What's Happening with Crypto
The past few months have been brutal for the cryptocurrency. The digital asset space has shed over 1.5 trillion dollars in market capitalization, led by bitcoins 52% drop. The good news is that the slide has stalled! Bitcoin has stabilized and is beginning to bounce off the recent lows. For the market timing veterans out there, there have been some amazing demand zones formed, creating some fantastic buying opportunities. While most have focused on the big names in the industry like Bitcoin and Ethereum, there are many up and coming crypto contenders creating a lot of buzz! We have been focusing on many of these in the Crypto Investor Live program, applying a structured process to remove the emotion and focus on the facts. As the industry matures, were seeing exciting sectors emerge such as Smart Contracts, Oracles, Decentralized Exchanges, Metaverse and much more!
On top of this, there are some major regulatory issues facing the market, which I personally feel is a GREAT thing! In the coming months, we should start to get some clarity on how stablecoins will be regulated. Stablecoins are critical to the growth and stability of the entire digital asset ecosystem. Once regulators establish the rules for stable coins, we should see FDIC protection for compliant stablecoins! FDIC protection protects up to $250,000 of your cash deposits. This will calm a lot of investor fears with cryptocurrency. But wait, there’s more! Let’s say you have $10,000 at your bank. You’re probably earning .01% interest. This means you would earn a whopping $1 a year in interest! With certain stable coins, you can earn up to 14%! That’s $1,400 in interest on the same money!
We should also have some clarity on what an “Asset” and “Security” are with regards to cryptocurrency. Once these rules are established, we may begin to see SIPC protection on digital assets. This means that you could receive $500,000 worth of insurance protection on your crypto holdings. These changes may further bolster the appeal and interest in crypto going forward, reversing the recent pessimism and doubt.