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Banning Bitcoin mining in US would be an act of legislative stupidity

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China’s crackdown on Bitcoin [BTC] mining and trading activities in the region was being considered as a windfall for countries such as the US. A new era now seems to be dawning for the global mining industry. However, an unfavorable regulatory climate is a big hurdle towards achieving this.

The United States’ cryptocurrency industry has pondered how an increased regulation might look like. Last week, it got some answers in the form of the “Digital Asset Market Structure and Investor Protection Act of 2021.” However, the community was not really happy about it. According to CoinCenter’s Jerry Brito, the new draft of the crypto bill that’s been put before the House of Representatives lacks clarity.

His tweet regarding the same read,

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“We didn’t get the language we wanted in the final bill text. It’s better than where it started, but still not good enough to clearly exclude miners and similarly situated persons. [..] Miners will have to argue in court if the IRS demands they report, but it would be better to avoid that possibility. If Congress intends to exclude them, they can do so very easily.”

2/ STARTING TOMORROW THERE WILL BE AN AMENDMENT PROCESS WHERE CHANGES TO THE BILL CAN STILL BE MADE. WE’RE WORKING WITH OUR FRIENDS AND ALLIES IN THE SENATE TO MAKE THAT HAPPEN.

— JERRY BRITO (@JERRYBRITO) AUGUST 2, 2021

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Coin Metric co-founder, Nic Carter, also weighed in and said,

“Banning mining in the US would be an act of legislative stupidity on a par with prohibition. Hopefully Congress is able to meet a higher standard than the CCP but I’m not optimistic.”

This is not the first time that the language of the draft has been questioned. Ron Wyden, who happens to be the chairman of the Senate Finance Committee asserted that the language in the infrastructure bill fails to understand how the workings of the underlying technology. The senior Democratic Senator also said that the bill in question attempts to apply brick and mortar rules to the internet while referring to its crypto tax reporting requirements.

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AMERICANS AVOIDING PAYING THE TAXES THEY OWE THROUGH CRYPTOCURRENCY IS A REAL PROBLEM THAT DESERVES A REAL SOLUTION.

— RON WYDEN (@RONWYDEN) AUGUST 1, 2021

The objective of the new Bitcoin Bill

“The Digital Asset Market Structure and Investor Protection Act of 2021,” has managed to touch some crucial areas that were otherwise considered gray that are very predominant in the cryptocurrency industry of the US.

The main objective behind the bill is to implement statutory definitions for digital assets and digital asset securities. It also aims to bring digital assets under the scope of the Commodity Futures Trading Commission [CFTC] while at the same time bring the latter under the purview of the Securities and Exchange Commission [SEC].

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Both the regulatory entities would be responsible for providing legal clarity in terms of the regulatory status of the top 90% of crypto assets by market cap as well as trading volume.

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Bitcoin Forecast and Analysis October 25 — 29, 2021

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Bitcoin BTC/USD ends the trading week at 63433, continues to move within the growth and bullish channel. However, while above the local maximum, the quotes are in no hurry to go further up. Moving averages indicate a bullish trend. Prices went up from the area between the signal lines, which indicates pressure from the buyers of the asset and the potential continued growth of the asset’s quotes. At the moment, we should expect an attempt to develop a correction and a test of the support area near the level of 53665. Where can we again expect a rebound and a continuation of the rise in the Bitcoin rate with a potential target above the level of 76505.

Bitcoin Forecast and Analysis October 25 — 29, 2021

An additional signal in favor of the growth of BTC/USD quotes in the current trading week October 25 — 29, 2021 will be a rebound from the lower border of the bullish channel. The second signal will be a rebound from the support line on the relative strength index (RSI). Now the values ​​of the RSI indicator are testing resistance, so it is too early to expect the cryptocurrency to grow directly from the current levels. Cancellation of the Bitcoin growth option will be a fall and a breakdown of the 47055 area. This will indicate a breakdown of the support area and a continued fall in BTC/USD quotes with a potential target below the level of 36605. Confirmation of the development of the bullish movement will be the breakdown of the resistance area and closing of quotes above the level of 67055.

