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The Winklevoss Twins Made A Serious Wall Street Bitcoin Warning

The Winklevoss twins of Facebook-founding fame have long been strong advocates for bitcoin and cryptocurrencies, buying up huge amounts of bitcoin and founding the U.S. Gemini crypto exchange.

The bitcoin price, now back above $10,000 per bitcoin after dipping under the psychological mark earlier this month, has climbed around 200% so far this year, emboldening bitcoin bulls who had feared last year’s bear market could drag on through 2019.

Now, the Winklevoss twins have warned Wall Street banks have been “asleep at the wheel” on bitcoin and cryptocurrencies—something that’s helped bitcoin retail investors.

“Unlike the internet, which you couldn’t buy a piece of, you can actually buy a piece of this new internet of money,” Tyler and Cameron Winklevoss told CNN.

“It’s still a retail-driven market, from day one. And a lot of people have done really well. Wall Street has been asleep at the wheel,” the twins warned.

Bitcoin’s epic 2017 bull run, which saw the bitcoin price soar from under $1,000 per bitcoin at the beginning of the year to almost $20,000 in December, was largely thought to be due to Wall Street and institutional investment could be poised to flow into bitcoin and crypto.

When this investment failed to firmly materialise, the bitcoin price crashed to around $3,000 per bitcoin last year, only to rebound in 2019 as a result of technology companies taking an interest in bitcoin and crypto.

“We had to invest because we were afraid of missing out, we couldn’t miss out on this future,” the twins added.

Meanwhile, Tyler and Cameron Winklevoss earlier said they are open to partnering with Facebook chief executive Mark Zuckerberg on the social media giant’s libra cryptocurrency project after it was revealed they have been in talks about joining the Libra Association.

The newly-created, independent governance consortium for Facebook’s planned token currently counts 28 founding members but is expected to swell to around 100 by the time of libra’s launch next year.

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I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: The Winklevoss Twins Made A Serious Wall Street Bitcoin Warning

Cameron and Tyler Winklevoss talk with Ben Mezrich and Paul Vigna about Cryptocurrency and the Future of Money. Recorded July 9, 2019 at 92nd Street Y. What do bitcoin, ether, zcash, litecoin and other cryptocurrencies tell us about where capitalism is going next? And how did the Winklevoss twins see it coming? Cryptocurrency has emerged in the last decade as a powerful bellwether for what money might look like in the future—and Cameron and Tyler Winklevoss are leading the way in how it’s being used. Join them for a fascinating discussion along with author Ben Mezrich (Bitcoin Billionaires) and the Wall Street Journal’s Paul Vigna about the origins of Gemini, their cryptocurrency exchange and custodian, and the future of money. Subscribe for more videos like this: http://bit.ly/1GpwawV Your support helps us keep our content free for all. Donate now: http://www.92y.org/donatenow?utm_sour… Facebook: http://facebook.com/92ndStreetY Instagram: http://Instagram.com/92ndStreetY Twitter: https://twitter.com/92Y Tumblr: http://92y.tumblr.com/ On Demand: http://www.92yondemand.org

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Bitcoin: IRS Takes On The Crooks—And The Good Guys

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Are cryptocurrencies reportable for FBAR? For Fatca? No and maybe.

Turns out there’s no FBAR mandate on your offshore bitcoin account. Is the government making a tactical retreat in its war on money launderers and tax cheats?

In response to a request for guidance from an accountants’ group, the Treasury Financial Crimes Enforcement Network has recently decreed that cryptocurrency accounts held by exchanges located outside the country don’t have to be disclosed.

That means you don’t have to confess your Binance assets on the Foreign Bank and Financial Accounts Report, alias FBAR. The report, which is filed on a form called Fincen 114, is required when a taxpayer’s financial assets (cash and securities) held in foreign institutions top $10,000.

Why the leniency? Mostly because the antiquated laws aimed at financial mischief simply can’t cope with crypto.

A rational observer would say that bitcoin, which is both a store of value and a medium of exchange, is money. But the IRS, enforcing legislation written in a pre-internet age, has concluded that cryptocurrencies are “property”—more like Picassos than pesos.

At some point the tax police will get up to speed. They’ll rewrite rules or get legislation including digital assets in the offshore reporting scheme. But they’ll still have a hard time ferreting out hidden wealth. Cryptocurrencies, already somewhat anonymous, are getting more so. There are tumblers that erase bitcoin trails and there are newer currencies designed to offer enhanced privacy.

To investors, crypto is an asset class that might warrant an allocation in a portfolio. Although cryptocurrencies are volatile, they have the virtue of being not very correlated to stocks and bonds that fall, directly or indirectly, under the spell of central banks.

