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Cryptocurrency

How Long Will the Trump-Backed Crypto Boom Persist?

2024-12-09

Last week's announcement by Donald Trump to nominate Paul Atkins as the head of the Securities and Exchange Commission (S.E.C.) sent shockwaves through the crypto world. The price of Bitcoin soared to a hundred thousand dollars, and crypto enthusiasts were in a celebratory mood. This reminded me of the dot-com boom and its inevitable bust, which I chronicled over twenty years ago. There was the same excitement, predictions of higher prices, and uneasy feelings among some market participants.

Investment and Policy Shifts

Crypto investors, entrepreneurs, and pro-crypto donors had ample reason to be excited. Investing in Trump's victory and defeating crypto skeptics paid off. Under Gary Gensler's leadership, the S.E.C. took an aggressive approach towards the crypto industry. But with Paul Atkins in charge, the agency's lawsuits and cases may be put on hold, and a more friendly stance towards crypto assets is likely. "For crypto assets, the fundamental rules will be weakened, and the industry will expand with little regulation," said Dennis Kelleher. Crypto leaders hailed Atkins' choice as a landmark.

Comparison with Dot-com Boom

In the late 1990s, the dot-com boom was underpinned by the rise of online commerce. Speculative digital assets like Bitcoin can't be directly compared to those startups. But big speculative episodes rest on four factors: a new technology, an efficient communication method, financial industry participation, and a supportive policy environment. With crypto assets, Bitcoin and the blockchain met the first two requirements, but Wall Street and policymakers were suspicious. In the 2022-23 crypto bust, Bitcoin's price fell by more than 70%, and some big crypto firms collapsed. But with Trump in office, all four conditions seem to be in place for a broader bubble.

SEC's Stance on Crypto Assets

The S.E.C. is at the center of the crypto debate. During Gary Gensler's tenure, the agency argued that many crypto assets are securities and face extensive regulations. But under Paul Atkins, the S.E.C. may shift its position on whether crypto assets are securities or more like physical commodities. This could have significant implications for crypto firms like Coinbase and Ripple. A federal judge's ruling in favor of the S.E.C. against Coinbase was seen as a win, but the Ripple lawsuit had a different outcome.

Wall Street's Embrace of Crypto

After losing a court case in 2023, the S.E.C. approved Bitcoin exchange-traded funds (E.T.F.s), which have seen a significant increase in value since the election. BlackRock, Fidelity, and Franklin Templeton are among the financial firms offering these products, and Charles Schwab offers a "Crypto Thematic ETF". This is encouraging other financial firms to launch similar products.

Risks and Concerns

Economist Eswar Prasad is worried that recent developments could give the wrong impression about crypto assets. A full-blown financial blowup is a worst-case scenario, as seen in the real-estate bubble. Federal banking regulators have tried to keep crypto confined, but history isn't reassuring. During the 2022-23 crypto bust, three banks with ties to the crypto industry failed. Dennis Kelleher predicts that a second Trump Administration could lead to more crypto movement into the financial system.In conclusion, the Trump crypto boom presents both opportunities and risks. The future of crypto remains uncertain, and it will be interesting to see how these developments unfold.

In the hustle and bustle of holiday shopping, it's crucial to stay vigilant against scams. With the digital age bringing new challenges, Nebraska's consumer advocates are sounding the alarm. Over the past few years, we've seen various scams emerge, from gift card fraud to phony shipment delay texts. Now, the rise of cryptocurrency in online trading presents another hurdle during the holiday shopping crunch.

Key Tips to Avoid Holiday Shopping Scams

Avoid Sending Money via Cryptocurrency ATMs

If you're directed to convert cash to cryptocurrency at a convenience store kiosk and send money that way, it's likely a scam. As AARP Nebraska's Jina Ragland warns, scammers are using the same tactics as before but now soliciting payments through cryptocurrency ATMs like bitcoins. Remember, if it seems too good to be true, it probably is.

Don't fall victim to these schemes. Be cautious and stick to traditional payment methods when shopping during the holidays.

Be Cautious of Gift Card Tampering

Experts note that scammers can tamper with gift cards on store racks and steal the funds when the card is activated. It's best to ask for a gift card sold behind the counter. This provides an extra layer of security and reduces the risk of falling prey to gift card scams.