Bitcoin Forecast and Analysis October 25 — 29, 2021

Bitcoin Forecast and Analysis October 25 — 29, 2021 suggests an attempt to support area near the level of 53665. Then, the cryptocurrency will continue to rise to the area above the level of 76505. An additional signal in favor of the growth of the Bitcoin rate in the current trading week will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to raise Bitcoin cryptocurrency quotes will be a fall and a breakdown of the 47055 area. In this case, we should expect a continued decline with a target at 36605.

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China Banning Bitcoin Is a Big Mistake, Says Dan Held

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  • Bitcoin OG, Dan Held, tweeted, “China banning Bitcoin may be the biggest geopolitical mistake of the century.”
  • His tweet sparked interesting conversations on the Twitter space, showing that people have varied opinions on the matter.

Dan Held, one of the OG supporters of the major digital asset, Bitcoin (BTC), initiated an interesting topic on Twitter yesterday. He says that China’s decision in banning BTC might be the ‘biggest geopolitical mistake of the century.’

China surprised the crypto space when it suddenly decided to ban BTC in the country. As this ensues, more crypto platforms are exiting the country and continuing their business elsewhere.

Of course, this decision created a massive butterfly effect in the market. There was some period this year that the market saw a drastic change from China’s move.

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With that said, as Dan Held said, China’s decision may be a big mistake, indeed.

The Twitter crypto space, moreover, had different opinions on the matter. One account, @CurrencyWar1, said that “China’s CBDC will be the no. 1 digital currency in 2 years.” Another one, @theswampgirlUSA, said that “They [China] want the Chinese digital yuan to be a global reserve currency, not $BTC. Their #cbdc will incorporate #AI and social credit tracking so they can know everything about everyone.”

On the other hand, some are being speculative on the matter. For example, @Nuno_CFerreia said, “China is currently the number 2 holder of BTC… it doesn’t look like they banned it, they just want us to think they did.. the question is, why?”

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Meanwhile, some took this as a positive thing. @jdubya said,

For China, yes. But it was the next positive step in the evolution of Bitcoin. It was not meant for one country to control so much of the mining resources. Better world distribution means a stronger network.

In any case, we will see if Dan Held’s opinion is true in the coming months or perhaps years. For now, the public is yet to see how China banning BTC will affect the country and the entire market.

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At the time of writing, BTC’s price increased by 0.56% in the last 7 days and trade at around $61,000, according to CoinMarketCap.

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Binance Moves 36,306 BTC Worth Staggering $2,214,339,246, Pays Just $3.47 in Transaction Fees

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Global crypto exchange Binance just shuffled a 10-figure sum of Bitcoin between wallets as BTC clings to the $60,000 level.

Crypto data tracker BitInfoCharts spotted a massive transaction to the tune of 36,306  BTC – worth over $2.21 billion at the time of writing.

The transaction was first broadcast to the Bitcoin network on October 23rd at 4:41 AM GMT+8. The crypto was sent in a batch that includes a request to send 35,236 BTC ($2.15 billion) and 1,069 BTC ($65 million) along with two other transactions involving less than one BTC.

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Source: Blockhain.com

One wallet received 20,000 BTC, worth more than $1.2 billion, less than nine minutes later at 4:49 AM GMT+8. Around the same time, another wallet collected 16,306 BTC ($993.39 million).

The Binance wallet that sent the 35,236 BTC was the 24th richest Bitcoin wallet in existence prior to the transaction.

All in all, Binance paid just 0.00005694 BTC in fees, worth $3.47.

Crypto exchanges occasionally move large batches of digital assets around for security purposes.

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All of the sending and receiving wallets were identified by BitInfoCharts as the exchange’s cold wallets. Cold wallets are physical hardware wallets that can keep digital assets completely offline. They are generally considered more secure than hot wallets, which are software-based and connected to the internet.

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