Bitcoin is a decentralized currency, right? But this currency is centralized as far as its holding is concerned, according to Swiss Bank credit Suisse, 97% of all the bitcoins in circulation are held by just 4% of the addresses, often known as Bitcoin whales, these big players in the market are mostly miners and institutional investors.
Whales can move the market massively
Due to the reason that these 4% addresses are so powerful, they can move the market according to their will, although according to recent surveys they are holding Bitcoins for a longer period of time and not looking forward to sell in coming months. According to a survey in United States, the average price that these whales are looking for selling one bitcoin is more than $100000 per bitcoin, which shows that they are definitely not in a hurry to sell.
Bitcoin’s rise in 2017 and consolidation is 2018
Bitcoin started 2017 on a very good note and throughout 2017, the price increase from $1000 to as much as $20000 by the end of December 2017, despite of many corrections in year 2017, price rose to all-time new highs.
2018 started with a rough patch for Bitcoin, price decrease by almost 20% but the good thing is that price is consolidating by the time after institutional money came into Bitcoin market through CBOE and CME future contracts.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share