Bitcoin is more likely to be worth $100 than $100,000, Says Harvard Economics Expert

Andres Chavez
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Bitcoin is more likely to be worth $100 than $100,000, Says Harvard Economics Expert

While Bitcoin price is still struggling to reach $3,500 at the time of this writing, the industry cannot help but speculate on what its future value will be. There is substantial and tangible concern because the crypto markets have been stagnant for a couple of weeks now, and before that, an astonishing collapse took place.

Yes, Bitcoin has extended its dominance in recent hours, even nearing three-month highs when it comes to market dominance. However, that does not necessarily mean that the world’s leading cryptocurrency is out of the woods; at least not yet.

In fact, a few people within the industry are refusing to believe that a surge is in the cards in the short to medium-term. While many experts are predicting that Bitcoin will return to its more accustomed levels sooner rather than later, others are saying that a further fall in price is at least as likely as a recovery.

A Lottery Ticket

For instance, a former chief economist of the International Monetary Fund (IMF) has stated that Bitcoin (BTC) is “a lottery ticket,” in a recent article for one of the biggest media platforms in the United Kingdom.

Harvard University Professor of Economics and public Policy, Kenneth Rogoff, offered on December 10th a glimpse of what he thought could be the future of Bitcoin’s price. He portrays an outlook full of hope, stating that the “overwhelming sentiment” among crypto people is that the total “market capitalization of cryptocurrencies could explode over the next five years, rising to $5-10 [trillion].”

Rogoff explains that there is no need to panic about the collapse that took Bitcoin’s price from the $20,000 range in January to the $3,400 that it shows today, because of the historic volatility of emerging assets.

However, and according to Rogoff, enthusiasms should have a limit. The expert in economy does not buy the sentiment that Bitcoin may be the “digital gold,” even saying that the crypto asset is more likely to be worth $100 than $100,000.

Not in the Same Category as Gold

Rogoff refuses to compare Bitcoin with gold, because the former is only limited to transactions, unlike the latter, making it more vulnerable to collapses just as the one that took place in January (in reality, it has been going on for most of 2018,) and the one we are currently watching.

The professor of economics also states that there is an energy-intensive element in the verification period of cryptocurrency transactions, which makes it considerably “less efficient” than other systems or methods that depend on a trusted “central authority.”

While he defends Bitcoin and reiterates that the digital coin will not be worth “zero,” Rogoff identifies regulation as another issue, saying that “governments and regulators are gradually waking up to the fact that they cannot countenance large expensive-to-trace transaction technologies that facilitate tax evasion and criminal activity.”

To Rogoff, Bitcoin is a risky proposition because, if one “takes away near-anonymity, no one will want to use it; keep it and advanced-economy governments will not tolerate it.”

By Andres Chavez

A Free Template Would Help with Cryptoactive Inheritance

Maria Rodríguez
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A Free Template Would Help with Cryptoactive Inheritance

The document is available in Spanish for Spanish-Americans, although the legal considerations of each country must be taken into account. It has a guide that explains the process

“Planning the inheritance of cryptoactive, a simple guide for owners” is a publication that offers a guide on the declaration of inheritances in cryptoactive, which includes a free template that is already available in Spanish.

The publication was presented within the framework during the event laBITconf, which took place from December 5th to 8thin Chile. The announcement about this specific product was made during the conference given by Pamela Morgan, CEO of the company Empowered Law & BoardMember Cryptocurrency Certification Consortium.

“I’m so excited to announce that I’ve published my popular Letter to Loved Ones inheritance planning template in Spanish. Just in time for my upcoming talk. It’s free and available now at https://empoweredlaw.com”, the entrepreneur says on her Twitter account, as part of the explanation about the process of declaring inheritances in cryptoactives.

The template is part of Morgan’s book and is recommended as a declaration format of the assets that are held in cryptocurrencies. Although its use does not guarantee that the beloved ones can access the assets, it can be part of the process of creating an inheritance plan, according to the author.

