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Financial news and economic items of interest
Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?
The body responsible for providing the UK with all the physical money they have in circulation, the Royal Mint, have launched their own cryptocurrency. It’s called Royal Mint Gold (RMG) and the idea behind it is to provide a safe, secure, cheap, and convenient way for people to hold gold as an investment.
In an interview with the UK’s Express newspaper, Tom Coghill of the Royal Mint’s RMG sector stated:
“We already sell physical gold through our Royal Mint Bullion business and we sell coins and bars. In this sense what we’re doing here is simply making that a digital business and allowing for our clients to be able to hold gold for the first time on a blockchain basis. The difference between what we’re doing and what other crypto digital assets is that we’re a physical tangible asset. One gram on our blockchain represents one gram physically in our vault. So it’s real gold you’re holding when you’re holding our RMG.” – BTC NewsWith so many gold backed cryptocurrencies sprouting up all over the map these days, one has to wonder if the competition will not be between resource and unbacked cryptos, but rather between privately created gold backed ones vs. those now being forged by sovereign governments.
Sooner or later it had to come - cryptocurrency entering the soccer arena with its legions of supporters around the globe. Now the London Football Exchange (LFE) is set to launch a cryptocurrency to power an ecosystem of “inter-related components” made up of sports, media, entertainment, finance and a foundation.
This will allow a “fan-driven” football community the opportunity to take part in various club and fan experiences from match day tickets, tours and player meet and greets (VIP experiences) to specific merchandise and third-party partner offers. The touted goal is to create the “ultimate sport community” for fans, so those heading the initiative claim.
The development comes as we are seeing a Blockchain idea almost every minute at the moment. The technology has the capability to meet virtually any use case, which is the easy part. However, the real issue and $64 million question centres on whether it can attract customers and monetize the technology or service stemming from it.
The initiative from the LFE followed just days CashBet announced last week (January 24) what was described as a “landmark partnership” with English Premier League football club Arsenal FC - prior to an Initial Coin Offering (ICO) of its new cryptocurrency, CashBet Coin. This is designed specifically for iGaming. It made CashBet Coin the North London club’s exclusive and official Blockchain Partner. - ForbesAnd the tokenization of everything regarding society and humanity continues on...
It is true, the National Security Agency created part of the code for Bitcoin.
When you first hear that, it is pretty jarring. It seems like a smoking gun! Case closed, conspiracy theory proven.
But the NSA creates a lot of cryptography code. Some of it works and is widely adopted.
The piece of the Bitcoin code created by the NSA is a hash function called SHA-256. SHA stands for Secure Hashing Algorithm. The hash is the expected outcome. An algorithm can be executed on a piece of data, and the output of that algorithm should match the hash. But you can’t figure out what the data was with just the hash. It only works in one direction. And there are enough different combinations that it is virtually impossible for any two pieces of data to create the same hash.
SHA-256 is not unique to Bitcoin and the NSA. It is used widely, including in SSL certificates to encrypt small data files. Even if someone changes one piece of the file, the hash also changes, and the receiving computer will recognize this by comparing the expected hash with the received hash. This prevents data from being intercepted and changed without detection before reaching its final destination.
That is also the premise behind how SHA-256 is used to create new blocks which represent a newly mined Bitcoin. If anyone tries to falsify any preceding block, the chain of blocks–or blockchain–is disrupted, and the hash will not match.
Yes, the NSA created a piece of the Bitcoin code. No, that is not as actually as sketchy as it might seem. – Daily ReckoningNote the use of an NSA algorithm as part of the creation of a cryptocurrency like Bitcoin is not definitive proof unto itself, however we do know from dissemination's provided by the likes of Edward Snowden and Julian Assange (Wikileaks) that many of the NSA's algorithms are and were infused in the coding, firmware, and hardware of most devices and systems to be able to provide themselves a backdoor into nearly every electronic platform.
HelloGold Foundation has announced that it has launched GOLDX, the world's first audited gold backed token, to provide an anchor of stability to sophisticated crypto investors.
GOLDX is a fully operational ERC20 token backed by 99.99% investment-grade gold independently vaulted in Singapore. The smart contract was audited by ZK Labs and ChainSecurity while the gold is audited by Bureau Veritas and insured by XL Group. Operations backing the gold are based on best practices from SPDR GLD, the world's largest gold ETF.
