Official Newsletter of 12/19
1-year from its largest Bull Run, Bitcoin has a short-term price pump 18% in 3 days back to almost $4,000. As mounting insecurity about the market grows, analysts speculate about what the future holds. It seems like the crypto world is in a continued consolidation hibernation as 2019 nears, but many leading analysts predict 2019 will be a big year for crypto.
Below, you can see a real-life depiction of crypto enthusiasts and their aspirations for 2019!!
(Taken on 12/19/2019 at 16:33:45 PM US East Coast Standard Time from Cointelegraph)
Iranians Turn to Bitcoin Mining
The week after the US State Department trashes Iranian government officials through its Instagram account for corruption, the Iranian people are headlining crypto news. Due to economic difficulties resulting from US sanctions, Iran’s low cost of electricity, and the rising Rial (fiat currency) price, these all allow for continued profit.
Reportedly, over 10.4% of Iran’s annual GDP comes from energy subsidies.
Furthermore, due to US sanctions, Iranian nationals abroad are having trouble getting money from home. According to a recent report by The Guardian, students in the UK are turning to cryptocurrency to pay tuition fees to “circumvent banking restrictions.”
UK Tax Agency HMRC Gives Crypto Holders Guidance
The HMRC holds the duty of collecting UK taxes. A recent report provides further framework for cryptocurrency taxation.
“HMRC does not consider crypto assets to be currency or money. This reflects the position previously set out by the report from the Cryptoasset Taskforce (CATF).”
Specifically, speculators looking to make profit off a token’s rising price will have to pay capital gains tax when they sell their holdings. Citizens who receive tokens from employers for “salary, mining, or transaction fees” will have to pay income tax.
Coinbase 12 Days Promo and $5 Billion Divert Indicate Something Big
Coinbase has been BUSY!
Stablecoins, promotions, token expansion, and rescinding their trademark application for BUIDL.
Coinbase released its own Stablecoin called “USD Coin”. In their statement as to why they’re starting their own Stablecoin, Coinbase offered the following:
“Our mission is to build an open financial system for the world. As part of this mission, we want everyone to enjoy the stability of the world’s fiat currency, the US dollar. USD Coin allows unbanked and under-banked individuals in any country to hold a US dollar–backed asset with nothing more than a mobile phone.”
With companies like Coinbase and Robinhood aiming to destabilize the banking and financial systems, the future of how day-to-day transactions will unfold is truly a mystery.
A recent $5 billion Coinbase movement of retail traders’ crypto assets into upgraded storage models confirms the company’s intention to “expand the number of digital assets listed on its platform.” This move serves to upgrade safeguard security they provide to billions of dollars worth of crypto.
Data on the Blockchain is 100% Secure
Many speculators think that data passed along the blockchain is totally secure! This common misconception leaves many transactors exposed. All data on the blockchain is VISIBLE TO EVERYONE. This means that if you pass your password through a blockchain, it becomes visible to everyone. This transparency is what gives two parties a new way to build trust because their contract is visible to everyone. Data passed through the blockchain isn’t secure, but it IS immutable.
What’s on the Horizon
Keep an eye on the SEC and the CFTC in the near future. 2018 added over 56 million new crypto users and with user adoption comes regulation. Regulation brings clarity to the industry but can also limit the growth of some businesses.