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U.S. Senate Mulls Reporting Requirements for Cryptocurrencies

1 month 1 week ago

American Bitcoin holders may soon have to report their holding to the United States government.

First introduced on May 25, 2015, by Sen. Chuck Grassley [R-IA], Senate Bill S.1241, the
"Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017," can have serious implications for those involved in the cryptocurrency space. The hearing for S.1241 was held with virtually no public notice on November 28, 2017; the full two-hour hearing can be viewed here.

Currently, the definition of "financial institution" includes banks, trust companies, credit unions, currency exchanges and the like. But according to Section 5312(a) of title 31, the new bill would amend the definition of "financial institution" to include "an issuer, redeemer, or cashier of prepaid access devices, digital currency, or any digital exchanger or tumbler of digital currency." 

This is most specifically embedded in Section 13:


Sen. Dianne Feinstein [D-CA] said in her opening remarks of the hearing, "The bill criminalizes intentionally concealing ownership or control of a bank account." Although, during the hearing, no further clarifications were given as to the effects this would have on the cryptocurrency community, based on the amended definition of "financial institution," it would seem that the bill would criminalize anyone intentionally concealing ownership or control of a digital currency or exchange account. While there is no finalized bill yet, the implication would be that cryptocurrency holders need to fill in federal registration forms for tax disclosure, quarterly reporting and more.

Notably, while the purpose of the bill and hearing had to do with adding digital currencies and exchanges to the definition of financial institutions, there was almost no discussion on the topic other than briefly in reference to drug cartels using them to launder money. For example, nowhere in the testimony by Coinbase board of directors member Kathryn Haun Rodriguez does she mention digital currencies or exchanges, and at no time was she asked any questions about them.

Unsurprisingly, the bill is receiving pushback from some cryptocurrency holders. Activists on Reddit have started a social media campaign in opposition to the bill, and are suggesting others to tweet: "@senjudiciary that #Bitcoiners are not #Crooks Remove #DigitalCurrencies from Section 13 of S1241." Others are contacting their senators directly.

The post U.S. Senate Mulls Reporting Requirements for Cryptocurrencies appeared first on Bitcoin Magazine.

Trade.io – Blockchain Trading Platform Makes Traders Owners and Shares the Profits

1 month 1 week ago

Has the post-2008 bank cleanup allowed the banks to mop up more client money? Despite tighter financial regulation, banks are behaving like teenagers with no house rules. Not only are financial services fees rising, but it is becoming harder to see what big banks are doing with their money.  In fact, about 10 percent of … Continue reading Trade.io – Blockchain Trading Platform Makes Traders Owners and Shares the Profits

The post Trade.io – Blockchain Trading Platform Makes Traders Owners and Shares the Profits appeared first on NEWSBTC.

This is how much one bitcoin is worth right now

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You might have heard that the value of bitcoin has been skyrocketing recently. And you may be asking yourself: How much money would I have made by now if I had just listened to that dude in college? So far, bitcoin's value has risen from under $1,000 per bitcoin in January to over $16,000 this past ...

Bitcoin, Currency Debasement And Alternative Investing

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What Is Bitcoin Uranium?

1 month 1 week ago
We have seen multiple Bitcoin forks and clones over the past few months. Such a situation is not sustainable in the long run, nor does it help the cryptocurrency ecosystem. It seems the newest hard fork to watch out for will go by the name of Bitcoin Uranium, aptly abbreviated as BUM. It is another clone of Bitcoin very few people will give a crap about, but it’s still a free airdrop to Bitcoin owners. Bitcoin Uranium Will be a Real Thing Myriad forms of Bitcoin have been and will continue to be created. Not all of these will be successful, though,

Bitcoin ends dramatic week with 20% slump followed by recovery

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The currency, which was likened to Dante's Inferno by one senior banker this week, rocketed to a new high of $16,660 overnight before slumping to $13,482 by midday on Friday. As the London markets were closing, bitcoin had recovered some of its losses to trade at $15,350 - having started the week ...

Provocative advertisement of Universa Blockchain has appeared at Times Square

1 month 1 week ago
On November 30, Times Square saw a provocative promotion video, depicting a well-known computer game character Pac-Man, eating up the row of dollar, Bitcoin and Ethereum signs. Disclosure: This is a Sponsored Article On November 30, Times Square saw a provocative promotion video, depicting a well-known computer game character Pac-Man, eating up the row of dollar, Bitcoin and Ethereum signs.The shown video symbolizes the transition to the so called New Money Order,which Universa is striving to achieve. The video has been uploaded to the Universa official YouTube channel on the 1 of December. Universa is a new-age blockchain platform introducing a new technology

Op-ed: Bitcoin Is Not a Bubble; It's in an S-Curve and It's Just Getting Started

1 month 1 week ago

One of the most intriguing stories underpinning the recent rise of bitcoin prices is how financial institutions will interact with the currency.