Purchased using Bitcoin (BTC) or Ethereum (ETH), the main purpose of GOLDX is to provide cryptocurrency investors with quick and liquid access to physical gold as an investment class. GOLDX can be purchased within minutes and as an ERC20 token is transferable between Ethereum wallets.
GOLDX is designed to play an important role in a cryptocurrency portfolio, whether as an option for asset diversification or as an alternative to converting cryptocurrencies into fiat currency. With daily volumes of USD 250 billion compared to USD 2 billion in cryptocurrencies, gold provides stability to a volatile market.
GOLDX is available for sale over the counter with a minimum purchase amount of 100 GOLDX. Customers can begin the purchase process or find out more information about GOLDX and the HelloGold Foundation at www.hellogold.org. – Business Insider
When Bitcoin first captivated the minds of tech executives back in 2013, it was mainly seen as a new way to make fast, cheap payments online. Roughly five years later, the number of big brands accepting Bitcoin is falling, not growing.
Having said that, interest in Bitcoin hit an all-time high in December, according to Google Trends. Instead of making payments, people are now interested in trading or hodling Bitcoin and other cryptoassets.
Recently, it’s become clear that the popular bitcoin apps are going to be the ones that focus on speculating on cryptoassets rather than making payments with cryptocurrencies — at least for the foreseeable future.
Stripe, Steam and Microsoft all announced their abandonment of bitcoin recently due to problems associated with network congestion, higher transaction fees, and price volatility. Microsoft ended up bringing bitcoin back after confirming with BitPay that payments lower than $100 can still be made via the bitcoin payment processor.
In addition to the abandonment of bitcoin by merchants and payment processors, we’ve also seen bitcoin-focused companies change their focus.
For example, Coinbase was originally competing with BitPay as a Bitcoin payment processor, but the company is now mainly a digital asset brokerage. In fact, they no longer accept new merchant signups.
It turns out people don’t want to have some bitcoin on their smartphones in order to buy coffee at Starbucks. Instead, people want to speculate on the price of Bitcoin and other cryptoassets at the tap of a button. - Forbes
It’s been a turbulent year for bitcoin, and now it’s time to talk about taxes. Most people who held on to bitcoin over the past year made money off of it, and as Americans prepare for income tax season, the IRS wants its cut of the profits. Amid unprecedented gains — and unprecedented enforcement efforts — this looks to be the year that tax collectors get serious about bitcoin earnings, which means it’s a very good time to make sure you’re doing everything right.
So let’s get into what you’re reporting and how to report it. To simplify things, we’re only talking about bitcoin here, but note that these general guidelines apply to other cryptocurrencies as well. Also, none of this is legal advice, so if you have specific questions, it’s best to consult with a tax lawyer or accountant.
1. DO YOUR BEST TO DOCUMENT EVERYTHING
First, you’ll want to download all transaction data from the exchanges you use, usually available as CSV files, suggests Vincenzo Villamena, managing partner at Online Taxman, an accounting firm that specializes in cryptocurrency. Some exchanges, like Coinbase, will send certain US users form 1099-K if they have received “at least $20,000 cash for sales of cryptocurrency related to at least 200 transactions in a calendar year.” If you don’t use an exchange, just do your best to document everything.
There is also software that can help with doing bitcoin taxes, such as Bitcoin.Tax and CoinTracking.Info. Bitcoin.Tax lets you upload CSV files from exchanges, and it’s free for up to 100 transactions. CoinTracking.Info does the same, and it’s free for up to 200 transactions. (As pointed out by Forbes, which reviewed both software, the programs let you cherry-pick which accounting method you’d report by after the year has ended. Some of the methods may not be IRS compliant.)
2. WHERE TO REPORT BITCOIN INCOME
Most people will have income from buying bitcoin and then selling it at a higher price. If that’s true for you, then any income from the sales needs to be reported on Schedule D, an attachment to Form 1040.
