a strongly growing cryptocurrency you should consider –
Cryptocurrencies are slowly taking over the currency system in the world. If the growth of cryptocurrencies continues at this rate, digital currencies will be fully active in many countries in a few years. As of today, there are thousands of cryptocurrencies in the world. Crypto traders need the “market prediction skill” to know which digital currency to invest in. Let us place the popular Bitcoin and Ethereum aside, there is a four-year-old fast-growing cryptocurrency called PLATINCOIN.
You must have heard about Platincoin if you have a keen interest in cryptocurrencies. At the launch of this digital currency (end of 2016), its price was extremely low. Two years later, by 2018, it was selling for about $0.0019. Nevertheless, as of today, the price of Platincoin is $5.55 on CoinGecko. However, Crypto Exchange Rates and CoinMarketCap reports that Platincoin is currently selling for $2.24 and 2.27 respectively.
Whatever the case is, this cryptocurrency has seen a strong positive growth in a very short time. For crypto geeks who do not know about Platincoin, you may want to study this cryptocurrency. According to official reports, Platincoin currently has over 600,000 users globally in about 120 countries.
Since the launch of this crypto, it has seen a massive 5000% growth. This is quite good for a four-year-old coin. Even Dogecoin, with all the hype by Tesla’s CEO, Elon Musk, does not have a growth rate of above 2000%. This shows how dogged Platicoin has been in the market.
The founder of Platincoin is Alex Reinhardt and regarding his coin, he said “PLATINCOIN users receive a printing press, only it prints not paper dollars, but the digital cryptocurrency PLATINCOIN. It can be exchanged for the same dollars or other cryptocurrencies on numerous exchanges.”
“PLATINCOIN has been on the market for over four years, and this is a solid age for the blockchain project industry. Most do not even live up to two years,”…“PLATINCOIN is a cryptocurrency for mass use that was created to generate a passive income. It aims to provide an opportunity to maximize earnings and build a passive income based on blockchain technology without special technical skills, regardless of age, education, and income level!”
Platincoin has a couple of infrastructures that make it run smoothly. According to the company’s official website, here are some of the company’s infrastructures
PowerMinter: This is an innovative product that enables users to get an annual return of 30%. However, users have to ensure close interplay of different systems and subsystems.
PLC Secure Box: With this minicomputer, uses can get a return of up to 10% annually. The patent filings on this technology already have TUV certification.
ATM cryptomats: These are simply Crypto ATMs that allow users to get fiat money for coins.
PoS Terminals: This allows users to pay for goods and services with Platicoin where the terminal is available.
Exchanger: This helps coin holders to exchange cryptocurrencies for fiat money. Of course, there is a commission fee but it is very small.
Cardano: ADA-USD Is a Cryptocurrency With a Bright Future
Is Cardano (CCC:ADA-USD) the next big thing in cryptocurrency?
A growing number of investors think so and are increasingly bullish on the Zug, Switzerland-based company. It was founded by Charles Hoskinson, a co-founder of the popular Ethereum (CCC:ETH-USD) cryptocurrency.
Cardano aims to create a public blockchain platform for so-called smart contracts that automatically execute the terms of a contract or legally binding agreement. Launched in 2017, Cardano is still very much in its infancy. But there is a lot to like about the digital coin and its evolving place in the quickly growing cryptocurrency space.
A Crowded Market
Cardano is an altcoin, or a cryptocurrency other than Bitcoin (CCC:BTC-USD). While some altcoins, such as Ethereum and Litecoin (CCC:LTC-USD), are growing in popularity and gaining name recognition among investors, there are many smaller altcoins that nobody has heard of yet. In fact, today there are more than 9,000 altcoins available. And more of these cryptocurrencies are being developed all the time. These altcoins include everything from mining-based cryptocurrencies to security tokens and utility tokens.
Ether is currently the largest altcoin by market capitalization, as it is the most widely held and valuable cryptocurrency after Bitcoin. Where does Cardano fit into this crowded market? It is actually one of the fastest growing of the smaller altcoins. Classified as a utility token because it helps to facilitate smart contracts, Cardano distinguishes itself by taking a scientific approach. The company’s open-source blockchain is peer-reviewed by scientists who work in academia as well as by professional computer programmers.
This approach lends an air of legitimacy that many other altcoins lack. Investors feel they can trust Cardano because its underlying technology has been rigorously scrutinized.
