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Weekly Wrap-Up: FUD in Turkey (April 26, 2021)

Also, the volume of Bitcoin transactions in the Philippines in March 2021 has increased by 56% compared to the previous month according to data available for peer-to-peer exchanges Paxful and LocalBitcoins.

The post Weekly Wrap-Up: FUD in Turkey (April 26, 2021) appeared first on BitPinas.

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Good morning. Welcome to Monday Markets Wrap-up, part of our new series: BitPinas Daily. We will look back at all the major news and updates that happened this week. Crypto is global, but sometimes news that matters happens while we sleep. So we bring to you what’s happening in our space here and abroad. We highlight three to four important news of the past week and list down the rest.    

Market Price as of April 26, 2021:

Bitcoin $48,981 -2.3%
Ethereum $2,307 +4.29%
BNB $506 +1.4%
XRP $1.03 -1.9%
DOGE $0.27 -7.41%
SLP $0.038 +14.8%

Bitcoin closed April 25, 2021, at $48,981 per BTC. We’re down 7% in the last 7 days and up 78% since the year began. This is also 24% below the all-time high of $64,804, which was hit on April 14, 2021.

Bitcoin’s market capitalization stands today at $972,791,897,514 which is 48.68% of the entire cryptocurrency market. The entire crypto market, by the way, now has a market cap of $1,998,592,845,343   (+3.1%).

On the table above, there’s the cryptocurrency SLP. If you wonder what that is, check out this article: Playing Axie Infinity vs Minimum Basic Salary in the Philippines.

Table of Contents.

Crypto Exchange Volume

April’s Crypto Exchanges Volume Hits New All-Time High

The month has not yet ended but volume on crypto exchanges has already exceeded that of March this year. 

The Block said volume on crypto exchanges has already surpassed $1.3 million. This has exceeded the previous all-time volume hit in February ($1.23T). April 2021 is also the third month in a row when crypto exchange volume hit more than $1 trillion.

Dogecoin

Dogecoin was Briefly the 4th Largest Cryptocurrency by Market Capitalization

Dogecoin was briefly the 4th largest crypto by  market cap early today, eclipsing XRP which itself just recently regained that position. 

According to Coindesk, at that brief moment in time, Dogecoin’s market cap stood at $54 billion while XRP was at $50 billion. At the moment, Dogecoin is back at 5th with a market cap of $47 billion while XRP has $57 billion according to Coingecko.

But will Dogecoin reach the coveted $1? Coindesk cited a betting website where players see a 17% chance that that milestone will happen. 

Some analysts think the Dogecoin price rally is a big bubble and warns of a risk of that popping soon. “65% of all Dogecoins are kept in just 98 wallets across the world,” said Akand Sitra of TRM Labs. “The single largest wallet has 28% of all dogecoins, and five wallets control 40% of the entire dogecoin supply,” Sitra added.

But truly, where Dogecoin will go from here, whether an eventual takeover of Ethereum’s market cap or a catastrophic decline, will be an interesting thing to watch unfold.

Turkey

Crypto Exchange(s) Scandal in Turkey After Reports of Complete Crypto Ban

Bloomberg reported that the Turkish Central Bank has banned the use of crypto as payment beginning April 30. The reason is that the level of anonymity, the central bank says, brings the risk of irrecoverable losses.

This means companies that handle payments and electronic transfers from processing transactions involving crypto and crypto platforms are prohibited from doing so.

By April 22, it was reported that the CEO Faruk Fatih Özer of Turkish crypto exchange Thodex has gone missing while its users alleged that hundreds of millions of dollars were stolen. Thodex initially said the negative news was not true and there was no cause for concern. Its CEO Faruk Fatih Özer shut down his Twitter account.

The next day, Turkish police said it detained 62 people related to the Thodex probe.

By April 25, authorities said they detained 4 people in a probe of Verbitcoin, another crypto exchange in the country. Bank accounts associated with the exchange had been frozen. Verbitcoin said it is suffering financial strains. Financial strains in a bull run. Yes.

On the same day, it was reported that Turkey’s Central Bank denied that there will be a total ban of crypto.”You cannot fix anything by banning crypto and we do not intend to do this,” Governor Şahap Kavacıoğlu said on TV.

Citi

Citi: Bitcoin Could Lose Out to Other Digital Currencies

Citi is claiming that while the digital asset industry is expected to grow as a whole, Bitcoin’s dominance could continue to decline as it’s going to be affected by the usefulness of other cryptocurrencies.

Ronit Ghose, Citi’s Global Head of Banks argued the problem is that Bitcoin isn’t used for everyday payments. Also, if the value constantly rises, people would be unwilling to spend their Bitcoins. 

