Brazil Implements 15% Tax on Bitcoin, And Other News

Leonardo Perez
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Brazil Implements 15% Tax on Bitcoin, And Other News

According to the bill, any natural person residing in Brazil must declare income obtained with capital invested abroad, separate from other income and capital gains.

The president of Brazil, Luiz Inácio Lula da Silva, has ratified the law (PL 4.173/2023), imposing a tax of up to 15% on Bitcoin and other cryptocurrencies held by Brazilian citizens on international exchanges.

This decision, which will come into effect from January 1, 2024, represents a radical change in the tax treatment of cryptoassets in the country.

Any user who holds cryptocurrencies valued at more than $1,200 in companies abroad, such as Binance, Bitget, Gate.io. Crypto.com, Coinbase, Bitfinex, OKX, Crypto.com, Bybit, and others, must pay a tax of up to 15%.

Bitwise Predicts Bitcoin to Hit $80,000

Bitwise forecasts that the world’s largest cryptocurrency is set to benefit from two positive catalysts in 2024, driving a rise to a new all-time high of $80,000.

According to the report, “the launch of a spot bitcoin ETF (anticipated in early 2024) is expected to usher in a wave of new capital from retail and institutional investors, causing demand for bitcoin to rise. Meanwhile, the supply of new bitcoin being produced each year will be cut in half following the next bitcoin halving in April or May 2024. At current prices, that’s equivalent to a $6.2 billion reduction in new bitcoin entering the market each year.”

Particularly, Bitwise Senior Research Analyst Ryan Rasmussen outlined 10 bullish predictions for the crypto market next year. One of the main themes is the explosive growth of the BTC price. His post on X goes like this:

“In 2024… Bitcoin will set a new all-time high, the spot bitcoin ETF will be the most successful ETF launch of all time, Coinbase’s revenue will double, and more…”

Michael Saylor Believes Bitcoin Will Reach $350,000

MicroStrategy CEO Michael Saylor shared his bold predictions for Bitcoin, suggesting that the cryptocurrency could reach $350,000 by 2024. As a result, it has captured the attention of the crypto community, sparking debates about the implications of such a prediction.

Specifically, he bases his prediction on factors such as growing institutional adoption and the limited supply of this cryptocurrency. It should b noted that the four-year bitcoin halving is scheduled for April 2024. This halving will drastically reduce the supply of new bitcoins on the market.

MicroStrategy is one of the main Bitcoin holders globally, thanks to its accumulation strategy started in August 2020.

Gary Gensler Reviews Bitcoin ETF Applications Again

In an interview with CNBC, SEC Chairman Gary Gensler pointed out that the United States Securities and Exchange Commission is again reviewing between eight and a dozen applications for a Bitcoin ETF. All this, following the ruling on Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into an ETF.

“In the past, we had rejected several of these requests, but the courts here in the District of Columbia ruled on it. And so, we are reviewing this again based on those court rulings,” said Gensler.

Robinhood Offers Crypto Services in Europe

Trading and brokerage company Robinhood is expanding its reach in the European Union (EU) by introducing its cryptocurrency trading service. The application will allow European traders to buy and sell more than 25 cryptocurrencies, including Bitcoin, Ethereum and Solana.

Incidentally, Johann Kerbrat, general manager of Robinhood Crypto, revealed that Robinhood will implement a unique loyalty program, offering users Bitcoin-based cash back equal to a portion of their monthly trading volumes.

By Leonardo Perez

Crypto Analyst Tuur Demeester’s Analysis of Bitcoin: Why It’s Undervalued, Macroeconomic Tailwinds, Nation State Adoption, and More

Audy Castañeda
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Crypto Analyst Tuur Demeester’s Analysis of Bitcoin: Why It’s Undervalued, Macroeconomic Tailwinds, Nation State Adoption, and More

Demeester provided an in-depth analysis of the current state and future trajectory of Bitcoin, addressing its undervalued status, its macroeconomic tailwinds, and its adoption by nation-states.

In a detailed social media thread on company Adamant research report in April 2023, Demeester reviews its analyzes and recommendations.