How you report the sales will depend on how long ago you bought your bitcoin. If you’ve held the bitcoin less than a year before transacting with it, it’s taxed as a short-term capital gain, which is still taxed at the same rate as ordinary income. But if you’ve held bitcoin longer than a year before using it, bitcoin is taxed as a long-term capital gain at lower rates of anywhere from 0 to 20 percent, also depending on what income bracket you fall under. If you’re in the top three highest income brackets, you also have to pay a 3.8 percent tax on net investment income. (It’s also worth noting that while not being taxed as ordinary income, capital gains may increase your overall adjusted gross income, which could impact which tax bracket you ultimately fall under.)
3. HOW BITCOIN IS TAXED
Method obtained Duration held How to report Additional taxes Received for services N/A Ordinary income State income tax Bought for investment Less than a year Ordinary income State income tax Bought for investment More than a year Capital gain 3.8 percent for top three tax brackets Mined N/A Ordinary income Self-employment tax if applicable Bitcoin fork N/A Ordinary income TBA
Things get more interesting if you were mining your own bitcoin. Any bitcoin gained through mining is taxed as ordinary income, based on the “fair market value” of the bitcoin at the date it was received. (Again, you can look up the historical price of bitcoin here.) Additionally, if the mining counts as a trade or business transaction, and the taxpayer isn’t doing it for an employer but for themselves, they have to pay the self-employment tax, which is 15.3 percent on the first $127,200 of net income and 2.9 percent on any income in excess of $128,400.
If you were paid for goods or services in bitcoin, it gets taxed as ordinary income. (It technically is income, just in a different currency.) Depending on your income bracket for 2017, the federal tax rate can be anywhere from 10 percent to 39.6 percent. The bitcoin will also be subject to state income tax.
If your bitcoin account is held abroad where the private keys are owned directly by the exchange, you get double the fun: the value of the account has to be reported to the US Treasury using FinCen form 114, and to the IRS with the form 8938. US residents and citizens who own less than $10,000 of assets abroad don’t have to report.
If you have any other questions, you can look to the guidance on virtual currencies released by the IRS in 2014. It’s a few years old, but it’s still the IRS’s best guidance on the issue, and the agency referred
4. OTHER NEW CHANGES
The Republican tax reform bill that passed in December not only shifted around tax income brackets, but it also cut out a bitcoin investor loophole. This will only take effect when filing 2018 taxes in 2019. The bill eliminated an exemption where bitcoin investors switching over to Ethereum, litecoin, or other altcoins could defer paying taxes on the original bitcoin. This was known as a “like kind exchange,” also known as a 1031 exchange. In 2018 tax returns, that exemption will only apply to “real property,” meaning real estate.
5. WAYS TO MINIMIZE BITCOIN TAXES
You can donate cryptocurrency to charities but you must donate directly to the charity, as selling it first would be taxable. While charities like Goodwill may not accept bitcoin, you can still donate to causes like The Water Project, Wikileaks, and the Internet Archive to name a few. Robert Wood, a tax lawyer who’s written on cryptocurrency taxes for Coin Telegraph, says, donating bitcoin to charity “can be a smart move, generating a tax deduction for the market value, without having to pay tax on the appreciation.”
You can also hold on to the bitcoin long-term, disregarding the downturn in bitcoin prices recently and any desire to cash out early, in order to defer taxation, Villamena suggests. – The Verge
Japan’s financial regulator said on Monday it would inspect all cryptocurrency exchanges and ordered Coincheck to get its act together after hackers stole $530 million worth of digital money from its exchange in one of the biggest cyber heists on record.
The theft highlights the vulnerabilities in trading an asset that global policymakers are struggling to regulate and the broader risks for Japan as it aims to leverage the fintech industry to stimulate economic growth.
The Financial Services Agency (FSA) on Monday ordered improvements to operations at Tokyo-based Coincheck, which on Friday suspended trading in all cryptocurrencies except bitcoin after hackers stole 58 billion yen ($534 million) of NEM coins, among the most popular digital currencies in the world.
The FSA said it ordered Coincheck to submit an incident report and measures for preventing a recurrence by Feb. 13. If necessary, it will conduct on-site inspections of other exchanges, an official told a briefing.- FortuneDecentralized cryptocurrencies represent both the benefits and problems involved in a market ruled by anarchy and reliance on self-regulation. Because the past is chock full of examples where man's greed and corruption will eventually despoil any free market, and in the end send investors clamoring to the government to get involved and step in to protect or compensate them for their losses.
