The CEO of Tesla and SpaceX has decided to invest USD 1.5 billion in Bitcoin. Saylor succeeded in changing Musk’s attitude towards the cryptocurrency, which he accepted as a payment method and a store-of-value asset.

Many people know Elon Musk as an eccentric person, especially because of the controversial ideas that he shares through Twitter. However, the executive has become one of the most important figures in the business world around the world.

Musk always seeks to stay at the forefront of new technologies, which characterizes this businessman’s personality. For that reason, he has invested time and money in technology companies like PayPal, Tesla and SpaceX, which he has turned into great successes.

However, he had not dared to enter the world of cryptocurrencies, limiting himself to making jokes on Twitter. Although he had been supporting Dogecoin for years, he had not shown a real interest in crypto assets.

That situation began to change during the big bullish rally that took the price of the cryptocurrency above USD 40,000. Elon Musk then posted on Twitter a meme suggesting that Bitcoin was tempting him.

Increasing Pressure to Buy Bitcoin

That tweet led dozens of well-known influencers to try to convince Musk of the qualities of Bitcoin. That list included Justin Sun and Changpeng Zhao, among others, but only Michael Saylor, CEO of MicroStrategy, was successful.

Saylor responded to Musk’s tweet recommending him to invest Tesla’s cash balance in Bitcoin. He spoke of the experience that a multi-million-dollar purchase of Bitcoin had brought MicroStrategy. He emphasized the fact that this acquisition generated huge profits for the company in just a few months.

“If you want to do your shareholders a USD 100 billion favor, convert Tesla’s cash balance into Bitcoin. Other S&P 500 companies would follow your example, which would turn into a USD 1 trillion favor over time,” Saylor wrote.

The CEO of Tesla simply asked if it was possible to make such large transactions in the crypto asset market. Saylor then offered to share what MicroStrategy had done, but Elon Musk did not respond again, at least not in public.

From Dogecoin to Bitcoin

Following Saylor’s response, Elon Musk’s change in attitude towards crypto assets was soon obvious. He started supporting Dogecoin, a digital currency created as a joke, whose price gained momentum thanks to Reddit group SatoshiStreetBets. However, Musk’s messages of support contributed to multiplying the price of that crypto active in a matter of just a few days.

In late January, Elon Musk posted the word “Bitcoin” on his Twitter biography as a final warning before his latest announcement. Tesla, the main company that Musk runs, admitted buying USD 1.5 billion worth of Bitcoin. Likewise, they said that they would soon accept the virtual currency for the purchase of their electric cars. In this way, they give value to Bitcoin as a payment method and a store-of-value asset.

The price of Bitcoin has reached new all-time highs, which is why many companies are considering following the path of Elon Musk and Tesla. The tycoon thus recognizes the importance that cryptocurrencies will have in the future of the world’s economy.

By Alexander Salazar

Marathon Group, a Bitcoin mining company, serves as the provider of the financing. Jonas Schnelli will receive his payments in bitcoins (BTC) monthly.

The development of Bitcoin Core, the most widely used client of the Bitcoin protocol, keeps receiving aid and support from essential companies in the crypto world.

On January 28, Marathon Group, a cryptocurrency mining company with roots in the United States, announced that it would grant USD 96,000 to developer Jonas Schnelli in one year. This developer is a long-time collaborator of the Bitcoin Core client since 2013.

The software developer will receive his monthly payments in bitcoins for one year so that the specialist dedicates full time to the client’s maintenance and development.

As the company clarified in a press release, Schnelli received financing from the cryptocurrency mining giant Bitmain. Last year this subsidy came to an end, leaving the developer as a free agent. Marathon is now taking this chance to support the Bitcoin developer with a considerable amount to earn in Switzerland, where Schnelli resides.

Companies Can Also Support the Development of Bitcoin

Marathon said that the company is to a similar strategy that the US exchange Coinbase followed with developers Joao Barbosa and 0xB10C (anonymous who identifies himself by this name).

This exchange house paid both specialists to work on the development of Bitcoin Core throughout 2021. Bitmain also received both developers until Coinbase took part in this patronage.

Although some Bitcoin mining companies’ past practices were under suspicion and received many doubts from the community, such as the Slush Pool, the Bitcoin code’s integrity would represent at risk if the developers alongside the community uphold the ethos of the protocol.

Merrick Okamoto, CEO of Marathon, clarified in the press release that the support to Schnelli is the company’s contribution to the Bitcoin network. Okamoto also considers that something like adopting the cryptocurrency in the long term will create a severe impact on his business model, Bitcoin mining.

Beyond pointing out the conflict of interest, users build Bitcoin’s structure, which can verify the network’s integrity and develop functionalities and services around the technology. In this way, It is essential to consider that Schnelli also developed a code library for those who desire to create Bitcoin apps.

During the past year, several Bitcoin developers received support from many important companies in the crypto world. A very relevant case is Pieter Wuille, a pioneer developer of Bitcoin, who left his 6-year position at Blockstream to join Chaincode Labs.