Cardano is currently worth $1.43 per coin. That might seem like peanuts, but the cryptocurrency is up more than 715% year-to-date and 4,200% in the past 52 weeks. And, while its exact standing fluctuates day to day, Cardano is firmly among the top-10 largest cryptocurrencies, with a market capitalization approaching $40 billion. When you consider the thousands of cryptocurrencies that are flooding the market, being among the top 10 is an impressive feat. And it’s even more impressive when you consider that it has been around less than five years.
In addition to its strong growth, Cardano is also now available to be bought and sold on the Coinbase cryptocurrency exchange that is in the process of going public via a direct listing. Coinbase is the largest and most widely available cryptocurrency exchange to offer ADA-USD. Previously, Cardano was only available on much smaller and more obscure crypto exchanges, putting it out of reach of many investors. The inclusion on Coinbase can only help to broaden Cardano’s appeal and strengthen investor demand.
Credibility and NFTs
The fact that Cardano is being developed by Charles Hoskinson, one of the developers of Ethereum, lends ADA-USD a considerable amount of credibility in the world of crypto. It also recently received a significant endorsement from the University of Zurich, which declared in a paper that Cardano represents a “Proof-of-Stake (PoS)” blockchain technology that is far more advanced than many similar cryptocurrencies.
Investors were equally excited by the recent news from Charles Hoskinson that Cardano will soon use its blockchain technology to support non-fungible tokens (NFTs), which have become white-hot in recent months. So far in 2021, NFT sales are up more than 2,000%, and individual NFTs have commanded millions of dollars at auctions around the world. Cardano getting into NFTs could further boost the price of ADA-USD.
All cryptocurrencies are speculative at this point. Whether it’s Bitcoin, Ether, Litecoin or Cardano, the market for these digital coins still has to grow and mature before it can be considered truly mainstream.
That said, the crypto space is evolving at an incredibly fast rate, and Cardano is one to definitely watch. The altcoin’s underlying technology, the experience of the people who developed it and its current market capitalization make Cardano one of the better cryptocurrency investments people can make right now. And it would be advisable to take a stake in Cardano before it reaches the lofty heights of Bitcoin, which is now more than $60,000 for a single coin.
To put it simply, Cardano is a buy.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
Coinbase Valued at $86 Billon in ‘Landmark Moment’ for Crypto: Live Updates
Shares in Coinbase, the first major cryptocurrency company to list its shares on a U.S. stock exchange, soared in their market debut Wednesday, showing that investors are hungry to get a piece of the hot market for digital currencies.
Coinbase began trading at $381 a share, a 52 percent increase over a $250 reference price set by Nasdaq on Tuesday, and immediately soared to $409 a share. The listing valued Coinbase at $99.6 billion, rivaling the size of Airbnb and Facebook at their public market debuts.
Founded in San Francisco in 2012, Coinbase allows people and companies to buy and sell various digital currencies, including Bitcoin, the most popular, and Ether. The company, which takes a transaction fee, has been riding high on a boom year for cryptocurrencies, as investors have poured money into the assets and driven their prices to new highs.
This week, the price of Bitcoin hit a record $64,000 amid excitement for Coinbase’s listing, double its value at the beginning of this year.
Unlike many other start-ups that go public, Coinbase is profitable. In the first three months of the year, it estimated it made $730 million to $800 million in net profit on $1.8 billion in revenue. But the company warned in its financial prospectus that its business performance is closely tied to the price of cryptocurrencies, which are volatile.
Coinbase has raised more than $500 million from venture capital investors, who last privately valued it at $8 billion. Its largest shareholders include Andreessen Horowitz, Tiger Global and Paradigm, a crypto-focused investment firm.
Brian Armstrong, Coinbase’s chief executive and a co-founder, owns nearly 40 million shares in the company, making his stake worth roughly $15 billion. Over the last year, Mr. Armstrong has said Coinbase employees should avoid political discussions, a stance that has caused controversy. Some of the company’s former Black and female employees have also spoken out against unfair treatment and were found to have been underpaid in a company report.
Coinbase went public through a direct listing, an unusual transaction where no new shares are issued or sold — they simply start trading. Coinbase is the largest company to go public via direct listing, which has become popular among well-funded Silicon Valley start-ups that do not need to raise more cash from public market investors. Direct listings do not have traditional lockup periods that prevent insiders from selling shares for the first six months after the listing.