By taking this simple precaution, you can protect your hard-earned money and enjoy a worry-free holiday shopping experience.

Keep Software Updated for Fraud Protection

Regularly updating the software on your electronic devices is another important step in preventing fraud. This helps to close any security gaps and makes it more difficult for scammers to gain access to your information.

Don't overlook this crucial aspect of online security. By keeping your software up to date, you're taking an active role in protecting yourself from scams.

Be Wary of Suspicious Online Ads

If you see an online ad for something that appears too good to be true in terms of price, it's usually a fishy deal. Ragland emphasizes the importance of being skeptical and not falling for these enticing offers.

Take a moment to do some research and verify the authenticity of the deal before making a purchase. This can save you a lot of trouble and money in the long run.

Utilize Tracking and Shipping Services

Shoppers are encouraged to take advantage of tracking information and other shipping supplier services. By scheduling deliveries for when you or someone you trust is present to receive them, you can ensure the safety of your purchases.

This simple step can help you avoid the disappointment of missing a delivery or having your package stolen.

Disclosure: AARP Nebraska contributes to our fund for reporting on Budget Policy & Priorities, Consumer Issues, Health Issues, Senior Issues. If you would like to help support news in the public interest, click here.get more stories like this via email

Good morning! I'm Andy Rosen, senior assistant business editor at The Globe. Today, we embark on a journey to demystify the astonishing comeback of cryptocurrency. Let's dive in and explore the reasons behind its continued growth.

Unraveling the Mysterious World of Cryptocurrency

Bitcoin: A Popular Form of Cryptocurrency

Bitcoin, the flagship cryptocurrency, has once again captured the attention of investors worldwide. Last week, it soared past the $100,000 mark, a feat that seemed unimaginable when the pandemic crypto craze took a nosedive in 2022. Despite widespread doubts and public pronouncements of its frivolity, crypto has managed to thrive. It's a digital asset that uses blockchain technology to ensure the security and transparency of transactions. Some enthusiasts believe that money should be in the hands of the people, not controlled by banks. The underlying technology of cryptocurrency uses cryptography to safeguard data in a tamper-proof manner. While it can be used in the real world, the wild price swings often make people hesitant to spend it on daily items. Many simply hold onto their crypto, hoping for its value to increase.There are various reasons for Bitcoin's resurgence. The market has experienced several ups and downs over the years, but there are always those willing to invest, even in tough times. It offers a high-risk, high-reward investment opportunity for some.

The Crypto Era: Is It Over or Just Taking a Break?

Esmy Jimenez, from The Globe's “Money, Power, Inequality” team and Andy's personal finance buddy, questions why they are even discussing crypto again. After all, in 2022, crypto prices plummeted, and the collapse of FTX seemed to confirm many people's suspicions. But this year, it has skyrocketed once more. Andy explains that the crypto market is complex and cyclical. There are those who are truly passionate about it and believe in its potential. While there are scams and risks involved, the fact remains that there is a significant amount of money tied up in crypto. As of now, it's worth around $3.68 trillion, which is comparable to the value of Apple. Andy himself invested some of his spending money in Bitcoin in 2022, and it has paid off. But he emphasizes that luck and skill are difficult to distinguish.Not all crypto assets are the same. There are meme coins and other forms that can be extremely volatile and risky. It's important to be cautious and not get carried away by the hype.

The Pros and Cons of Cryptocurrency

On one hand, crypto offers a new way of thinking about money and financial transactions. It has the potential to disrupt traditional banking systems and give more power to the users. On the other hand, it is associated with scams and fraud. The anonymity provided by the technology makes it easier for bad actors to steal from unsuspecting investors. However, it's not just crypto that has these risks. Gambling on individual stocks or starting a business that fails can also lead to financial losses. Andy's personal rule is to not wager more than one can afford to lose. He and Esmy have most of their investments in target date retirement funds, which are a more stable option.The overturning of Roe v. Wade has had an impact on nonprofit abortion funds, with an increase in outside donations. This shows how different aspects of society are interconnected.In conclusion, cryptocurrency is a complex and controversial topic. While it has its merits and potential, it also comes with risks. It's important for investors to do their research and make informed decisions. As we continue to navigate this digital age, understanding cryptocurrency will become increasingly important.