Sunday, March 30, 2014

White House Petition to AMEND IRS NOTICE 2014-2 Taxing Virtual Currency Bitcoin

In response to the IRS announcing how they will treat Bitcoin and virtual currencies for tax purposes a petition to the White House, has been started to get it amended. This is Due to the overly burdensome way miners would have to keep track of earnings and unclear procedures for doing so.
The petition has just been started, so it needs lots of signatures to get looked at by the White House and taken seriously.
Here is what the petition states.
 
WE PETITION THE OBAMA ADMINISTRATION TO:
AMEND IRS NOTICE 2014-2Taxing virtual currency/bitcoin as property stifles new technology & creates untenable requirements
The IRS Tax Notice 2014-21 clarifies the treatment of Virtual Currencies(“VC”) such as Bitcoin. The guidance states that digital currencies are to be treated as property. Thus, Capitals Gains must be paid on every transaction. This treatment of VC is overly burdensome as it will create onerous record keeping issues and unnecessary costs that will stifle the development and advancement of this important technology. Bitcoin is regularly used to pay for items and services, as it is a safe way to transfer payment. Under this interpretation, when Bitcoin is spent, the owner will have the tenuous responsibility of calculating their capital gains or losses, as well as the Seller of the goods or services. We ask that the IRS creates a new classification for VC’s that removes these challenges.
Created: Mar 28, 2014
White House Petition
White House Petition





Especially for miners the IRS’s vague requirements make it extremely difficult to follow. Tracking each transaction which for even a small scale miners can be in the 1000′s per month, keeping track of each one individually would be a monumental task. There is also no guidance as to where you would get the official rates at the time of the transaction. There are several worldwide markers for Bitcoin value and all very in what they report at any given time..
I signed the petition I hope all of you get out and do so, as well.

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Thursday, March 27, 2014

Latest Bitcoin China News

So what's actually happening in China that's causing Bitcoin / Litecoin to drop?

On 3/21, several media reported that the People's Bank of China* would ban all the bitcoin trading in China. This was later proved to be wrong. The People's Bank of China made a announcement on n weibo (the Chinese version of twitter) that this was a false interpretation. But it didn't come with a correct version.


On 3/26, one of the largest financial media, Caixin, confirmed the actual message sent by People's Bank of China. It requires that all the banks and 3rd party payment services stay away from bitcoin trading platform, making it impossible to fund or withdraw money. The deadline is 4/15.

*People's bank of China is actually NOT a bank. It is a regulatory agency controlling all the financial activities.





Bitcoin China Chart Explains It All

Here's the neverending FUD nicely explained in this Bitcoin China Chart. lol click to expand ...

https://www.tradingview.com/x/S4KBmu3G/

Tuesday, March 25, 2014

Mt Gox Finds Lost Bitcoin? 670,000 More Possibly Found!

Could it be true?

On March 4th, a few days before MtGox found Bitcoin totaling 200,000 of their ‘lost’ funds, this was Tweet’ed:

He followed that up with:

Just now, on March 25th, his account Tweet’ed on the topic a second time:

This could mean a MASSIVE spike in the Bitcoin markets, stay tuned ...





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Monday, March 24, 2014

How to Accept Bitcoin

You'll learn how to accept Bitcoin rather quickly once you realize the following ...

Mark your calendars for April 8. It’s been a target day of dread for thousands of companies’ IT departments counting down the days before they cross the “finished” line. There are currently armies of IT folks throughout the world in a race to upgrade Microsoft Windows XP operating systems to modern versions of Windows before Microsoft officially pulls the plug. 

For the bitcoin community, this matters because of one extremely important factor: PCI compliance. April 8 is the last date Microsoft will publish the latest round of security fixes for Windows XP known in the IT departments as the monthly “Patch Tuesday”. The first reported vulnerability after that date means the computer is unsecured and no longer compliant with the laws established by the PCI organization that grants authority to use the credit card payment networks.

With no legal ability to process credit card transactions, businesses that rely on credit cards to run their operations could be in serious jeopardy. The backup plan has traditionally been cash, or written checks for the few that continue to accept them. Since the internet age, credit cards and Paypal have been the only payment options available to merchants. Many merchants have been in a state of denial about the Windows XP and PCI Compliancy predicament. Without a large IT organization to advise them, smaller companies may find this deadline comes as an unwelcome surprise.
So ... it may be a good time to  hold on to your bitcoins, or better yet – stock up.

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Bitcoin Startup Investments Surpass $117 Million

Bitcoin startups in North America have received the lion’s share of the digital currency’s venture-capital investments, drawing $98.6 million to date, according to a report from researcher Aite Group LLC.
Investors have funded 19 Bitcoin startups in the region, compared with nine in Asia totaling $13.3 million and three in Europe with $5.6 million, according to the report by Boston-based Aite, which surveyed merchants, banks, regulators and Bitcoin companies.
Bitcoin, the most popular digital currency, is drawing attention from institutional investors after evolving over five years from an intellectual novelty into a global financial network. Pantera Capital Management LP, the investment firm run by Dan Morehead, disclosed in a December regulatory filing that it had formed a $147 million investment fund for Bitcoin.SecondMarket Inc. said yesterday it’s seeking approval for its Bitcoin Investment Trust to trade publicly by year’s end.
Many technical issues need to be worked out prior to mass adoption, Aite said. The Bitcoin network needs to process more transactions faster, and to be more transparent so as to allay regulatory concerns, the researcher said.

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The Coming Bitcoin Mass Adoption

The Bitcoin Tipping Point is coming and it will be the Big Bang of disruption in financial services, money and payments as we know them!
I often think about the “tipping-point” in Bitcoin’s journey to mass adoption and regularly as myself several questions. When will it be noticeable and what will trigger it? Has it already begun or if not, how far away are we? How do you define or measure “mass adoption” of Bitcoin?
A bitcoin meme of Morpheus and Neo posted online recently got me thinking again about how Bitcoin’s true exit most likely itself. Once a significant number of people begin to realize this idea, the tipping point may have arrived!
Even now, I can and regularly do pay for almost anything with bitcoin; if not directly, then with a convenient 3rd party concierge service such as Snapcard. Even still, in my opinion, Bitcoin isn’t even close to mass adoption considering the latest studies that estimate about 2 to 3 million people actually own or have owned bitcoins. The majority of those people own less than 1 bitcoin!