Daily Archives: May 25, 2020

Over a decade since Bitcoin was first launched, there are now myriad cryptocurrencies on the market, such as NEO, Litecoin and Ethereum, but Bitcoin still remains the most well-known. Cryptocurrency is a form of digital currency, which requires no central banking system. It sits on a platform called blockchain, and Bitcoins are mined in exchange for Bitcoin rewards. Anyone can mine Bitcoin, and because the transactions have to be verified by several individuals, there is no need for a central bank to control it, it is decentralised. But you dont have to mine Bitcoin in order to own it, many people are now simply investing in cryptocurrencies through trading platforms.

But is cryptocurrency a good investment? And if so, will 2020 be a good year to invest? Its certainly been an interesting year so far, and a rocky ride in terms of many investments, with prices fluctuating, largely due to the Covid-19 pandemic. The value of Bitcoin has risen as high as $9,000 and seen a low of $4,000, before gaining ground to $6,600, marking the greatest fluctuations since 2017.

The most recent rise in Bitcoins value, as well as other cryptocurrencies, may have been triggered by US Federal Reserve quantitative easing, an attempt to reduce the damage Coronavirus could cause to the economy. This has led some to move investments into Bitcoin, and other cryptocurrencies, to hedge against the potential devaluing of currency caused by quantitative easing. As there is a finite number of Bitcoin on the market, some believe it should not be susceptible to such devaluing, as the amount of new Bitcoin being mined is always reducing. The increase in demand, and the reduction in supply, should drive up the value, in keeping with the principles of supply and demand, according to experts such as Simon Peters, a crypto analyst at eToro.

Cryptocurrencies first became popular after the economic crisis of 2008, when the value of other traditional shares and investments took a major hit. Similarly, since news of the Coronavirus outbreak first hit, transaction volumes on trading platforms seemed to have increased.

Cryptocurrency trading platforms Binance and MyEtherWallet have also seen increased investment and significant growth. It certainly appears that quantitative easing has been the catalyst for investors to seek alternative options.

But theres another reason to consider cryptocurrency investment in 2020 the Bitcoin halving this May, meaning the number of Bitcoin available will halve. This means less supply, and with the pandemic pushing up demand, some are anticipating a bull run.

If past performance is any indication, a halving is likely to push Bitcoin values up. The first halving in 2012 saw a whopping 8,000% increase in the value of Bitcoin over the following year, and the second one in 2016 saw Bitcoins value rise by 2,000% in the subsequent 18 months.

With no clear end in sight for the current lockdown situation, many businesses are losing value, if they survive at all, so traditional stocks and shares are taking a battering. Could cryptocurrencies be considered a safe haven in 2020? It is a fluctuating market, but steely investors may be prepared to take a punt.

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Is 2020 the year to invest in cryptocurrency? - About Manchester

The latest implementation of bitcoin (BTC) on the Ethereum blockchain quietly went live this week.

There are 1.24 renBTC live on the Ethereum mainnet now, according to Etherscan. Three sources with knowledge of the project have confirmed this is the Ren smart contract, live ahead of its launch announcement.

Kain Warwick of Synthetix tweeted Wednesday that he was the first person to hold a full bitcoin in renBTC.

However, theres no way yet for members of the public to mint additional renBTC, the CEO of the company behind the project told CoinDesk in an email.

While the smart contracts have been deployed on Ethereum, RenVM itself is not actually on mainnet. This is because RenVM is a distinct network separate to Ethereum. The final mainnet subzero version of RenVM wont be deployed until later, Taiyang Zhang wrote. The minted renBTC so far has been from our own internal testing [and] Kain from Synthetix testing the system. The public hasnt been able to mint renBTC thus far.

RenBTC becomes the latest in a rash of products built to expose bitcoin-backed assets to the benefits of Ethereums various decentralized finance (DeFi) platforms.

Heres a succinct description of the system from a Medium post by the companys CTO, Loong Wang:

"Any asset minted on Ethereum by RenVM is a 1:1 backed ERC-20. This means that if you have 1 renBTC (an ERC-20), you can always redeem it for 1 BTC. It's a direct supply peg. renBTC isn't a synthetic, it doesn't rely on a liquidation mechanism, and it's not the price of Bitcoin on Ethereum. It is a one to one representation of Bitcoin on Ethereum that can be redeemed for BTC at any time, in any amount."

