Money·6 min read

Future-Proofed: Stablecoins, The Metaverse, and Kim K

Designed image with $100 bill.
October 16, 2022

The way we bank, spend, and invest is changing. And women have a unique opportunity to get ahead of the financial game. Future-Proofed is your monthly resource to learn all about the future of money, from the basics and lingo to the wild news and hot coins.

The Truth About Stablecoins and Their, er, Stability 

Top Story

In a world of crypto volatility, stablecoins were supposed to save the day.

Sounds great. How?

This type of cryptocurrency ties its value to another asset like the US dollar or gold. 

Back up. How does *any* crypto have value?

Supply and demand. Most cryptocurrencies have a finite number of coins that can be mined (created). So as more people invest in a coin, its supply goes down and its value increases. And vice versa. Which makes cryptocurrencies more volatile than gov-backed currencies like the US dollar, the euro, etc.

Enter stablecoins?

Yep. They take the benefits of digital currencies (think: privacy and security) but add stability through collateral— like the US dollar or gold. Or through algorithms that keep the value of the stablecoins, well, stable by controlling supply.

And they’re foolproof?

Not exactly. Earlier this year, TerraUSD, an algorithmic stablecoin that was pegged to the US dollar, collapsed. But the good news is that it functioned a bit differently than other stablecoins. It tried to keep pace with the US dollar by minting and burning another coin, Luna. Stablecoins like Tether and TrueUSD, on the other hand, are backed by cash reserves as collateral. They’re not foolproof, but stablecoins are definitely having a moment, and becoming more widely available as time goes on. 


With inflation still wreaking havoc on the stock market and the global economy, developing economies are looking for a stable commodity to protect their currencies from losing more value. Since stablecoins are touted as more “stable” but with all the flexibility of  traditional crypto, you might be seeing stablecoins accepted as common currency in a developing economy near you.

And Also This… 

What life is like…

In the metaverse. Some love it.Others? Not so much.Meta is struggling to get its own employees jazzed about the immersive internet they’re creating.And they’re not alone. Virtual reality platform, Decentraland, a metaverse platform, reportedly only has 38 daily active users.

Who’s coughing up the kash…

Kim K.Back in 2021 she was paid $250,000 to promote EMAX crypto tokens on Insta. Except she forgot to mention she was getting paid for the post.Fast forward: the tokens have lost most of their value. According to the SEC, Kim should’ve disclosed it was a paid promotion. Now they’re fining her $1.26 million. 

Who’s having an identity crisis…

Crypto.Regulators are debating whether or not crypto is a security. The Financial Stability Oversight Council released its highly-anticipated crypto report calling on Congress to decide.If crypto is a security, like stocks, it could be regulated by the SEC. More regulation = less decentralization and anonymity. NBD,  just crypto’s defining features.

Asking for a Friend

Woman stands in front of a design back ground
Design: theSkimm | Photo: Kristin O'Keefe Merrick.

Q: How would you explain the risk of crypto investing, especially given how volatile crypto has been lately?

Kristin O’Keeffe Merrick: Think about all these coins. If I call you up and I pitch you a new coin I’m launching, suddenly it has value. And what’s that value based on? It's not backed by anything. It doesn't have any real store of value. It's completely based on speculation and our confidence in the coin.

So if everyone decides that my coin is stupid and sells it, suddenly its value is gone. That's one of the biggest risks to investing in crypto — it's not backed by anything. If you buy a share of Amazon stock, you are buying an actual piece of Amazon, a company that produces and sell things and makes revenue. You own a piece of the company. If you own Bitcoin, you're essentially aligning yourself with the view that there is going to be a continued appreciation of that particular asset. 

Kristin O’Keeffe Merrick is a financial advisor and money expert at O’Keeffe Financial Partners. She has 17 years of investment experience. Her answer has been edited for length and clarity.

Thing to Know


Aka fear, uncertainty, and doubt. Basically the opposite of FOMO. Crypto enthusiasts tend to use it as a putdown when people share negative info about the crypto market. Example: If someone tweets that a cryptocurrency won’t bounce back after losing 60% of its value (hi, Bitcoin), they might be accused of FUD by crypto Twitter.

Pop Quiz

Question: How are profits from crypto trading taxed? 

  1. As income

  2. As capital gains

  3. As property

  4. As inheritance

Hot Off the Web

Leave your credit card at home.

But bring your crypto wallet. Visa, the largest payment processor in the world, is taking a chance on crypto, even as prices take a dive. And next year crypto payments are coming to Google Cloud. Making it rain with your Bitcoin is getting a whole lot easier.

What’s old is new again.

America’s oldest bank (founded by Alexander Hamilton)will start holding crypto for its customers.It’s the largest bank to offer crypto services(think: holding and transferring crypto) to some of its clients. Not throwing away their shot.

They made off with billions.

Crypto hackers are expected to have a record breaking year,raking in over $3 billion dollars in stolen crypto funds.But the US gov is saying "no more" by researching the risks of crypto to national security.

Pop Quiz

Answer: B.Any profit you earn from trading crypto is taxed as capital gains, just like stocks. Generally, the longer you hold the asset, the lower your tax rate will be.

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