Coinbase’s listing on the Nasdaq stock exchange gives traditional investors, who may be interested in digital currencies but are unable or unwilling to buy them directly, an indirect way to buy into the market. The company’s financial prospectus included a glossary of crypto-specific terms, including internet slang like “hodl,” which means holding on to your cryptocurrency investments even when the prices tank.
As demand for cryptocurrencies has surged this year, Coinbase has struggled to keep up with the demand. Some customers whose accounts were plundered by attackers or who were locked out of their accounts have said the company ignored their pleas for help.
Coinbase, the cryptocurrency exchange, began trading on the Nasdaq on Wednesday. Here’s what you need to know about crypto’s move into the mainstream.
Why Coinbase matters
The company is the first major crypto business to trade publicly in the U.S. Its size means that its stock is likely to be held by mainstream index funds, giving average investors (indirect) exposure to the world of crypto. “Hopefully Coinbase going public and having its direct listing is going to be viewed as kind of a landmark moment for the crypto space,” Brian Armstrong, Coinbase’s chief executive, told DealBook’s Andrew Ross Sorkin in a CNBC interview.
It instantly became a financial giant on Wall Street.
At $86 billion, Coinbase’s market value exceeds that of the stock exchanges its shares will trade on: Nasdaq’s market cap is $26 billion, while ICE, the parent company of the N.Y.S.E., is valued at $67 billion. And by the way, Goldman Sachs’s market value is $111 billion.
Coinbase is profitable, taking in $322 million last year — and an estimated $800 million in the first quarter this year alone. It also made significantly more revenue from trades (0.6 percent) than did the Nasdaq (0.009 percent) and ICE (0.011 percent).
But there are also giant risks.
Coinbase benefited hugely from a run-up in cryptocurrencies’ prices in recent months, and the company warned in its prospectus that its business was “substantially dependent on the prices of crypto assets and volume of transactions conducted on our platform.”
Skeptics think competition will eventually bring Coinbase’s fat margins down, though Mr. Armstrong asserted that he didn’t seen any sign of that happening yet. “Longer term, yes, I do think there could be fee compression, just like in every other asset class,” he told CNBC.
Digital currency, once mocked as a tool for criminals and reckless speculators, is sliding into the mainstream. On Wednesday, Coinbase, a start-up that allows people to buy and sell cryptocurrencies, went public on Nasdaq, marking the biggest step yet toward wider acceptance.
An analysis of internal pay data at the San Francisco company Coinbase shows disparities that were much larger than those in the tech industry.
Kimberly Godwin, a veteran CBS News executive, was named the next president of ABC News on Wednesday, making her the first Black woman to lead a major broadcast network’s news division.
Ms. Godwin replaces James Goldston, who announced his departure from ABC in January. Her appointment was guided by Peter Rice, the chairman of general entertainment at The Walt Disney Company, which owns ABC. She will begin in her job in early May.
Her promotion is just one of several changes in the world of broadcast news as the industry adjusts to the end of Donald J. Trump’s presidency and to shifting viewing habits among audiences who are showing signs of fatigue after years of devouring TV news.
CBS News is expected to announce in the coming days a successor for its own president, Susan Zirinsky, who is leaving to take on a producing role at ViacomCBS. CNN’s president, Jeff Zucker, said he will depart the cable network by the end of the year, and Rashida Jones recently became the new president of MSNBC. When Ms. Jones took over MSNBC, she became the first Black woman to run one of the three major cable news channels.
Ms. Godwin, who most recently served as CBS’s executive vice president of news, joins ABC at a moment of strength for the network.
ABC’s “World News Tonight,” anchored by David Muir, is the top-rated evening newscast, averaging 9.4 million viewers for the season. It is the widest lead ABC has held over the “NBC Nightly News,” which averages 7.9 million viewers, since 1995, and the biggest lead over CBS’s evening newscast (5.8 million viewers) in at least 29 years.
Likewise, “Good Morning America” on ABC is still the No. 1 morning show in viewers, though it continues to trail the “Today” show on NBC among adults 25-54 years old, the adult age group most important to advertisers.
“Throughout Kim’s career in global news organizations and local newsrooms, she has distinguished herself as a fierce advocate for excellence, collaboration, inclusion and the vital role of accurate and transparent news reporting,” Mr. Rice, the Disney executive, said in a statement.
