If a string is in a knot, patience will untie it.
Patience can do many things—Did you ever try it?
If it was sold at any shop I should like to buy it.
But you and I must find our own—No other can supply it.
--Anna M. Pratt
In 2014 when digital assets were classified as “property” rather than “currency” investors in the crypto-sphere wondered what this would mean as far as taxation for the future. Our hope was that lawmakers would use due-diligence to come up with a consistent, fool-proof and fair way for traders to comply with Federal law. Our hopes were dashed however with the release of “regulations” 3 years later signifying that while digital assets would still be considered property, they would carry their own set of rules.
One of the most major blows? Trades would no longer be considered “like-kind exchanges”. Each trade performed with digital assets would be subject to taxation at the normal rate (up to 39.6%) unless held long enough to be considered capital gains. Certainly this is incomprehensible, especially in the case of day traders.
And so, many HODL...lamentably...but surely, albeit slowly, the knot begins to unravel.
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This week the Dow Jones Media Group announced they will be partnering with the platform Brave and, Basic Attention token (BAT). According to the media group “Brave’s overall mission, to deliver innovative, efficient advertising” is in line with their own goals. This partnership will give Brave users access to premium market content and could bring more attention to the BAT token. Another partnership between Nasdaq and the Winklevoss twins was also in the news this week as Gemini, the twins own exchange, began using software provided by the Wall Street giant to “sniff out nefarious activity”.
Not only are new partnerships popping up daily between well known mainstream business’ and neoteric blockchain tech companies but so are news story after news story of nations digging deeper into the understanding of and fair regulations for crypto.
According to Crypto Slate Christine Smith of the St. Louise Federal Reserve recently compared Bitcoin to “real currency” by stating that, when thought about, cryptocurrency has just an much “intrinsic value” as the “U.S. dollar, the Euro, or the Swiss Franc...none.”
Describing their position on Bitcoin further the St Louis Federal Reserve Bank also likens the currency to having physical cash in this blog post.
Not to be intimidated or left behind by technological revolution, Canada is one of the leading nations fostering blockchain innovation.
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With their extremely low electric rates and light regulation of cryptocurrency, mining and trading within the country seems to be more hospitable and comfortable than doing so in other countries whose regulatory process has been just a volatile as the digital currencies themselves.
Bigger steps, everyday.
France set what will hopefully become a global precedent...declaring digital assets as “movable property”. At a State Counsel meeting, legislature passed a law taxing the sale of digital assets at a flat rate- a mere 19%. The house stated this change comes from the overwhelming appeal from citizens nationwide who made compelling arguments for the reconsideration of laws pertaining to digital assets.
According to “La Monde”, a trusted French news source, since early this year France has been working on redesigning their laws pertaining to digital assets. A few months ago the nation formed a “crypto task for” headed by “Monsieur Bitcoin” A.K.A Jean-Pierre Landau who expressed four years ago that “Bitcoin(s) are “the tulips of modern times”.
Tulips, planted before the winter frost and lying dormant for months until the sun shines high again...are the epitome of patience. Indeed, crypto could be a modern day field full of tulips...and Spring is here.
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With Bitcoin hitting $9500 just yesterday, a 45% increase since the beginning of April- price-action is seeing a bit of a correction today. A low of around $9100 was seen early this morning before ticking back up. Likewise other top coins are performing well, looking at CoinMarketCap, alts are seeing a lot of green.
According to Coin-Telegraph, “Mid to long-term crypto market sentiment remains bullish” citing hedge fund Pantera Capital’s CEO’s sentiments, “that the crypto market could hit “$40 trln" within ten years”. You can find analysis of the top gainers here.
Among them is the Bitcoin competitor BCH recently doting news of a hard fork coming May 15th. According to Bitcoin.com, the altcoins official homepage...this hard-fork entails a “32 MB block size increase and op-code additions that could bring Ethereum-like characteristics to the BCH network”.
Overshadowing Bitcoin Cash’s bullish front page headlines are reports of frustrated Bitcoin supporters joining together to take initiative against BCH’s claim to the original Bitcoin title. Supporters of Bitcoin (BTC) claim Bitcoin Cash’s main page is deceptive and misleading to the public. In response to claims that Bitcoin Cash is the original Bitcoin and their deceptive practices allegedly gaining donations in the name of Bitcoin, www.BitcoincomLawsuit.info has been created.
The creators, who soon will be accepting donations for their own cause, claim the Bitcoin.com’s new UI was intended to “blur the distinction between Bitcoin and Bitcoin Cash.” A Tweet from Erik Voorhees, CEO from Shapeshift which targeted Bitcoin.com founder Roger Ver clarifies the difference...
Yet the war still rages.
Speaking of war, a different kind of battle has engulfed those looking to host an EOS supernode when the token migrates to its own blockchain later this year. While there is a slew of support for the project there are only 21 supernodes up for grabs.
As reported by Bitcoin Magazine:
"EOS’s framework only accommodates 21 supernodes, so candidates must prove their worth to win over the voter pool. If chosen, these organizations will represent the network’s backbone, so potential supernode operators must show community members that they represent their best interests, both in terms of resources and integrity. In return, block producers receive block rewards and network prestige for their contributions to the blockchain."
What are your thoughts on this? Which companies do you think will succeed in making it into the final 21?
Let us know!
°Br¡tT^N¥° (@TheJadeCrow on Twitter)