The beginning of 2019 has started well with Bitcoin (BTC) gaining 7% in the past week to trade at around $4,000 levels. Along with Bitcoin, altcoins such as Ethereum (ETH), Litecoin (LTC), Tron (TRON), and Cardano (ADA) have gained between 13% and 21% in the same period. The reason for the reversal is believed to be the movement of 2521 Bitcoins worth about $10.1 million from cryptocurrency exchange to a private wallet. The market considers this transfer as a signal to a temporary end to sell-off that started in November. Technically, Bitcoin (BTC) has to cross above the level of 4370 in order to turn bullish in the medium-term. Until then, all rallies should be used to exit the long positions.
Government level initiatives
FSA and ETF crypto tracking
Japan’s Financial Services Agency (FSA) is exploring the possibility of allowing ETF tracking cryptocurrencies instead of future contracts. Precisely, the regulator is considering permitting Bitcoin ETF, instead of Bitcoin and Ethereum futures’. In this regard, the agency is currently studying the interest of the cryptocurrency industry in establishing ETFs that track digital currency.
Notably, the US Securities and Exchange Commission had rejected applications related to Bitcoin ETFs, including the one proposed by the Winklevoss twins who own the Gemini exchange. Many crypto experts believe that ETFs could provide the much-needed legitimacy to crypto products while making them more reachable to those who have a trading account with a broker.
Marriage certificates stored on the blockchain
The use of blockchain for issuing marriage certificates is another example of blockchain being accepted slowly but steadily in real-world scenarios. In the US, Washoe County, Nevada has started storing marriage certificates on the blockchain.
For the first time in April of 2018, Washoe County stored a marriage certificate on the blockchain. Those who marry in that County are given access to the blockchain-powered platform to view and download their marriage certificate in digital format through their computer or smartphone. The County uses the Ethereum blockchain to store the marriage certificates. Furthermore, it uses smart contracts to safeguard the documents.
As of date, 950 marriage certificates have been issued to couples residing within and outside the district of Nevada. More importantly, couples interested in this service will be able to receive their marriage certificate in less than 24 hours via email. Previously, it took between seven and ten days for the marriage certificates to be delivered to couples.
Private sector initiatives
ConsenSys and AMD
The Ethereum-based product development startup, ConsenSys, has entered into a joint venture with US-based chip manufacturer AMD to develop a cloud computing framework based on the blockchain.
The architecture, named W3BCLOUD, will be created through a joint effort involving AMD, ConsenSys, and United Arab Emirates-based investment firm Halo Holdings. W3BCLOUD will be designed to provide “optimized datacenter solutions for emerging blockchain workloads.” Software programs built for enterprises and government organizations will be able to use the W3BCLOUD solution. Being the “first independent cloud computing blockchain” enabled framework, W3BCLOUD will offer “increased transaction throughput” with improved security.
Overstock to pay their taxes with Bitcoins
In November of 2018, the government of Ohio approved the payment of taxes using Bitcoins, and the online retail giant Overstock is now taking advantage of that facility. Overstock is planning to pay a portion of its tax obligation using Bitcoin. Overstock, an early adopter of Bitcoin, started accepting the cryptocurrency in 2014. It is a must to pay capital gains tax on cryptocurrency payments.
Therefore, Overstock will have to pay additional tax on the Bitcoins used to pay taxes. However, Overstock may gain this time due to the decline in the price of Bitcoin. If Overstock had bought Bitcoins at a higher rate than the current traded price, then the capital loss can be offset with the tax obligation.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