Ren is a project that grew out of the $30 million initial coin offering (ICO) for the Republic Protocol, originally envisioned as a way to run dark pools privacy-preserving trading venues where the order book is kept secret. According to Crunchbase, its backers included Polychain Capital and FBG Capital.

But, in a recent issue of The Defiant newsletter, Wang explained his firms pivot away from dark pools.

The big trades were on chains that werent Ethereum, he said. ETH had a lot of liquidity, but it was predominantly Bitcoin and USDT. So we would had to leverage things like atomic swaps, and theyre just too painful, Wang told The Defiants Cami Russo. And so we kind of turned around to say, well, we need to solve this interoperability problem before large liquidity is actually truly accessible in this space.

The RenVM is a way to hold a cryptocurrency in a multi-signature wallet controlled by nodes in the RenVM and mint a representation of that asset as an ERC-20 token for use on Ethereum. Unlike other projects, RenVM is bringing more than bitcoin to Ethereum (see bitcoin cash (BCH) and zcach (ZEC) above), with other assets to follow.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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RenBTC Quietly Goes Live in Latest Bid to Bring Bitcoin Into Ethereum - CoinDesk - CoinDesk

As world governments push through legislation to levy taxes on capital gains from bitcoin (BTC) transactions, seeking to earn more from an asset class that frowns on regulatory oversight, there are still a few countries that remain pro-crypto, allowing investors to buy, sell or hold digital assets at zero taxes.

Circumstances vary, but the real motivation leans more toward facilitating increased investment within the respective jurisdictions cryptocurrency industries, perhaps as a base for future taxation. For now, that has not happened yet. Heres a list of eight countries in no order of importance which may be considered as bitcoin tax havens, states that dont want your BTC investment gains.

In Portugal, tax authorities waived all tax on cryptocurrency trading and transacting meaning that individuals do not have to pay capital gains tax or value added tax (VAT), when buying or selling BTC and other digital assets. The Portugal Tax Authority (PTA) said an exchange of cryptocurrency for real currency constitutes an on-demand, VAT-free exercise of services.

While citizens are under no obligation to pay income tax when exchanging crypto for fiat, the PTA, however, indicated that businesses which accept digital currencies as payment for goods and services are liable to paying taxes such as VAT and income tax. The income tax relief makes Portugals laws some of the most favourable throughout the world, given how income tax is a huge expense on the accounts of most crypto traders.

If you hold bitcoin for one year or more in Germany, you wont have to pay any taxes. Regardless of how much money you make selling your BTC, you do not pay capital gains as long as you have held your coins for a period exceeding 12 months.

Europes biggest economy regards BTC as private money, contrary to the widespread view in most developed countries, which look at crypto as currency, commodity or equity. In Germany, private sales that do not exceed 600 euros ($654) are tax-free. Businesses, however, are still obliged to pay taxes on gains emanating from bitcoin through corporate income taxes.

Both individuals and corporates who hold BTC or other digital assets as a long-term investment are not taxed in Singapore simply because capital gains tax does not exist in the city-state itself.

However, enterprises based in Singapore are liable to income tax, should they be involved in cryptocurrency trading as a core business. Those that opt for bitcoin as payment for services rendered, or revenue, are subject to normal income tax rules. Companies are taxed on the profit generated within Singapore.

As with neighboring Singapore, there are no capital gains tax in Malaysia. Cryptocurrency trades involving cash or another digital asset are not taxed in the Southeast Asian country. However, this will likely change if BTC is recognized as legal tender in Malaysia, as has been rumoured in the local press in recent months.

In the Eastern European country of Belarus, a new law that came into effect in March 2018 legalized cryptocurrency, exempting individuals and businesses from any form of taxation for dealing in or with digital financial assets in whatever way, at least until 2023.