To enforcers, crypto is nothing but trouble. Bitcoin was the common currency of Silk Road, that bazaar of contraband whose manager got a life sentence. Russian hackers used bitcoin in their election meddling. A press release in May from Immigration & Customs Enforcement, crowing about the indictment of an alleged fentanyl vendor, gives bitcoin a prominent mention.

Donald Trump doesn’t like crypto. His Treasury secretary, Steven Mnuchin, complained recently that cryptocurrencies are being used illicitly. He vowed to produce regulations to keep them from turning into a new form of numbered Swiss bank account.

But aren’t bitcoins by their nature numbered accounts? The blockchain—a record of all transactions to date—is a string of integers, with no holders’ names attached. Still, holders can get nailed for doing something wrong.

Chain analysis software traces the history of a bitcoin as it moves from account to account. If at any point that coin passed through an exchange subject to U.S. know-your-customer rules (like Coinbase), the cops can get the name and taxpayer ID of someone who used the coin. That may give them a wedge, via subpoena or a threat of prosecution, to identify other participants in the chain of ownership.

And then there are users who make mistakes. Evidently the fellow accused of selling fentanyl wanted to convert bitcoins to dollars, and in the process of doing that transferred the coins to addresses that were controlled by federal agents. This is reminiscent of the bank robber who hops into what he thinks is a getaway car but turns out to be a police vehicle.

Cryptocurrency users who want their activities to be more cryptic have options. They can use one of the tumbler services that take in possibly dirty coins and replace them with randomly selected coins. They can use Monero or Zcash, currencies explicitly designed to be more private than bitcoin. And how is Secretary Mnuchin going to police Binance, the fast-growing coin repository that hops from jurisdiction to jurisdiction? It is now in Malta, where regulators are proud of their light touch.

Yet another way to keep coins hidden is to keep them in your own wallet instead of in the custody of an exchange. Just don’t lose the key.

Sean Golding, an Irvine, California attorney whose clientele includes global investors, says that you are under no obligation to report coins held in a wallet on your desktop, any more than you are obliged to report gold stored under your bed. You must, though, report and pay tax on profitable sales of either.

What about your account at an offshore exchange? Even with the recent dispensation from the IRS, Golding says, it might be a good idea to file the FBAR anyway. You might, after all, do some trading that temporarily turns bitcoins into dollars or euros. If your total of cash and securities held offshore exceeds $10,000, even for a day, the FBAR is mandatory.

The government takes the Fincen 114 form seriously. It’s trying to collect a $4.7 million fine from someone who forgot to fill it out.

Your account at a U.S. exchange needs no FBAR. The IRS can already see the account. Thus, Coinbase customers who neglect to declare gains from crypto sales can expect to hear from the feds.

What about Fatca? The Foreign Account Tax Compliance Act is another disclosure regime, overlapping Fincen but with its own set of rules and different thresholds ($50,000 for a single taxpayer, $100,000 for a joint return filer). Play it safe, advises Golding. The recent guidance on FBAR doesn’t apply here. If you’re at or above the cutoff, file the Fatca report.

The FBAR must be filed electronically with Fincen, a Treasury unit separate from the IRS. Start here.

For Fatca, file Form 8938 with the 1040 you send to the IRS. It can be on paper. The form is here and the instructions are here.

A useful comparison between the FBAR and Fatca requirements is here.

This Journal of Accountancy report describes the recent guidance from Fincen.

The FBAR regs are here.

I aim to help you save on taxes and money management costs. I graduated from Harvard in 1973, have been a journalist for 44 years, and was editor of Forbes magazine from 1999 to 2010. Tax law is a frequent subject in my articles. I have been an Enrolled Agent since 1979. Email me at williambaldwinfinance — at — gmail — dot — com.

 

 

Source: Bitcoin: IRS Takes On The Crooks—And The Good Guys

Bitcoin Price Approaching $4,100, but Don’t Get Excited Yet, Analyst Warns

The new year has kicked off on the right foot for Bitcoin investors. The currency has continued with its rally, gaining $375 since the year turned. In the past 24 hours, the currency has gained 6.5 percent, finally hitting the $4,000 level again. The last time Bitcoin hit this level was December 25, after which it went down all the way to $3,650. The fightback is certainly noteworthy, but according to some analysts, it’s not yet time to pop the champagne.

Source: Bitcoin Price Approaching $4,100, but Don’t Get Excited Yet, Analyst Warns – NullTX

Bitcoin Fundamentals Haven’t Changed, Says Anthony Pompliano – Osato Avan-Nomayo

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Bitcoin isn’t dead, says Anthony Pompliano, despite the current massive cryptocurrency price plummet. The Morgan Creek Digital Partner believes emphasis should be on fundamentals (which haven’t changed), rather than price.