His publication starts as follows:

“1/ Our report from last April predicted “for bitcoin to trade in a range of $22k to $42k, until a new multi-year bull market pushes it well north of $120k.” Now that bitcoin trades at $42k, let’s review our analysis & recommendations in a summary thread.”

Demeester suggests that Bitcoin is currently undervalued considering its role as a long-term store of value. This outlook is supported by the macroeconomic environment in which traditional financial instruments such as bonds are in a bearish cycle and inflation is returning.

His view implies that the market has yet to fully recognize Bitcoin’s potential as a hedge against economic instability and inflationary pressures. marking it as undervalued.

Macro Tail Winds Strengthening Bitcoin

The thread analyzes how current macroeconomic trends, such as the resurgence of inflation and the bearish turn in bond markets, are creating favorable conditions for the growth of Bitcoin. Demeester highlights the global economic debt overhang, which he believes will lead to a shift in spending toward basic economic needs and a flight toward real stores of value, benefiting Bitcoin.

Nation-State Adoption of Bitcoin

Expanding adoption by nation-states, Demeester predicts a stealthy but continued incorporation of Bitcoin into national financial strategies. This includes central banks potentially using Bitcoin to strengthen their balance sheets, indicating growing recognition at the government level of Bitcoin’s utility and value.

According to Adamant’s report, El Salvador may stand out as the exception for a few more years. Nation-state adoption is expected to continue somewhat more stealthily in the coming two years, such as in the form of CBDC’s backed by a collateral pool that includes bitcoin, or by central banks using bitcoin to shore up their impaired balance sheets. Later, as the bull market roars higher, there could be more bitcoin legal tender law announcements.

Bitcoin Investment Strategies

Demeester provides advice for investing in Bitcoin, weighs the merits of lump-sum investing against dollar-cost averaging, and suggests allocation strategies ranging from conservative hedging to a more aggressive retirement strategy.

On the one hand, people who have irregular income or are managing a mature portfolio often lean towards buying a lump-sum investing strategy, which may require extra psychological resilience, as the price can drop after the purchase, and it will be impossible to buy any more dips.

On the other hand, people who have relatively steady employment and who are still building a savings portfolio may want to consider investing in bitcoin via a dollar-cost averaging strategy. This has the benefit of accumulating a growing position over the long run, while possibly experiencing less stress when the price dips as you know that more buys are coming in anyway.

Bitcoin Custody and Security

Demeester discusses the complexities of Bitcoin custody, analyzing the trade-offs between single private key storage, multi-signature self-custody, third-party custodians, and his advocated Collaborative Custody approach, which balances security with control.

In view of Demeester’s analysis and recommendations, it is best to conduct your own research before making financial decisions.

By Audy Castaneda

BONK Forecasted to Possibly Overtake Shiba Inu and Dogecoin, And Other BONK News

Leonardo Perez
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BONK Forecasted to Possibly Overtake Shiba Inu and Dogecoin, And Other BONK News

Kyle Chassé, known for his deep knowledge of the digital currency space, emphasized the critical role of meme coins in attracting newcomers to the cryptocurrency sector.

Crypto veteran Kyle Chassé shared his thoughts on the evolving meme-inspired cryptocurrency landscape. Chassé compared the current enthusiasm around meme coins to past frenzies, such as those involving Dogecoin (DOGE), Shiba Inu (SHIB), and the previous Pepe (PEPE) phenomenon.

He highlighted that these events are instrumental in leveraging meme-centric tactics to promote broader cryptocurrency adoption.

The conversation then turned to BONK, a meme-themed cryptocurrency developed on the Solana blockchain. Amid a broader market downturn, BONK has made waves with its extraordinary growth, recording an increase of over 703.97% in the last 30 days and a staggering 13,623.88% increase in 90 days.

This surge has propelled BONK to 50th place among the most well-known cryptocurrency projects.

BONK Prediction 2024

Chassé made a bold statement about the future of BONK, predicting that “memes are leading adoption in this cycle and bringing standards to the crypto space. “i think bonk will change to Shiba Inu.”

