With the unexpected death of Gerald Cotten, CEO and founder of Quadriga Fintech Solutions Corp., his widow Jennifer Robertson has found herself in the middle of a complicated legal battle. She is facing off in defense of her husband’s legacy against former Quadriga CX investors and customers. Robertson never thought this was going to be a simple process. She has admitted that she has little to no experience dealing with Bitcoin, let alone running a company. But what came as a surprise for her was the amount of blowback she is receiving.
Cryptocurrency often breeds a great deal of uncertainty. After all, many places still view it as the new kid on the block(chain). Clearly, respect for cryptocurrencies has increased. After all, some governments and companies are going through great lengths to attempt to control it and profit from it. There is still a lot of bias against using these paperless currencies; some still look down at cryptocurrencies with suspicion and distrust. This is especially due to the fact that cryptocurrencies are decentralized and often anonymous. Nevertheless, the adoption and value of those currencies have skyrocketed. But soon, Canadian company Quadriga CX may not find much of either.
Continue reading “Law Firms Rush to Represent Quadriga CX Clients”
Mason Mohon |@mohonofficial
The Bitcoin naysayers live their life in glee these days, happy that cryptocurrency is finally dead! Well, dead again. Clearly, if something can die multiple times, its death carries far less weight. Cryptocurrency, along with Bitcoin, is in a continuous cycle of death and resurrection. In the short term, this makes it a scary investment. In the long term, though, Bitcoin has a lot of potential and is likely to become a part of the dominant social order. It will do this along with its underlying technology: blockchain.
By James Sweet III | United States
In June, the House Ethics Committee required members of Congress to disclose their cryptocurrency holdings alongside the rest of their financial assets. They did so in an attempt to increase transparency in government affairs. Now, two months later, Representative Bob Goodlatte, Chair of the House Judiciary Committee, is making history. He has just become the first member of the United States government to openly report investments in digital assets.
Goodlatte filed the form in May, before the new rule came into effect. Now, according to his released financial disclosure form, he holds up to $80,000 in cryptocurrencies. Currently, Bitcoin is his largest investment. The congressman also holds smaller amounts of Ethereum and Bitcoin Cash.
Goodlatte may have invested in digital assets because of his son, Bobby Goodlatte Jr. He was an angel investor in Coinbase, one of the largest and most mainstream cryptocurrency exchanges. Goodlatte Jr. has engaged in price speculation in the past. He also has taken a strong interest in defending blockchain technology, which may have influenced his father.
Other Officials Holding Cryptocurrency?
While Goodlatte is currently the only member of Congress to disclose his digital assets, it is expected that many more will reveal their holdings, as now required. For example, Rep. Jared Polis was a co-founder of the Congressional Blockchain Caucus (CBC), and is one of the richest members of Congress with an estimated net worth of $122 million. Rep. Gianforte is the second richest member of Congress with an estimated net worth of $135.7 million. He is also a member of the CBC. Both have openly voiced support for the blockchain, which makes it likely that they have invested in crypto.
With members of Congress investing into the blockchain with their own funds, the future looks bright. The currency has already started to face better conditions in the legislative system, and with these updates, we can only expect this pattern to continue.
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By Mason Mohon | @mohonofficial
Crypto FOMO hits everyone every once and a while. It hit me when Bitcoin Cash was added to coinbase (I didn’t buy, thank god), and it just hit the United States Congress.
The 2018 Joint Economic Report holds a tasty bit and a sliver of hope for those looking to expand the crypto empire everywhere (skip to page 202).
It compares the buzz of the blockchain to that of the internet in the 90’s. The geekiness of it, the new platform promulgated by the early adopters, and the space for an entrepreneurial spirit let this ring phenomenally true.
It goes on to describe how blockchain and Bitcoin work, paying accurate homage the tech.
The report even acknowledges one of the most profound potentials:
Its initial application as a payment medium prompted questions about whether it might replace national currencies and challenge the U.S. dollar
This realization is enough to throw up hands in victory! The United States government acknowledges the potential. Yet, it doubles down on the fact that it is still iffy:
Former Federal Reserve Chair Janet Yellen considered Bitcoin a “highly speculative asset” that is not considered legal tender. Bitcoin itself has technical and economic limitations that hinder its use as a medium of exchange. Transaction processing time and fees on the Bitcoin network keep increasing and render Bitcoin uneconomical for common purchases.
Sure, Bitcoin has some issues as a currency. That is what free-market competition is for. Put your trust in the market, choose wisely as a consumer, and you will soon learn what currency is right for your needs.
On the potential death of fiat:
Some critics of currencies controlled by government fiat welcome cryptocurrencies because their supply is preprogrammed and perceived as unchangeable.For example, only 21 million bitcoins will ever be issued and the last fraction of a bitcoin will be issued in approximately 2140.
On Initial Coin Offerings:
An ICO allows developers to raise funds for a project by issuing tokens to use on that project. For example, if a group of economists wants to exchange papers, research, analysis, and review or editing services, developers would create an online platform to allow each person to have an account for 209 conducting these activities.
And on smart contracts as a new arbitration method:
While smart contracts might sound new, the concept is rooted in basic contract law. Usually the judicial system adjudicates contractual disputes and enforces terms, but it is also common to have another arbitration method, especially for international transactions. With smart contracts, a program enforces the contract built into the code.
The revolutionary power of blockchain is not going to be held back, and even the government knows it.
Blockchain technology offers a decentralized, secure, and efficient way to store almost any form of data across multiple platforms. Developers, companies, and governments recognize the potential and have already starting to implement blockchains for many different uses. For instance, health care providers, patients, and policymakers continue searching for portable and secure ways to store medical records digitally.
The report goes on to touch on Coinbase and MtGox, realizing a few setbacks in the history of cryptocurrency. It discusses taxing crypto as compared to taxing currencies versus taxing property:
Bitcoin’s rise introduced an ever-growing question about how these assets should be taxed. For example, dollar fluctuations are not taxed. If a person held cash for a number of years and the purchasing power went up relative to other currencies, the appreciation would not be considered taxable if the dollar is later exchanged for foreign currency. However, the tax code treats foreign currency as property rather than currency.
There are various regulatory questions it poses because we are dealing with a new ecosystem. After the conclusion, it urges policymakers to become aware of the blockchain when acting, and for regulators and entrepreneurs to work hand-in-hand and get the most out of this creation.
The government may be turning in a favorable direction, which is a good sign, seeing as that many cryptocurrencies are building back up from a long-lasting dip.