Speaking to CNN on Friday (November 23, 2018), Pompliano declared that Bitcoin’s current price $4085.52 +0.34% didn’t significantly alter the historical outlook. Beginning on Wednesday (November 14, 2018), the top-ranked cryptocurrency and indeed the market as a whole has been experiencing a massive price decline.

For Pompliano, the current situation is hardly anything more than BTC’s usual bear cycle which has occurred multiple times in the past. The Multicoin Capital co-founder, however, noted that the current trend could see the top-ranked cryptocurrency slip to $3,500 or even $3,000.

In a Sunday tweet, Mati Greenspan of eToro, also echoed Pompliano’s statement, identifying $3,500 and $3,000 as the next critical support levels for the cryptocurrency.

Proper Way to Value Bitcoin

From a value perspective, Pompliano also touted the importance of Bitcoin given its transaction volume, which is beginning to mirror that of Mastercard. According to Coinmarketcap, BTC’s 24-hour transaction volume stands at almost $6 billion on a $66 billion market capitalization.

What is perhaps even more profound is the fact that a large percentage of these figures stem from retail trading with minimal institutional presence. Pompliano identifies this same trend stating that is another indication that upon the influx of institutional investors, BTC has the right fundamental outlook to stage another massive positive price breakout.

For Pompliano, BTC’s value proposition also includes its ability to act as a hedge against traditional assets. Recently, Bitcoinist reported on Spencer Bogart of Blockchain Capital saying that “gigantic opportunities” still abound in BTC.

Bitcoin Sinks to 14-Month Low

While bullish sentiments remain among many a commentator in the industry, the market slide continues. On Saturday (November 24, 2018), BTC fell below $4,000 to reach its lowest price since September 2017.

Bitcoin is now down by more than 80 percent from its December 2017 all-time high. The question remains how low can BTC go before bottoming out. Elsewhere in the market, the story isn’t different with other cryptocurrencies experiencing massive price dips.

The total market capitalization now stands at $123 billion which means an 85 percent decline since the start of the year.

 

 

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Survey: Fifth of Brits Believe Bitcoin Will Be the Currency of the Future – Julie Williams

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Bitcoin as a financial instrument has been in existence for quite a long while (since around 2008). It has revolutionized the way financial transactions are being carried out in many sectors across the globe. This is because it possesses the following properties:

  • It is irreversible: After confirmation, a transaction cannot be reversed, whether by you, me or even the Prince of Wales.
  • It is secure: A Bitcoin address is more secure than any central bank in the world. This is because Bitcoin funds are locked in a public key cryptography system. Therefore, only the owner of the private key can send cryptocurrency.

Bitcoin is having a volatile period, in fact, it’s had quite a year. It moved from a fringe investment to a global sensation in a matter of weeks in November 2017. All these necessitated the question – what is the future of Bitcoin? One thing is certain, cryptocurrency is changing the future of finance.

A survey on the use of cryptocurrency today and in the future in Great Britain was conducted by YouGov. YouGov is an international internet-based market research and data analytics firm which serves industries, governments, and people by gathering data and giving it to those who can act on them.

Below is the result of the survey:

1. Most people know about Bitcoin

93% of those who contributed to the poll were aware of Bitcoin. This is a huge figure when we take into consideration the fact that Bitcoin has only been around for a short while compared to other currencies. It also shows that Bitcoin has made an impact in Britain.

Among the contributors, one out of twenty persons (4%) claimed to understand Bitcoin very well, while almost six times that many claimed to understand it fairly well. Also, young men seemed more likely to claim to understand Bitcoin than the female folks.

2. British men claim to have a better understanding of Bitcoin than women

A large number of men claimed to understand Bitcoin. 39% of men claim to understand bitcoin either “very well” or “fairly well”, compared to just 14% of women who said they felt the same.

3. Young people have a stronger grasp of crypto than older people

Over 2 in 5 of young people that responded to the survey said they understood Bitcoin fairly well, while 16% of those who are older than 55 said they grasped the technology.

4. Young people have invested more in bitcoin than older people

45 respondents aged 18 – 24 claimed to have bought Bitcoin while just 1% of those aged 55 years and above have bought Bitcoin.

5. Bitcoin will be as common as cash or credit card

As already believed by the average crypto enthusiast, 20% of the participants in the survey believe that Bitcoin will be the currency of the future, 80% do not believe or are not very sure, while 43% are certain it won’t be as common as cash or credit card in the future.

Anyway, that’s their take. Where do you stand? Have you heard ofBbitcoin? Have you ever bought Bitcoin? Do you believe Bitcoin is centrally controlled or controlled by the people who own it? Do you think Bitcoin would be as common as credit card or cash in the future? Have your say!

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