Does the IRS Fear Bitcoin?

An op-ed in the New York Times theorizes that the IRS fears Bitcoin due to tax evasion. What actions could the IRS take to combat this?


The Internal Revenue Service (IRS) is one of the most feared federal agencies in the United States. They can garnish wages, levy fines, put liens on personal property, and even send you to jail for failing to pay the appropriate taxes. Which is why it’s interesting to see an op-ed in the New York Times say that the IRS is afraid of Bitcoin.

Internal Revenue Service (IRS) Asked to Provide a Clearer Cryptocurrency Tax Framework

Does Anything Frighten the IRS?

The op-ed was written by Richard Holden and Anup Malani. Holden is a professor of economics at the University of South Wales while Malani is a law professor at the University of Chicago. While their op-ed headline says “Why the I.R.S. Fears Bitcoin,” what they actually argue is that the tax agency fears is the effect of cryptocurrency upon revenue collection.

A pretty significant amount of money goes untaxed each year in the US due to the underground economy that is currently cash-based. The Internal Revenue Service estimates that a whopping $500 billion in revenue is lost each year due to unreported wages.

What the Internal Revenue Service fears is that Bitcoin and other cryptocurrencies could become much more mainstream and used on a daily basis. Currently, it is somewhat of a hassle for people to exclusively use cash as one has to withdraw it, carry it on their person, and payments have to be made face-to-face. Cryptocurrency is much more flexible and easy, allowing for guaranteed payments to be sent or received anywhere in the world. Suddenly, the scope of the underground economy expands exponentially if Bitcoin becomes an everyday source of personal transactions.

The Tax Problem with Bitcoin

The Internal Revenue Service knows that a lot of people are currently not paying their taxes on Bitcoin, which they found out by examining the Coinbase accounts they gained access to. They found that only 0.2% of users reported Bitcoin gains or losses.

This tax evasion could be even worse if someone shuttles around their cryptocurrency through various addresses. The op-ed authors imagine a scenario where a person bought Bitcoin at $15,000, then transferred it to a second address when it hit $15,500. That Bitcoin is then sent to a third address (owned by the same user), and the coin eventually reaches a total value of $25,000. The user can then send the Bitcoin back to their original address and claim that they only made $500 (when they sent the Bitcoin to the second address). The user also tells the taxman that they just bought a Bitcoin for $25,000 from another user. Of course, the IRS is unaware that the second and third addresses are owned by the same person.

The above scenario is an intriguing one and would require multiple exchanges (ones that lay outside of the purview of the US) to work. Such a scenario and the purported anonymity that cryptocurrency provides is enough to give the taxman an upset stomach.

Ways to Clampdown on Bitcoin

The authors of the op-ed argue that the Internal Revenue Service has several options to combat their Bitcoin problem. One is to raise tax rates across the board to make up for the loss in revenue. This is definitely a non-starter as people will rise up in arms, and the current administration has no desire to commit political suicide over this idea.

Another method of dealing with Bitcoin is to ban all cryptocurrency outright. This is a possibility as any government does not like a system, especially economic, that lies outside of their control. However, I think such a scenario is unlikely as the possibility of taxing crypto is just too potent a lure to pass up. If the government can tax something, they will.

The last major way of handling Bitcoin discussed by the op-ed is to change the tax code so that taxes are collected when money is spent, not when it is earned. Basically, the current income tax system is replaced entirely by a consumption tax. To be honest, this is probably the best way to handle the problem of tax evasion as everybody has to spend money, whether it be for food, rent, entertainment, or transportation.

However, the likelihood of seeing a consumption tax replace the Gordian Knot of a tax code found in the US now is slim to none. The current tax system is designed for various special interests, all of whom have congressmen in their pocket.

Overall, the IRS does not fear cryptocurrency itself, but it does fear the effect that it can have upon the underground economy and tax evasion. The likely scenario that crypto enthusiasts in the US will see in the future is increased regulation and a removal of anonymity on exchanges. In the end, the taxman always gets his pound of flesh.

What do you think about the IRS and their issues with Bitcoin? What steps do you think they’ll take? Let us know in the comments below.


Images courtesy of Wikimedia Commons and Bitcoinist archives.

The post Does the IRS Fear Bitcoin? appeared first on Bitcoinist.com.

Source: Bitcoininst

Debunked: Top 5 Bitcoin Myths & Misconceptions

The mainstream press has a knack for giving airtime to Bitcoin naysayers who repeat the same tired arguments. Here are the top five most common myths presented against Bitcoin and why they are wrong.


Bitcoin Uses More Electricity Than [Insert Country]

“One Bitcoin Transaction Now Uses as Much Energy as Your House in a Week!”

“Bitcoin’s energy usage is huge – we can’t afford to ignore it”

“Bitcoin consumes more electricity than Denmark!” 

Deliberately eye-catching, sensational headlines about Bitcoin mining are constantly recycled in the press. While these concerns were recently refuted in a Forbes article, the incumbent global financial system isn’t exactly known for its sparing use of electricity. Think skyscrapers, data-centers, staff, branches, security costs, infrastructure etc.

5 Ways to Solve the Bitcoin Mining Energy Crisis

Bitcoin will use much less power as incentives force miners to pursue the cheapest (and increasingly renewable) sources of energy to cut costs and boost competitiveness. For more, here are nine reasons why Bitcoin mining is not a waste of electricity.

Governments Will Ban Bitcoin

Classic FUD (fear, uncertainty, doubt) perpetuated by the press that has fueled more than 200 obituaries to date. Sure, a small minority of nations have made cryptocurrency officially illegal. Ecuador, for example, launched its own ‘digital currency’ after banning its potential competitor, Bitcoin. Meanwhile, the blockchain industry is booming in places like the US, Japan, Hong Kong, Singapore, and Switzerland

Bitcoin may even play an increasing role in geopolitics. Therefore, it may simply become a risk for governments and central banks not to own Bitcoin (or whichever global cryptocurrency becomes the de facto store of value).

Meanwhile, volatility is diminishing, new money keeps flowing in, and the public becomes more knowledgeable about how the world’s first decentralized currency really works and why governments can’t just flip a switch and turn it off.

“It’s impossible to ban bitcoin and cryptocurrency trading because the more you regulate, the more it will become popular,” explains Francesco Nazari Fusetti, co-founder and chief executive officer of Aidcoin.

Additionally, governments are reportedly buying Bitcoin themselves. What’s more, some officials have even admitted to spreading false rumors to capitalize on the price movements.

Lastly, ask yourself: what country in their right mind would get rid of a burgeoning new industry that is expected to grow at a Compound Annual Growth Rate (CAGR) of 61.5% by 2021? Russia’s President Vladimir Putin is just one of the leaders who believe that the technology holds massive potential for his country and the global economy. 

 “The digital economy isn’t a separate industry, it’s essentially the foundation for creating brand new business models,” he said at the St. Petersburg Economic Forum last summer.

Bitcoin Has Zero Intrinsic Value

Only about 10% of the total gold supply was used for technology, such as industrial, electronic and dental use in 2014, according to Gold Industry Information. Approximately 12% of the gold supply was purchased by central banks, while the rest (78%) was mostly used for jewelry.

Bitcoin Gold Debuts at #5 on CoinMarketCap

Put differently, the overwhelming share of industrial gold consumption does not come from its intrinsic value. Its main use is largely rooted in ostentation and the historic perception that the shiny metal is valuable. 

Granted, both Bitcoin and gold have their own tradeoffs. However, gold is facing stiff competition from ‘digital gold’ in the digital age with its transportation, storage and security costs – the reason why banks were created in the first place.

Whether you believe “intrinsic value” can only be attributed to something physical is irrelevant. Bitcoin introduces something completely different – a new concept of digital scarcity. Here is a good article outlining what exactly gives Bitcoin its value.

Bitcoin Is Only Used By Criminals

False. All Bitcoin transactions are broadcasted on a public ledger making it the most transparent value transfer system in history. In other words, it’s much easier for a criminal to use plain old cash…or even banks.

The UK Is Trying To Crack Down On Malicious Bitcoin Use

In fact, an October 2017 report from the UK Treasury found that “there is no specific evidence of terrorists using [cryptocurrency] to store or transfer funds and the sector is assessed to be exposed to relatively low risks for terrorist financing.”

The study also found “a lack of evidence” of criminals using Bitcoin, noting that other methods offer “greater attractiveness.”

This was also supported by another recent study from Elliptic, a UK based cybersecurity firm, which revealed that less than 1% of all Bitcoin transactions are criminal in origin. Specifically:

The total percentage of identified ‘dirty bitcoins’ going into conversion services was relatively small. Only 0.61 percent of the money entering conversion services during the four years analyzed were verifiably from illicit sources, with the highest proportion (1.07 percent) seen in 2013.

Bubble! Tulipmania!

First, the so-called Tulip Bubble during the Dutch Golden Age is widely misinterpreted and may have never happened. Second, if tulips were immutable, scarce, and could be sent anywhere in the world without trusting a middleman in minutes, then maybe comparing a scarce digital unit of account to tulip bulbs would make sense.

Ironically, fiat currencies such as the US Dollar share a lot more properties with tulips, which can be produced ad infinitum, unlike the 21 million bitcoins that will ever exist.

Here is a good article explaining this myth further.

Agree with the list? Did we miss any other common Bitcoin misconceptions? Share them below! 


Images courtesy of Business Insider, Twitter

The post Debunked: Top 5 Bitcoin Myths & Misconceptions appeared first on Bitcoinist.com.

Source: Bitcoininst

5 Reasons Why This Week’s Cryptocurrency Price Drop is Nothing to Worry About

With more people entering the crypto markets than ever before, the seeds of fear, uncertainty, and doubt has a greater impact on price volatility. Newbie traders jumping in and out on the whims of social media hype, and then panic selling, causes what happened over the past couple of days. However, looking at historical crypto charts, this January dip is nothing new.


There are a number of reasons why the markets crash in January, and many originate in Asia where the bulk of crypto trading occurs. According to Coinmarketcap, which no longer includes South Korean exchanges, the total market capitalization of all cryptocurrencies fell from $750 billion to $420 billion in four days. At the time of writing, they have since recovered and are on the way back up again, currently sitting at a total of $575 billion.

FUD vs FOMO

Reason #1: A lot of the impetus for crypto price action comes from Asia where the news has not been good in recent weeks. China is constantly trying to quash the entire industry, and South Korea just can’t make its mind up with regulatory hype and clampdown fearmongering emerging on an almost weekly basis. The FUD is as infectious as the FOMO, and panic selling over the past few days has sent all coins into freefall, with some losing as much as 40%.

Looking back on historical Bitcoin charts reveals that a January selloff has happened before, several times in fact. Bitcoin is the gold standard for crypto, and a lot of the altcoins did not even exist back then.


Crash Catalysts

Reason #2: It has been speculated that one factor causing this is the Chinese Lunar New Year, which usually falls in February. It is a time of year when people take time off work and travel to visit family, and for this, they will need fiat, not crypto. Since nations in Asia are responsible for the lion’s share of crypto trading, it stands to reason that this could contribute to the annual selloff.

Reason #3: Another factor could be the end of the tax year approaching where investors are planning to pay their annual taxes. Again this has to be done in fiat, not crypto. While not the only catalyst, it could have some influence over price action.

Reason #4: The ending of the first ever Bitcoin futures contract may also have contributed to traders shorting the asset. Once the big players, such as CBOE and CME, get involved, smaller markets can be manipulated by the institutionalized investors, and we could see more of this action until things stabilize.

CBOE Announces Increased Bitcoin Futures Margins Amid Market Manipulation Worries

Reason #5: As more new and inexperienced traders enter the market, these chart oscillations will amplify. Only when they realize that this is a natural cycle and crypto is not dead will things settle down a little. Since total market investment in cryptocurrencies has jumped over 2500% in less than a year, we are still at very early stages of what could be a game changing industry.

Did you panic sell your crypto or hodl it? Share your experiences below.  


Images courtesy of CoinMarketCap, Bitcoinist archives, and Pixabay.

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Source: Bitcoininst

What’s Causing The Crypto Market Worldwide To Plummet?

The cryptocurrencies market has so far had a rocky start to the new year with prices of the top coins plummeting alarmingly. On January 16, 2018, as of this writing, only one out of the top 100 coins is in the green on CoinMarketCap.

Market Topple For All Coins

The total market still stands at $580 billion, but it is still trying to recover from the earlier drop to roughly $543 billion.

In fact, January 16, 2018, has been a particularly sad day in the recent history of all cryptocurrencies. Bitcoin, ethereum, Ripple, and pretty much any other popular coin you could think of are falling today after uncertainty over the crypto market in South Korea and China fueled a panic-driven sell-off of virtual currencies.

Bitcoin prices plunged over $3,000 between on the morning of January 16, 2018, hitting the lowest-ever for the month at $10,500.

While the volatility of the crypto market was relatively higher opening the year, the erroneous report emanating from South Korea about a possible regulatory crackdown created a ruckus in the worldwide crypto market. China’s recent accounts of clamping down on mining operations and other far-reaching regulations have also sent chills through the sector.

Apparently, many investors didn’t want to leave the fate of their crypto holdings to chances after South Korea’s Finance Minister Kim Dong-Yeon reiterated that a ban on virtual currencies was still a “live option.”

The South Korean government did later provide reassurance that an outright ban on crypto assets is not necessarily imminent.

The Office for Government Policy Coordination stated on January 15, 2018, saying that pulling the plug on virtual currency exchanges is just one of the many possible actions the government is deliberating on to protect investors from crypto volatility and speculations. It reassured that a final decision would be taken only “after sufficient consultation and coordination of opinions.”

Asia Ripe with Regulation

As mentioned above, it’s not just South Korea. Speculations are rife that China is also prepping to block domestic internet users from accessing international exchanges. The country had already imposed an outright ban on Chinese ICOs and exchanges earlier last year.

On January 12, 2018, BTCManager reported how the Chinese government is walking the extra mile to make business increasingly difficult for homegrown crypto mining companies. Most of the bigger companies are already preparing to expand to overseas markets in anticipation of a total crackdown.

January 16, 2018, will undoubtedly be remembered as a bloodbath for the cryptosphere. However, it’s observed this market movement is fairly common and happens almost every quarter.

The post What’s Causing The Crypto Market Worldwide To Plummet? appeared first on BTCMANAGER.

Source: BTC Manager

How To Find The Next Big Cryptocurrency

If you were lucky enough to buy Bitcoin early on, the chances are that you are retired now. No other investment in the world has performed like BTC over the last few years and those that saw the revolution coming are now multi-millionaires. This success has led to an influx of investors trying to find the next big cryptocurrency so that they can make thousands of percent returns in only a few years. In this article, I will give you the best tips to help you to find the next Bitcoin.


Finding the next big cryptocurrency can take up a lot of time as hundreds of new coins are coming to the market each month. Not all of these will be successful so it is vital that you do not go all in or you could end up losing everything. There are still many risks involved with cryptocurrencies such as regulation which over 2018 will be the hot topic and if the regulations go the wrong way for the currency that you have bought, it could be worthless.

Below are my top tips for finding the best new cryptocurrencies of 2018:

#1: Price

If you are looking to make big bucks by buying cryptocurrency one of the best ways to do this is by looking for new ones that are priced at below a dollar. This is a great tactic for investors that do not have great deals of money to invest. If you do use this tactic it is important to spread your risk by investing in a number of cryptos and not just one. Due to the fact that you are buying so cheaply, it is possible that a number of these may treble or more in the value over a short space of time. A prime example of this is the likes of RubleBit that increased 522% over 7 days along with Cyder which saw an increase of 7,412%.

#2 Currency Adaptation

When carrying out research you will need to ascertain which coins will be the most adopted. You want to choose ones that have the best chance of being adopted as a currency. By doing this you can make estimates of the intrinsic value once the coin reaches mainstream adoption or a set level.

#3: Buzz And Following

One of the biggest driving factors of new cryptocurrencies is the amount of buzz it creates. One of the best places to find out this is by visiting the Bitcoin Reddit group or one of the many other cryptocurrency social media groups. See which ones everyone is talking about and use it to help guide you to the ones you should investigate further before buying.

#4: Highly Circulated Supply

One factor you need to pay close attention to is the maximum supply level. You want to try instead to go for coins that are highly circulated supply as they have a better chance to go up in price if demand increases due to a limited supply.

#5: Price And Volume Charts

One of the best sources of information to check before buying a cryptocurrency is the price and volume charts. Look for ones with accelerating growth for both price and volume to find one that has momentum behind them.

Conclusion

If you are investing in cryptocurrency or ICOs is it a high-risk investment. If you get it right along with the right regulation falling into place, you could set your family up for life. It is extremely hard to make predictions because there are so many fast-moving parts which are why spreading risks is the best investment strategy.

What do you think of the author’s tips? What other advice would you include? Let us know in the comments below.


Images courtesy of Shutterstock

The post How To Find The Next Big Cryptocurrency appeared first on Bitcoinist.com.

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Coinbase Accused of Insider Trading After Botched BCash Launch

Traders are accusing Coinbase and its GDAX trading platform of “insider trading” after Bitcoin Cash (BCH) appeared to reach $9000 in a failed launch.


Industry Cries Foul Over Coinbase/ GDAX BCash ‘Trading’

Significant price volatility in BCH, also known as BCash, accompanied a botched release on GDAX, which then saw activity tantamount to market manipulation, critics are saying.

Trading of the altcoin stopped completely in the hours after launch, due to recommence December 20 at 09:00 pacific time.

BCash is currently mired in an increasingly wide scandal involving unlikely alleged “colluders” including news network CNBC.

More Altcoins Coming to Coinbase Says CEO Brian Armstrong

The altcoin’s huge price uptick across major exchanges to in excess of $3400 came as a CNBC Twitter account suddenly began posting BCash advertising, publicly calling out any responses critical of its tone.

Coinbase, which is part of the product index for CME Group after it launched Bitcoin futures trading Sunday, is facing pressure.

“…By being part of a product index for (CMEGroup) you agreed to certain rules,” one popular commentary on the situation reads.

“Since bch news was clearly leaked around 2:30pm CST to certain parties. this qualifies as insider trading. Hope you enjoy the incoming complaints.”

Armstrong: We’ll Conduct ‘Investigation’

The exchange is allegedly “investigating” the insider trading claims, Quartz reports, while posting official announcements defending its practices.

“Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter,” CEO Brian Armstrong wrote in a dedicated blog post.

If we find evidence of any employee or contractor violating our policies — directly or indirectly — I will not hesitate to terminate the employee immediately and take appropriate legal action.

Other sources have been more vocal in their suspicion, meanwhile.

Coinbase’s recent roadmap has become a further focus, its “projected” plans to implement partial BCash support contrasting strongly with this week’s reality.

BitFury CEO George Kikvadze accused organizers of a “pump and dump” scheme.

“The only thing the Pumpers forgot all of this is happening on… US (soil) on a USA Exchange with Billions of People’s Assets,” he added.

What do you think about Coinbase/ GDAX’s interaction with BCash? Let us know in the comments below!


Images courtesy of Twitter, Shutterstock

The post Coinbase Accused of Insider Trading After Botched BCash Launch appeared first on Bitcoinist.com.

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Fifteen Ways to Donate Bitcoin to Charity This Holiday Season

Fifteen Ways to Donate Bitcoin to Charity This Holiday Season

The holidays are coming, and as bitcoin has increased in value, many crypto-proponents are donating their funds during this year’s “season of giving.” There’s a whole lot of charitable efforts and causes accepting bitcoin this year, and we’ve hunted down a wide variety of nonprofits for your convenience.

Also read: Options Giant CME Launches Bitcoin Futures — Here’s What to Expect

Every year people donate to charities across the globe but during the month of December, well over a quarter of the world’s annual donations are given to nonprofits. Further, the last three days of the year see the most giving, as those three days represent 10 percent of the funds donated every year. This year, now that bitcoin has reached new all-time highs and is currently valued at roughly $18,900, bitcoiners are giving more satoshis than ever before. For instance, Fidelity Charity who accepts bitcoin raised over $22 million worth of BTC this year, eclipsing all the other years prior. Since it’s the season of giving we decided to aggregate a list for our readers of well known charitable causes that accept bitcoin.

Charitable Causes That Accept Cryptocurrency Donations

The Electronic Frontier Foundation (EFF)

The Electronic Frontier Foundation is a well known charitable organization that focuses on protecting the civil liberties within the digital world and online. The nonprofit was founded in 1990 and has accepted bitcoin for donations since the spring of 2013. BTC donations go towards, policy research, internet litigation, software development, and more. Many bitcoiners believe the EFF is a great organization that fights for open source development and the freedoms tethered to the digital information age.

Fifteen Ways to Donate Bitcoin to Charity This Holiday SeasonThe Multidisciplinary Association for Psychedelic Studies (MAPS)

Another charity that accepts bitcoin donations is the Multidisciplinary Association for Psychedelic Studies a 501(c)(3) nonprofit research center created in 1986. The organization researches, and educates the public on the societal benefits of psychedelics and cannabis. The sciences involved with psychedelic and medical marijuana has evolved further than basic therapy and spirituality. MAPS believes studies with marijuana and psychedelics can lead to better cures and a greater understanding of these types of drugs.

Wikileaks

Wikileaks is an organization that started in 2006 that was initiated by the cypherpunk, Julian Assange. The website is operated by an international journalistic group that provides classified information, and leaks stemming from governments, and corporations. Wikileaks has been accepting bitcoin since 2010 when the nonprofit was blocked by credit card organizations during a financial blockade.

Antiwar

The website Antiwar.com was created in 1995 and encourages the end of war and ending the military-industrial complex. Antiwar’s website has been accepting bitcoin core (BTC) since 2013 and has just recently announced the acceptance of bitcoin cash (BCH), as well as zcash, and dash. The nonprofit is devoted to “non-interventionism” and has staunch libertarian leanings. Currently, the group is focused on the many wars taking place in the middle east and issues involving North Korea.

Fifteen Ways to Donate Bitcoin to Charity This Holiday Season

Watsi

Watsi is a small nonprofit that has been gaining attention this year by attempting to create universal health coverage. The charitable cause uses two programs to help people get access to healthcare resources which includes Watsi Crowdfunding and Watsi Coverage. These services are used to provide people in unfortunate situations with a doctor’s checkup or life-changing surgery.

The Water Project

The 501(c)(3) nonprofit the Water Project is a well-known organization among bitcoin proponents. The charitable cause invests funds to build local clean water solutions to help citizens suffering from the water crisis in sub-Saharan Africa. Last year over 5,500 individuals donated $2Mn, which provided fresh water to 200 communities and schools giving clean water to more than 300,000 sub-Saharan African residents.

Fifteen Ways to Donate Bitcoin to Charity This Holiday Season

Code to Inspire

The registered nonprofit, Code to Inspire (CTI), was created by Fereshteh Forough back in 2015. The organization produces classrooms for women in Afghanistan who are interested in getting an education in software and online businesses.  CTI opened the first school in Herat, Afghanistan, and taught roughly 50 female students daily. The charitable cause has grown much larger since its inception providing hundreds of Afghani women with a technical education and computers as well.   

Common Collection

A peer-to-peer platform called Common Collection uses donated bitcoins to help global refugees and people in poverty. Many of the individuals listed on Common Collection’s website have suffered from natural disasters. The nonprofit’s founder Elisabeth Grothe-Møller believes bitcoin can impact those in need almost instantly and provides a more efficient way to crowdfund charitable efforts.

The Internet Archive (Archive.org)

The Internet Archive and ‘Wayback Machine’ is a San Francisco–based non-profit that wants everyone in the world to have universal access to the information provided on the internet. The web portal was created in 1996 by Brewster Kahle, and the collection of data housed by the archive exceeds over 15 petabytes of data. The 501(c)(3) non-profit has accepted bitcoin core (BTC) since 2012 and just recently started taking bitcoin cash (BCH) for donations this year. Additionally, the creators of the Internet Archive have kept a good portion of donated bitcoins rather than exchanging them for fiat right away.

Fifteen Ways to Donate Bitcoin to Charity This Holiday Season

Last Door

An addiction recovery center located in Vancouver called, ‘The Last Door,’ has been accepting bitcoin for drug rehabilitation support for quite some time. The Last Door specializes in helping drug and alcohol addicts find a better way. The nonprofit has two programs, one that helps children with addiction problems and the other specializes in adult therapy. All bitcoin donations go towards an “abstinence-based, nicotine free long-term residential treatment for addiction.”

Bitgive

Bitgive was one of the first bitcoin-centric 501(c)(3) nonprofits, and was created in 2013 by Connie Gallippi. The charitable organization believes cryptocurrency solutions and blockchain transparency will become the future of giving over the next few years. Bitgive has raised funds for a variety of other nonprofits including Medic Mobile, TECHO, Save the Children, and The Water Project. In 2015 the charity created a 2.0 initiative which aims to increase charitable donation transparency.

The Wikimedia Foundation

Another recognized 501(c)(3) charitable organization called the Wikimedia Foundation uses donated funds for the growth of freely distributed multilingual educational content. It also helps collaborate with the online encyclopedia nonprofit Wikipedia. The Wikimedia Foundation has been accepting bitcoin since the summer of 2014. The nonprofit works with the San Francisco–based firm Coinbase to help process donations.

Epic Change

The charitable cause Epic Change is a social innovation project which has a wide variety of projects. The nonprofit has built classrooms in Tanzania, while also crowdfunding project in Afghanistan, Nepal, the US, and Kenya. The projects Epic Change has created in the past include the Twitter Kids of Tanzania, Love Apocalypse, Wonder Study, Epic Thanks, To Mama With Love, and LaLa Love. The Epic Change team says, “We create movements designed to amplify the voices and the impact of changemakers.”

The SENS Research Foundation

The SENS Research Foundation is a 501(c)(3) public charity devoted to researching and treating age-related disease. The nonprofit funds universities studying science and medicine while also utilizing its own research center for regenerative medicine to repair R&D. The charity accepts bitcoin and hopes donations help find cures and ways to make these diseases easier to live with for people suffering from age-related issues.

The OpenBSD Foundation

Fifteen Ways to Donate Bitcoin to Charity This Holiday SeasonThe Canadian based nonprofit, the OpenBSD Foundation, exists to fund OpenBSD projects and research. OpenBSD is a free and open source Unix-like operating system which has spawned projects like OpenSSH, OpenBGPD, OpenNTPD, OpenSMTPD, LibreSSL, and mandoc. Open source fans have always appreciated the OpenBSD Foundation and the organization has accepted bitcoin for a few years now. Donations are used to fund infrastructure costs for the projects, and software developer events and initiatives.

Nonprofits Are Attracted to the Benefits of Cryptocurrency Donations

Using digital assets to donate funds to charitable causes continues to grow, and there are many more nonprofits that accept cryptocurrencies. Bitcoin has fueled the fire of a different kind of giving, and charities all around the world are beginning to see the benefits of cryptocurrency donations.

What do you think about people donating bitcoin to charity this holiday season? Let us know what you think in the comments below.


Images via Shutterstock, OpenBSD, EFF, Antiwar, Archive.org, and The Water Project.


Tired of those other forums on the subject of Bitcoin? Check our forumBitcoin.com.

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Stay Away!! Denmark Bank Chief Calls Bitcoin ‘Deadly’

The governor of Denmark’s central bank has issued an unexpectedly harsh warning about Bitcoin, describing it as “deadly.”


‘Bitcoin Arena’ Not Enough To Persude Central Bank

In an interview with state media outlet DR, Lars Rohde emphatically told citizens to “stay away” from Bitcoin, becoming a further figure to compare the cryptocurrency to 17-century Tulip Mania.

“You have to stay away. It is deadly,” he said.

Denmark

“It’s an effective way of playing around. So if you do not like casinos, you’ve got a good alternative.”

While banking figures lambasting Bitcoin as a bubble remains hardly unusual, Rohde’s perspective marks a particularly vivid case in point.

Authorities’ inability to create a steady narrative on cryptocurrency regulation has become a noticeable phenomenon in recent months, Russia and South Korea leading the trend of contradictory statements.

Such episodes have occurred even in permissive jurisdictions where cryptocurrency interaction is both comparatively advanced as officially sanctioned.

Denmark became a prime example just last week, as Bitcoin Suisse announced its three-year sponsorship of major league hockey team Rungsted Seier Capital.

As part of the arrangement, Rungsted’s top player is due to receive his salary in Bitcoin, while the team’s home stadium will be renamed “Bitcoin Arena.”

Rohde: Bitcoin Is ‘A Bubble Out Of Control’

In official circles, however, it appears such enthusiasm is yet to be shared.

“I see Bitcoin like Tulip Mania, a bubble out of control,” Rohde continued.

…It is the responsibility of the individual. And if we are to do anything, then it is consumer protection to say that it is entirely off your own bat and you should not come complaining to us if it goes wrong.

As Bitcoin approached $20,000, several bank warnings surfaced late last week.

Stephen S. Poloz, governor of the Bank of Canada, went as far as to say the “noise” around cryptocurrency in general “kept him awake at night,” while similarly reiterating the lack of control investors have over the value of their holdings.

“…It’s often forgotten that the cash provided by a central bank is the only truly risk-free means of payment,” he told audience members at a talk in Toronto.

What do you think about Lars Rohde’s perspective on Bitcoin? Let us know in the comments below!


Images courtesy of Shutterstock,nationalbanken.dk

The post Stay Away! Denmark Bank Chief Calls Bitcoin ‘Deadly’ appeared first on Bitcoinist.com.

Source: Bitcoinist

The Prime Minister of Israel Says Bitcoin Is Rising as Banks Are Destined to Disappear

Israeli Leader Says Bitcoin Is Rising as Banks Are Destined to Disappear

With the meteoric rise in the value of bitcoin this year and the media cacophony around it, its a surprise that not all world leaders have spoken about the subject yet. One political figure that we can now rest assure is keeping an eye on bitcoin is Israeli Prime Minister Benjamin Netanyahu.

Also Read: Israeli Regulator Won’t Allow Bitcoin Firms to Be Included in Stock Indices

Israeli Leader Says Bitcoin Is Rising as Banks Are Destined to DisappearSitting down with reporters to an off the cuff Q&A at the Israeli parliament’s diner, the PM was asked for his advice whether an individual should invest in bitcoin or not. He answered: “So first of all, why can’t you also sell money? Why not? It’s the same. The reason you can’t sell money is that you are very worried and want a mediating party to handle the risks. Prevent theft, all that stuff. That’s why banks exists. Are banks doomed to eventually disappear? The answer is yes! Should this be done tomorrow and should it be done via bitcoin? That is a question. But the truth is that what I just said is what propelling bitcoin upward.”

Asked a follow up question about the current rate of change, the PM added: “Nothing exists that can continue at this pace, it’s not possible.”

Netanyahu is an MIT graduate and prior to his political career he was an economic consultant for the Boston Consulting Group.

Israeli Leader Says Bitcoin Is Rising as Banks Are Destined to Disappear
Israeli Prime Minister Benjamin Netanyahu: “Are banks doomed to eventually disappear? The answer is yes!”

Crypto Nation

Israeli Leader Says Bitcoin Is Rising as Banks Are Destined to DisappearLike many other countries around the world, Israel have been taken away by the bitcoin mania in the last couple of weeks. The local media reports price changes daily, it interviews people that became millionaires over night and shows the long lines of people waiting outside bitcoin ATM locations in Tel Aviv.

The Israeli financial press is also focusing on bitcoin as everything crypto-related brings in clicks and viewers these days. The biggest story at the moment is the issue of a Tel Aviv Stock Exchange listed gold company switching to bitcoin mining. Its stock price jumped 3,750% before the regulator came out against it. Another story currently in the headlines in this context is that of local cryptocurrency developer Colu raising $14.5 million from Israel’s largest holding company IDB Development Corporation. The Israeli regulator is also expected to announce a welcoming legal framework for ICOs by the end of the month.

Are world leaders beginning to understand the bitcoin revolution? Tell us what you think in the comments section below.


Images courtesy of Shutterstock, First Edition.


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The post Israeli PM Netanyahu Says Bitcoin Is Rising as Banks Are Destined to Disappear appeared first on Bitcoin News.

Source: Bitcoin News

Two Days of Cboe’s Bitcoin Futures Show Intense Volume Fluctuations

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations

This weekend on December 10, the Chicago Board Options Exchange (Cboe) began its first trading sessions. Since then the introduction of bitcoin-based derivatives held on a well-known mainstream exchange, the news has injected a surge of positivity into bitcoin’s spot markets. Moreover, the price of Cboe’s futures products has been trading wildly starting off at the $15K mark and has reached an all-time high of $18,650.

Also Read: Lightning Network’s New Infrastructure and Interoperability

Over the Past Two Days, Cboe’s XBT Markets and Bitcoin’s Spot Prices See Wild Fluctuations

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations Cboe’s bitcoin-based futures one-month bitcoin contract (XBT:1) started trading this past Sunday, and is currently up over 8 percent higher than bitcoin’s spot price. BTC spot markets have been on a tear leading up to the mainstream derivatives products with a global average hovering between the $16,900-17,200 region. Cboe’s futures products are a different animal and contracts are cash-settled based on the BTC price data provided Gemini in U.S. dollars. These exchange-traded derivatives products are bets on the future price of bitcoin and investors wager on whether the value will be high or low. If the price of bitcoin rises or dips, the contract holder is paid out based on how much the value has climbed or dropped within a specified time-frame.

The futures markets initiated by the Chicago-based exchange initially surged over 15 percent when it first opened. At the start of the trading session, the company’s website suffered from heavy traffic and was unavailable for many spectators. However, Cboe revealed the actual futures market was unaffected by the website outage. In addition to this, trading was halted according to a Cboe spokeswoman. The platform’s futures trading can be stopped if bitcoin’s price experiences large volatile swings.

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations     So Far Not Many Brokerage Services Deal With Cboe’s XBT

Cboe futures can only be purchased from a certified brokerage service and not all financial management brokers offer bitcoin-based derivatives products. Although, there are not that many services providing this product at the moment. One bitcoin futures retailer suggested by Cboe’s website is Interactive Brokers LLC. The site shows its fixed pricing for bitcoin futures which includes broker commission, exchange, and clearing fees. If the person registering has never used the platform they have to wait 24-hours to be approved to trade Cboe’s XBT products. There are also other brokerage services that offer retail investors and institutional trader exposure to Cboe’s XBT derivatives like Ally Invest, and Goldman Sachs.

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations    Initial XBT Trading Surges but Has Dropped In Volume As Other Global Commodity Markets See Gains

The first day saw a lot of trading as Cboe saw 3,956 contracts on December 10 but dropped to 237 contracts the next morning. Volume has increased on December 12 with over 500 contracts, and more are being added as the day progresses. Many speculators believe the recent cryptocurrency warning tied to the Initial Coin Offering market from the SEC agency ‘shook’ Cboe futures investors on Monday. Moreover, global markets are on the rise in general with Europe and Wall Street stock showing bullish gains. Futures tethered to the Dow Jones Industrial Average, S&P 500, Europe 600 benchmark, and barrels of oil all have seen significant spikes so traders may have temporarily moved to other markets.

Two Days of Cboe's Bitcoin Futures Show Intense Volume Fluctuations
Cboe futures contracts reached an all-time high of $18,650.

Speculative Mania

Bitcoin proponents are looking forward to next weekend’s bitcoin-based futures products introduced by CME Group which will bring cryptocurrency derivative to a much broader audience. The well-known hedge fund manager and former Fortress executive, Michael Novogratz, believes the rallies happening within both spot and futures markets will continue to spark the interest of both retail and much larger investors. “The market trades like it wants to go up, not down,” Novogratz explained in an interview yesterday. “We are in a speculative mania, and my sense is we are still fairly early.”

What do you think about the bitcoin futures mania that’s taking place? Do you think mainstream investors are attracted to bitcoin-based derivatives products? Let us know what you think in the comments below.


Images via Shutterstock, Cboe Global Markets, and Cboe’s advanced charts page. 


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The post Two Days of Cboe’s Bitcoin Futures Show Intense Volume Fluctuations appeared first on Bitcoin News.

Source: Bitcoin News