Ms. Godwin said, “I am honored to take on this stewardship and excited for what we will achieve together.”
News divisions at ABC and elsewhere are facing a drastically changed news cycle. Cable news networks have seen declining ratings in the last two months, and audiences for all of the morning shows and evening newscasts are down considerably from a year ago, when the onset of the pandemic spurred significant interest.
More than a decade ago, Grupo Televisa of Mexico and Univision of the United States, giants in the world of Spanish-language media, set aside years of hostility to strike an alliance. Now, the two companies are deepening their bonds to better compete in the streaming era.
Televisa agreed on Tuesday to sell its media, content and production assets to Univision for $4.8 billion. The deal includes SoftBank and Google as financial backers.
It is the latest evolution in the ties between Televisa and Univision, whose relationship has been strained at times: They battled in court over Televisa’s attempt to end a 25-year contract with Univision to make telenovelas, crucial programming for the Spanish-language market, settling just before Televisa’s chairman was set to testify.
The two have grown closer in recent years, beginning with a licensing deal in 2010. Televisa, which produces much of the programming that airs on Univision, owns just over a third of the company.
Together, the two companies dominate the Spanish-language broadcast markets in the United States and Mexico. Their traditional business has held up, with Univision’s ratings rising last year, but executives said they believed that creating a dominant streaming service was the future.
There is room for growth: Executives of both companies estimate that just 10 percent of the 600 million viewers in the Spanish-language media market use an online video service, compared with 70 percent of the English-speaking population.
But competing with services like Netflix required much bigger scale, prompting the two companies to consolidate further. The new business, to be called Televisa-Univision, will have an enormous content library — Televisa produced 86,000 hours of programming last year — broadcast and pay-TV channels and stations and a movie studio. The new business will also control the two companies’ online video services, PrendeTV and Blim.
“We had to gain scale and unify the media rights to compete against the giants,” Bernardo Gómez Martínez, one of Televisa’s co-chief executives, said in an interview.
The executives said that beyond the sheer amount of resources Televisa-Univision will have, the new company also has an advantage that others like Netflix do not: a foundation in the Spanish-language market.
“Those companies are first and foremost English-language companies,” said Wade Davis, Univision’s chief executive. “At the core of it, their core offering is not Spanish language first.”
As part of the deal, Univision and Televisa are bringing in $1 billion in new investment to their venture. Among the investors are SoftBank’s Latin America Fund, Google and the investment firm Raine Group.
The transaction is expected to close by the end of the year, pending approval by regulators in the United States and Mexico and by Televisa’s shareholders.
Jerome H. Powell, the chair of the Federal Reserve, said the central bank pays attention to inequality because it can restrain the economy’s potential when people do not have opportunities to succeed.
“We all want an economy where everyone has the opportunity to contribute to and benefit from prosperity,” Mr. Powell said during an appearance at the Economic Club of Washington, D.C., noting that the Fed has recently defined its full employment goal as “broad and inclusive” in as it tries to incorporate economic divides into its policy thinking.
“We call them out, we talk about them,” he said of the inequalities.
Mr. Powell’s comments come at a time when the Fed has faced increasing criticism from Republicans for its attention to racial equity and climate change, issues central bank officials often say have economic and financial stability implications but which some lawmakers paint as too political for the central bank. The Fed is independent of the White House and is supposed to be nonpolitical so that it can make prudent long-term economic decisions.
Mr. Powell underlined that the Fed isn’t trying to do the job of Congress.
“We can’t be the primary policy organization that treats either climate change or inequality — we see it through the lens of our existing mandates,” Mr. Powell said Wednesday. “Those are very much issues for elected representatives.”
Separately, he said that while his institution works with the Biden administration on economic issues, he has not met with the president.
“Meetings with presidents and Fed chairs are very, very, very infrequent,” he said.
Mr. Powell was appointed to the Fed by former President Barack Obama and was elevated to chair of the central bank by Donald J. Trump. His term expires early next year, so Fed watchers have been attentive to his interactions with the Biden administration as they try to game out whether Mr. Powell wants — or will be tapped for — another term. There has been little signal either way so far.
For now, his public appearances have remained focused on the path ahead for monetary policy. The Fed has kept its policy interest rate at rock bottom, and it is buying $120 billion in bonds each month to keep many kinds of borrowing cheap, policies meant to help the economy heal from pandemic damage.
