Tag: Bitcoin Cash

975 People File Lawsuit Over Bitcoin Cash

By Eli Ridder | @EliRidder

Angered users of Bitcoin.com have launched a lawsuit over what they describe as misleading tactics carried out due to Bitcoin Cash, or BCH, being labeled as the central Bitcoin and the original, BTC, being labeled as a secondary Bitcoin Core.

The blur between BCH and BTC has led some to purchase the Cash edition while they were seeking the original Bitcoin, according to frustrated buyers. Several users claimed that the actions are tantamount to fraud, a basis for their lawsuit.

The lawsuit, with its digital home at Bitcoin.com Lawsuit, is made up of a group of some 975 individuals “from influential industry leaders to community volunteers [and] contributors” working to protect users from fraud and recover lost funds.

The conflict between BTC and BCH is a long-lasting fight, with supporters of the secondary, minority version, Bitcoin Cash, aiming to establish the newer currency as the main and top-tier Bitcoin.

The founder of Bitcoin.com and major pro-BCH figure, Roger Ver, holds a small minority of support for his view of Cash being the real Bitcoin, but skeptics of cryptocurrency take the conflict as preceding a digital currency “crash”.

On his Twitter, Mr. Ver promotes the successes of BCH, posting graphics, information pages and news interviews, claiming that “Bitcoin Cash has the roadmap that lead to Bitcoin’s original success”, and will lead to future success for the cryptocurrency.

Ver has attempted to frame the so-called “fork”, or split of Bitcoin into BTC and BCH, as an equal split over a sub-shoot from the mainstream, with Core and Cash being compared as a permanent separation.

Featured Image Source.


Bitcoin Cash Prepares For 32 MB Hard Fork

By Mason Mohon | @mohonofficial

On Friday, Bitcoin.com reported that Bitcoin Cash will soon be facing a hard fork, per the actions of developers.

On May 15, 2018, Bitcoin Cash will hard fork and its protocol consensus rules will be updated.

Bitcoin ABC lead developer Amaury Séchet hinted at a fork a few months back. Séchet explained then that it would be better to have a fork after the new year. Fast forward to this week, and we can see that version 0.17.0 has been released, which has the code to change consensus rules.

Because there is no specific block height announced for the fork to occur at, it is expected that we will see a similar situation to the BCH fork from BTC last year. The method it will use is the MTP, or “Median Time Past” method.

So on Tuesday, May 15 at 12:00:00 UTC, 2018 when the MTP takes place with the most recent 11 blocks equal to or greater than 1,526,400,000, the very next block will activate the hard fork.

Bitcoin ABC makes clear that those running an ABC node should upgrade, and a testnet will soon be available for other clients. Furthermore:

The most notable change is the increase of the maximum block size to 32 MB — There are also several bitcoin script operation codes (op-codes) being added or reactivated.

They have informed the community not to fear. They plan that this hard fork will go smoothly, similar to the one in November of 2017.

Featured image source.

The Free Market of Cryptocurrency is Under Attack

By Ryan Lau | USA

Last week, after a hard-fought legal battle in both the House and Senate, the Republican tax bill passed by a narrow majority. Since then, conservatives claiming to advocate for a smaller government have touted the move as a political success, and the biggest tax reform in decades. Though it does reduce some personal and corporate income taxes, the bill is in fact incredibly disturbing on a much different ground. In fact, the very people who claim to be calling for a reduction in government size have just taken a major step in killing the future of cryptocurrency. This tax bill, in its reclassification of the 1031 Exchange law, has in fact done more to extirpate any trace of legal economic freedom than any bill since the Affordable Care Act.

What is the 1031 Exchange, and why is it important? Essentially, this measure, an important part of our tax code, allows for investors to defer capital gains taxes, in the event that an investor is selling a property with the direct goal of purchasing a new one. This has been widely used by house flippers and cryptocurrency traders alike. However, the tax bill has removed cryptocurrency from the list of acceptable 1031 references. Though the IRS has classified cryptocurrency as a taxable capital gain since 2014, it previously was only taxable when exchanging large amounts of it for fiat currency. Hence, reinvesting and exchanging between cryptocurrencies was treated as a 1031 exemption, though this is no longer true. Now, the IRS has permission to tax any and all exchanges between cryptocurrencies, which is an attack on individual liberty and economic freedom.

What does this mean for the future of cryptocurrency? Though small investors will not be significantly impacted due to the simple fact that capital gains tax has a minimum threshold, the impact of larger investments is astronomical. A day trader, who may exchange cryptocurrency multiple times in one single day, he may now find himself subject to a 20% capital gains tax for each exchange. This new implementation will naturally take away some of the perks of trading, reducing the demand for such exchanges. Though investors may still leave their money in one single cryptocurrency for extended periods of time, this action naturally has a smaller maximum profit margin. Even so, the IRS is tight their fists around long-term investments, with a new Senate bill that threatens the future of all cryptocurrencies recently passing.

