Cryptocurrency in the USA Indicates a Crypto-positive Nation
The Covid-19 pandemic has had a significant impact on individuals, businesses, and markets around the world. Many people have lost their jobs, loved ones, and businesses as a result of the pandemic. Even large companies have been affected and are working to recover. Despite this, the value of cryptocurrencies like Bitcoin and Ethereum has increased significantly in the United States and other countries. According to Markets and Markets, the cryptocurrency market is expected to grow from $1.6 billion in 2021 to $2.2 billion by 2026, with a compound annual growth rate of 7.1%. The increasing number of venture capital investments in cryptocurrency startups is driving the adoption and value of cryptocurrency.
Cryptocurrency in the USA will lead to more financial abundance
In late 2020, Bitcoin reached all-time high values and has remained there. Bloomberg has reported that many investment banks have been rapidly acquiring Bitcoin, and the list of billionaires and other notable tech figures investing in US-based crypto exchanges has grown. However, in 2020, before the pandemic, only 55% of Americans owned stocks and just 6% owned Bitcoin. In addition, 68% of them said they did not plan to buy crypto in the future. There are several reasons for these statistics, including negative perceptions of crypto and lack of knowledge about it. But in 2021, according to a survey by Satoshilabs, 46% of Americans say they own crypto, and nearly 95% believe that crypto exchanges in the US are a legitimate currency solution. This shows significant growth in the adoption of cryptocurrencies in the US.
The Covid-19 pandemic may have played a role in the increased interest in cryptocurrencies among Americans. It is worth noting that the United States has a long history of innovation and a reputation for being at the forefront of new business and investment opportunities. It is known for its willingness to try new things, and cryptocurrency is no exception. The US has made significant progress in the adoption and use of cryptocurrency. For example, Colorado was the first state to pass a bipartisan bill exempting cryptocurrency from state securities regulations. Ohio became the first state to accept taxes in cryptocurrency. Oklahoma passed a bill allowing the use of cryptocurrency as a currency within its governmental agencies. With fewer people in the US having negative views about cryptocurrency, it is likely that the growth and adoption of cryptocurrency in the US will continue to increase.
According to a research by Markets and Markets, the leading players in the cryptocurrency industry are mostly based in the United States, followed by China. The adoption of cryptocurrency in the US is set to increase as some US banks will soon allow their customers to buy, hold, and sell cryptocurrency through their current accounts, according to crypto custody firm NYDIG. NYDIG has partnered with Fidelity National Information Services to enable US banks to offer bitcoin in the coming months. This new deal will likely force major banks like JPMorgan Chase and Bank of America to offer crypto to their customers. Some banks have already begun integrating cryptocurrency into their services, such as Morgan Stanley, which is offering bitcoin funds to its customers, and Goldman Sachs, which has followed suit.
While privacy and security are major concerns surrounding cryptocurrency, the US government has been seeking ways to reduce the anonymity of digital currency transactions and apply the extensive financial surveillance of the traditional banking system to cryptocurrencies. In response, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed a guideline that would require money service businesses (including crypto exchanges) to collect identity information about individuals who engage in transactions with their customers using cryptocurrency wallets or foreign exchanges. This proposed guideline would require them to retain this information and provide it to the government under certain circumstances, such as when the number of transactions in a day exceeds a certain limit. The benefits of the US becoming a crypto-positive nation are significant, including more transparent transactions for businesses and greater financial opportunities and growth for consumers. Factors such as increased institutional adoption, growth in emerging markets, and increased developer activity suggest that the rise of crypto assets will have a significant impact on the future. 2021 will be a notable year for the US and cryptocurrency.
Cryptocurrency in USA FAQs
Here are some frequently asked questions about cryptocurrency in the USA:
- Is cryptocurrency legal in the USA? Yes, cryptocurrency is legal in the USA. However, the use of cryptocurrency is regulated by the Financial Crimes Enforcement Network (FinCEN) and the Internal Revenue Service (IRS).
- Can I use cryptocurrency to pay taxes in the USA? Yes, you can use cryptocurrency to pay your taxes in the USA. The IRS considers cryptocurrency to be taxable property, and you must report any gains or losses from cryptocurrency transactions on your tax return.
- Can I buy cryptocurrency with a credit card in the USA? Yes, you can buy cryptocurrency with a credit card in the USA. However, it is important to be aware of any fees or restrictions that may apply.
- Are cryptocurrency exchanges regulated in the USA? Yes, cryptocurrency exchanges in the USA are regulated by FinCEN and may also be subject to state and federal laws.
- Can I use cryptocurrency to buy goods and services in the USA? Yes, you can use cryptocurrency to buy goods and services in the USA. However, not all merchants accept cryptocurrency, so it is important to check before making a purchase.