Mr. Powell and his colleagues are watching for progress toward their 2 percent average inflation goal and full employment before changing those policies.
Some economists have fretted that inflation might pick up as the Fed takes a patient stance and as the government spends heavily on pandemic relief. But the Fed has been more concerned with lifting price gains, which have been weak for a quarter century.
“You’ve seen central banks around the world really struggle to reach a 2 percent goal,” Mr. Powell said Wednesday. “You can get into a cycle, if you will, that’s not a productive one.”
When it does come time to scale back support for the economy, the central bank will probably slow its bond-buying “well before” it lifts its policy interest rate, Mr. Powell said on Wednesday.
He also suggested that as bond-buying policies draw to a close, they will likely follow a similar path to the one the Fed employed after the financial crisis. Officials will first slow bond investments, then stop them, and then eventually will allow bonds to mature without reinvestment, shrinking the balance sheet passively.
“I don’t think we now would ever actually sell bonds into the marketplace,” he said. He made it clear that the policy-setting committee hasn’t actually made those decisions yet.
The Treasury Department is building a new team to oversee the hundreds of billions of dollars of pandemic relief money that is being pumped into the economy and to ensure that the funds are being distributed fairly, officials said on Wednesday.
The Office of Recovery Programs will work closely with the White House and Gene Sperling, who was tapped last month to oversee spending related to the recently passed $1.9 trillion relief legislation. The new team at the Treasury will be led by Jacob Leibenluft, a top adviser to Treasury Secretary Janet L. Yellen, who will report to the deputy secretary, Wally Adeyemo.
The new structure is being created to ensure “a smooth and equitable implementation of relief and recovery programs” and so that recipients of federal funds have a single point of contact within the federal government, Mr. Adeyemo said.
The structure is a response to the informal and sometimes haphazard approach that the Trump administration had for deploying and tracking relief money coming from programs that were created quickly to respond to the pandemic.
The new team will have a chief financial officer, a chief compliance officer and an operations manager as well as additional staff to manage specific programs.
The Treasury Department is overseeing nearly $420 billion in programs from the American Rescue Plan in addition to unspent funds from the relief packages that were created in 2020. That includes fiscal support funds for states and cities, with homeowner and rental assistance programs and money for pandemic-related infrastructure projects.
A Treasury official could not give an estimate of how much money from the March relief package had been distributed to far.
Toshiba announced on Wednesday the resignation of its top executive, Nobuaki Kurumatani, a move that comes as the Japanese conglomerate faces a potential buyout and a shareholder-initiated investigation into its management practices.
The board appointed Satoshi Tsunakawa — the current chairman and previous president — to replace Mr. Kurumatani, the company said in a brief statement. It did not explain the reason for the change.
Toshiba, once among the crown jewels of Japanese industry, a maker of products ranging from personal printers to railroad locomotives, has struggled in recent years, overshadowed by the legacy of a major accounting scandal and itsacquisition of the American nuclear power company Westinghouse, which declared bankruptcy in 2017.
Seeking to rebuild, Toshiba looked for a new leader from outside its own ranks, and in 2018 it appointed Mr. Kurumatani, an executive with CVC Capital Partners, a private equity company based in Europe, as chief executive. It was an unusual decision for a company that had long been headed by company insiders. Last year, he was appointed president, solidifying his control over the firm.
During a news conference Wednesday, board member Osamu Nagayama deflected questions about the resignation, saying that Mr. Kurumatani, 63, had been considering the move for months and had come to the decision with his family. Unusually, Mr. Kurumatani did not make an appearance, but in a letter that was read aloud to reporters, he said he had chosen to resign after “achieving my mission to rebuild the company.”
The announcement on Wednesday followed months of unrest at Toshiba as disgruntled shareholders agitated for reforms aimed at improving the company’s performance and increasing its value.
Toshiba investors tried to shake up the company’s management at the annual general meeting last summer. But Mr. Kurumatani was re-elected — albeit with less than 60 percent of the vote — following a showdown that angered some key shareholders and raised questions about whether the company had inappropriately interfered in the decision.
Effissimo Capital Management, a Singapore-based hedge fund that holds about 10 percent of the company and had led the campaign to unseat its management team, subsequently called for an investigation into the outcome. Other shareholders agreed, voting, over management’s objections, to begin an independent inquiryin March.
