Bitcoin News Sunday, March 25 Financial services subcommittee, Rep. brad sherman, Incapsula incident id & more…
Bitcoin News TLDR / Table of Contents
- Congressional hearing on cryptocurrencies devolves into bitcoin bash fest
- A House Financial Services subcommittee shined a light on some Congress members’ deep skepticism around digital currency.
- Financial Services subcommittee, Rep. Brad Sherman, ICO market, Commission Chairman Jay, Rep. Tom Emmer
- The rise and fall of bitcoin
- THE great Sir Isaac Newton may have revolutionised our knowledge of the world but he still had his blind spots. He was sucked into the great mania of his day, the South Sea Bubble (pictured) and lost a lot of money. “I can calculate the motion of heavenly bodies but…
- Incapsula incident ID, ,
- Investors in Bitcoin and other cryptocurrencies face hefty tax bills
- According to the Internal Revenue Service, anything purchased using a digital currency is liable to be taxed as a capital gain
- hefty tax bills, , , ,
- Cryptocurrencies are a crock, Rep. Brad Sherman (D-Calif.)
- Sherman had a litany of concerns.
- The committee was called to discuss initial coin offerings, or ICOs, which are used by companies to raise capital for businesses and products.
- Sherman accused the cryptocurrency community of using the term ICO to lie to the public and convey the image that is like an IPO.
- They stole the intellectual property and trademark of legitimate investing and applied it to a fixed, fraudulent gambling scheme of no social benefit, Sherman said.
- Perhaps the best way of understanding bitcoin is through a model of how bubbles operate.
- The classic model, developed by Hyman Minsky and elaborated by Charles Kindleberger, a historian who studied bubbles, has five stages: displacement, boom, euphoria, financial distress and revulsion.
- A boom then occurs and drags in more and more investors; at some stage, we reach euphoria, where the boom is widely known to the public and there is talk about those who made millions from the trade.
- In the euphoria stage, people buy because others are buying and because they anticipate being able to sell quickly at a higher price.
- Investors may well reflect that bitcoin had not become a means of exchange for day-to-day transactions, has not proved to be a reliable store of value and thanks to the proliferation of cryptocurrencies, does not really benefit from a limited supply.
- Wild fluctuations in the value of digital currencies bitcoin surged from less than one dollar in 2010 to $997 at the start of the 2017 to nearly $20,000 before settling back to around $8,500 on Friday have exposed investors to tax bills the value of their coins may no longer…
- One complication for crypto investors is that digital currencies that were, in part, devised to operate outside of government and banking industry oversight, are still of interest to the US tax authorities, who look at cryptocurrency as property and not currency.
- Another source of confusion is that crypto-brokers are not required to issue 1099 disclosure forms the forms used by the IRS to report income other than wages, bonuses and tips on digital currencies, but individuals are still responsible for reporting gains.
- IRS wanted information so they could enforce tax law on individuals.
- So on one side, yeah, its been easy to avoid tax, but on the other its part of the crypto ethos of personal responsibility to own up to it, Perez says.
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