Who remembers 2013? Bitcoin’s First Amazing Bull Run

Source : Who remembers 2013? Bitcoin’s First Amazing Bull Run For me, 2013 has long stayed in my memory as a year that affected me personally – a year where one key event happened which impacted me directly.  Looking back on it now though it seems that history has repeated itself. Firstly, though he wasn’t a new President, Obama was sworn in for his second term in the White House and once again this year we saw a new POTUS take charge.  Secondly, we also had a North Korean nuclear test that year, causing outrage but not to the extent that leads to the heated exchanges of words which we saw this year. We also had a number of catastrophic storms back in 2013 with the tornado in Moores, Oklahoma being particularly devastating. But there were two things in particular that come to mind that are a carbon copy of 2013, one is the ever-approaching potential shut down of the US Government in December and the second is the incredible bull run of bitcoin. 2013- The “Year of The Bitcoin” In 2013, the now infamous cryptocurrency was only 5 years old, but this was the time it first started to gain real attention from the market.  In January 2013, Bitcoin was trading around $12.15 per coin and had yet to show up on anyone’s radar. Then a financial crisis occurred in March which kick-started an incredible run for the remainder of the year. In March 2013 a financial crisis gripped the small Mediterranean island of Cyprus, where the country needed to request $13billion bailout from the European Union and the International Monetary fund.  However, the terms of the rescue package were that Cyprus Central Bank had to raise $7.5 billion by taxing bank deposits. Cash restrictions on the populous were implemented to avoid a potential bank run and large depositors ended up losing as much 10% of their held capital. One of the major retail banks was forced to close and banks across the country followed suit for a number of weeks. Living in Cyprus as I do, and did at the time, this period was no pleasant experience. An Alternative? Despite Cyprus only having a population of under 1 million, these events caught the attention of the media all over the globe and was in many a headline. But it also caused people to take note of the potential of bitcoin.  Due to what had happened with the Cypriot Banks, bitcoin started to gain in popularity due to the fact that it was unregulated, and no government or bank could touch it. At the beginning of March, that year Bitcoin was already outperforming most traditional currencies and trading at around $32.20 per coin, by the end of March following the Cyprus crisis it has risen to $90.52 per coin.  In April 2013 it continueditst move higher, touching an all-time high of the time of $234.52. The following months it traded between at its lowest $66.83 and highest $196.24. Then …

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Canada’s York Regional Police Warn Against Bitcoin Tax Scam

Source : Canada’s York Regional Police Warn Against Bitcoin Tax Scam The perpetrators, who claimed to be employees of the Canada Revenue Agency (CRA), allegedly issued threats of possible arrest to the victims for unpaid taxes if they fail to send funds through Bitcoin automated teller machines (ATM). The post Canada’s York Regional Police Warn Against Bitcoin Tax Scam appeared first on The Bitcoin News – Leading Bitcoin and Crypto News since 2012.

Canada’s York Regional Police Warn Against Bitcoin Tax Scam

Source : Canada’s York Regional Police Warn Against Bitcoin Tax Scam The perpetrators, who claimed to be employees of the Canada Revenue Agency (CRA), allegedly issued threats of possible arrest to the victims for unpaid taxes if they fail to send funds through Bitcoin automated teller machines (ATM). The post Canada’s York Regional Police Warn Against Bitcoin Tax Scam appeared first on The Bitcoin News – Leading Bitcoin and Crypto News since 2012.

For British Columbia’s consideration: IBM proposes putting Marijuana on a blockchain

