Crypto
Cryptocurrency is too volatile for it to be a big part of your retirement plan
I’ve been fascinated by the sordid saga of Sam Bankman-Fried, the founder of the FTX crypto exchange and an associated hedge fund. The trial will determine whether he committed fraud by directing billions of customer funds into everything from risky trades to philanthropic giving or if he was an entrepreneur who lost control of his business.
I’m convinced the evidence points toward calculated schemes to siphon off customer money to fund his enthusiasms, but the jury will decide his culpability.
What I want to focus on is how the FTX collapse should put a stake in the idea that crypto currencies have any place in retirement savings. They don’t and they never did, despite attempts to turn speculative digital currencies into a mainstream financial product.
Even if you can invest crypto in a retirement plan, you shouldn’t. There’s no real value to crypto and the market is the Wild West of finance.
“Crypto is not just a zero-sum game, in which one person only gains if another person loses; its many moral deficiencies make it a negative-sum game,” writes Jemima Kelly, columnist at the Financial Times.
Rob Williams is more measured in his tone, but the managing director of financial planning, retirement income and wealth management at the Schwab Center for Financial Research, strongly cautions against mixing crypto and retirement savings.
“Cryptocurrencies are still relatively new, largely unregulated, and very volatile, which isn’t a great mix for a traditional long-term portfolio,” he writes. “Think of your retirement savings as the foundation of your financial house. You want to build your foundation out of strong, trusted materials.”
Those trusted materials include traditional asset classes like stocks and bonds, he adds.
In the decades I’ve covered finance (yes, it has been decades) there have always been pitches for putting retirement money into risky corners of the market. The pitch usually runs along these lines: Investing retirement money in mutual funds and the like is for losers; the government or Wall Street or the Establishment will take away your money; to protect yourself and earn outlandish profits put retirement savings in penny stocks, gold, silver, crypto, or some other fringe investment.
The advice is always terrible. Boring is a virtue with retirement savings.
Chris Farrell is senior economics contributor, “Marketplace”; commentator, Minnesota Public Radio.
Crypto
Experts celebrate promising new breed of cryptocurrency: 'Not only promises efficiency …'
An up-and-coming player in the world of cryptocurrency is looking to revolutionize the industry through its unique processes that highlight sustainability.
According to Be3, cryptocurrency XRP, developed by Ripple Labs, could have a “transformative impact on both finance and environmental sustainability” thanks to its unique consensus mechanism that does not require mining and uses a negligible amount of energy even as it scales.
It generates a minuscule amount of pollutants per transaction while producing 1,110 pounds of electronic waste and impacting just over 8 cubic miles of natural resources.
This approach separates XRP from its contemporaries, which often rely on the notoriously power-hungry proof-of-work systems and hulking mining centers that can destabilize the grid.
Statistics provided by TRG Datacenters show that XRP is the second-most eco-friendly cryptocurrency behind IOTA, consuming just 0.0079 kilowatt-hours per transaction. Comparatively, bitcoin ranks last at a staggering 707 KWh per transaction.
Furthermore, the cryptocurrency became the first major global blockchain to achieve carbon net zero by purchasing enough renewable energy to offset its minimal energy requirements, per the XRP Ledger.
Be3 also noted other features that make XRP an attractive option for institutions focused on environmental responsibility, as it takes just three to five seconds to settle at fractions of a cent per transaction.
It’s a welcome addition to a sector that desperately needs more sustainable options. A study by the International Monetary Fund found that crypto mines, in conjunction with artificial intelligence data centers, accounted for 2% of global electricity demand and 1% of carbon dioxide pollution in 2022.
The United Nations found that the bitcoin mining network used 173.42 terawatt-hours of electricity between 2020 and 2021, resulting in a carbon footprint equivalent to burning 84 billion pounds of coal.
Coal and natural gas also supplied 66% of the energy for mining operations during this period, polluting the planet with planet-warming gases.
Luckily, the sector has made significant strides in recent times in an effort to become more eco-friendly.
Alephium, which utilizes a proof-of-work blockchain, has partnered with Gigatons to implement a proof-of-less-work consensus that is significantly more energy efficient.
Meanwhile, Ethereum has transitioned to a proof-of-stake system that has cut its energy consumption by nearly 100%.
“In a world increasingly attentive to environmental impact, XRP’s innovative technology not only promises efficiency but also a greener future,” Be3 wrote.
Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.
Crypto
ZIUM Launches to Revolutionize Instagram and Cryptocurrency Solutions
Zagreb, Croatia–(Newsfile Corp. – January 12, 2025) – ZIUM, a cutting-edge agency founded to tackle some of the most pressing challenges in social media and digital marketing, is now officially open for business. Specializing in Instagram username claims, account unbans, and cryptocurrency marketing, ZIUM has positioned itself as a trusted partner for individuals and businesses seeking innovative solutions in the digital age.
The agency operates at the intersection of technology, social media, and blockchain marketing, empowering clients to unlock their full potential online. With a dedicated team of experts and a results-driven approach, ZIUM is redefining the way people navigate the ever-changing online landscape.