The upcoming CBOE futures market is going to open the door for Wall Street giants to participate in the market. That could spell moon or doom for bitcoin, and everyone is speculating on what may happen next.

It is this Wall Street/BTC interaction (phenomenon) that may be driving the unbelievable price spike of the past few days - at least partially.

On the macro scale, however, we may be witnessing a more grand pattern forming; a price-correlated S-curve.

The S-curve is the classic adoption curve applied to the advent of new technologies. As a percentage of the population, adoption looks like a lag phase where the technology is utilized by the innovators of said technology, followed by an early adoption phase led by people who often take risks in order to be the first movers in a space. After the early adopter phase (~16% of the population is now participating), there comes a great "tipping point" where the wide use of the technology seems inevitable. The tipping point gives rise to the "Early Majority" joining in on the fun, followed by the late majority and, finally, the holdouts who allow the top of the S to asymptotically approach total adoption. The curve, as a factor of time and adoption, looks sort of like the following:


This curve correlates nicely with adoption of some of the greatest technological innovations in our recent history:


Some important things to note is that this is just U.S. adoption. Much of the world lagged behind the U.S. in the consumer appliance boom of the 1900s. All of these curves, however steep, do follow the same S-curve trend fairly nicely.

So what could that mean for bitcoin? It's difficult to choose a metric to define bitcoin adoption, and, in fact, there are disputes about if one metric accurately captures it. However, for simplicity I'll highlight Google searches for bitcoin and Coinbase user count as microcosms of the global adoption trend.


(from CNBC)

This seems to show a very similar pattern to what could be the transitional phase between "innovators" and "Early Adopters." Just to harken back to the earlier statement though - it's very difficult to put a number on bitcoin adoption.

So why is this remarkable? Bitcoin may be the first "buyable" S-curve. Because this is a capped-supply currency, more users adopting and using it necessitates an increase in price. Whether that correlation is even reflective of the current price action is a practically unanswerable question, and the obvious leaning would be towards there being a speculative additional value. However, with an increase in adoption, there seems to be a floor rising up to catch whatever "bubble burst" might occur, if and when it happens.

I'm starting to take the controversial position that I'm less looking at a financial market chart and more looking at a graph for adoption rates. $BTC pic.twitter.com/RmGFyCdwan

— Parabolic Trav (@parabolictrav) December 3, 2017

"Eternal September" is the phrase used to describe September of 1993, when widespread internet adoption began to look inevitable. It occured after AOL began a mailing campaign offering free trials of its internet service, leading to an influx of internet users that has since never ended. Hence "Eternal September."

Always thought it would take another bubble for the #crypto equivalent, but this might be the start of #Bitcoin Eternal September https://t.co/95PaF9ZYD7

— David Bailey (@DavidFBailey) December 6, 2017

To compare bitcoin's adoption to its complement - the internet - this may very well be the "Eternal September" episode for bitcoin.

If the S-curve adoption theory applies to bitcoin, then buckle up. I won't pretend to be able to predict a spot price, but I will say I think we may be sitting close to another order of magnitude this time next year.

See y'all on the moon.

Corollary: Bulls sound smart in bull markets. We may look back and laugh at this thought, or it may hold true for years to come. Time will tell. 'Til then, buy bitcoin.

Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.


The post Op-ed: Bitcoin Is Not a Bubble; It's in an S-Curve and It's Just Getting Started appeared first on Bitcoin Magazine.

Bitcoin: What The Heck Is Going On?

1 month 1 week ago
In any case, Bitcoin is getting investors' attention - especially on Seeking Alpha. So we thought it would be a good idea to tap some of our most avid Bitcoin watchers to get their take on the crazy hype train surrounding the cryptocurrency and the current market environment, as well as their outlook for ...

BitPay Aims to Support Additional Cryptocurrencies Next Year

1 month 1 week ago
There are plenty of reasons to get excited about Bitcoin these days. One is the skyrocketing BTC price, but so is the variety of companies making waves in this industry. BitPay is one of the largest companies active in the Bitcoin world right now. It is currently raising additional capital in order to add support for other cryptocurrencies. It’s a very interesting and somewhat surprising turn of events. BitPay Plans to Support Altcoins Most people who have ever dealt with BitPay will acknowledge this company is all about Bitcoin first and foremost. That is not entirely surprising, as Bitcoin has gotten the company most of its business and built its
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1 hour 27 minutes ago
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