It is for these reasons that Ghose pointed to two alternative cryptocurrencies that will disrupt Bitcoin’s market share for digital payments – Ethereum and Polkadot. The other alternative is central bank digital currencies or CBDCs.

JPMorgan

JPMorgan Says Bitcoin Liquidity “Likely to Remain Resilient”

We are still in awe that many banks who have steered away from Bitcoin in the past are now offering constructive opinions of it. Here are some of the things said at the note the bank released on Wednesday:

  • Hashrate’s recovery suggests liquidity should continue to improve
  • The depth in major exchanges has “dropped less and recover faster than other asset classes.”
  • The 24/7 market contributes to market stability.

Binance.US

Former Regulator Now CEO of Binance.US

Brian Brooks, the former acting head of the U.S. Office of the Comptroller of the Currency (OCC) is set to join the industry by becoming the head of Binance.US. First reported by WSJ, Brooks was also previously an executive in Coinbase. 

Brooks said he aims to make Binance.US a “robust” competitor to Coinbase and “reinforce its commitment to compliance.”

“I wouldn’t have taken this job if I didn’t have a strong commitment from the board to lead a strong compliance program,” he added,

A number of former high ranking government officials have joined Binance as of date. Recently it hired Max Baucus, a former top diplomat to China to guide the exchange in navigating the regulatory landscape in the U.S.

Celo

German Telco Deutsche Telekom is Now Partnered with Celo

The largest European telco by revenue, Deutsche Telecom announced its investment in Celo via a significant purchase of its native asset $CELO. 

While the size of the investment was not disclosed, the teco said it will operate infrastructure across the Celo ecosystem with its subsidiary T-Systems MMS operating as a validator. 

Deutsche Telecom will also open its SMS API to allow validators to send verification text messages using their service. Why SMS? We should take note that Celo uses phone numbers to act like the public keys so that users can send money across. This is evident in Celo’s Valora App, which is tied to a mobile number. This allowed the app to remove a key pain point — having users remember or copy paste very long public addresses.

#CryptoPH

March 2021 Paxful and LocalBitcoins P2P Bitcoin Transaction Volume Report

The volume of Bitcoin transactions in the Philippines in March 2021 has increased by 56% compared to the previous month according to data available for peer-to-peer exchanges Paxful and LocalBitcoins. This is the largest recorded combined volume on both exchanges, with Paxful getting the lion’s share of the volume.

[Chart]

March 2021 is now the single best month for P2P in the Philippines, whose previous record was barely above $4 million in September 2020. Current volumes are way higher than any previous volume recorded.

Ripple’s ODL to Aid iRemit Process Australia-Philippines Remittances

Ripple continues to build in the Asia Pacific despite legal troubles in the United States through its new partnership with payments expert Novatti Group.

First announced in December last year, Novatti has joined Ripple’s global payment network and committed to tap into RippleNet’s On-Demand Liquidity (ODL) service, which leverages the cryptocurrency XRP for instant cross-border payments. 

Ripple and Novatti’s effort first targets the Australia-Philippines corridor through a partnership with iRemit, a Filipino remittance service provider which also holds e-money and virtual currency exchange licenses. While the Philippines is the third largest recipient of remittances around the world, the amount of fees per transaction is significant to the recipient, coupled with the delay of around 2 – 3 business days before the beneficiary can receive the funds sent to them. 

What else is happening

  • Ethereum Gas Limit Hits 15M as ETH Price Soars
  • CoinDesk Research: Does Bitcoin Have an Energy Problem? 
  • Crypto Users Bicker After Turkish Exchange Abruptly Goes Silent
  • Safemoon Not So Safe? BSC Token Jumps By Over 10 Times, Then Halves

This article is published on BitPinas: Weekly Wrap-Up: FUD in Turkey (April 26, 2021)

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitpinas.com/cryptocurrency/monday-markets-weekly-wrap-up-fud-in-turkey-april-26-2021/

Blockchain

European Union Country Plans 50% Crypto Tax Cut to Attract Billions

The lawmakers in Hungary are planning to cut down crypto tax by 50% on the capital gains with an aim to attract billions to its budget.

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The lawmakers in Hungary are planning to cut down taxes by 50% on the capital gains on crypto with an aim to attract billions to its budget most probably by 2022. As announced by Mihály Varga, the Economy Minister of Hungary, the tax on crypto earnings is going to be slashed to 15% in 2022, which is almost half of the present rate, 30.5%.

Crypto Investors in Hungary to be Offered Major Tax Break Soon

The lawmakers of the country are looking forward to making Hungary become more competitive in the period of the COVID-19 pandemic. The recent move of a crypto tax cut by lawmakers of Hungary is expected to attract billions of Hungarian forints to the budget of the country.

