Introduction
The stablecoin market, despite experiencing a decline in 2022, saw a resurgence towards the end of 2023, reaching heights not seen since May. However, among the top ten stablecoins by market capitalization, only two witnessed an increase in supply over the last 30 days. This article will delve into the performance of stablecoins in December and highlight notable trends in the market.
Tether (USDT)
Tether, the leading U.S. dollar-pegged crypto asset, experienced a modest 2.5% increase in its supply during the month of December. With a market capitalization of $91.86 billion, Tether remains the largest stablecoin in terms of market valuation.
First Digital USD (FDUSD)
First Digital USD, a newcomer to the stablecoin market, enjoyed a substantial 85.7% rise in supply during December. Currently boasting a market valuation of $1.8 billion, FDUSD has quickly gained traction and emerged as the fifth-ranked stablecoin.
Other Stablecoins
While Tether and FDUSD saw growth in their supplies, other stablecoins experienced varying performances. USDC, the second-largest stablecoin, encountered a slight 0.2% dip in supply, while DAI witnessed a 1.7% decline. TrueUSD (TUSD) underwent a significant 22% contraction in its supply. BUSD, the fifth-ranked stablecoin, noted a reduction of approximately 39% in its supply. Tron's USDD also saw a downtick, with 1.3% of its total supply diminishing in the past 30 days.
FRAX and USDP experienced respective declines ranging from 3.2% to 16.7%. On the other hand, Paypal's new stablecoin, PYUSD, witnessed a significant 68.8% increase, surpassing Liquity USD (LUSD) in terms of supply. As of January 1, PYUSD's total supply exceeded 264 million units.
Trading Volume and Stablecoins
In the last 24 hours, the global trade volume reached approximately $64 billion, with stablecoins accounting for over $42 billion of that activity. This indicates that stablecoins are being used in more than six out of every ten trades, highlighting their significance in the crypto economy.
Conclusion
December showcased a mixed performance among stablecoins, with some experiencing growth and others witnessing declines in supply. While established stablecoins like Tether and USDC maintained their positions, newcomers like FDUSD and PYUSD made significant strides. The stablecoin market remains dynamic and continues to play a crucial role in the broader cryptocurrency landscape.
What are your thoughts on the stablecoin market's performance in December? Share your opinions in the comments section below.
Frequently Asked Questions
Is the government allowed to take your gold
Your gold is yours and the government cannot take it. You worked hard to earn it. It is yours. This rule could be broken by exceptions. You can lose your gold if you have been convicted for fraud against the federal governments. Your precious metals can also be lost if you owe tax to the IRS. You can keep your gold even if your taxes are not paid.
Is it a good idea to open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. You cannot recover any money you have invested. This includes investments that have been damaged by fire, flooding, theft, and so on.
Protect yourself against this type of loss by investing in physical gold or silver coins. These items can be lost because they have real value and have been around for thousands years. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Consider a reputable business that offers low rates and good products when opening an IRA. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
Remember that you will not see any returns unless you are retired if you open an Account. Keep your eyes open for the future.
How much gold should you have in your portfolio?
The amount that you want to invest will dictate how much money it takes. If you want to start small, then $5k-$10k would be great. As you grow, it is possible to rent desks or office space. This will allow you to pay rent monthly, and not worry about it all at once. Rent is only paid per month.
You also need to consider what type of business you will run. In my case, we charge clients between $1000-2000/month, depending on what they order. You should also consider the expected income from each client when you do this type of thing.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. Therefore, you might only get paid one time every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k to $2k of gold, and then growing from there.
Is it possible to hold a gold ETF within a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
An IRA traditional allows both employees and employers to contribute. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
A Individual Retirement Annuity is also possible. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions made to IRAs are not taxable.
What is the value of a gold IRA
Many benefits come with a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You can control how much money is deposited into each account as well as when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. These IRAs are available at all banks and brokerage houses. Withdrawals are made automatically without having to worry about fees or penalties.
That said, there are drawbacks too. Gold has always been volatile. Understanding why you invest in gold is crucial. Is it for growth or safety? Is it for insurance purposes or a long-term strategy? Only by knowing the answer, you will be able to make an informed choice.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. One ounce doesn't suffice to cover all your needs. Depending upon what you plan to do, you could need several ounces.
You don't have to buy a lot of gold if your goal is to sell it. You can even get by with less than one ounce. But, those funds will not allow you to buy anything.
Is gold a good IRA investment?
For anyone who wants to save some money, gold can be a good investment. It's also a great way to diversify your portfolio. But gold is not all that it seems.
It has been used throughout history as currency and it is still a very popular method of payment. It is often called “the oldest currency in the world.”
But unlike paper currencies, which governments create, gold is mined out of the earth. That makes it very valuable because it's rare and hard to create.
Gold prices fluctuate based on demand and supply. If the economy is strong, people will spend more money which means less people can mine gold. Gold's value rises as a result.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This results in more gold being produced, which drives down its value.
This is why gold investment makes sense for both individuals and businesses. You will benefit from economic growth if you invest in gold.
Your investments will also generate interest, which can help you increase your wealth. Plus, you won't lose money if the value of gold drops.
How is gold taxed within an IRA?
The fair market price of gold when it is sold determines the tax due on its sale. Gold is not subject to tax when it's purchased. It is not income. If you decide to sell it later, there will be a taxable gain if its price rises.
For loans, gold can be used to collateral. Lenders seek to get the best return when you borrow against your assets. This usually involves selling your gold. There's no guarantee that the lender will do this. They might just hold onto it. Or they might decide to resell it themselves. You lose potential profits in either case.
You should not lend against your gold if it is intended to be used as collateral. If you don't plan to use it as collateral, it is better to let it be.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
How to Keep Physical Gold in an IRA
The easiest way to invest is to buy shares in companies that make gold. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
Alternative options include buying physical gold. You will need to either open an online or bank account or simply buy gold from a reliable seller. This option is convenient because you can access your gold when it's low and doesn't require you to deal with stock brokers. It's easier to track how much gold is in your possession. A receipt will be sent to you indicating exactly how much you paid. This will allow you to see if there were any tax omissions. You're also less susceptible to theft than investing with stocks.
There are also some drawbacks. You won't be able to benefit from investment funds or interest rates offered by banks. You can't diversify your holdings, and you are stuck with the items you have bought. The taxman might also ask you questions about where your gold is located.
If you'd like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!
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By: Jamie Redman
Title: The Stablecoin Market: A Recap of December's Performance
Sourced From: news.bitcoin.com/paypal-and-first-digital-stablecoins-dominate-in-december-as-binance-usd-heads-toward-extinction/
Published Date: Tue, 02 Jan 2024 16:30:40 +0000