He highlighted a strategic move by BONK, involving an airdrop of 30 million BONK tokens that can only be accessed through the Bonk app via the Saga phone app store. This move created a significant arbitrage opportunity, as the value of the airdrop exceeded the cost of the Saga phone itself.

BONK is listed on leading exchanges such as Binance and Coinbase, enhancing its visibility and prominence in the cryptocurrency market. Investors have seen substantial returns, with one prominent investor posting a profit of $784,000.

BONK’s recent trading volume has surpassed that of Shiba Inu and Dogecoin, securing it the 44th place in market capitalization.

A Look at BONK’s Journey

BONK has shown remarkable performance over the past month as its price rose over 600%. Thanks to the rally, BONK earned a spot on the list of top 100 cryptocurrencies by market capitalization. However, things have now started to change as the token lost its value by double digits in the last 24 hours alone. The price action of the new meme coin remained irrelevant for a long period of time before taking off in early December.

According to CoinMarketCap, the meme coin is down more than 20% in the last 24 hours. It was trading at $0.00002415 with a market capitalization of over $1.47 billion, making it the 51st largest cryptocurrency. Lookonchain data pointed out what could have gone wrong. One trader sold 52.3 billion BONK, worth $927,000, shortly after it was listed on Binance.

Although the price of the meme coin dropped, it helped Solana reach a new milestone. Solana announced that 30 million BONK tokens will be available to saga phone owners. This triggered demand for the mobile, and Solana recently revealed that it sold all of its Saga units.

Solana Weighs Demand for Saga Phones After Sale Amid BONK Boom

This week, Solana Labs says sales have skyrocketed. A Solana Labs representative confirmed to Decrypt that 20,000 Saga phones were once produced, confirming a statistic that co-founder Raj Gokal shared on Twitter on Thursday.

Anyone who purchased Solana Saga can claim an airdrop of 30 million BONK meme tokens, whose value has increased dramatically in recent weeks: 755% more than last month. That stash is now valued at $830, or more than the phone’s current price. It’s not guaranteed to maintain that level, but crypto users are taking the plunge on Saga.

By Leonardo Perez

Polygon (MATIC) Price Faces Crucial Inflection Point That Could Trigger 50% Rally, Analyst Says

Audy Castañeda
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Polygon (MATIC) Price Faces Crucial Inflection Point That Could Trigger 50% Rally, Analyst Says

Polygon (MATIC) is the altcoin in focus this time, as an analyst provides analysis of the crypto token. Based on this analysis, there is a feeling that things could soon start to look up for MATIC.

In a video shared on the Cheeky Crypto YouTube channel, crypto analyst JB noted that MATIC has declined following Bitcoin’s pullback.

However, this move is unexpected as it believes that the crypto token’s fall to the particular retracement area sets it up very well for an upward move.

Polygon Could See Significant Rally Soon

According to JB’s projection, MATIC could rise to between $0.87 and $1.36. JB also took into account other things that could suggest a bullish move is imminent. He referred to the stochastic level, which initially suggested an overbought condition. Nevertheless, it has corrected sharply, indicating that there could be another upward push for MATIC.

On the other hand, the crypto analyst was also wary of factors that could cause a downward movement. One of them is the volumes seen in various cryptocurrencies. JB stated that the current volumes are not large and this has weakened the prices of these crypto tokens. This could potentially hamper any projections of a bullish move.

On the other hand, there is the possibility that MATIC misses the crossover above the 200 EMA as this suggests that a decline is imminent. At the beginning of the video, JB also emphasized the 5-wave pattern that was forming on different time frames on the MATIC chart.

The analyst seemed unsure whether the fifth wave was forming or not. He noted that a push above $94.5 would suggest that the last wave is yet to come. There is also the possibility that it is simply an A, B and C pattern.

MATIC at $100 Still Possible

Still analyzing the MATIC price pattern on the charts, JB mentioned that he was still bullish on the crypto token ahead of the impending bull market. He had previously mentioned a target of $100 for MATIC in the next bull run, and he still maintains the projection.

