Hello and welcome to the latest Overbit Insights.

In our first story of the week, we discuss Visa's recent earnings call, in which the firm reported that consumers paid $2.5 billion in payments with its crypto-linked cards in the fiscal first quarter of 2022, accounting for 70% of the company's total crypto volume in fiscal 2021.

In a phone interview, Visa CFO Vasant Prabhu told CNBC, "To us, this indicates that consumers see value in having a Visa card linked to an account at a crypto platform." "There is value in being able to access that liquidity, to fund purchases and manage expenses, and to do so instantly and seamlessly,"

"We will continue to lean into the crypto space and our strategy is to be a key partner to provide the connectivity, scale, consumer value proposition, reliability and security that is needed for crypto offerings to continue to grow," Visa CEO Al Kelly said on the earnings call, as the stock rose in after-hours trading and then opened strongly higher Friday.

The payments company also disclosed that its network of crypto wallet partners has grown from 54 to more than 65, with Coinbase, Circle, and BlockFi among them. The number of businesses that accept cryptocurrencies as payment has nearly tripled to about 100 million.

People are using their crypto-linked cards to purchase various goods and services, including retail products and services, restaurants, and travel. Prabhu told CNBC that "They are increasingly being treated as a general purpose account,"

Visa reported in July that crypto-linked card usage had reached $1 billion in the first six months of 2021, but Visa has no plans to keep Bitcoin on its balance sheet, but it has established a crypto consultancy and made multiple recent investments in crypto platforms as it pushes for digital currency acceptance.

We close out this week’s edition of Overbit Insights with a look at how growing cryptocurrency adoption has brought the underlying volatility and its related problems to a much larger audience.

While banks and brokers used to dismiss cryptocurrencies, an increasing number of institutions are now providing purchasing and custody services.

Because of its volatility and sensitivity to fraud, cryptocurrency's rapid popularity raises concerns about its long-term safety as an asset.

Investors accept that price oscillations are likely to remain a feature of cryptocurrencies until more widespread adoption of cryptocurrency applications, such as purchasing NFTs or using blockchain technology for contracts.

Proponents of cryptocurrency are keen to point out that overall growth patterns have been encouraging, albeit that fact is unlikely to comfort the waves of investors who bought during the most recent rise.

Nevertheless, the ongoing volatility and lack of regulatory clarity presents a problem for investors, namely for tax purposes.

"One of the most common fallacies about cryptocurrency is that it is anonymous, therefore regulators have no way of knowing what you're doing. That isn't the case, though "Shehan Chandrasekera, a public accountant and the head of tax strategy at CoinTracker.io, a cryptocurrency tax software firm, said as much.

The frequency of peer-to-peer cryptocurrency transactions and trades of one coin for another is what poses concern for the cryptocurrency industry, particularly with the rise of decentralised exchanges. In the near future, we expect to see a tidal wave of regulatory clarity provided, particularly in the tax sector, as governments seek to restore order in a constantly-growing industry.

Thanks as always for reading Overbit Insights! Take care until next time.

Our publications do not offer investment advice and nothing in them should be construed as investment advice.  Our publications provide information and education for investors who can make their investment decisions without advice.
The information contained in our publications is not, and should not be read as, an offer or recommendation to buy or sell or a solicitation of an offer or recommendation to buy or sell any positions.  Our publications are not, and should not be seen as, a recommendation to use any particular investment strategy.
Risk Warning: Margin Trading carries a high level of risk to your capital and you should only trade with money you can afford to lose. Margin Trading may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary.