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Bitcoin Proponents Bemoan Joe Biden’s Proposed Capital Gains Hike

20/10/2020 by Idelto Editor

Bitcoin Proponents Bemoan Joe Biden's Proposed Capital Gains Hike

The U.S. presidential election is only 14 days away, and a number of bitcoin proponents have been discussing the capital gains tax implications Joe Biden plans to invoke if he wins the American presidency. According to Biden’s plan, capital gains will be raised from 21% to 39.6% for certain income brackets. Two weeks ago, the current U.S. president, Donald Trump, floated the idea of cutting long-term capital gains cut down to 15%.

In just two weeks, the U.S. may see a new president or it may get another four years of Donald Trump if the incumbent wins the election. This week a number of people have been discussing what taxes will be like in the U.S. if Joe Biden was elected president.

For instance, hip-hop mogul 50 Cent tweeted that he was going to vote for Trump after seeing how Biden plans to tax wealthy individuals in New York. Additionally, a number of bitcoiners have been discussing Biden’s tax increases and the direct form of taxation known as capital gains.

When people discuss the term “capital gains tax,” they are talking about the levy taken by the state when someone makes gains on the sale of any asset after the original purchase. Long-term capital gains apply to levies taken by the state after the asset is retained by the owner for more than 12-months.

Biden’s economic plan is a classic hit from the Dems… pic.twitter.com/FPiKlezqzB

— Bitcoinerisms – Buy Bitcoin (@BitcoinCensus) October 20, 2020

The popular crypto pundit, Mike in Space, discussed 50 Cent’s commentary on Twitter and said: “Come election day, a lot of people are going to realize they prefer not going broke to being woke.”

Another individual on Twitter this week is also disgusted with Biden’s tax proposals and stressed:

Biden wants to raise the capital gains tax significantly. This screws over the majority of seniors who live on fixed income. It also impacts anyone taking profits from bitcoin or any investments for that matter.

According to Biden’s tax plan, the long-term capital gains taxes for individuals who make $1 million per year or above will increase from 21% to 39.6%. Making matters worse, some reports show Biden’s proposal could increase capital gains taxes as high as 43.4% because of an added 3.8% payroll tax. However, even though online fact-checkers and mainstream media outlets try to claim that the income bracket proposal is concrete, the Biden tax plan is not 100% set in stone.

Bitcoin Proponents Bemoan Joe Biden's Proposed Capital Gains Hike

In fact, The Hill contributor Naomi Jagoda’s recent report notes that Biden has “repeatedly said” that the increased taxes and capital gains hike will not affect certain income brackets (under $400k to $1M). However, Jagoda’s report also implies that Biden’s tax proposal has not yet been “tailored to meet that objective.” The fact of the matter is Americans cannot take any politician’s promises seriously, and Biden could change the capital gains requirements on a whim.

On Facebook, Openbazaar and BCHD developer, Chris Pacia, complained about Biden’s capital gains hike proposal. “Really getting tired of Joe Biden claiming he won’t raise taxes on ordinary people,” Pacia wrote. “His capital gain tax increase from 23.5% to 43.4% would directly hit my life savings. It’s complete bullsh*t to claim he isn’t taxing ordinary people.”

Meanwhile, a team of Goldman Sachs analysts led by Arjun Menon wrote a note to investors saying that Biden’s capital gains hike could also spark a massive stock sell-off. Goldman’s investors note detailed that the last time the capital gains taxes were increased in 2013 it fueled a massive $100 billion stock sell-off.

On Twitter, a number of other cryptocurrency investors have expressed dissatisfaction with Biden’s proposed capital gains increase.

“If you’re invested in crypto or stocks and you’re voting for Biden, you need to re-evaluate your life decisions,” one individual wrote. “Biden is going to raise capital gains tax from 23.8% to 43.4%,”

Another bitcoiner wrote how it was a toss-up between Trump and Biden for different reasons. “Trump doesn’t like bitcoin,” the individual said. “Biden will probably raise taxes on capital gains. IDK…”

Many progressives wholeheartedly believe that Biden’s plan will only affect rich people. However, Biden supporters don’t realize that due to the Federal Reserve’s reckless inflation creation, the income bracket between $400k and $1 million could represent a lot more people in the very near future.

For example, the average American income in 1979 was $16,530 and it only took two decades to increase 431.54% thanks to rapid inflation. In 2020, the average American income of $87,864 only needs to jump 355% in order to meet Joe Biden’s $400k tax requirement.

Mainstream media has been attempting to publicize Donald Trump’s tax plan, but the incumbent president has yet to release any official tax proposal details thus far. Although, people predict that Trump aims to cut the current capital gains tax, as the president made a pledge on August 13 to cut the top federal tax for capital gains down to 15%.

What do you think about Joe Biden’s proposed capital gains hike? Let us know what you think in the comments section below.

The post Bitcoin Proponents Bemoan Joe Biden’s Proposed Capital Gains Hike appeared first on Bitcoin News.

Filed Under: $1m per year, $400k, 15%, 21, 39.6%, 43.4%, 50 Cent, capital gains, Capital Gains Bitcoin, Chris Pacia, Donald Trump, English, Featured, Federal Reserve, Joe Biden, Mike in Space, Money Printing, Naomi Jagoda, News Bitcoin, payroll tax, Socialism, Tax Bracket, Taxes, The Hill, us president

Proposal to Increase Bitcoin’s 21 Million Supply Sparks Debate

09/02/2019 by Idelto Editor

Proposal to Increase Bitcoin’s 21 Million Supply Sparks Debate

21 is a number that holds deep symbology to bitcoiners. In addition to denoting the total number of bitcoins, in millions, that will ever be issued, it’s inspired scores of cryptocurrency business names, websites, and merchandise designs. Despite its assumed inviolability, some members of the community are opposed to Bitcoin’s rigidly set 21 million supply. If they have their way, that arbitrary cap will be lifted. For many devout bitcoiners, this suggestion is sacrilegious.

Also read: Quadrigacx Saga: Founder’s Widow Owns $5.6m Properties, Hospital Confirms Cotten’s Death

Bitcoin’s Fixed Supply – Arbitrary or Mandatory?

At a “Satoshi’s Roundtable” event last week, decried by some as Bitcoin’s very own version of Bilderberg, the prospect of raising BTC’s 21 million cap was raised. It was Matt Luongo who floated the proposal, in response to a discussion about anticipated adoption of the Lightning Network (LN). With the block reward halving every four years, and onchain transaction volume likely to be low in future should LN take off, there will be little incentive for miners to secure the network. This could lead to it being vulnerable to 51 percent attacks that would undo the trust instilled in the Bitcoin network over many years.

An argument has also been made for increasing the 21 million supply of Bitcoin Cash in future, on similar grounds. Due to the network’s low fees, miners would theoretically have little economic incentive to secure the network once the block reward diminishes.

I was the guy that said we might have to one day raise the Bitcoin supply cap. Fight me. https://t.co/ysqHHdcggf

— Matt Luongo (@mhluongo) February 4, 2019

Luongo’s suggestion of raising BTC’s total supply is intended to incentivize mining in a future of minimal block rewards and minimal onchain volume. While there may be an economic and security case for doing so, it is a matter that resonates strongly – even emotionally – with a sizeable portion of the Bitcoin community. There are also those who are motivated by purely financial reasons. The fact that there will never be more than 21 million bitcoins is what gives the currency its digital scarcity. Raising the fixed cap, even by a fraction, could dilute the value of everyone’s holdings, it is feared, and consign BTC to the status of an EOS-style inflationary cryptocurrency.

Proposal to Increase Bitcoin’s 21 Million Supply Sparks Debate

A Controversial Proposal That’s Sparked Intense Debate

Numerous Bitcoin luminaries have waded into the debate regarding Bitcoin’s supply following the Satoshi’s Roundtable discussion. Nick Szabo insisted that decreased hash power due to lower mining rewards would not have a significant impact on security, but conceded that “it may require recipients of very-high-value transactions to wait more blocks before relying on them.” Cobra Bitcoin took a more combative approach, tweeting “There will only ever be 21 million bitcoins. If you have a problem with that, get the fuck out of our community because you aren’t welcome.” To this, Matt Luongo responded:

This stuff has to work … If the stars align and this becomes an issue do you sacrifice a core tenet of the community or the entire security of the chain?

It is not entirely known why Satoshi chose 21 million as the number of coins to be issued, though it is speculated that this ties in with the halving reward schedule that occurs every four years. Alternatively, it could be because the total number of sats that will ever be created approximately mirrors the maximum capacity of a 64-bit floating point number.

Given that there was no mention of Bitcoin’s proposed supply in Satoshi’s seminal whitepaper, perhaps the number itself was never particularly significant to him. Whatever the case, 21 million has come to be one of Bitcoin’s defining features, and any attempt to meddle with the magic number is liable to be treated as heresy. Future generations of bitcoiners may be more receptive to raising the supply, but in the here and now, that notion seems untenable.

Do you think Bitcoin’s supply should ever be increased? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Proposal to Increase Bitcoin’s 21 Million Supply Sparks Debate appeared first on Bitcoin News.

Filed Under: 21, 21 million, BCH, Bitcoins, Block reward, BTC, English, fixed supply, inflation, million, N-Technology, News Bitcoin, Supply, Technology & Security

Regulations Round-Up: 21-Year-Old Arrested, Coinbase Files for Patent

25/08/2018 by Idelto Editor

Regulations Round-Up: 21-Year-Old Arrested, Coinbase Files for Patent

In recent news pertaining to cryptocurrency regulations, Alibaba and Tencent are collaborating with Chinese authorities to monitor and prevent peer-to-peer cryptocurrency trading via their respective mobile payments platforms, a 21-year-old has been indicted for operating an unlicensed cryptocurrency exchange, and Coinbase has filed with the U.S. Patent and Trademark Office for a mechanism designed to increase the security of BTC transactions.

Also Read:The Daily: China Escalates Crackdown, Russia Chases Shadows, UK Warns of Scams 

Alibaba and Tencent Collaborate With Chinese Authorities to Crack Down on Crypto Trading

Regulations Round-Up: China Monitors P2P Crypto Transactions, 21-Year-Old Indicted for Unlicensed ExchangeAnt Financial’s Alipay – the mobile payment app owned by multi-national e-commerce giant Alibaba – has revealed that it is cooperating with Chinese authorities to scrutinize and crack down on peer-to-peer cryptocurrency trading.

A spokesperson for Ant Financial stated: “Alipay has always adhered to the principle of not providing services to virtual currency transactions. We will continue to closely monitor over-the-counter trading activities on a daily basis. Once we find any suspicious crypto-related transactions, we will take appropriate measures immediately, including but not limited to: suspension of fund transfer functionality of any Alipay accounts used by companies for crypto-related transactions.”

On Friday, Tencent, the developers of social media and mobile payment app Wechat, also announced that the company would seek to crack down on the use of its Wechat Pay platform for the purposes of transmitting cryptocurrencies.

21-Year-Old Arrested for Running Unlicensed Exchange

Regulations Round-Up: China Monitors P2P Crypto Transactions, 21-Year-Old Indicted for Unlicensed ExchangeJacob Campos, a 21-year-old man from Mexico, is facing 31 charges in the United States for operating an unlicensed “no questions asked” BTC exchange.

According to his indictment, Mr. Campos “did knowingly, conduct, control, manage, supervise, direct and own at least part of a money transmitting business affecting interstate and foreign commerce which failed to comply with the money transmitting business registration requirement. […] From on or about January 2015 to on or about April 2016, within the Southern District of California and elsewhere, defendant Jacob Burrell Campos […] did knowingly and willfully fail to develop, implement and maintain an effective anti-money laundering program, including the development of internal policies, procedures and controls, reasonably designed to prevent money laundering and the financing of terrorist activities, as part of a pattern of illegal activity involving more than $100,000 in a twelve-month period.”

The indictment adds that “From on or about December 2016, to on or about March 2018, […] defendant Jaco Burrell Campos did combine, conspire, confederate and agree with others known and unknown to the Grand Jury to commit an offense against the United States, that is to structure and assist in the structuring the importation of monetary instruments for the purpose of evading the reporting requirements of” U.S. regulations.