Gabor Gurbacs of VanEck has recently released a comment stating that Hungary is buckling up to be the Wyoming of Europe, comparing it to the most crypto-friendly state of the United States.

Mihály Varga mentioned the stimulus program of the government through the year 2022, in a video that appeared on Facebook on Tuesday.

This move was addressed as a part of the COVID-19 relief efforts as the lawmakers of Hungary are considering a crypto tax cut to 15% of the capital gains, which is down from the current rate of 30.5%.

European Union Country in Preliminary Discussions Surrounding a CBDC

In the month of August 2020, a representative from the Hungarian National Bank joined a preliminary discussion regarding a Central Bank Digital Currency (CBDC). The discussion was with colleagues from the Swiss National Bank, the Bank of England, and others in the discussion of the potential rollout of the Central Bank Digital Currencies in the near future.

In addition to this, it should be noted that Hungary is not the only European country that has introduced tax-based incentives for the owners of cryptocurrencies in their country. Portugal, for instance, does not require its customers to pay any taxes at all provided that they are not engaged in any kind of professional trading.

READ  Craig Wright Refuse Moving 50 BTC, Now In Catch-22 Situation

#CBDC #Crypto Tax Cut #Hungary #Mihály Varga

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoknowmics.com/news/european-union-country-plans-50-crypto-tax-cut-to-attract-billions

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Blockchain

Bitcoin’s Halving May Not Pump Price Like Last Time – Here’s Why It Doesn’t Matter

With sideways trading, a bearish sentiment, and a slowing two months, Bitcoin has seen a slump from $14,000 USD highs to under $7,000 USD in recent weeks. With the Bitcoin Halviening less than 6-months away, will the market change pace and fuel the bull run that we’ve all been hoping for? While camps are divided, … Continued

The post Bitcoin’s Halving May Not Pump Price Like Last Time – Here’s Why It Doesn’t Matter appeared first on CryptoCanucks.

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With sideways trading, a bearish sentiment, and a slowing two months, Bitcoin has seen a slump from $14,000 USD highs to under $7,000 USD in recent weeks. With the Bitcoin Halviening less than 6-months away, will the market change pace and fuel the bull run that we’ve all been hoping for?

While camps are divided, here’s why we believe this Bitcoin halving will be beneficial for the market and help propel the industry to new heights.

bitcoin clock

Understanding the Potential Downside:

Bitcoin halvenings occur every 210,000 blocks. This is, on average, about every four years and was likely designed as a way to maintain a stable circulating supply and avoid hyperinflation.

When this happens, a miner’s reward per block is cut in half. As the reward level for a block decreases and difficulty for the block increases (as there are more miners competing for a smaller block reward), opportunistic miners are effectively priced out of the competition. The idea is, theoretically at least, that low-end miners cannot afford to continue mining.

As rewards for the block decrease, miners need an ever more efficient way of competing in the marketplace. Those that cannot compete, sell-off Bitcoin in an effort to cut losses and take their gains.

Historically this has only happened after Bitcoin halvenings after reward blocks are cut in half. The worry is that even with low prices now, after the halvening there will be additional selloff because of reduced block rewards, and there may not be a significant upward move for Bitcoin for months to come.

donedonedone

(source: Digital Asset Research – statistical model, not price predictions)

 The above chart as an example shows what happens with the price (light blue line) after halvenings (dotted red lines) occur. What we’re seeing here, is that there was no price increase after the last halvening. Instead, the price started increasing in the middle of the cycle, suggesting that the increase may have already been priced in. Or said another way, that the price increase from $3,000 levels earlier this year, up to $12,000 levels already represent potential gains that might have otherwise occurred after the halvening.

But this is only part of the story.

Reviewing the upside:

Weeding out inefficient miners effectively helps boost the long-term health of the overall market. Both halvenings and low prices help drive this. With continued low prices, this might actually mean that we’ve already priced in ‘miner reduction’ simply because of the current sluggish Bitcoin prices. Only the most efficient Bitcoin miners can sustain a drop in price from $14k to current $7k levels. Many miners have already been forced to shut down their rigs.

Which could mean that the halvening may not force as much sell-off as initially thought.

If it does force additional sell-off, there could be a temporary downslide before a strong bullish movement forward. If it doesn’t force additional sell-off, the halvening will only support a strong bullish trend as supply is limited, rewards are halved, and only the strongest miners remain.

Industry Strength

If we take a step back and look at long-term projections, both cases are more than positive for the industry as a whole. While short-term gains may suffer in the worst of cases, the Bitcoin halvening should help drive a long-term bullish trend.

A simple supply and demand scenario is the easiest explanation, although there are many more nuanced theories.