Earlier this month, Toshiba announced that it had received a buyout offer from CVC Capital Partners for a reported $20 billion, a substantial premium on the company’s share price. The offer has raised questions of conflict of interest, as Mr. Kurumatani had previously served as president of CVC’s Japan office.
In recent years, Japanese companies have increasingly been the focus of activist investors from abroad, who believe that sclerotic management and opaque governance practices have prevented many of Japan’s blue chip firms from achieving their full value.
Hisako Ueno contributed reporting.
Coinbase, which allows people and companies to buy and sell digital currencies, began publicly trading on Wednesday. Its shares ended their first day of trading at $328.28 after receiving a reference price of $250 each, down from their high of about $425.
Coinbase, which makes money through transaction fees, estimated it took in $1.8 billion in revenue in the first three months of the year as cryptocurrency prices soared.
On Wednesday, the fervor continued: Bitcoin, the largest cryptocurrency, climbed above $64,000 to a record, before falling back to $62,120, and shares in Bit Digital, a Chinese bitcoin mining company traded in the United States, rose as much as 12 percent before ending the day down nearly 7 percent.
Elsewhere in the Markets
The S&P 500 fell 0.4 percent after reaching a record on Tuesday. The Stoxx Europe 600 index gained 0.2 percent.
Yields on 10-year U.S. Treasury notes ticked up to 1.63 percent.
Oil prices climbed. Futures for West Texas Intermediate, the U.S. crude benchmark, rose 4.5 percent to $62.91 a barrel.
JPMorgan Chase fell 1.9 percent after the bank reported its best first quarter on record but said demand for loans was “challenged.” Goldman Sachs rose 2.3 percent after reporting investment banking revenue that beat analyst expectations.
SAP rose more than 1 percent after the German software company said revenue from its cloud business was growing and upgraded its forecast for full year earnings.
Shares in easyJet, the low-cost airline, rose nearly 6 percent after it said it expected to increase flights from May and reported earnings for the six months through March that were better than analysts expected.
Tesco, the large British grocer, fell 2.2 percent after the company reported a 20 percent decline in pretax profit because of the extra cost of operating stores and warehouses safely during the pandemic. The grocer also said it expected sales to decline as pandemic restrictions ease, but that this would improve profit margins.
Kroger, the grocery store chain, announced on Wednesday that it was building a chain of warehouses to fulfill online orders as demand for grocery delivery continued to grow. Its pilot warehouse, north of Cincinnati, is 375,000 square feet, many times the size of a conventional grocery store, and has all the hallmarks of a high-tech fulfillment operation, with automated robots retrieving products for packaging and computers advising humans on the best way to pack a grocery bag, the company said. The company is planning more warehouses to serve Atlanta, Dallas, Detroit, Orlando, Phoenix and other cities.
The first woman to lead CBS News, Susan Zirinsky, is expected to announce that she is stepping down from the presidency of the network’s news division, possibly as soon as this week, a person with knowledge of the plan said on Tuesday. Ms. Zirinsky is expected to sign a production deal with the network’s parent company, ViacomCBS, to work on broadcast, cable and streaming programs, according to the person with knowledge of the details of her departure. Ms. Zirinsky, 69, was appointed in January 2019.
Epic Games, the video game developer that produced the hit game Fortnite, said Tuesday that it had raised $1 billion in funding, valuing the company at $28.7 billion. Sony, the creator of the PlayStation game console, invested $200 million, Epic said, and Appaloosa Management, Baillie Gifford and Fidelity Management were also among the investors. Epic’s most recent funding round came last summer, when it raised $1.78 billion to value the company at $17.3 billion. Sony invested $250 million at the time.
IRS Actively Seeking Information Regarding Cryptocurrency Via John Doe Summonses
Taxpayers that have engaged in cryptocurrency transactions should be aware that the Internal Revenue Service (“IRS”) is seeking customer records from cryptocurrency exchanges.
The Department of Justice (“DOJ”) recently filed petitions in the District of Massachusetts and the Northern District of California asking to allow the IRS to serve John Doe summonses on two cryptocurrency exchanges.
A John Doe summons is an investigative tool used by the IRS to seek information about unnamed taxpayers from a third party. A John Doe summons is authorized under Internal Revenue Code Section 7609(f) and allows the IRS to obtain the names, requested information, and documents concerning all taxpayers in a certain group.