Prosecutors estimate that Mr. Campos conducted 971 transactions on behalf of 900 different customers. Mr. Campos is currently being held without bail as he awaits trial and faces charges of running an unlicensed money transmitting business, conspiracy to structure monetary transactions, and failing to maintain an anti-money laundering program, in addition to 28 charges of money laundering.

Coinbase Files for Mechanism Designed to Bolster Security of BTC Transactions

Regulations Round-Up: China Monitors P2P Crypto Transactions, 21-Year-Old Indicted for Unlicensed ExchangeEarlier this month, major U.S.-based cryptocurrency exchange Coinbase filed with the U.S. Patent and Trademark Office for a mechanism intended to increase the security of BTC transactions.

The patent filing asserts that “It may be a security concern for users that the private keys of their Bitcoin addresses may be stolen from their wallets. Existing systems do not provide a solution for maintaining security over private keys while still allowing the users to check out on a merchant page and making payments using their wallets.”

The patent seeks to allow customers to encrypt their passphrases transactions into a “master key” to create an additional layer of protection against theft. With each transaction, the master key is deleted, with a new master key being created for each individual transaction. The filing states: “It may be a security concern for users that the private keys of their Bitcoin addresses may be stolen from their wallets. Existing systems do not provide a solution for maintaining security over private keys while still allowing the users to check out on a merchant page and making payments using their wallets.”

What is your response to Tencent and Alibaba’s efforts to combat peer-to-peer trading on their mobile payments platforms? Join the discussion in the comments section below!


Images courtesy of Shutterstock


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Regulations Round-Up: 21-Year-Old Arrested, Coinbase Files for Patent appeared first on Bitcoin News.

Filed Under: 21, Coinbase, crypto, English, Exchange, indicted, Monitors, N-Economy, News Bitcoin, Old, operating, p2p, Patent, peer, Regulations, round, unlicensed, up, Year

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDs

31/03/2018 by Idelto Editor

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDs

The European Securities and Markets Authority (ESMA) has announced that it will impose restrictions on the leverage offered for contracts-for-difference (CFDs) and binary options offered to European retail investors. Under the new measures, the leverage offered on cryptocurrency CFDs will be limited to no more than 2:1.

Also Read: PBOC to Strengthen Cryptocurrency Regulations in 2018 

European Securities Regulator Imposes Restrictions on Leverage Offered by CFD Providers

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDsESMA has agreed on what it describes as “temporary product intervention measures on the provision of [CFDs] and binary options to retail investors in the European Union (EU).”

The new measures will see restrictions on the leverage offered on cryptocurrency CFDs to no more than 2:1. The agreements will also mandate that traders provide an initial margin of “50% of the notional value of the CFD when the underlying [asset] is a cryptocurrency” – more than twice the initial margin required of any other CFD.

New Measures See Harshest Rules Imposed on Cryptocurrency CFDs

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDsESMA has stated that cryptocurrencies CFDs states that “CFDs with cryptocurrencies as an underlying raise separate and significant concerns as CFDs on other underlying” assets.

The regulator stated that “Cryptocurrencies are a relatively immature asset class that pose major risks for investors.” ESMA expressed “concerns about the integrity of the price formation process in underlying cryptocurrency markets,” arguing that such “makes it inherently difficult for retail clients to value these products.”

ESMA concluded that “Due to the specific characteristics of cryptocurrencies as an asset class the market for financial instruments providing exposure to cryptocurrencies, such as CFDs, will be closely monitored.” Based on its findings, ESMA “will assess whether stricter measures are required.”

New Rules to be Formalised in “Coming Weeks”

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDsThe measures will also see restrictions of 30:1 placed on “major currency pairs;” 20:1 for “non-major currency pairs, gold and major indices;” 10:1 for “commodities other than gold and non-major equity indices;” and 5:1 on “individual equities and other reference values.”

ESMA states that it “intends to adopt these measures in the official languages of the EU in the coming weeks.”

What is your response to the new restriction on the leverage offered by European CFD providers? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


Want to create your own secure cold storage paper wallet? Check our tools section.

The post New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDs appeared first on Bitcoin News.

Filed Under: 21, Authority, cfd, CFDs, contracts, contracts for difference, crypto, difference, English, ESMA, EU, european, for, Impose, leverage, Measures, N-Economy, New, News Bitcoin, restriction, Securities

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