Though some coins, such as Monero, have greater levels of privacy than others, this ability to hide from the state is quickly shrinking. Action must be taken immediately to protect the rights of cryptocurrency traders, whether it be done through the law or the market. Though investing cryptocurrency in a 401K or Roth-IRA would currently avoid these taxes, these funds have virtually no liquidity, and there are very few, bleak alternatives, such as surrender of citizenship. One should never have to give up their United States citizenship or invest in an offshore account in order to avoid mass theft on personal property, yet with the government’s recent actions, is this fate inevitable? The IRS is concerned with losing out on income, yet forget that they are merely a collective of individuals with no legitimate claim to any individual’s income. This must be recognized, and this bill altered, if we are to protect the rights of the individual.

Senate Bill Threatens Future of Cryptocurrency

By Andrew Zirkle|WASHINGTON

Hidden within the “Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017”, also known as S.1241, are far-reaching regulatory provisions expected to heavily affect users, traders, and holders of all types of cryptocurrencies, including Bitcoin.

The bill was pushed into a Judiciary Committee hearing on the 28th of November, without much notice to the public. The bulk of the 2-hour hearing focused on other elements of the bill, with the only mention of cryptocurrency happening very briefly during a discussion on money laundering. The hearing also featured a testimony from Kathryn Haun, who is on the Coinbase board of directors. She did not mention any information regarding cryptocurrency or its exchanges.

The bill, which contains 20 sections, was written under the guise of preventing illegal money operations. However, its relatively small changes to the legal status of cryptocurrency are expected to have far-reaching ramifications. Section 13 of the bill indicates that “digital currency” is to be added to the list of items that the US Treasury Department will consider as “financial institutions.” Although this change in legal definition may seem small, the impacts it would have for cryptocurrency users would be significant.

The owners of cryptocurrency would be required to report their holdings in cryptocurrency to the IRS as assets, and also may be required to pay a long-term capital gains tax of up to 25%, or regular federal income tax of up to 39.6%, on the revenue earned from selling cryptocurrency for more than its previous value. Holders of cryptocurrency who do not report their holdings as assets to the IRS would be subject to tax evasion penalties or jail time. The bill fails to address many of the complexities of digital currencies, including the tax protocol for exchanging US Dollars for cryptocurrency multiple times before selling back to dollars, as well as any tax burdens that may be held by cryptocurrency exchanges.

The measure also subjects holders of cryptocurrency to more government scrutiny, meaning individuals who are believed to be misrepresenting their crypto holdings or transactions could have their financial information seized by the IRS or subpoenaed in court. Section 13 of the bill also requires the “detailing a strategy to interdict and detect…digital currencies…at border crossings and other ports of entry for the United States.”  This means that even someone with basic electronic equipment could be questioned or searched by border and customs officials, as well as the TSA.

Although the bill does contain a lot of important updates to the criminal code regarding money laundering, many in the cryptocurrency community are calling for a re-examination of the bill itself and section 13, as it is widely believed that it does not properly account for the nature of cryptocurrencies in its attempts to regulate.

2018: The Year of Monero?

By Max Bibeau | USA

While 2017 has undoubtedly been the year of Bitcoin, with prices skyrocketing tens of thousands of dollars, 2018 may have different surprises in store. What really made 2017 important for Bitcoin, is that it became a household name. Instead of being a niche, nerdy technology, it became something that grandparents texted their kids about asking how to get involved.

2018 will absolutely bring more name recognition and price rockets for Bitcoin. However, Bitcoin may not be the biggest winner. Monero may see huge gains, both in price and adoption, as Bitcoin continues to face centralization issues and high fees.

Monero, founded in 2014, prides itself on being the most private, decentralized currency on the market. It is currently listed 8th by market cap, at about 3,800,000,000 USD. Its price is about $250 at the time of writing.

Monero treats privacy as the most important factor for a successful cryptocurrency – and as legislation continues to be proposed to Congress regarding the legality of cryptocurrencies, this could be very important. Monero assures users that they use the “latest and most resilient encryption tools available” in order to ensure all transactions are as anonymous as possible.

With a current supply of 15,449,232 XMR, it’s also incredibly undervalued compared to currencies like Bitcoin. It also has an interesting system regarding the total supply. Instead of capping at 21 million coins like Bitcoin, once 18.3 million XMR are in circulation, Monero will only be created at a rate of about 0.3 XMR per minute. This is meant to ensure miners continue to profit. In this scenario, the first year that the original Monero supply runs out, only about 1% of the existing supply will be introduced into the circulating supply. And every year after that, the percentage will continue to decrease, but never reach zero. This ensures that unlike Bitcoin, Monero miners won’t have to raise fees in order to turn a profit after the maximum supply runs out.

2017 was already a solid year for Monero – going from $13.79 in January to now peaking at $278.66 this year. The graph follows similarly the graph of Bitcoin in its 2014 years.

Even outside of price, Monero has seen increasing adoption this year, and it will likely increase next year as well. Black market dealers have started to catch on to Monero’s anonymity and have begun accepting it often. This is extremely important, as the black market is where Bitcoin got its start as well. It’s only a matter of time before white and grey market shops begin to adapt as well.

So, while 2017 was the year of Bitcoin, it’s likely that 2018 will be known as the year of Monero.