Source : For British Columbia’s consideration: IBM proposes putting Marijuana on a blockchain The blockchain may just be the perfect ally in Canada’s move towards responsible cannabis use. The Government of Canada has plans to legalize non-medical marijuana by July 2018, under the Cannabis Act. According to the government of British Columbia (BC), they are given jurisdiction over how they will handle legislation in their province: “While the proposed Cannabis Act provides for the federal government to regulate commercial production, provinces and territories will have authority to regulate certain aspects like distribution, retail and a range of other matters – as they do for tobacco and liquor.” In preparation for this, BC’s government sent out an open call for proposals on how the substance will be regulated within their territory. And in response, IBM published their proposal, stating the use of blockchain technology to audit cannabis, “from seed to sale.” IBM says that putting cannabis up on a blockchain will allow complete traceability and visibility of legal sources, and optimize the supply chain. Detection of illegal sources can also help keep potentially unsafe sources out of the supply, “and if poor product does enter the system, the controls, methods and ability to quickly identify its’ path is in place.” Although cannabis enthusiasts would see this as a big and joyful win, the Cannabis Act is an effort to take responsibility and regulate the substance to keep it out of reach from young people, ensure safety, as well as lower black market sales and collect taxes from it. “The objectives of the Act are to prevent young persons from accessing cannabis, to protect public health and public safety by establishing strict product safety and product quality requirements and to deter criminal activity by imposing serious criminal penalties for those operating outside the legal framework. The Act is also intended to reduce the burden on the criminal justice system in relation to cannabis.” Smoking and driving—just like drinking and driving, remains a big no-no. “The B.C. government’s goals are protecting young people, making health and safety a priority, keeping criminals out of cannabis, and keeping our roads safe,” BC Minister Mike Farnworth says. In fact, the Canadian government is dedicating $161 million to tighten law enforcement and equip officers to detect, screen, and implement the law against drug-impaired driving. The budget also covers research, policy development, and public awareness campaigns against driving under the influence. A total of $274 million overall is being allocated to support the Cannabis Act. The post For British Columbia’s consideration: IBM proposes putting Marijuana on a blockchain appeared first on CoinGeek.

Bitcoin Is Not So Evil After All

Source : Bitcoin Is Not So Evil After All Bitcoin is being used to do good work. For example, donors are now benefiting from Bitcoin’s versatility by using Bitcoin to make their charitable donations more effectively, with greater transparency, and to enhance tax benefits. Bitcoin is Becoming the Currency for Charity As the Paradise Papers reveal, the powerful have been committing fraud on an unimaginable scale with US dollars and other fiat currencies, not with Bitcoin. Indeed, because of the transparency that its blockchain technology provides, Bitcoin is increasingly being used for philanthropic deeds. Thus, a rising number of donors prefer now to donate bitcoins because it offers several benefits. Specifically, donors using Bitcoin can improve their tax benefits and better track their donations. As the New York Times explains, making donations with Bitcoin “can be tax advantageous, and the technology the currency is built on could make it easier to see how a donation is being used, forcing charities to become more transparent.” Donating in Bitcoin Improves Tax Benefits The US Internal Revenue Service (IRS) considers a cryptocurrency to be an asset or property. Therefore, selling cryptocurrencies, such as Bitcoin, has tax consequences that could result in a tax liability. And such transactions could be subject to capital gains. Consequently, it is more advantageous to donate bitcoins. In this connection, the New York Times writes: With a unit of Bitcoin rising to just over $7,000 this month from about $340 in early November 2014, sellers could be subject to hefty taxes depending on when they bought and sold. However, if they give those coins to charity, the asset is not subject to capital gains and donors still get to deduct the asset’s value from their taxes as a charitable donation. Charity Organizations Are Adopting Bitcoin Philanthropic and humanitarian organizations must deal with enormous and multiple challenges to running and funding their operations. And, unfortunately, many people suspect that most charitable donations are ineffective and lack transparency. The good news is that Bitcoin and its blockchain technology are now revolutionizing philanthropic work. Thus, an increasing number of charity organizations, such as the Red Cross, Save the Children, Greenpeace, and United Way, are adopting Bitcoin and making use of its blockchain to become more efficient. For example, BitGive is an international philanthropic organization that has adopted Bitcoin to serve its beneficiaries better. In fact, BitGive states its mission as, “Leverage the power of Bitcoin and Blockchain technology to improve public health and the environment worldwide.” Connie Gallippi, the Executive Director of BitGive, explains: Bitcoin allows BitGive to confirm remote transactions, significantly lower transfer fees, provide transparency in real time, execute cryptographically-secured transactions and obtain fast settlements. In 2013, the Nobel laureate economist Paul Krugman shouted, “Bitcoin is evil.” Now, the growing number of philanthropic organizations and donors that are adopting Bitcoin are proving Krugman wrong. What do you think are the advantages of Bitcoin becoming the primary currency for charity donations? Let us know in the comments below! Images courtesy of …