In fact, JB noted that a new structure forming on the charts suggests the crypto token could go higher than that. As part of this prediction, he sees MATIC as a “powerhouse” in the bull market and as one of the most prominent altcoins.

One of the factors he believes will contribute to MATIC’s dominance is the potential approval of pending Ethereum Spot ETF applications. He believes that the crypto token could be a big beneficiary, considering its role in the Ethereum ecosystem. Recently, MATIC is trading at around $0.85, down more than 1%, according to data from CoinMarketCap.

Looking Ahead

Polygon’s (MATIC) path is marked by both potential opportunities and notable challenges. However, current market sentiment and price trends call for cautious optimism. Investors should closely monitor broader market trends and the integration and adoption of Polygon (MATIC) in the DeFi and Web3 spaces. While there is potential for growth, resistance levels indicate that Polygon (MATIC) may face obstacles to achieving a sustained upward trajectory.

The current cryptocurrency landscape is a complex interplay of optimism and caution. Bitcoin’s potential rebound to $37,000 could significantly impact established cryptocurrencies such as Polygon (MATIC), casting a shadow of uncertainty over their future.

Holders of these currencies should be aware of the possible influence of Bitcoin fluctuations on their investments. Additionally, it is advisable to do some research before making major financial decisions.

By Audy Castaneda

“Your Keys, Your Control”: Why Self-Custody is More Important Than Ever

Leonardo Perez
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“Your Keys, Your Control”: Why Self-Custody is More Important Than Ever

Cryptocurrency self-custody is gaining popularity as a response to the failures of multiple cryptocurrency exchanges and significant losses resulting from hacks. Self-custody allows individuals to manage their cryptocurrencies securely, mitigating the risks associated with third-party services. The trend is marked by the growing adoption of self-custody solutions, including notable platforms like Block’s Bitkey and Uphold’s Vault.

The security of cryptocurrency investments is increasingly geared towards self-custody. This trend has been accentuated after the failure of multiple cryptocurrency exchanges and the loss of millions of cryptocurrencies due to hacks.

The shift toward self-custody represents significant progress toward greater financial autonomy and security in the sector.

“Not Your Keys, Not Your Cryptos”: The Self-Custody Debate

Self-custody refers to the practice of people securely managing their cryptocurrencies rather than relying on third-party services. In a landscape where even the most seemingly secure platforms can be compromised, holding assets in personal wallets where private keys are controlled can significantly mitigate the risk of loss.

In 2023, the cryptocurrency sector was plagued by security breaches, which together resulted in losses of hundreds of millions. These incidents have spanned a wide range of platforms, from decentralized finance (DeFi) protocols to wallets and bridges, exposing various vulnerabilities in the cryptocurrency industry.

One of the most notable events was Atomic Wallet, which suffered a $100 million breach that affected more than 5,500 users. This incident was especially significant due to its ties to the North Korean cybercrime syndicate Lazarus Group.

Other platforms such as CoinEX and Stake.com faced similar attacks, losing millions in tokens, highlighting the urgent need for rigorous security assessments. Elliptic Research explained the following:

“In the last 104 days, Lazarus has already been identified as responsible for the theft of almost $240 million in crypto assets. Elliptic analysis confirms that some of the stolen CoinEx funds were sent to an address that was used by the Lazarus Group to launder funds stolen from Stake.com, albeit on a different blockchain.”

The scale of recent attacks has varied, affecting industry players large and small. For example, Mixin Network reported a staggering $200 million loss in a hack that targeted the database of the platform’s cloud service provider.

Meanwhile, Trust Wallet’s $4 million loss was due to a sophisticated social engineering attack that redirected funds to a wallet that only required a signature, using falsified know-your-customer documents.

This variety of hacks demonstrates the multiple ways in which cryptocurrency platforms can be vulnerable. Therefore, highlighting the crucial importance of self-custody in the cryptocurrency industry.