Republic Protocol, a new anticipated decentralized ‘dark pool’ for cryptocurrency trading, has partnered with Digix, the first company to conduct an ICO on the Ethereum blockchain and the maker of gold-backed DGX tokens. Republic customers will be able to trade BTC, ETH or ERC20 based digital assets on a hidden order book directly with DGX tokens, which are redeemable for 1 gram of 99.99 per cent LBMA standard gold per token.
“It’s an honor for Republic Protocol to partner with a such a prestigious, veteran company such as Digix,” said Taiyang Zhang, CEO of Republic Protocol. “Our goal is to allow the customers on our platform the flexibility to easily move their digital assets without adversely affecting the overall stability of the markets. By partnering with
Digix, we will now be providing them with the opportunity to transfer their assets to the one of the most stable storages of wealth throughout history: traditional gold.”
A dark pool is a private exchange where financial assets and instruments are traded and matched by an engine running on a hidden order book. These exchanges are primarily created to serve institutional or HNW retail investors who require a system where significant volumes of assets can be block traded with minimal price slippage. Dark pools are estimated to represent approximately 10-15 per cent of the trading volume of all US stock trades.
Republic Protocol is building a decentralized open-source dark pool protocol for the trading of cryptocurrency pairs across the Bitcoin and Ethereum blockchains. Trades on Republic will be placed on a hidden order book and are matched through an engine built on a multi-party computation protocol. - Banklesstimes
European Central Bank Executive Board member Benoit Coeure urged Group of 20 nations to discuss ways to regulate bitcoin at their upcoming summit, adding that digital currencies could also be a force for good by pushing countries to upgrade their payment systems.
Digital currencies can buy anything from drugs to cupcakes and are seen as having the potential to reshape the global financial system.
Couere said the international community needs to find a way to understand and “control these gateways between the shadow currency universe and the regular financial system.”
At the same time he urged central banks not to lose sight of the opportunities created by the rise of cryptocurrencies.
“We need better cross-border payments also because it’s good for development, it’s good for financial inclusion,” Coeure said. “So bitcoin can help us, it can pay us a service by forcing us to upgrade our systems. That’s a positive lesson.” – South China Morning Post
Gold fell sharply on Friday, but held on to a weekly gain, on the heels of conflicting comments from the Trump administration on dollar policy.
Prices began to fall in electronic trading on Thursday after CNBC reported that President Donald Trump said he wanted to see a stronger dollar and expressed optimism that the battered U.S. currency would strengthen. On Friday, February goldGCG8, -1.04% lost $10.80, or 0.8%, to settle at $1,352.10 an ounce.
Gold’s losses came in contrast to Thursday’s regular session, when prices finished $6.60 higher at $1,362.90, the highest settlement for a most-active futures contract since Aug. 4, 2016. Gold was driven higher by the greenback, which has been tumbling in the wake of Wednesday’s comments from Treasury Secretary Steven Mnuchin who said a “weak dollar was good for trade.” - Marketwatch
Gold prices are starting the new year in stellar fashion and investors should see further gains throughout the year, according to analysts at GFMS Thomson Reuters.
In its fourth quarter 2017 Gold Survey, published Thursday, the research team said that they could see prices rallying to $1,500 an ounce at some point in 2018 with gold averaging the year at $1,360 an ounce.
“We believe that the geopolitical climate and equity markets will continue to support gold’s role as a risk hedge,” they said in its report. “Our forecast discounts three Fed rate hikes, although a potential overheating from the effect of the new tax reform could lead to more aggressive tightening, limiting gold’s upside.”
GFMS’s outlook comes as gold prices pushed to a 1.5-year high on the back of a weaker U.S. dollar. The U.S. Dollar Index fell to its lowest level since December 2014 after U.S. Secretary Treasurer said that a weaker U.S. dollar is “good” for the U.S. economy. - Kitco
Here’s what I’m looking at…
Really, all we need to pop this bubble now is a pin.
And I’ve mentioned several times already that I think Bitcoin is it!