As halvening difficulty increases, supply is reduced. As supply is reduced the cost of each Bitcoin is likely to rise due to scarcity. Additional factors, such as global economics, increased awareness about cryptocurrency, and increased demand for Bitcoin itself should add fuel to a bullish rally.

It has yet to be determined, and the narratives surrounding the halvening are mixed at best. Yet when we look at the long term possibilities on the state of the industry, two things are very clear.

One – cryptocurrency is here to stay. And two – in the long-run Bitcoin will see a bullish movement forward.

Are you ready to take advantage of the future?


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Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptocanucks.com/bitcoins-halving-may-not-pump-price-like-last-time-heres-why-it-doesnt-matter/

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Blockchain

What Are “Crypto/Digital Assets” and How Can They Be Taxed?

By: Amanda Rosenstock and Aaron Grinhaus Thinking about buying or selling digital, or “cryptographic” assets such as Bitcoin, Ethereum and other cryptocurrencies? Does your business already deal with digital assets? Regardless of whether you’re an investor or a business owner, you should be aware of your potential tax liability when managing your Digital Asset portfolio. … Continued

The post What Are “Crypto/Digital Assets” and How Can They Be Taxed? appeared first on CryptoCanucks.

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By: Amanda Rosenstock and Aaron Grinhaus

Thinking about buying or selling digital, or “cryptographic” assets such as Bitcoin, Ethereum and other cryptocurrencies? Does your business already deal with digital assets? Regardless of whether you’re an investor or a business owner, you should be aware of your potential tax liability when managing your Digital Asset portfolio. Read on to learn more!

What are “Digital Assets”?

A Digital Asset is a cryptographic, often Blockchain-based, unit of value that is exchanged through a decentralized ledger system, based on cryptographic verification as opposed to a traditional third-party verifier such as a bank. “Blockchains” are decentralized payment systems, which allow parties to transfer and verify value exchanges directly, without the need for an intermediary.

Digital Assets are also called “Coins” and “Tokens”. Coins operate on their own Blockchain, store value and can be thought of as an asset intended to replace government-created, or “fiat”, currencies. Tokens are typically Digital Assets that convey information or value on a Blockchain platform created for a specific purpose.

Tax Treatment of Digital Assets

 The way that a transaction involving a Digital Assets is taxed depends on the nature of the transaction. One way the proceeds of disposition of Digital Assets purchased and held for investment may be viewed is as a capital gain. For example, when cryptocurrency that has increased in value is subsequently sold for fiat, the gain will be included in the calculation of an individual’s income for tax purposes in accordance with the current capital gains inclusion rate. On the other hand, when Digital Assets such as cryptocurrencies are exchanged for goods or services, or different cryptocurrencies are exchanged, any gains or losses associated with these transactions may be taxed as business income or barter income. Furthermore, cryptocurrency that is sold for fiat currency will be recognized as business income if trading volumes are frequent and short-term profits are consistently realized. Any profit that is made is fully taxable as business income, subject to any allowable deductions for business expenses. While business income is fully taxable, presently only 50% of capital gains are subject to tax, therefore making it more desirable to handle your Digital Assets in a manner that will trigger capital gains.

Barter transactions occur when goods are exchanged for other goods instead of fiat money. If this is done in the course of business, the fair market value of the goods being exchanged is included in the income of each respective participant in the transaction. For example, if a dentist agrees to perform dental services worth $1500 on a carpenter who, in exchange, offers to build a new deck worth $3000 for the dentist, the dentist must include $3000 in her income while the carpenter must include $1500 in his. In the case of Digital Assets: if an individual trades cryptocurrencies on a daily basis as her primary source of income then every trade could trigger a taxable event, even if no fiat currency was received. This results in a tax liability on the part of the trader even though she didn’t actually realize any gains, which is problematic.

As one of Canada’s earliest law firms specializing in the tax treatment of Digital Assets, the lawyers at Grinhaus Law Firm have the knowledge and expertise required to properly structure your crypto and Digital Asset business and holdings and mitigate your tax consequences. If you are looking to buy, sell or structure Digital Asset holdings, call or email us right away to give you peace of mind regarding your tax liability.

You may also consult with the book published by our founder, Aaron Grinhaus entitled A Practical Guide to Smart Contracts and Blockchain Law (Toronto: LexisNexis Canada Inc., 2019).

PLEASE NOTE: THIS IS NOT INTENDED TO BE LEGAL ADVICE AND SHOULD NOT BE RELIED ON AS SUCH. IT IS IMPORTANT THAT YOU CONSULT WITH A LICENSED PROFESSIONAL.

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Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptocanucks.com/what-are-crypto-digital-assets-and-how-can-they-be-taxed/

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