Although the two John Doe summonses are nearly identical and the DOJ made similar arguments to support both petitions, the two requests resulted in different outcomes. The federal court for the District of Massachusetts authorized the IRS to serve the John Doe summons whereas the federal court for the Northern District of California did not. Rather, the California court expressed concerns about the scope of the John Doe summons finding the request to be too broad. The court issued an order to show cause why the petition to authorize the service of the John Doe summons should not be denied, requiring the government to “specifically address why each category of information sought is narrowly tailored to the IRS’s investigative needs, including whether requests for more invasive and all-encompassing categories of information could be deferred until after the IRS has reviewed basic account registration information and transaction histories.”
Both the John Doe summonses request information regarding U.S. taxpayers who conducted transactions in cryptocurrency totaling at least $20,000 in any one year during the years 2016 to 2020. The documents the IRS is seeking are account registration records, Know-Your-Customer due diligence, account related correspondence, anti-money laundering exception reports, records of account activity, and records of account funding.
The government used similar language in briefs filed in support of the two petitions explaining that the IRS is concerned taxpayers are not properly reporting transactions in cryptocurrency. The customer records are expected to aid “the IRS’s ongoing investigation to determine the identity and correct federal income tax liability of U.S. persons who have conducted transactions in cryptocurrency.” The government expects that in response to the John Doe summonses, the cryptocurrency exchanges will be able to provide information about their “customers’ currency transactions, which the IRS will then be able to use in conjunction with other publicly-available information to examine whether an individual has complied with the internal revenue laws.”
Reporting Requirement for Cryptocurrency Transactions
Pursuant to IRS Notice 2014-21, 2014-16 I.R.B. 938, virtual currency, including cryptocurrency, is treated as property for federal tax purposes and the general principals applicable to transactions involving property apply to transactions involving virtual currency. A taxpayer that receives virtual currency for goods or services must include the fair market value of the virtual currency, as of the date of receipt, in his or her gross income. A taxpayer also realizes gain or loss on the sale or exchange of a virtual currency, which includes the use of virtual currency to pay for a service and the exchange of virtual currency for another virtual currency. Ordinary income from virtual currency is reported on Form 1040, U.S. Individual Income Tax Return. Sales and other exchanges of virtual currency are reported on Form 8948, Sales and Other Dispositions of Capital Assets and Schedule D of Form 1040.
Under Revenue Ruling 2019-24, receipt of a new cryptocurrency following a hard fork also results in taxable income. A hard fork occurs when a cryptocurrency on a distributed ledger undergoes a protocol change, splitting a single cryptocurrency into two: the pre-split blockchain, which continues to follow the legacy rules; and the post-split blockchain, which follows the updated rules. The IRS released a memorandum from the Office of the Chief Counsel, dated March 22, 2021, which clarifies that Bitcoin Cash received as a result of the August 1, 2017 Bitcoin hard fork is considered taxable income under Internal Revenue Code Section 61. However, the income will be determined based on the fair market value of Bitcoin Cash on the date when the taxpayer obtained dominion and control over it. For example, if the taxpayer’s wallet supported Bitcoin Cash only on January 1, 2018, the income will be included in the taxpayer’s 2018 return based on the value of Bitcoin Cash on January 1, 2018 (not August 1, 2017). The memorandum was drafted in response to an individual who received Bitcoin Cash as a result of the Bitcoin hard fork; however, it cannot be used or cited as precedent.
For tax year 2020, the IRS added a question to the first page of the Form 1040 regarding virtual currency. The question asks, “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” On March 2, 2021, the IRS issued guidance on the new question through an FAQ, which states “If your only transactions involving virtual currency during 2020 were purchases of virtual currency with real currency, you are not required to answer yes to the Form 1040.” However, taxpayers should be aware that FAQs are not legal authority, which means that the information cannot be used to support a legal argument in a court case or for penalty relief.
Use of John Doe Summonses
John Doe summonses require the approval of a U.S. District Court and must meet the criteria contained in Section 7609(f). Under Section 7609(f), the summons must relate to the investigation of a particular person or ascertainable group or class of persons; the IRS must have a reasonable basis for believing that such person or group or class of persons may fail or may have failed to comply with any provision of the internal revenue law; the information sought to be obtained must not readily be available from other sources; and the information sought is required to be “narrowly tailored” to information that pertains to the failure (or potential failure) to comply with one or more provisions of the internal revenue law. The final requirement was added to Section 7609(f) in 2019 as part of the Taxpayer First Act.