Bitcoin has gone up 20 times in a little over a year! Its bubble is greater than even the infamous tulip bubble. This is the best sign of a major top ahead.
My prediction is that, within a year, Bitcoin will crash 95% or more, down to $1,000 or so. As that happens, investors will begin to question all bubbles, just like they did with the internet bubble crash in 2000. – Silver DoctorsWe have to wonder if this is the first time ever that someone has correlated the fate of Bitcoin being the signal the determines the fate of the rest of the world's markets.
Brisbane Airport (BNE) will soon become the first cryptocurrency airport terminal, according to reports from local media. The airport is working with local and international companies to make the entire terminal cryptocurrency friendly, with stores, coffee shops and restaurants accepting Bitcoin, Ether and Dash.
The move to digital currencies makes sense for the airport, as the number of crypto investors increases. According to Roel Hellemons, the General Manager of Strategic Planning and Development:
“Many people around the world have made money investing in cryptocurrencies and a lot of these people travel internationally, so it makes sense to offer a digital currency experience within our terminals.”
The airport will partner with TravelbyBit, a cryptocurrency payment system, in order to allow travelers the ability to buy digitally. - Cointelegraph
A draft law introducing the national cryptocurrency, CryptoRuble, as a means of payment in Russia has been submitted to parliament.
“The amendments proposed by the draft law ... codify the digital financial asset as a legal means of payment on the territory of Russia,” the document’s explanatory note reads.
The draft law was submitted by a Communist Party MP, Rizvan Kurbanov. It is specified that the currency goes by the name of “CryptoRuble.”
The document proposes amendments to the Russian Civil Code, which would make the CryptoRuble a legal means of payment circulated nationwide. The bill was submitted to parliament at the same time as another draft law aimed at regulating the mining and circulation of digital financial assets in Russia.
Russian President Vladimir Putin ordered the issue of a national cryptocurrency, totally regulated by the government, in November last year. The release of CryptoRuble (CRUR) would see all other cryptocurrency mining banned in the country, - Russia Today
Since 2001, investment demand for gold worldwide has grown 18% per year, on average. This has been driven in part by the advent of new ways to access the market, such as physical gold-backed exchange-traded funds (ETFs), but also by the expansion of the middle class in Asia, and a renewed focus on effective risk management following the 2008–2009 financial crisis in the US and Europe.
Today, gold is more relevant than ever for institutional investors. While central banks in developed markets are starting to normalise monetary policies – leading to higher interest rates – we believe the effect of quantitative easing and the prolonged period of low interest rates can have a long-term effect.
These policies may have fundamentally altered what it means to manage portfolio risk and could extend the time needed to meet investment objectives.
In response, institutional investors have embraced alternatives to traditional assets such as stocks and bonds. The share of non-traditional assets among US pension funds has increased from 17% in 2006 to 27% in 2016.
Many investors are drawn to gold’s role as a diversifier – due to its low correlation to most mainstream assets – and as a hedge against systemic risk and strong stock market pullbacks. Some use it as a store of wealth and as an inflation and currency hedge.
As a strategic asset, gold has historically improved the riskadjusted returns of portfolios, providing returns while reducing losses and providing liquidity to meet liabilities in times of market stress.
A source of returns
Gold is not only useful in periods of higher uncertainty. Its price has increased by an average of 10% per year since 1971, when gold began to be freely traded following the collapse of Bretton Woods. - Interest
A NEW social media cryptocurrency could allow you to get paid for earning Facebook likes while combating fake accounts without any extra effort, an On-line Blockchain CEO and financial author claims.
Entrepreneur Clem Chambers has released the groundbreaking social media cryptocurrency which could allow social media users to earn money for viral posts and reward online engagement while fighting against fake accounts.
He said: “The blockchain is a very real thing and if you look at the internet you’ve never seen so much fake stuff in all your life; fake followers, fake views, fake IDs, fake Twitter accounts, fake news.
“There has never been more 'fake' out there and the blockchain gives you gives the ability for people to actually socially validate what they read and what they like.” – UK Express
Stripe, the company which helps over 100,000 businesses successfully perform online financial transactions, is to round off its nearly four-year support for Bitcoin payments.
