decisions. Only then can informed decisions be made.


By: Kevin Helms
Title: The Importance of Bitcoin and Stablecoins in Today's Investment Landscape
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Published Date: Sat, 16 Dec 2023 11:00:51 +0000

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