The Gemini exchange also announced that it is working on granting up to $ 200,000 to various Bitcoin Core developers through the Opportunity Fund- A fund that the brothers Winklevoss are leading in command.

By: Jenson Nuñez

The Bank of New York Mellon will launch a service that aims at safeguarding bitcoin for its clients later this year. The entity thinks that bitcoin and other cryptocurrencies are part of the trend that will evolve.

The Bank of New York Mellon (BNY), the oldest in the United States, is taking the path of bitcoin and the world of cryptocurrencies. As its announcement this Thursday, February 11, the BNY will safeguard its clients’ digital assets. Those assets include cryptocurrencies.

The Wall Street Journal (WSJ) reported that the entity with more than $ 41 billion in custody across multiple assets seeks to discuss every plan about these systems with its clients.

According to BNY Mellon’s head of advanced solutions, Mike Demissie, the institution’s new product “focuses on customer interest and demand. Demissie also noted that there is already a platform that will allow the service to operate.

The new service will set up this year, although there is no specific date for this. BNY is always keeping an eye on regulatory activity to ensure that they support the market’s allowance of assets.

Roman Regelman, executive director of digital business and asset services at BNY, said that “digital assets are becoming part of the trend.” Many banks turn their sight and their attention on bitcoin, their rejection of the cryptocurrency seems to be disappearing.

The Office of the Currency (OCC) had already expressed its approval for local banking entities to offer cryptocurrencies services. In particular, the OCC clarified that bitcoin custody could be a modern version of the services that banks provide more traditionally.

The Treasury Department authorized banking institutions to maintain reserves for companies that issue stablecoins, cryptocurrencies whose offer holds values that anchor other assets, such as the dollar or any other national currencies.

Among the organizations that have considered the custody of bitcoin and other cryptocurrencies for their clients, we find Citibank. Before, this and other banks such as JPMorgan and Bank of America rejected cryptocurrencies to the point that they prohibited buying them with their credit cards.

The truth is that, as bitcoin gains ground in the market, many detractors have changed their minds. Now, the quest to get into the world of cryptocurrencies from large funds and companies is so common that even groups like Goldman Sachs consider providing custody services.

Besides, payment services no longer describe bitcoin as a threat but seek to achieve a spot and not lose the train of a market that already exceeds a trillion dollars in capitalization. Thus, PayPal, Visa, and even MasterCard have joined more recently.

The wave of institutional interest has been such in recent months that it is attributed to the significant momentum that bitcoin’s price is experiencing with such surpassing in its all-time highs. The cost of BTC is hovering around $ 48,000 and looks set to hit a new record high.

By: Jenson Nuñez

Colombian authorities have not ruled on the staking. Only five countries have laws when it comes to staking.

A recent study by the Library of Congress of the United States shows an uncertain veil covering tax matters for cryptocurrency staking in many Hispanic countries. Countries like Chile or Colombia seem to lack the authorities on how the earnings that come from staking should receive their proper declarations.

While in countries such as Venezuela or even Spain, tax experts argue that such an income declaration must happen following current regulations for similar activities.

A congressman from the United States and promoter of bitcoin presented the study Taxation of Rewards of Cryptocurrency Blocks in Selected Jurisdictions, on February 3. The report by a group of legal experts from the Library of Law of Congress shows a comparison of tax laws that aim at mining procedures, both in its Proof of Work and Proof of Participation or Stake facet, in 31 countries the world. It includes Argentina, Colombia, Spain, and Venezuela, and Chile as an extra-addition.

The document also sustains that many countries’ tax authorities have set up “guidance on the taxation” of bitcoin, ethereum, and other essential crypto assets.

Another critical aspect that the experts add into the analysis is that of those countries where “explicit tax laws on rewards per block.” does not exist. Also, some countries have general tax regulations, proposed rules, official declarations, and tax experts’ comments; although, there are undefined laws.

The researchers clarified that bitcoin and the other cryptocurrencies have different categories. An example of this is that of some countries in the north of Europe which possess investment property. In Germany, cryptocurrencies have roles as a financial instrument; for other countries like Luxembourg or even Switzerland, bitcoin seems to be an intangible asset or property. In the case of a country like Venezuela, Bitcoin becomes a financial asset.

How Legislations Work when it Comes to Mining

Experts from the United States Congress have identified laws and other guidelines that serve as conduits for taxes to be applied; these guidelines include incomes and capital gains and value-added tax (VAT) crypto-assets produced by mining in countries around the world.

One highlight feature in the report is that most countries set up treatment with small-scale mining laws; it is even a hobby compared to commercial or large-scale mining.

In Argentina’s case, Proof of Work mining is subject to the Income Tax Law for those who work from an established domicile or have established their roots to operate in said country. Such legislation applies a 30% tax for the fiscal period between January 1, 2018, and December 31, 2020.  The profits are about to receive a value test at the market price, at the expense of Argentine pesos, when the transaction enters the network. The costs of the operation may also suffer a considerable reduction from these profits.

By: Jenson Nuñez