The move came amid remarks that incredibly high price volatility that the bitcoin has shown recently hampers transactions, makes them too slow and for a big commission fee. Separately, Stripe said Bitcoin users now saw the virtual currency largely as an "asset" to be bought and sold, rather than something a means of exchange.
"By the time the transaction is confirmed, fluctuations in Bitcoin price mean that it's for the 'wrong' amount," Stripe's product manager Tom Karlo said in his blog.
Bitcoin transaction fees had also risen "a great deal" resulting in a decrease in demand from Stripe's customers to accept Bitcoin payments, he said. He added that an average fee is tens of US dollars, which is nearly as costly as a bank wire.
The Stripe payment processor was the first to lend support for Bitcoin back in 2014 and has been with it all through its rises and falls for the past 4 years.
Now all transactions are due to be stopped by April 23. – Sputnik News
Australia's biggest gold refiner, the Perth Mint, is developing its own cryptocurrency backed by physical precious metals.
The ambitious plan, which is subject to a confidentiality agreement, will make it easier for consumers to buy gold.
The mint also plans to make use of blockchain technology, first used as the core component of the digital currency Bitcoin, where it works as a public ledger for transactions.
For the Perth Mint, the need to bring investors back to precious metals after a boom in alternative investments such as cryptocurrencies posed an opportunity, according to chief executive Richard Hayes.
"I think as the world moves through times of increasing uncertainty, you're seeing people look for alternate offerings," he said.
Most digital currencies have no physical backing and are transferred from peer to peer, via a computer.
Mr Hayes said that made the prospect of offering a crypto-gold product even more exciting and possibly a world first.
He said the aim was to provide a transparent offering that would allow investors to buy and sell with confidence, knowing the products they were buying were completely traceable. - ABC
In what is nothing other than blatant precious metals price suppression, gold and silver are getting pounded hard in the pre-market.
Gold has been holding onto support at $1330. Silver blew through support of 16.91. Next support is the 50-day right around $16.70 (which is holding so far). – Silver DoctorsAnd at 11:40 EST the gold price has recovered all its earlier losses.
Swiss-based commodities fund Tiberius Group plans to make a foray into cryptocurrencies with the launch of what may be the first digital money underpinned by physically deliverable metals including industrials such as aluminium and copper.
The fund, which manages $300 million (215.81 million pounds) of investments and also mines and trades metals, aims to launch the Tiberius coin, or tcoin, in July, its co-founder and chief executive Christoph Eibl said.
Allowing buyers to redeem tcoin for metal would give the currency a minimum value and avoid the extreme volatility of other cryptocurrencies such as Bitcoin, Eibl believes.
“We want to propose the idea of a cryptocurrency with real tangible net worth,” he told Reuters. - Reuters
A new altcoin called Bananacoin is the “world’s first blockchain option for investing in production of organic bananas.” Yup, it’s a banana-based cryptocurrency. Investing in Laotian banana production has never been so on-trend!
Bananacoin isn’t as bananas as it sounds. Buying a coin can be seen an investment in an organic banana plantation in the Vientiane province in Laos. To assure that these “coins” have value, each one is said to be backed by the market value of one kilogram of bananas, so “participants can be certain of the success of the project, as the demand for bananas is constant,” according to a proposal published by the Bananacoin team.
In fact, investors are promised they can even swap their tokens for a literal kilogram of bananas if they want. So, in theory, this is a cryptocurrency tied to an actual product, and worst case scenario, you might be able to have crates of bananas shipped to you from half way around the globe to put in your cereal in the morning. - Extra CrispyDaylight come and I wanna my crypto to go up.
Gold is going digital.
Blockchain technology may help keep track of the roughly $200 billion of the precious metal dug from remote mines, traded by middlemen and melted down by recyclers that’s sold each year to buyers scattered around the world.
The London Bullion Market Association, which oversees the world’s biggest spot gold market, will seek proposals including the use of blockchain for tracing the origins of metal, partly to help prevent money laundering, terrorism funding and conflict minerals, according to Sakhila Mirza, an executive board director.
“Blockchain cannot be ignored,” Mirza, also general counsel of the LBMA, said in an interview Monday. “Let’s understand how it can help us today, and address the risks that impact the precious metals market.” - Bloomberg