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Taxation of Crypto Currencies

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Internal revenue service (IRS) in United States has released new guidelines regarding Taxation of Crypto currencies as crypto market is giving massive gains to investors.

IRS has stated that only 800 Americans have stated their gains from Crypto market in their Tax filings thorough 2013-2015

The Internal Revenue Service (IRS) is the revenue service of the United States federal government. The government agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue, who is appointed to a five-year term by the President of the United States. The IRS is responsible for collecting taxes and administering the Internal Revenue Code, the main body of federal statutory tax law of the United States. The duties of the IRS include providing tax assistance to taxpayers and pursuing and resolving instances of erroneous or fraudulent tax filings. (Source Wikipedia)

Rise of US investors in Crypto Market

Crypto Market is on the rise and everyone wants to be a part of it, investors wants to include Crypto currencies in their investment portfolios to increase their gains, US bitcoin exchanges are reporting staggering numbers as they are adding thousands of new clients on daily basis, Coinbase, which is one of the well known US exchanges was recently ranked into top 10 on the app store beating companies like Netflix, which shows the growth of Crypto currencies in United States.

IRS is worried about Tax evasions through Crypto currencies 

It is estimated that millions of U.S. taxpayer bitcoin/transactions have occurred, yet the IRS has stated that only 800 Americans had reported their bitcoin gains from 2013 through 2015.

Taking notice of what appears to be widespread tax noncompliance, the IRS is pursuing enforcement actions, and the IRS Criminal Investigation Division believes that virtual currency has increasingly become a tax evasion issue. Consequently, the tax defense community can expect more enforcement actions in the future.

In that regard, the IRS recently caused a U.S. District Court in San Francisco to issue a “John Doe Summons” to the Coinbase virtual currency exchange. The Coinbase summons seeks a wide variety of records including, for example, taxpayer identities for all of its customers engaging in transactions of $20,000 or more from 2013 to 2015, transaction logs, and correspondence.  Accordingly, taxpayers using virtual currency transactions involving Coinbase who are not in tax compliance should consult experienced criminal tax counsel as soon as possible for advice.

With respect to the substantive tax aspects of crypto virtual currency, the IRS addressed emerging issues of the growing digital economies and how existing general tax principles apply to transactions using virtual currency to pay for goods or services, or held for investment when it issued IRS Notice 2014-21.

IRS Notice 2014-21 begins by acknowledging that virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as convertible virtual currency. Bitcoin is one example of a convertible virtual currency – Bitcoin can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies.

The Notice goes on to state that in general, the sale or exchange of convertible virtual currency or the use of convertible virtual currency to pay for goods or services in a real-world economy transaction has tax consequences that may result in a tax liability.

So for those people in United states who has been part of the Crypto market for some time and haven’t mentioned the gains in their Tax returns need to show their gains and pay taxes in order to avoid any legal issue as Government is looking forward to monitor all the crypto related activities.

 

 

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6 Cryptocurrencies moves up more than 10% in the market

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The world of cryptocurrency is very uncertain. However, the cryptocurrency markets are more or less stagnating. With a market cap of $ 217 billion, there is no obvious movement in the last few days when it comes to cryptocurrency markets. Well, that does not mean that none of the cryptocurrencies are achieving higher market cap.

While mainstream cryptocurrencies are standstill there are a large number of them which are buzzing around. I analyzed the top 100 cryptocurrencies and found that there are at least 6 cryptocurrencies which are up by more than 10% today. Though these cryptocurrencies are not much known but still the trend they are showing is pretty much interesting. I go into the details of these cryptocurrencies below.

1.Loom Network (LOOM):

Loom Network (LOOM) is the 80th most valued cryptocurrency in the crypto market. Currently, it is trading around $ 0.138. The market cap is around $ 82.31 million. It has increased by a whopping 24% in the past 24 hours with volumes of $ 11 million.

2. Aeternity (AE):

Aeternity (AE) is positioned at the 31st number when it comes to cryptocurrencies by market cap. However, it is moving rapidly in the list. It is evident from the fact, that in the past 24 hours, it has surged by 16%. The volumes in the past 24 hours have reached around $ 31 million.

3. Digitex Futures (DGTX):

Digitex Futures (DGTX) is currently ranked at 97th position when it comes to cryptocurrency market cap. It’s current market cap is around $ 62 million. In the past 24 hours, it has increased by 16% with the volume of almost $ 1 million. It is currently trading around $ 0.089.