Individual activities such as mining or buying and selling of crypto, are considered personal investments, and therefore, are not subject to tax. Similarly, registered businesses operating in the special economic zone of High Technologies Park near the capital Minsk, involved in mining, trading, initial coin offerings or other crypto-related operations are not taxed.

For Slovenia, the tax system for individuals and companies involved with BTC is rather different. While no capital gains is levied on citizens for the sale of bitcoin and other cryptocurrencies, they are still expected to pay income tax regardless of the currency being exchanged. However, companies that receive payment in BTC or from crypto mining are required to pay tax at the corporate tax rate.

The taxation of corporations depend on the circumstances of a particular case and the information provided in the declaration: income recipient status; type of income. If profits are recognized as capital gains, then the tax is 19%, say experts.

The famed blockchain island of Malta does not tax long-held digital currencies, either for capital gains or VAT. However, crypto trades executed within the day are considered similar to day trading in stocks or foreign exchange, attracting tax as business income at the rate of 35%.

Malta is perhaps one of the most crypto-friendly countries in the world, initiating legislation that has legalized a variety of crypto operations in the country. The government recognizes bitcoin as a unit of account, medium of exchange, or a store of value.

In Switzerland, one of Europes crypto havens, qualified individuals that buy, sell or hold cryptocurrencies for personal benefit are not required to pay tax on their capital gains. However, income from mining, considered self-employment income, is taxed through income tax. Profitable crypto trading by qualified professionals is subject to corporate tax while wages paid in bitcoin must be declared for income tax purposes.

What do you think about bitcoin taxation around the world? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Eight Countries That Don't Tax Your Bitcoin Gains | Finance Bitcoin News - Bitcoin News

Bitcoin may be the most valuable cryptocurrency but it is no longer the easiest or the most profitable cryptocurrency to mine. We look at the top 5 cryptocurrencies to mine and the countries where electricity is the cheapest, which makes them a great option for setting up cryptocurrency mining rigs.

GRIN is a privacy coin launched in 2019. It is built around the Mimblewimble protocol, the coin is said to be a lightweight application of the protocol. It aims to be more scalable and less storage intensive compared to other privacy coins. Grin promises to enforce privacy by getting rid of residual transaction information on the network. Grin has unlimited coins which makes it attractive to miners.

Algorithm: Proof-of-Work

Hashing Function: MimbleWimble

Mining Reward: 60 GRIN per block

The Best Automated Trading Robots ?

ZCash is a privacy focussed cryptocurrency, it offers more privacy focussed features when compared to other coins. It was released in 2016 and was launched massively on major exchanges. It can be mined by anyone as its algorithm allows for mining using mining graphics cards.Algorithm: Proof-of-Work

Hashing Function: Equihash

Block Mining Reward: 10 ZEC

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Ravencoin is a top 50 cryptocurrency named after the small blackbirds in George R. R. Martins fictional world of Westeros. It was launched in 2018 on the 3rd of January to coincide with Bitcoins launch. It was developed to enable easy and faster transfer of fungible and non-fungible assets among users. It was forked from Bitcoin and hence contains many of the same features including the POW consensus protocol. It has a maximum supply of 21 billion and currently has a market cap of just under $150 Million.

Algorithm: Proof-of-Work

Hashing Function: X16R

Block Mining Reward: 5,000 RVN

https://ravencoin.org/

Monero is one of the leading privacy coins, ranked number #14 in the cryptocurrency market. This giant of cryptocurrencies was launched in 2014 as a private, secure and untraceable cryptocurrency. It gives its users complete control of their funds and privacy preventing others from seeing your balances and transactions.

Algorithm: Proof-of-Work

Hashing Function: CryptoNightR

Block Mining Reward: 2.47 XMR

https://getmonero.org

Ethereum Classic is a continuation of the original Ethereum blockchain which was forked in 2016 after a hacker exploited a loophole which resulted in millions of Ether being stolen. From this fork Ethereum (ETH) and Ethereum Classic (ETC) were formed. ETC is ranked #17 amongst cryptocurrencies on coinmarketcap and has a Market Cap of just under a billion dollars.