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Frederic Oudea Thinks Bitcoin Has No Future

Source : Frederic Oudea Thinks Bitcoin Has No Future The CEO of French financial services provider Societe Generale has said that its the anonymity of virtual currencies that will be their downfall. Speaking at the Web Summit conference in the Portuguese capital of Lisbon on Tuesday, Frederic Oudea said that the ease with which the likes of Bitcoin can be used to launder money, or avoid taxes would force governments to regulate them: I can’t see a future of this when I see the attention played by all governments and regulators on anti-money laundering, on anti-tax evasion, on anti-terrorism financing. The anonymity of the transaction is a problem I think which would put pressure on bitcoin. Like most of his high-finance peers, Oudea is in favour of improving functionality in existing institutions using the blockchain. However, even that’s a bit too edgy for him as he “prefer[s] to use the word distributed ledger technology”. I’m more a believer of a distributed ledger technology where you have a defined set of players (that are) well-identified… We choose this mix of crypto technology to secure transactions. Essentially, he wants to share a database across a few computers that are controlled by the bank. Hardly revolutionary. He also hinted that he’d considered a digital currency backed by fiat, concluding that decentralised cryptos posed too much risk for mainstream adoption. “I think we need to be a bit more precise on what we call virtual currency at the end of the day. If it’s just a way in a transaction, at some point to add something which virtually can translate on both sides into real currencies, maybe it can be used as a system. The blockchain system and the bitcoin system is very different.” The Societe Generale exec is just the latest in a slew of Bitcoin sceptics coming from the banking industry. Last week, Tidjane Thiam called it “the very definition of a bubble”. The Credit Suisse chief executive also cited money laundering “challenges” as a primary reason for its eventual downfall. The week before, Sergio Ermotti of UBS also expressed doubts about the future of cryptocurrencies but was believer in blockchain technology. Image: BusinessInsider The post Frederic Oudea Thinks Bitcoin Has No Future appeared first on NEWSBTC.

Capital gains on cryptocurrency: FIFO, LIFO, or Specific Identification?

Source : Capital gains on cryptocurrency: FIFO, LIFO, or Specific Identification? I regularly receive inquiries from around the country regarding how gains and losses on cryptocurrency transactions are taxed. Unfortunately, to date, IRS guidance has been limited to Notice 2014-21, which, while it doesn’t tell us a whole lot, does make the following clear:

The Satoshi Revolution – Chapter 2: Cautionary Tales From Earlier Digital Cash (Part 3)