4. ETERNAL TOKEN (XET):

ETERNAL TOKEN (XET) is currently trading around $ 1.86. In the past 24 hours, it has surged by 14%. The current market cap of this cryptocurrency stands at around $ 112 million. In the past 24 hours, it has witnessed volumes of around $ 0.43 million

5. Pundi X (NPXS):

Pundi X (NPXS) is rendered the 41st position when it comes to cryptocurrencies by market cap. The current price of the cryptocurrency is around $ 0.001698. Moreover, it has increased by 11% in the last 24 hours. The market cap of the cryptocurrency stands at around $ 213 million. However, when you take a look at the volumes in the last 24 hours, they have risen a lot and are currently at $ 12.66 million

Read Also: Pundi X startup makes the first phone call using Blockchain technology

6. Bytom (BTM):

Bytom (BTM) is at the 43rd position when it comes to cryptocurrency market cap. The current price is around $ 0.204. It is trading up by 10.5%. The market cap is around $ 205 million.

 

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72% of the institutional investors believe Cryptocurrency price would rise, Survey

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According to a new survey conducted by Fundstrat Global Advisors, 72% of institutional investors believe that cryptocurrency prices would rise in the case of a decline in global economic activity.

Institutional investors hope that non-governmental and retail market-related investments would be seen as a safe haven due to their distance from traditional markets.

The Fundstrat survey results were corroborated by a Twitter survey that analyzed the similar results, with 59% of respondents claiming that they expect cryptocurrencies prices will rise during a recession.

To analyze it more closely, Cryptocurrencies are normally associated with an anti-establishment movement that started after the 2008 global financial crisis. The movement is known for reducing the global trust in traditional banking systems and governments. Well, it was the time when which led to the creation of Bitcoin by the Satoshi Nakamoto, whose goal was to empower people by allowing them to be their own bank, my own bank I mean decentralized currency.

Despite cryptocurrency’s ties to anti-establishment movements, some analysts disagree with the survey results, explaining that because cryptos are seen as high-risk investments, their success is typically tied to periods of times where investors feel comfortable risking their money.

Mati Greenspan, a senior market analyst at eToro, explained that investors should rush to conclusions regarding how the crypto markets would respond to a recession, reports MarketWatch.

“I don’t think it’s so binary. If we look over the past few years crypto has had a unique correlation with high-risk assets. They have risen as investors sought additional risk,” he said.

Greenspan also explained that the belief expressed in the Fundstrat and Twitter survey are understandable, saying:

“However, I do see why investors think that. Bitcoin was built on the ashes of the financial crisis to provide an alternative to fiat money run by governments and banks. If there was a catalyst that would make people question the role of these institutions then I can see them moving higher.”

Tom Lee, the managing partner at Fundstrat explained that:

“On Twitter, 46% chose XRP as their favorite and 31% said it made “least sense.”—no other token came close. Even 28% of Institutions also said XRP made the least sense and zero institutions picked it as their favorite token.”

The Fundstrat survey was conducted between September 30 and October 3 and consisted of 9,500 responses from investors. The data regarding the institutional views of the cryptocurrency markets was conducted during a dinner event with representatives from 25 financial institutions. However, it remains unclear which institutions were present for this event.

However, the assumptions and results of the survey are on one side but only the time will reveal what would be the fate of cryptocurrency.

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Would Litecoin price will be able to reach the Bitcoin price?

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The market cap position of Litecoin is getting high and achieving new developments. Investors have started taking more interest in it and it is going up and up. But how high can Litecoin go? There are many questions that arise in mind. Could Litecoin reach the same high as Bitcoin? LITECOIN is soaring in price. But could the cryptocurrency reach the same high as rival bitcoin?

Although some altcoins are earning good and global relevance with each passing day, Bitcoin is still hands down the most prominent cryptocurrency in a market. However, that does not mean that there is no space for altcoins to grow, and solidify their spots in the successful crypto market. Among them, Litecoin seems to be the preferred option for savvy investors in the crypto universe and it is no doubt leading the race among all.

Litecoin can be defined as a peer-to-peer cryptocurrency and open source software project. It operates under the MIT/X11 license, and Charlie Lee created and developed it. It is also a decentralized digital currency just like Bitcoin. It means it also does not involve any central or human involvement. The system allows the creation and transfer of tokens, based on an open source cryptographic protocol.

The latest release of Litecoin is the 0.15.1 version, from March 2018. C++ is the code language. It’s compatible Operating Systems are Windows, OS X, Linux, Android.

Litecoin was produced in October of 2011 as a Bitcoin fork. It was released in that month via an open source client by Charlie Lee, who used to work in Google. The network became active a week later. Since its inception in the crypto market, Litecoin kept on growing and, during November 2013, its aggregate value increased considerably, and experienced a 100% leap within 24 hours. Litecoin made its spot as one of the preferred altcoin options for investors and traders around the world, reaching a $1 billion market capitalization in November 2013.

2017 was a crucial year for Litecoin. For starters, they became the first of the significant cryptocurrencies to adopting the SegWit (Segregated Witness) system, which separates transaction signatures to increase the block size limit of the blockchain. Also, in May, it served as the host platform that allowed completion of the initial Lightning Network transaction, with 00000001 LTC going from Zürich to San Francisco in less than one second.

What are your thoughts about Litecoin? Will it reach the new heights? Let us know in the comments section. 

 

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