Algorithm: Proof-of-Work

Hashing Function: Ethash

Block Mining Reward: 4 ETC

https://ethereumclassic.org

Elite Fixtures conducted some research in 2018 on the cost of mining bitcoin in various locations around the world. The infographic below is the result.

Please note that bitcoin is still the most valuable cryptocurrency and has a market dominance above 60%. The bitcoin halving has now happened, many expected this event to have a major effect on bitcoin prices in 2020.To find other coins worth mining use a tool such as what to mine: https://whattomine.com/coins

There are now cryptocurrency cloud mining companies which allow you to rent out cryptocurrency mining hardware for a certain period of time and they run the cryptocurrency mining operation in locations where it is cheap to mine, they decide what cryptocurrencies to mine etc. You dont need technical know-how to get involved with these mining operations. You just get regular payments that are in proportion to your investment amount or mining package that you buy.

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The Top 5 Cryptocurrencies to Mine [2020] | Coin Insider - Coin Insider

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Cryptocurrencies and Blockchain Technology probably represent one of the most radical and dynamic ways of redefining the future of our financial systems. Being characterized by decentralization, working on a peer-to-peer network, having complete anonymity, non-taxable nature, etc. they present an idyllic scenario of what finance should be.

However, when it comes to existing reality, they are found to be very divorced from it. In other words, cryptocurrencies like Bitcoin are too great a departure for them to become complete mainstream entities and be accepted as legal tender by governments, and financial institutions.

It should be pointed out that such issues should not take away all the incredible benefits of cryptocurrencies. For example, their transaction speed, their idea of holding global value across countries and continents and being completely safe and secure (un-hackable).

In this article, we are going to look at Stablecoins and understand why they are slowly becoming a globally mutually accepted financial asset that has enormous implications for the future.

Stablecoins: Meaning and Definition

Stablecoins are digital currencies or tokens, which are backed by either of the two following values-

Unlike Bitcoins, which are mined and do not have any physical assets to dictate the price, value of stablecoins are calculated according to the reserve they are supported or backed by.

It is interesting to note that Stablecoins work on the same Blockchain technology as cryptocurrencies thereby maintaining all the benefits and advantages that are part of cryptocurrencies like Bitcoin.

One of the major criticisms of Bitcoins is its volatile nature. The cryptocurrencys fluctuations is something, which has kept mainstream investors from taking part in it. With Stablecoins, this volatility is expected to be controlled, as it will be subject to universally accepted assets like gold, or even the global Dollar.

How Stablecoins are going to work in the Real World?

Imagine you had to do some business in say, China. You need to raise Capital to start factory production. This involves you moving your capital from USA to Australia. Sounds easy right, but here is where the problem starts.

The first thing you would need to do is ask your Bank in USA to move it to a Bank in Australia. Your personal bank would ask the Central Bank of USA for approval. Once the process is complete, the Australian authorities follow the same principle.

The result- you waste over a week to ten days in the complete process. Stablecoins are going to eliminate this problem. They are going to be a global denomination that helps entrepreneurs and businesses get access to ready finance and capital instantly through Blockchain technology.

Fast transfer of money and capital can help aid humanitarian relief efforts improve business and commerce and speed up tens and thousands of global processes within seconds. More importantly, when real assets back it, the value will not change across different countries and continents.

Is the World Working on Stablecoins in 2020?

In the last few years, the chatter and development behind different Stablecoins is picking up. The most notable example of the same being Facebooks new crypto, Libra. It is very close to what you would call as a Stablecoins and bears all the features of one.

Other smaller entities are also exploring new stablecoins products in different countries across the world. Many Central Bank Digital Currencies (CBDCs) like the Chinese Digital Yuan has also been very closely modelled on Stablecoins.

From a normal human being, investing early in cryptocurrencies like Stablecoins can prove to be remarkably profitable through the crypto comeback login page. It can generate high profits, offer safety and ensure complete transparency in the way the crypto software works.

Link:
Can Stablecoins Be the Answer to Cryptocurrency's Biggest Problem? - News Anyway

Earlier this week, ZIMBOCASH a local decentralised cryptocurrency- listed their token ZASH on Bithumb Global (a cryptocurrency exchange headquartered in South Korea).

