The world’s most crypto-ready American nation; Supermarkets overstock to beat inflation

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Crypto Coin

The United States is the most cryptocurrency-ready country in the world, a study by a crypto education website concluded.

Crypto Head analyzed a range of factors, including the number of crypto ATMs, accessibility to potential users, the government’s position on crypto ownership, whether or not to use cryptos such as Bitcoin in banks and the number of online searches to determine a country’s position on the new global currency.

The survey ranked the United States first, followed by Cypress, Singapore, Hong Kong, United Kingdom, Ireland, Slovenia, Australia, Germany and Canada. .

“Our research also revealed that the United States is the most consumer-ready cryptocurrency,” Adam Morris, co-founder of Australia-based Crypto Head, said in a report, “although the government has been slow to clarify regulations over the past few years, which has actually driven most of the crypto business overseas. “

A survey by crypto education site Crypto Head found that the United States has 17,436 crypto ATMs, far surpassing Canada’s second at 1,464. A bitcoin ATM can be seen in this photo at inside the Big Apple Tobacco Shop on February 08, 2021 in New York City. Michael M. Santiago / Getty Images

The study found that there were 14,796 Google searches per year per 100,000 people in the United States, well below the 33,941 per 100,000 conducted in Cypress, a tax haven. But the United States had 17,436 crypto ATMs, far surpassing Canada’s second at 1,464.

This means that there are around 19,023 people per crypto ATM in the United States, compared to 26,265 in Canada.

The survey reviewed key points between May 2020 and April 2021.

But the results, while encouraging for cryptocurrency advocates, do not suggest that nirvana is around the corner in the United States. Some experts cite security concerns, such as the need for increased regulation before investing.

But a study by Citi Global Perspectives & Solutions, widely known as Citi GPS, said that “in total, just over 2% of activity in the cryptocurrency space was linked to activity. in 2019, and this total was only 0.3. % in 2020. However, the scale of such activity can often seem exaggerated based on news headlines alone. “

Nonetheless, scams targeting Little Guy appear to be a growing problem.

The Federal Trade Commission said consumers reported losses of around $ 82 million in crypto scams in the fourth quarter of 2020 and the first quarter of 2021 – more than 10 times the number for the same period a year earlier.

Many scams target small investors who are inexperienced in the industry and lack the secure custody services offered to institutional investors by a large service provider such as Bank of New York Mellon.

Cryptocurrencies have developed with little to no regulation.

In 2014, Janet Yellen, then chairman of the Federal Reserve, said the country’s central bank did not have the legal authority to regulate Bitcoin and other cryptocurrencies.

At the time, Bitcoin’s total market value was around $ 4.3 billion. At today’s price, the market cap is around 151 times that much, and that may be part of the reason why the crypto is under closer scrutiny.

Yellen, now head of the US Treasury Department, is in the process of determining whether the agency has the power to regulate payment networks.

No one expects the United States to crack down on Bitcoin the same way China has coerced miners, but many have said that regulating entry and exit ramps, exchanges, and ways to convert them. cryptos in dollars, would be an effective way to control them.

Some believe that other aspects of the crypto world should be subject to future regulation.

Some have expressed concern that stablecoins, a cryptocurrency typically tied to the dollar and whose value is largely based on trust in the issuer, could create danger.

It turns the world upside down for crypto advocates, who argue that Bitcoin will replace government-issued fiat currencies through blockchain, the unbreakable record of every transaction that operates independently of any government.

Bitcoin and Ethereum are the largest cryptos by market cap, with Tether tough for third place because, in part, stablecoin allows for an easy way to move money or a way to park money, without any objections that some people apparently have to use dollars in commercial banks.

If there are any issues with stablecoins, it looks like they would be similar to the difficulties with established currencies.

But there may be a big unknown: Could Tether encroach and perhaps destabilize the dollar or other major currencies, or would that be a problem only for those who hold stablecoin?

The United States House Committee on Financial Services is examining the potential risks and technological gains that cryptocurrency could create as it considers possible legislation, but no clear direction has yet emerged.