The Crucial Role of Education in Cryptocurrency Self-Custody

Adopting self-custody is not without challenges, primarily around the understanding and responsibility that comes with it. Garrido stressed that self-custody is the “correct and appropriate” way to avoid the loss of cryptocurrencies. However, with great power comes great responsibility.

It is essential for a person to understand cryptocurrency self-custody and its countless details. Without this understanding, they may initially find themselves embroiled in an unwinnable struggle. In fact, it is their knowledge that empowers them, offering them both security and peace in the cryptocurrency market.

Looking ahead, Garrido believes that easier-to-use interfaces and a deeper understanding of safe money could be the key to mass adoption. But he stressed that regulators cannot be expected to intervene and drive this trend, since “regulations are designed to control, not to protect.” Until society is governed by powerful parties, education must come first.

By Leonardo Perez

An Isolated Event, Says Ledger CEO

Audy Castañeda
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An Isolated Event, Says Ledger CEO

Ledger quickly resolves a vulnerability affecting multiple DApps, including SushiSwap and Revoke.cash, strengthening security on its platform. The security breach in Ledger’s connector library underscores the importance of constant vigilance in the crypto ecosystem.

On the morning of December 14, a former Ledger employee suffered a phishing attack that allowed a hacker to access his NPMJS account. The hacker published a malicious version of the Ledger Connect Kit, affecting versions 1.1.5, 1.1.6 and 1.1.7.

Ledger, upon realizing the problem, reacted quickly and managed to deploy a patch in just 40 minutes. However, the malicious file was active for approximately 5 hours, with an embezzlement period of at least two hours. This library vulnerability affected several decentralized applications (DApps), including SushiSwap and Revoke.cash.

Scope of Vulnerability

The security flaw affected the interface of multiple DApps that use the Ledger connector, such as Zapper, Phantom, Balancer, and Revoke.cash. The problem was detected and reported on December 14. Ledger acted quickly and, approximately three hours after the discovery of the breach, replaced the malicious version of the file with its authentic version around 1:35 p.m. UTC.

Incident Reports and Analysis

Matthew Lilley, CTO of SushiSwap, was one of the first to report the issue. It was realized that a commonly used Web3 connector had been compromised, allowing malicious code to be injected into numerous DApps. According to the analysis, the Ledger library confirmed the compromise, where the vulnerable code inserted the address of a drain account.

Lilley’s report on X went as follows:

“What happened? In short, @Ledger made a chain of terrible blunders.

1. They are loading JS from a CDN.

2. They are not version locking loaded JS.

3. They had their CDN compromised.

I would avoid using ANY dApps until their teams confirm that they have mitigated the attack.”

Precautions for Ledger Users

The Ledger connector is a library used by many DApps and maintained by Ledger. While adding a wallet drain does not necessarily result in automatic loss of assets, it could allow malicious actors to access these assets via browser wallet requests, such as MetaMask.

Lilley further stated via X that “ANY dApp which makes use of LedgerHQ/connect-kit is vulnerable. Don’t use ANY dApps until further notice. This isn’t a single isolated attack, it’s a large-scale attack on multiple dApps.”

Expert Statements and Proposed Solutions

Hudson Jameson, vice president of Polygon Labs, mentioned that even after Ledger fixes the broken code in its library, projects that use and implement it will need to update it before it is safe to use DApps that employ Ledger’s Web3 libraries:

“Ledger Library Exploit Explainer for Average Folks. What is going on with the recent alerts not to use dapps? A library that is used by many dapps that is maintained by Ledger was compromised and a wallet drainer was added.

What do I do as a normal user? Do not interact with any dapp front ends on websites for now. This is an ongoing situation and it is risky to use dapps currently if you don’t understand what backend libraries they use (…)”

Ido Ben-Natan, co-founder and CEO of Blockaid, warned Ledger users that they are not at risk if they do not transact and that pre-approvals cannot be exploited. He specifically noted that Revoke.cash is affected and recommended not interacting with it. He mentioned that the amount of funds impacted amounts to hundreds of thousands of dollars in the last two hours and that many websites are still affected.

By Audy Castaneda

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