So far, most people do not plan what to do with the cryptoactives they will leave. “In any case, the idea is to allow family or friends who may not have an idea about Bitcoin or a cryptocurrency to recover after our death to recover the funds without our help”, said the lawyer during her participation in the international conference.

How does it Work?

The plan that the author recommends is to use the template as a starting point and to prepare a letter that includes an inventory of the digital assets that are possessed, with explanations and details on how to access the cryptoactives. In this way, the relatives will have at hand a document that gives them indications about what they have at their disposal.

According to the lawyer, the information that is not missing is about the portfolios and / or exchange houses where the cryptoactives are deposited, so that family members can maintain access to them. It is also recommended to leave instructions on the use of cool key rings or purses that contain funds in cryptocurrencies.

Limitations

According to Morgan, one of the current drawbacks -and one that should be overcome- is that there are no smart contracts with legal status for the successor declaration of this type of assets. On this subject, the lecturer said that some projects plan to focus on this area. However, she recommends not trusting keys and cryptocurrencies to a third party.

Some of the startups that are already responsible for offering these types of services are: MyWish, DigiPulse and SafeHave. These platforms work through smart contracts by allowing an inheritance according to the will of its owner. In Spain there is a service called My Digital Legacy, which is in its beta phase.

As an additional recommendation, it is important to take into account the legal provisions of each jurisdiction. In the UnitedStates of America, for instance, legislation is particular: the Anti-Fraud and Computational Abuse Act (CFAA) stipulates that even if a person knows a password this does not immediately mean that he or she is authorized to access the information contained in digital platforms. It is necessary to comply with certain security measures for the heritage asset.

By María Rodríguez

Suspicious Crypto Transaction Reports Dramatically Increase in Japan

Andres Chavez
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Suspicious Crypto Transaction Reports Dramatically Increase in Japan

The proliferation of cryptocurrencies has come with a few caveats. Sure, they represent a safer way to buy and sell assets, thanks to the blockchain support, but that does not mean that some shady people use them for illicit purposes.

Japan, most specifically its National Police Agency (NPA,) has a system in which it categorizes transactions by theirnature. This 2018 has represented a year in which operations qualified as “suspicious”have increased dramatically.

A Japanese news site recently reported that a considerable amount of suspicious cryptocurrency transactions were performed in the country. To be more specific, the number reaches 5,944 reports to authorities about suspected illegal uses of crypto assets, including frauds and money laundering, from January to October.

A Huge Jump Compared to last Year

The number is alarming, considering that last year; the cases that fell under that classification were only 669. According to thereport, the increase has been caused “after the implementation in April of alaw obliging the [cryptocurrency exchange] operators to make reports to thepolice if they detect dubious digital currency transactions.”

An NPA staffer is quoted as saying that the increase can be considered a positive development, since it points out to operators having become “widely aware of their reporting obligation,” in order to enhance the overall security levels within the industry.

“It’s already been some time since the reporting system began, and it has been embraced by the industry throughguidance from the Financial Services Agency,” the official is quoted as saying.

Japanese authorities are eager to combat the illicit use of cryptocurrencies, and are implementing several tools and approaches to achieve their goal. Among them is preventing tax evasion on substantial profits coming from crypto-related transactions.

Sources indicate that the Japanese government is continually looking to develop and promote a system that would allow theNational Tax Agency to gather data from crypto transaction intermediaries about people that use these assets.

Crypto exchanges would have to show compliance with regulatory norms, otherwise they risk losing their license to operate in the country. They will also risk the last scenario if they help tax evaders.

Only a Small Percentage of Money Laundering Cases are Related to Crypto

Japan has proven time and time again that it is among the nations with the most extreme stance on regulating the use of cryptoassets. The 5,944 reports on “suspicious” transactions is a high number. However, it is a minuscule figure if percentages enter the equation: it is equivalent to just fewer than 2 percent of money laundering cases in Japan, which are north of 340,000.

The FSA, which is the Financial Services Agency in Japan, is toying with the idea of tightening ICO (Initial Coin Offerings)regulations to help users be protected against potential scams and frauds that have become so frequent in these types of fundraising events.

