Digital Assets: Is Bitcoin a Threat to the US Government?
Once a month, we take a deep dive into all things digital assets. On this episode of A Wiser Retirement Podcast, Casey Smith and Robert Swarthout talk about Russia and Ukraine, Bitcoin being a threat to the US Government, crypto performance, taxes, CBDCs, and the new Onramp software for advisors. Cryptocurrency has fluctuated in the past month, why could this be?
There are a couple different theories as to why Bitcoin has increased approximately 15% over the past month. The first theory is that Russian currency is basically down to zero, making people eager to use cryptocurrency instead of what they normally use. Another factor causing crypto to rise could be the fact people have been using cryptocurrencies to send money to Ukraine anonymously.
Crypto Market Update: February 2022
Within the past month, Bitcoin had an approximate 15% increase, Ethereum a 20% increase, and the total market cap a 12% increase. This shows from the beginning of February 2022, the market has begun to rise.
Will there be Higher Taxes on Cryptocurrency?
Recently, there have been talks about the Biden administration proposing higher taxes on cryptocurrency. The government wants to propose higher taxes because they see people making money on cryptos. This will most likely not happen and if it does, it will be pushed back due to the current international events taking place. There is also talk about whether Bitcoin is a threat to the US Government.
Digital Dollar: CBDCs
There have been several countries over the past year and a half that have announced they are doing trials for a CBDC (Central Bank Digital Currency). A CBDC on some form of a blockchain allows the non-banks to come into the financial world at a cheaper rate than they would otherwise. India is one country that is launching their own digital currency. The CBDC will help regulate their digital currency, so it can be safe and secure to use.
Onramp Advisor Software
Onramp allows financial advisors to access custodians such as Coinbase and Gemini to invest in cryptocurrency for their clients. Because of the convenience of this software, Onramp charges advisors $5,000 to utilize it. Despite its high price, it may be a useful tool to manage clients’ cryptocurrencies in the future.
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