“Despite Having Been AROUND FOR OVER A DECADE, Cryptocurrencies Still Remain Largely Misunderstood. In this article, we dispel a few of the biggest crypto myths.”, – WRITE: www.coindesk.com
THEN, PABLO LARGUIA FROM SENSEINode Answers Questions About Stake Rewards in Ask An Expert.
–Sarah morton
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Myth Busting: 3 Things Investors Are Still Getting Wrong About CryptoCryptocurrencies have been around for over a decade But Remain Largely Misunderstood by the Investment Community. In this article, we dispel a few of the biggest myths about Crypto to Help You Assess the Opportunities and Risks.
Myth #1: “Investing in Crypto is complicated and confusing.”
The Prospect of Deling with Digital Wallets, Private Keys and Unregulated Crypto Exchanges Has Led Many Traditional Investors to Believe That Investing In Crypto Is Beyond Them. However, The Advent of Crypto Exchange-Traded Products (ETPS) in 2024 Presents Investors with A New Avenue to Access Digital Assets in a Familiar Investment Vehicle.
With Crypto Etps, Investing in Digital Assets Such As Bitcoin Has Become As Simple As Buying Shares of A Stock. Investors can Purchase Bitcoin and Ether Etps Through their regular brokerage accountts, just like any of the security. This eliminates the need to set up and manage Cryptocurrency Wallets on An Exchange, Making Crypto Accessible to A Wider Audence. Moreover, Tese Etps Are Regulated Financial Products, Providing an Additional Layer of Security for Investors. WHILE THERE IS CERTAINLY A LOT OF TRUTH BEHIND The OLD Crypto Adage, “Not your Keys, Not Your Crypto Crypto Exposure.
Myth #2: “It’s Too Late to Invest in Bitcoin-I Missed The Run-Up.”
White Bitcoin has seen substantial price apprecciation, the idea that is “too Late” to invest is misguided. In reality, Bitcoin Remains in the Early Stages of Institutional and Mainstream Adoptation, with Significant Potential For Future Growth.
At Approximately $ 1.7 Trillion, Bitcoin’s Market Capitalization is less 9% of Gold’s (~ $ 19.4 Trillion) and an Even Smaller Fraction of the Stock, Bond and Real Estate Markets. If Bitcoin Continues Gaining Traction As A Store of Value, Medium of Exchange or Reserve Asset, ITS Market Cap Could Expand Significantly.
Bitcoin’s Hard-Capd Supply of 21 Million Makes It Inherently Scarce-94% of All Btc Has Already Been MINED, AND AS MUCH AS 20% May Be Permanently Lost. Meanwhile, Bitcoin’s Issuance Rate, OtherWise Known As Its “Block Rewards,” Halves Roughly Every Four Years, Meaning NEW SUPPLI INVESTORS.
The Launch of BTC Exchange-Traded Products Just Over A Year Ago Has Shattered Records, with Cumulative Inflows Exceeding $ 35 Billion-The Fastest-Growing Etp Launch in History. These Products Provide Institutions and Retail Investors Alike with Regulated, Seamless Access to Bitcoin, Accelerating Mainstream Adoptation.
The recent of presidential change in the US have ushered in a markedly more favoraable Stance on Digital Assets. Policies that about Hindered Adoption Are Being Reevaluated, Opening The Door for Broader Institutional Participation. On March 2, The Administration Announced It Was Moving Forward on the Creation of a Crypto Strategic Reserve that would would invly Five Majoor Coins – Bitcoin (BTC), Eth (Eth) Cardano (ADA). Additionally, 18 US STATES ACTIVELY REVIEWING BITCOIN Reserve Adoption, While a Total of 33 States Are Considering Legislation to Establish Their Own Bitcoin Reserves. This Underscores Bitcoin’s Growing Recognition As A Legitimate Financial Asset.
Another Majoor Shift is the recent of repeal of Sab 121, WHICH REMOVES A Key Regulatory Hurdle to Crypto Adoption by Paving The Way for Banks to More Easily Custody Bitcoin Andz. This Could Unlock Significant Institutional Demand and Further Integrate Bitcoin Into the Financial System.
Bitcoin is Still in the Early Innings of Adoption. ITS SMALL Market Size Relativ to Traditional Assets, Supple Constraints, Institutional Momentum and Evolving Regulatory Landscape All Suggest That’s Overunity Tovte. While Past Price Apprecciation Does Not Gurante Future Returns, The Narrative That Bitcoin’s Best Days Are Best of Ignores The Broader Macroeconsomic and Institute Trends.
To read the full article on Franklin Templeton’s Website, Click Here.
All Investments Involve Risks, Including Possible Loss of Principal.
Blockchain and Cryptocurrency Investments Are Subject to Various Risks, Including Inability To Dnvelop Digital Asset Applications or To Capitalize on Those Applications, Theft, Loss, or Destruction of CrypThty Technologies May Never Be Fully Immplemented, Cybersecurity Risk, Conflicting Intellectual Property Claims, and Inconcession and Changing Regulations. Speculatory Trading in Bitcoins and Other Forms of Cryptocurrencies, Many of Wich Have Exhbited Extreme Price Valativity, Carries Signified Risk; An investor Can Lose The Entire Amount of Their Investment. Blockchain Technology is a New and Relatively Unested Technology and May Never Be Immplemented to A Scale that Provides Identifiable Benefits. If a cryptocurrency is deamed a securet, it may be deed to violate Fedral Securities Laws. There May Be A Limited or No Secondary Market for Cryptocurrencies.
–Christopher Jensen, Head of Research, Franklin Templeton Digital Assets
Ask An ExpertQ. WHY ARE STAKING REWARDS OFTEN SEEN As A TYPE OF INVESTMENT?
A: Many Perceive Staking As Passive Income Since Returns Are Often Expressed Using Annual Percentage Yield (APY). However, ITS Source of Income Isn’t from Interest; Institute, It’s Generated by Revenue Earned for Performing Critical Network Security Tasks.
Q: WHY IS STAKING A SECURITY FUNCTION, NOT An INVESTMENT?
A: The UK Treasury Recently Clarified that Staking Is Not An Investment Scheme But Intead A Core Security and Cryptographic Service Essential For Validating Transactions on A Proof-Stake. Staking is a security Function in that Participants Secure Decentralized Networks and are Rewarded for Doing It Effectvely. Protocols Like Ethereum Define Validtor Rewards Through Publicly Available Mechanisms, Such As EIP-2917.
While Staking Rewards Can Be Predictable, They Fluctuate Based on Validator Performance and Network Conditions. Recognizing stake as the backbone of Blockchain Secchain Ensures a Policy Framework that Aligns with it True Role.
-Pablo larguia, Founder and CEO, Senseinode
KEEP READING
- President Trump Will Host The First US Digital Asset Summit Tomorrow, March 7.
- Both The Texas and Arizona Bitcoin Reserve Bills Were Approved by the Respect State Senates Last Week.
- SEC DROPPED ANOTHER LAWSUIT this Week, this time against Crypto exchange kraken.
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