There is another issue that complicates the police and regulators’ project, and it is the use of foreign accounts to perform crypto transactions and participate in ICOs.

By Andres Chavez

Facebook is Looking for Talent to Enrich its Blockchain Department

Andres Chavez
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Facebook is Looking for Talent to Enrich its Blockchain Department

Facebook, the most influential social media network in the world, is currently on the process of hiring. The department for which they are recruiting personnel was nearly unimaginable at the moment of its creation, but things have changed since that moment.

The social network giant is looking for qualified staffers to enrich its blockchain talent and work in data science, software engineering and marketing. In total, Facebook needs five people to provide their services at their Menlo Park, California (the United States of America)offices.

It is clear that Facebook, a company that has proven that it constantly keeps up with new technologies and remains a modern, up-to-date platform, wants to be part of the blockchain fever and develop its share of related offerings. However, it is not yet clear what exactly its plans are regarding the subject.

Blockchain-based Offerings May be around the Corner

However, if we can read between the lines, Facebook intends to create or develop a blockchain-based product, since it has ads in its site, more specifically in the career pages, that state the objective, this is, to help billions of people “with access to things they don’t have now.”

As some of the potential applications for the blockchain model in Facebook, the firm explains that “equitable financial services, new ways to save, or new ways to share information” are definitely part of them.

Facebook does have a blockchain team, but it was recently created, in May to be precise. They work to keep up with the technology and new developments related to it. The captain of the staff is David Marcus, who is a former executive of the Messenger division. Evan Chengis, since June, the Director of engineering of the corp.

The blockchain division of Facebook is still seen, and identified as such by the company itself, as a startup. The primary goal is to make blockchain technology work at scale in Facebook, a vastenvironment that includes games, social media, messaging services, groups,friend interactions, and multimedia content. There are lots of grounds tocover.

The Openings Explained

The social company needs the talent to fill up vacant in data-focused roles, such as a data engineer and a data scientist. Facebook explains that it is looking for experts in quantitative analysis, capable of informing solutions with a variety of data, make important decisions regarding products, and “building models of user behaviors for analysis or topower production systems.”

The platform is also hunting for a couple of blockchain software engineers to work their magic and, specifically, “share a passion for tackling complexity and building platforms that can scale through multiple orders of magnitude,” according to a company post.

The page is also looking for a product marketing lead. Said product has to be capable of building and managing “a new product marketing team focused on exploring the opportunity the blockchain will bring.” The company is clearly gearing up for a future venture in blockchain use cases, as the world is watching closely.

By Andres Chavez

Coinbase Plans to Add more than 30 Digital Currencies to its List

Maria Rodríguez
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Coinbase Plans to Add more than 30 Digital Currencies to its List

The process will depend on the study based on the legal frameworks of each country. Maybe commercial services will not integrate all cryptocurrencies

Coinbase, the operator of one of the most reputable exchange platforms in the world, announced plans to incorporate more than 30 new digital assets for using them during different business operations.

The organization based in San Francisco, the United States of America, announced that for the time being, it is conducting the corresponding procedures this possibility, according to what during different reported in a publication on its blog this week.

Some of    the currencies and cryptoactives that this US exchange house plans to include  are ERC-20 tokens; in addition to others from independent projects. Among thebest known are Cardano, EOS, ANT, SNT, XRP, XTZ, NEO, ENJ, DAI, Stellar andRipple.

“Overtime, we will offer to our customers access to more than 90% of all existing digital assets compatible with capitalization models in markets”, says the public statement addressed to the Coinbase follower community.

However, the company was very frank with the enthusiasts. It reported that the processto add new tokens to its platforms requires an important research. One of themain objectives is to evaluate if the projects provide the necessary securityto the users of this platform. The ERC20 tokens do not imply a deep regulatoryreview. The security systems of the platform can easily integrate this token.

The intention is to ensure that the requirements comply with the technical andlegal foundations established by the jurisdictions where it operates. For thisreason, Coinbase does not guarantee the platform can effectively incorporate allthe assets considered and without presenting major inconveniences.

