OilCoin to Become World’s First LEGAL Cryptocurrency
Finally, a coin with legitimate physical backing has come into play by the name of OilCoin. Not yet currently trading, OilCoin was first announced last month, but due to speculation, did not receive much fanfare and only significant skepticism from experts in the field as more information was coming to light. While the coin boasts herself as “the world’s first legally compliant cryptocurrency,” the website is clearly aimed at the professional investor more so than a typical day-trader or business outfit like how we saw with Ardor.
With the white paper readily available along with several prominent employees that display serious business and government connections, this cryptoasset is truly an enormously refined version of what many start-up currencies have thus far produced. The greatest contrast of the homepage is the full-time attorney listed showing to prospective investors that the due diligence in which is necessary to successfully launch the coin is clearly being invested. The overall presentation is certainly reassuring as in the past year innumerable ICO’s have failed miserably and left those who had invested early 100% empty-handed. The worst case scenario for this coin is not exactly tethered to the cryptocurrency market, but to the global arena of oil supply and demand economics. This extreme stabilization compared to that of digital assets demonstrates the maturity about which the team at OilCoin are proceding.
From the white paper that is really just one long promotion with not many programming expertise or security features mentioned, the coin will be an Ethereum-enabled blockchain technology. The overall purpose of OilCoin is outlined as reliable storage of value, being able to lock in gains and while protecting against decline in market values, and certainly the most important piece, an effective and tax advantaged economic proxy for investments in oil. OilCoin is expected to provide a simplified approach to taxes for investors seeking to hold investments in oil. While she is not an ETF like US based oil, the cryptocurrency will be as property for the US Federal income tax purposes and will not allocate income related to her operations to holders of the coin.
Therefore, long-term holders can only be taxed on the sale of the coin and non-US persons owning the coin will not be subjected to US tax obligations. By separating the tax attributes of OilCoin from traditional supporting oil reserves, she is able to bypass several regulatory conditions that exist in trading the commodity in its physical state. This potentially favorable tax treatment will help those who are already trading oil domestically, but most certainly will attract foreign investors who may now operate without the additional financial burden of being taxed for holding oil reserves. I believe this is a fantastic cryptocurrency to hold as she will not only be immune to the disruption of foreign governments meddling in the market, but is truly regulated before even entering the sphere of digital assets. Look for this coin to be offered in the near future and get in as the coin has extreme potential with the professional investors who may still be on the sideline due to the incredible volatility seen in the market.
