Our weekly crypto newsletter is here! Learn more about the future prospects of crypto use, Coinbase’s investigation by the SEC, and what crypto credit cards are!
BCG Study: One Billion Crypto Users by 2030
The Boston Consulting Group (BCG), in collaboration with Bitget and Foresight Ventures, conducted a joint study that revealed that digital asset adoption is still extremely low compared to classic assets like stocks and bonds. Nonetheless, the report expects that despite the current bear market, people will continue to use digital assets. Compared to the internet’s development in the 1990s, BCG calculated that the number of crypto users is likely to reach one billion by 2030.
This study is in line with what Brian Armstrong, the CEO of Coinbase, predicted in May this year. His calculations were that the total number of crypto users would reach one billion over the next 20 years. Additionally, he said that the number of individuals involved in the crypto market more than doubled during the first six months of 2021, reaching over 220 million. There are also sources that indicate that this number is closer to 300 million.
Coinbase Facing SEC Investigation
Coinbase’s share price continues to drop following news earlier this week that the Securities and Exchange Commission is investigating Coinbase (COIN) for listing certain coins the SEC claims were unregistered securities. What does this mean for the future of the exchange, the stock price, and most importantly, any coins that you may have in Coinbase?
The stock price was down 20% on Tuesday following the news, going from $67.07 closing price on Monday to $52.93 just 24 hours later, down by over 80% from its peak price in November. Yahoo Finance has also reported that Cathie Wood’s ARK Invest fund has sold about 1.4 million shares of Coinbase following the SEC news. This is also less than a week after the news that Ishan Wahi, a product manager at Coinbase, has been charged for insider trading in what will be the first insider trading case in the cryptocurrency industry. To add insult to injury, the cryptocurrency exchange is still recovering from having laid off 18% of its employees as they prepare for the economic downturn.
Coinbase has issued statements that it does not list securities and that its process to review new coins prior to listing to ensure they are not securities has already been reviewed by the SEC. It is also worth mentioning that Michael Burry, legendary “Big Short” investor and hedge fund manager, has commented stating that he does not believe that the SEC has the resources or intelligence to investigate the cryptocurrency exchange correctly.
What does this all mean for the future of the exchange? Are your funds safe in Coinbase? Should you continue to use it? The truth is that no one knows what the future holds, and even John Deaton, the founder of CryptoLaw, has chimed in with a storm of tweets in support of Coinbase. If you want to sleep tight at night knowing your funds are safe, there is no better option than self-custody in your own wallet.
Crypto 101: Crypto Credit Cards
Have you ever thought about a future where you can go out and spend your crypto like the cash sitting in your bank? What if you had a card in your wallet that was directly linked to your crypto assets? What if you could earn Bitcoin rewards on your typical day-to-day spending?
Well, crypto visa cards actually exist! And they make all of this possible. Some of them can even earn you up to 8% cashback. However, as with everything in crypto, there are many things to consider. So, as crypto enthusiasts, how should we know what to look for when choosing one? The answer is right here on our blog, a comprehensive breakdown of some crypto card options to consider, along with their perks and pitfalls.