In marketing material, ZIMBOCASH is marketing the ZASH token as a replacement alternative to Zimbabwes flailing Zimbabwe Dollar. A total of 4.5 billion ZASH tokens have been created with 950 million currently in circulation.

The Zimbabwe dollar was already collapsing with 500% inflation, before this crisis dealt a debilitating blow. We believe that ZIMBOCASH is perfectly positioned to solve this problem by fixing the amount of money in the country using blockchain technology. Our aim is to provide sound-money.

I believe Philips comments about ZIMBOCASH being perfectly positioned to solve the Zimbabwes economic turmoil are a bit premature. We reached out to ZIMBOCASH to understand where Zimbos in possession of the ZASH token will be able to use it and Philip explained to me that they are developing that network and expect organic use of the ZASH network to grow as the currency environment deteriorates in the country.

For ZIMBOCASH, listing with Bithumb offers the digital currency an opportunity to start making the ZASH token more valuable;

Our first step in establishing value is in getting it listed on an international exchange (Bithumb Global), where there is a market of buyers and sellers. On the basis that there is value derived from a market price it can become something that is used in trade

It is important to note however that Bithumb the exchange in question has been hacked a number of times;

A concern I had after going through ZIMBOCASHs marketing material was how they were going to communicate the concept of digital currencies to the ordinary Zimbabwean something theyll have to do if ZASH is to become a compelling alternative to the Zim dollar.

Philip explained that they have been doing some work on that front but believes ultimately the pain that people experience in a collapsing monetary system will cause people to naturally find alternatives that work.

Right now the clearest incentive to get the token is the fact upon signing up for the token youll get 3125 tokens. The issue with that is the value of those tokens will depend largely on the network in which you can use them. If theres nowhere to use them 3 or 4 months down the line are they valuable?

The elephant in the crypto-shaped room has been regulation or lack thereof. Interested parties would want to know what guarantees there are that the tokens would be safe. If they get the token, will ZIMBOCASH turn out to be another Golix? The expectation is that it wont be a problem since they are currently not regulated locally and not making use of local banks at the moment:

We are not operating through the banking system in Zimbabwe. There is no cash-out or cashin. Zimbabweans are allocated the token directly by signing up at our websitewww.zimbo.cash. There is no charge for signing up. It is similar to signing up for Facebook.

For those who have fears regarding volatility, Philip explained that volatility is to be expected with any currency however they belive that as their network grows stability will increase alongside;

There may be volatility in the price however, all currencies have some level of volatility. Ultimately, as a network of scale grows, the price is likely to become more stable. This is why a reference price on a market is used in trade.

However, with Zimbabwean history, people are used to changing their prices to the market rate. With the current system, people need to mark their prices to a market rate regularly. Our concern isnt what the price will be our concern is that thereisa price. If we get a price, we would have added value to a whole lot of Zimbabweans who have been allocatedZIMBOCASH, who can use it in daily trade.

That has been one of the biggest knocks when it comes to cryptocurrencies. The lack of centralisation seems to come at the price of security and accountability when things go wrong.

At the time of writing ZASH is being distributed solely via internet channels (Bithumb and the ZIMBOCASH website). If ZIMBOCASH is to realize their dream of dethroning the ZW$ as the local currency thats another aspect theyll have to improve to ensure that the Zimbabweans who arent on the internet are also included among those who can transact.

Once you have the currency where will you be able to use it? Right now beyond trading, your options are limited at the time being. In future, ZIMBOCASH will be more useful;

Ultimately, we would like to see people being able to pay for imports denominated inZIMBOCASH. This last step would require a very liquid international exchange where there isnt price slippage when there is acash-out. This is something that needs to develop over time.

Update: An earlier version of this article claimed that ZIMBOCASH was looking to replace the ZW$. This was inaccurate and the intention of ZIMBOCASH is to offer an alternative, NOT a replacement. We apologise to ZIMBOCASH and our readers for the misinterpretation.

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ZIMBOCASH Lists Cryptocurrency Token, Wants To Be Alternative To ZW$ - Technology Zimbabwe