In this regard, the post reviews: “In addition, our final listing may result in the exclusion of some proposed assets. Similarly, others, which will only be commercialized without being able to be extracted to a local wallet, can be incorporated. Finally, according to the legal frameworks, we will add new assets per country, in order to fulfill this process in an efficient and responsible manner”.

Possible Contingencies

According to Coinbase, it warned its customers, there is a possibility that some of their services list these assets before they are formally included in the listings. Therefore, should this occur, the company “doesnot undertake to facilitate the commercialization of the assets before officialannouncements, since these could be withdrawn”.

The clarification arises because Coinbase customers previously saw in their services that the platform would incorporate some tokens. The operative bots took advantage of this opportunity to commercialize the tokens before they were officially announced. Something similar happened with the users of the Coinbase wallet, who saw the option to store balances in ZCash, before there was an official announcement.

After the publication of the list, Coinbase Pro detailed that it will add support for the tokens of Civic, District0x, LoomNetwork, and Decentraland. So far, currencies only operate in transfer mode, so users can only deposit funds and make purchases, but not make withdrawals.

In the event, which seeks the intention becomes a reality, Coinbase would have in its platform more than 90% of the existing cryptoactives, which should follow the regulatory rules to avoid any type ofinconvenience in the future.

By María Rodríguez

Israel’s Tax Agency Chases CryptoInvestors who Evade Taxes

Maria Rodríguez
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Israel’s Tax Agency Chases CryptoInvestors who Evade Taxes

The authorities in that country are mainly targeting Israelis who travel abroad frequently, own several buildings, and do not declare profits

The Israeli tax collection agency, an organization from that country, seeks to curb tax evasion by supervising merchants and investors in cryptocurrencies that do not declare their profits.

The Israel Tax Authority (ITA) takes severe measures to catch those who do not report the profits earned from their investments and the cryptocurrency business.

Among the measures is the sending of notification letters to people suspected of not reporting how much they earn from their businesses. Those who incur in this fault, according to the researchers, are characterized by making frequent trips abroad without evidence of which capital will cover their expenses or having undeclared profits. They are investigated those who own several real estate properties, such as more than three apartments.

Other measures taken by the Israel Tax Authority include the unilateral opening of tax accounts for individuals identified for not having reported the profits obtained from commercial cryptocurrencies exchanges they made.

Cryptocurrencies in Legality

Yaakov, Head of the Israel Tax Authority, said the department he represents would make efforts to “catch” tax evaders.

Last year, the ITA considered Bitcoin and other cryptocurrencies as assets, which is why they can aggravate them. “The Tax Authority is monitoring the technological developments and it’s working to provide an answer regarding the tax implications of virtual currency transactions and the issuance of digital tokens”, said the authority’s Director, Moshe Asher.

“Bitcoin will be considered, in accordance with the Income Tax Ordinance, as an asset and its sale will be taxed as a sale of property. The income from its sale will be classified as capital income and the capital gains will be taxed according to fixed tax rates”, the tax agency reported during 2017.

At that time, the holders of the cryptocurrency would have to pay 25% of the capital gains tax each time they disposed of their holdings. A 17% value-added tax is the “knock” for the exchanges of cryptocurrencies and the related ones.

In February of this year, the ITA reiterated its decision to take cryptocurrencies as assets with rates on capital gains and VAT, which remain the same thing, indicated last year.

A month prior, the ITA had also published draft legislation on ICOs, in which the tax body indicated that ICO tokens would be assets with the responsibility of paying the accompanying tax falling on the ICO investors as well as the issuers.

The legislation also stipulates that each service provider with cryptocurrencies or banks or Exchanges will be obligated to monitor and report any suspicious or illegitimate activity by customers.

The United States and four other countries created an aspecial body to investigate crimes in cryptocurrency, including tax fraud and money laundering. US tax authorities will work with those of Australia, Canada, the United Kingdom, and the Netherlands to counter the “increasing threat” of cryptocurrency. Known as Joint Chiefs of Tax Enforcement or J5, the working group will focus on transnational tax crimes.

By María Rodríguez

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