Committee members seek to answer fundamental questions: Should cryptos be restrained or encouraged and if so, how?

In a recent hearing, Congressman Brad Sherman, a Democrat from California, said: “Cryptocurrencies are very volatile, so if one person makes a million bucks and retires at age 45, and nine lose $ 100,000, (crypto exchange), Coinbase is making money, and a millionaire is on TV and says how wonderful it is, and nine more do not retire with dignity, but become eligible for Medicaid. “

But the other side of the aisle responded with a free trade argument.

“Over the past few years, I have been fortunate to meet many great crypto and blockchain innovators,” said But Tom Emmer, a Republican from Minnesota. “A common refrain during our discussion is that they want so badly to develop their crypto and blockchain ideas here in the United States, but they are not doing so due to the lingering uncertainty with the regulation of crypto.”

At midday on Wednesday, Bitcoin changed hands to $ 34,462.66, up 1.30% in the last 24 hours and up 19.08% for the year. The 24 hour range is $ 33,556.29 to $ 35,053.01. The all-time high is $ 64,829.14. The current market capitalization is $ 646.16 billion, CoinDesk reported.

Pulse Market

Consumers in the checkout aisle aren’t the only ones worried about inflation.

Many supermarkets across the country stock commodities to protect their profit margins.

Shoppers look at meat for sale November 28, 2016 at a Ralph’s supermarket in Irvine, Calif. ROBYN BECK / AFP / Getty Images

It’s a reversal of the COVID-19 panic when many consumers bought large amounts of food and household items because they feared one-time shortages.

Growing demand has led to problems in the supply chain, but many retailers fear continued inflation and brace themselves for higher prices with large purchases of sugar, frozen foods and other long-lasting items from the market. conservation.

“We buy a lot of everything,” David Smith, managing director of Associated Wholesale Grocers, told The Wall Street Journal. “Our inventories have increased significantly compared to the same period last year.”

The wholesaler said they have increased their inventory by 15-20%.

In the past, price increases were limited to specific product types, but current increases are larger and spread over a wide range of products.

The costs of meat and products have increased. A number of food processors have announced price hikes to cover rising production costs, including General Mills and Campbell Soup.

There doesn’t seem to be any relief in sight.

The work is tight. Many employers therefore have to increase wages to attract and retain workers.

Transportation costs are high and the price of crude oil continues to rise as demand increases, pushing up prices at the pump for distributors and consumers.

From May 2020 to May 2021, the personal consumption expenditure index (PCE) increased by 3.9% and the consumer price index (CPI) increased by 5%.

The Federal Reserve, the country’s central bank, considers PCE to be the most reliable indicator of future prices. In June of last year, the Fed said it expected the PCE to increase between 1.4% and 1.7% through 2021. This matches the target of 2% of the Fed.

But at its meeting last month, the Fed raised its estimate from 3.1% to 3.5% – and that may be too low.

Inflation appears to be accelerating. Most of the 3.9% increase in PCE occurred this year.

If inflation continues to rise at a monthly rate of 0.4% to 0.5% as in the past, inflation could climb to 5% or 6% by the end of the year.

The Institute for Supply Management, a nonprofit research and education association based in Tempe, Ariz., Said its Purchasing Managers Index (PMI) rose for the 13th consecutive month in June, but was down from the May level.

The PMI assesses manufacturing and service activity while tracking the economy to help spot trends. The index indicates expansion, contraction or staying the same.

“The composite index is still in strong growth territory,” ISM President Anthony Nieves recently told reporters on a conference call. “However, there are still hurdles affecting the rate of growth – material shortages, inflation, employment resources and logistical challenges. All of these put pressure on supply chains.”

In a note to clients, Dr Robert Dye, chief economist at Comerica Bank in Dallas, said: “Continuing tension in the supply chain and inflationary pressure, slowing demand for labor. , a slower rate of expansion after the spring thrust. With the end of fiscal stimulus measures. This spring, and with business conditions normalizing modestly at the end of the second quarter, we may see a slowdown in GDP growth from (second quarter) to third quarter. “

The fear: shortages and price increases could become a drag on the economy and slow the recovery.

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