ZIUM
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9586/236268_f6b779d0b42269a0_001full.jpg
A New Era of Digital Problem Solving
ZIUM’s services address real-world challenges in today’s digital ecosystem. Instagram, one of the largest and most influential social platforms, has become a critical tool for personal branding, business promotion, and community engagement. However, issues such as unavailable usernames or unfair account suspensions can hinder growth and cause frustration. ZIUM steps in to provide solutions that are fast, efficient, and tailored to each client’s needs.
Additionally, ZIUM excels in cryptocurrency marketing, offering projects and startups a strategic edge in the fast-paced blockchain industry. By combining deep knowledge of crypto trends with cutting-edge marketing strategies, the agency helps blockchain projects stand out in an increasingly crowded market.
Core Services Offered by ZIUM
-
Instagram Username Claims
In the crowded social media space, having the perfect Instagram username can make all the difference. Whether it’s for a brand, influencer, or business, ZIUM specializes in acquiring sought-after usernames to align with clients’ goals and identities. The agency handles the process from start to finish, ensuring a smooth and hassle-free experience. -
Instagram Account Unbans
Account suspensions on Instagram can be devastating, especially for businesses and influencers relying on the platform for engagement and revenue. ZIUM offers expert account recovery services, helping clients navigate Instagram’s policies to regain access to their accounts quickly and effectively. -
Cryptocurrency Marketing
The cryptocurrency space is highly competitive, and visibility is key. ZIUM provides end-to-end marketing strategies tailored to blockchain projects, ensuring they reach the right audience. From brand development to targeted campaigns, ZIUM helps crypto ventures grow and thrive in an ever-evolving market.
Crypto
Donald Trump Embraces Meme Coins—A Presidential First
Donald Trump is making news once more, but this time it’s not for political reasons; it’s about cryptocurrency. As he prepares to return as the 47th President of the United States, Trump will become the first sitting president to own meme currencies, a decision that has stirred both enthusiasm and skepticism in the crypto community.
Trump: A Significant Crypto Portfolio
Recent sources claim that Trump’s crypto wallet consists largely of meme coins and is valued roughly $8 million. Among the assets are $1.5 million in a meme currency with Trump-themed design and $5.5 million in TROG tokens.
In addition, he has about 1.3 billion GUA coins, which amounts to nearly $400,000, and $167,000 in TRUMPIUS tokens. This is a first of its kind, where Trump becomes an oddity in the world of politics and cryptocurrency, considering his earlier reluctance towards digital assets.
DONALD J. TRUMP WILL BE THE FIRST SITTING US PRESIDENT TO HOLD MEMECOINS pic.twitter.com/ODlNXDaKIT
— Arkham (@arkham) January 10, 2025
From Skepticism To Support
Trump’s journey into the crypto world is notable. He had been a strong critic of Bitcoin and other cryptocurrencies, calling them scams. But that all changed in 2024 when he started publicly endorsing Bitcoin and speaking out for the right to own it. That’s a broader trend among politicians, who are increasingly recognizing the potential of cryptocurrencies and their growing popularity among voters.
Trump’s financial success in the digital sphere was also aided by his venture into non-fungible tokens (NFTs) on Ethereum. Trump reportedly made a good living from these endeavors, and he currently owns roughly 496.77 ETH, which is worth about $1.6 million.
Implications For Regulation
Many people are eager to see how Trump’s administration will regulate cryptocurrencies now that he is back in office. A possible change toward a more advantageous regulatory climate for digital assets is hinted at by the nomination of important individuals like David Sacks as “Crypto Czar” and Paul Atkins as SEC chair. This could result in more precise rules for investors and businesses involved in the cryptocurrency industry.
Donald Trump. Image: Ronda Churchill/Reuters
The policies by Trump are already changing market dynamics as everybody is anxiously awaiting them. During this time when Bitcoin hit a record high of $108k, while meme coins surged, analysts still feel that Trump could make the year 2025 a major turning point in cryptocurrencies.
Meme Coin Boom
The rise of Trump-owned meme coins is indicative of a broader cultural shift among younger investors who are fed up with established financial institutions. This combination of the political influence of Trump and the speculative nature of meme coins puts a scenario under which political events could significantly affect cryptocurrency markets. Thus, while the investors go about this, they are not ignorant of the volatility that is usually associated with meme coins.
Featured image from Fortanix, chart from TradingView
-
Politics1 week ago
Carter's judicial picks reshaped the federal bench across the country
-
Politics1 week ago
Who Are the Recipients of the Presidential Medal of Freedom?
-
Health1 week ago
Ozempic ‘microdosing’ is the new weight-loss trend: Should you try it?
-
World1 week ago
South Korea extends Boeing 737-800 inspections as Jeju Air wreckage lifted
-
Technology4 days ago
Meta is highlighting a splintering global approach to online speech
-
News1 week ago
Seeking to heal the country, Jimmy Carter pardoned men who evaded the Vietnam War draft
-
Science1 day ago
Metro will offer free rides in L.A. through Sunday due to fires
-
News1 week ago
Trump Has Reeled in More Than $200 Million Since Election Day