Source : The Satoshi Revolution – Chapter 2: Cautionary Tales From Earlier Digital Cash (Part 3) The Satoshi Revolution: A Revolution of Rising Expectations. Section 1: The Trusted Third Party Problem Chapter 2: Monetary Theory by Wendy McElroy Cautionary Tales From Earlier Digital Cash (Chapter 2, Part 2) There are 3 eras of currency: commodity based, politically based, and now, math based. — Chris Dixon Cautionary Tales From Earlier Digital Cash Versions of digital cash and online transfer systems existed before Bitcoin. DigiCash and e-gold are among the better-known ones, but neither could shake the dogged trusted third party problem. Both lacked the essential vehicle of privacy and self-banking created by Satoshi Nakamoto: the blockchain. The early systems are useful as cautionary tales, however, and they spotlight the elegance of Bitcoin. DigiCash In 1983, the renowned cryptographer David Chaum introduced the idea of digital cash in a path-breaking research paper. In 1989, he founded an electronic money corporation named DigiCash, Inc. which in turn established the electronic payment system e-cash; the actual currency or “coin” was DigiCash. E-cash has been called “technically perfect.” It built upon an earlier system designed by Chaum: Blind Signature. This is a digital signature in which the content of a message from one person is disguised and so it is not seen by a second person who signs off on the message as authentic. The process is often illustrated by an analogy. A voter wants his ballot to remain secret but, to be counted, it must be signed by an election official who verifies the voter’s eligibility. The solution: the voter writes his credentials on the outside of an envelope, wraps the marked ballot in carbon paper and places it inside the envelope. The official verifies the credentials and signs the envelope, thereby transferring his signature to the ballot inside; he verifies the ballot without knowing its contents. The voter puts the now-authorized ballot into a new unmarked envelope which is slipped into a box of ballots waiting to be counted. The vote counter verifies the validity of the signature and the vote is recorded. But the vote counter has no idea who cast that particular ballot. Neither the content of the vote nor the ballot itself can be linked back to the individual voter. This is the essence of a blind signature and its unlinkability. In simplistic terms, the Chaumian e-cash uses blind signatures as follows: At a bank that handles e-cash, you have an account with $20 to which a password offers access. To withdraw e-cash in sums of $1 each, you use software to generate 20 unique, random numbers of sufficient length that makes it unlikely anyone else will also produce them. The problem: you need the bank to verify that each serial number is worth $1, but you don’t want the bank to know which $1 “coin” is which because then the coins could be tracked. If nothing else, the bank could match outgoing and incoming data. This would provide the bank …

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Blockchain Startup Human Discovery Platform Announces Revolutionary Changes to Digital Self-Improvement Market in New Whitepaper

Source : Blockchain Startup Human Discovery Platform Announces Revolutionary Changes to Digital Self-Improvement Market in New Whitepaper 3rd November, Moscow, Russia – Moscow-based blockchain startup Human Discovery Platform, is a  decentralized system that studies and approves ‘methodics’ (a method known as personal data interpretation tests) for personality analysis for digital products. The company’s recent whitepaper outlines how it aims to address numerous issues for tech entrepreneurs, authors of methodics, and their backers. Human Discovery Platform developers are working on the system, which will launch to the public in June 2018. Disclosure: This is a Sponsored Article The typical players of self-improvement industry like coaches or consultants have been around for ages, but the new trend in the industry is a shift towards digital services and mobile applications. Integration of methods of personality analysis into the services is a major challenge, as it allows services to provide users with highly personalized recommendations based on the detailed personal information. There is currently a huge gulf between the authors of methodics – psychologists, consultants, scientists – and entrepreneurs, who develop services. Entrepreneurs attempting to purchase a methodic for a service application are required to undergo a series of legal stages, pay taxes and various other commission charges. Individuals wishing to sponsor an author are also required to meet the required legislative requirements, especially if they are citizens of different states. Authors of methodics have also undergone a fairly high degree of scrutiny in the media, with the science behind the methodics of the self-development industry frequently coming into question. If authors were given the ability to create their methodics in an open, transparent and accessible way, they could provide a broader array of offerings, ranging from decentralized dating apps to HR-services. Human Discovery Platform’s whitepaper explains how the company will solve the problems of approbation, through the monetization of methodics for personality analysis, data storage and provide regulation for interaction between entrepreneurs, authors of methodics and their backers. The Human Discovery Platform will enable all authors to install their own methodic into the system by creating a block, which is located on nodes and execute a code of analysis. The Human Discovery Platform will create complex methodics by combining blocks of various authors. For example, if the author wants to translate his methodics, he can put the translation block in front of his block. Blocks are similar to smart contracts, loaded by authors into a blockchain-network, and executed on decentralized nodes. The decentralized design of the platform ensures that the author’s data used for the methodic will be stored safely and not vulnerable to any one point of failure. Implementing Blockchain technology in this field also alleviates any issue of mistrust, as each time the block executes request from the client, the blockchain-network records all incoming and outgoing data. This decentralized record doesn’t cover user’s personal data, so the results of the analysis are transparent, impersonal and available for verification. This way Human Discovery Platform will accumulate knowledge about human personality and behavior without being tied to a service that …

Plus…Blockchain Startup Human Discovery Platform Announces Revolutionary Changes to Digital Self-Improvement Market in New Whitepaper

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