A Resilient Year for USDC Amidst Market Shifts
A recent report from Circle, the issuer of the USD Coin (USDC), reveals that despite facing challenges in 2023, USDC has shown resilience and witnessed growth in real-world applications, while speculative trading has decreased.
2023 proved to be a challenging year for USDC. The stablecoin, which is pegged to the U.S. dollar and backed by liquid cash and cash-equivalent assets, experienced a significant decrease in its circulating supply, dropping from $45 billion to $25 billion – a decline of 44%. This decline was primarily attributed to the movement of assets from the crypto ecosystem to traditional markets. The shift was driven by opportunities arising from rising interest rates, regulatory pressures, industry bankruptcies, and fraud incidents.
However, amidst this decline, the number of wallets holding at least $10 of USDC increased by 59%, reaching over 2.7 million. This growth occurred despite the broader contraction in the crypto sector and signals confidence in USDC. The stablecoin played a crucial role in bridging the gap between the crypto asset economy and traditional finance, with over $197 billion of USDC issued or burned throughout the year.
The Asia-Pacific region, in particular, has seen a surge in the usage of USDC for remittances, with $130 billion flowing into the region in 2022. Circle's efforts in this region, including a partnership with Coins.ph, a Philippines-based exchange, have targeted the $36 billion remittance market. Additionally, USDC is actively addressing the $510 billion trade finance gap in emerging markets.
The report also highlights the significant increase in the practical use of USDC, such as for remittances and trade finance. Simultaneously, it notes a substantial decline in USDC's role in speculative trading, which has decreased by 90% over the past five years.
What is your preferred stablecoin? Feel free to share your thoughts and opinions on this subject in the comments section below.
Frequently Asked Questions
How much of your IRA should include precious metals?
It is important to remember that precious metals can be a good investment for anyone. It doesn't matter how rich you are to invest in precious metals. There are many methods to make money off of silver and gold investments.
You might consider purchasing physical coins, such as bullion bars and rounds. It is possible to also purchase shares in companies that make precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
No matter what your preference, precious metals will still be of benefit to you. Although they aren’t stocks, they offer the possibility for long-term gains.
And, unlike traditional investments, their prices tend to rise over time. If you decide to sell your investment, you will likely make more than with traditional investments.
Is gold buying a good retirement option?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
The best form of investing is physical bullion, which is the most widely used. You can also invest in gold in other ways. You should research all options thoroughly before making a decision on which option you prefer.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you require cash flow, gold stocks can work well.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs usually include stocks of precious metals refiners or gold miners.
Which precious metal is best to invest in?
This question depends on how risky you are willing to take, and what return you want. While gold is considered a safe investment option, it can also be a risky choice. Gold may not be right for you if you want quick profits. Silver is a better investment if you have patience and the time to do it.
If you don’t want to be rich fast, gold might be the right choice. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
What are the advantages of a gold IRA
An Individual Retirement Account (IRA) is the best way to put money towards retirement. It's tax-deferred until you withdraw it. You have complete control over how much you take out each year. And there are many different types of IRAs. Some are better for those who want to save money for college. Others are designed for investors looking for higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. However, once they begin withdrawing funds, these earnings are not taxed again. So if you're planning to retire early, this type of account may make sense.
A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another benefit to owning IRA gold is the ability to withdraw automatically. That means you won't have to think about making deposits every month. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold is one the most secure investment options available. It is not tied to any country so its value tends stay steady. Even during economic turmoil, gold prices tend to stay relatively stable. Therefore, gold is often considered a good investment to protect your savings against inflation.
Should you open a Precious Metal IRA
The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. If you lose money in your investment, nothing can be done to recover it. All your investments can be lost due to theft, fire or flood.
Protect yourself against this type of loss by investing in physical gold or silver coins. These coins have been around for thousands and represent a real asset that can never be lost. 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. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
Do not open an account unless you're ready to retire. Do not forget about the future!
What is the cost of gold IRA fees
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
Diversifying your portfolio may require you to pay additional fees. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
In addition, most providers charge annual management fees. These fees can range from 0% up to 1%. The average rate per year is.25%. These rates are usually waived if you use a broker such as TD Ameritrade.
Statistics
- 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. (forbes.com)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
External Links
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads. Example. And Risk Metrics
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
bbb.org
How To
Gold Roth IRA guidelines
It is best to start saving early for retirement. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. You must contribute enough each year to ensure that you have adequate growth.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles enable you to make contributions while not paying any taxes on the earnings, until they are withdrawn. They are a great option for those who do not have access to employer matching money.
The key is to save regularly and consistently over time. You may not be eligible for any tax benefits if your contribution is less than the maximum allowed.
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By: David Sencil
Title: USDC Navigates Challenging Waters in 2023: Circle Report
Sourced From: news.bitcoin.com/circle-report-shows-usdc-navigating-challenging-waters-in-2023/
Published Date: Wed, 17 Jan 2024 11:00:11 +0000