A John Doe summons was previously used by the IRS to successfully obtain client records from Coinbase, Inc. (“Coinbase”), a digital currency exchange. In November 2017, Coinbase was ordered to provide to the IRS client identifying information and transaction data for Coinbase customer accounts that had either bought sold, sent, or received at least $20,000 worth of bitcoin, a type of cryptocurrency, in any year during the years 2013 to 2015.
The IRS has used the information from the Coinbase John Doe summons to investigate tax noncompliance. The IRS has sent letters to over 10,000 cryptocurrency owners that potentially failed to report income from cryptocurrency transactions. The IRS has also opened audits of taxpayers identified by the materials it received in response to the Coinbase John Doe summons. It is expected that the recent John Doe summonses at issue will lead to additional audits of taxpayers that engaged in cryptocurrency transactions.
The IRS is investigating taxpayers who have failed to properly report their cryptocurrency transactions and is working with DOJ to obtain information on a broad set of taxpayers through John Doe summonses. The failure to correctly report cryptocurrency transactions on Form 1040 could lead to dire penalties and even potential criminal prosecution. Taxpayers that have engaged in cryptocurrency transactions and are concerned about possible past noncompliance or have questions about current reporting requirements should seek legal advice.
Cryptocurrency Trading: How to Get Started
Those who want to get into cryptocurrency trading typically do so due to the tumultuous and unpredictable nature of the platform. It’s an exciting prospect to make a profit from such an unpredictable platform, though it pays to note that many investors fail when it comes to trying to predict the cryptocurrency market. The decentralized nature can be alluring, but it isn’t the kind of thing that people can expect to do perfectly in a week.
As a matter of fact, the fickle nature of the platform has caused many inexperienced investors to fail and blame the platform or the exchange as a result. However, while it is certainly full of uncertainty, much of the risk can be mitigated by making the right moves. Here are just a few ways to get started.
On the topic of the mindset
Your trading mindset will be what makes or breaks your trading career. If you want to get as many successes as possible, expect to be trading for a very long time. Unfortunately, many novice traders keep trying to make as many trades as possible, which results in losses on multiple fronts. The spray and pray tactic might work in some industries, but not when it comes to cryptocurrency and many other platforms. Even worse, some types of exchange systems can lure unsuspecting traders into making reckless decisions. As far as mindsets go, the patient mindset is what will win the day.
On the topic of brokers
Once you have understood that you’ll have to start small and take the patient approach to investing, the next thing to consider would be the platform. It seems a little strange to consider something such as cryptocurrency — a decentralized system — as a part of a centralized platform such as an exchange. It would be a good idea to research the many nuances and styles that are unique to certain platforms, as well as the potential for success and failure.
The reason why the choice of platform is so important is that you could end up being scammed if you do not make an informed decision. Ensure that you get a professional to help you recover from a bitcoin scam. To avoid the potential scam, only go for the most popular exchanges with a long and reliable track record.
On the topic of budget
This is the one thing that tends to separate skilled binary options traders from those who try to get by through sheer luck. If you want to be a part of the former, it is crucial to set your budget low, especially at the beginning. Cryptocurrency trading can be a brutal process for the compulsive, which is why it would be wise to end the day without getting carried away.
There is no denying the fact that cryptocurrency trading can be an attractive platform for most investors, but it is not for everyone. To get a good start, follow the tips above and remember that learning to cut your losses is the most crucial part of trading.
Goldman Sachs keeps cryptocurrency focus on institutional investors
Goldman Sachs has no immediate plans to extend its cryptocurrency offerings beyond the institutional side of the business, said CEO David Solomon during the bank’s first quarter earnings on Wednesday.
“Obviously, we’re monitoring this all very quickly, we have a plan at the moment to build a digital bank that’s offering an array of integrated basic services in a completely digital, frictionless platform,” Solomon said. “We’re extremely focused on that, at the moment, we’re not focused on offering a crypto wallet.”
While the investment bank is still working out the details of a future crypto offering, its profits skyrocketed reaching $6.84 billion in the first quarter. The firm’s quarterly revenue of $17.7 billion represents a huge leap in growth compared with the prior-year period when the bank posted profits of $1.2 billion on revenue of $8.7 billion.
An influx of revenue from underwriting new initial public offerings, special-purpose acquisition companies, and other sales of stock more than quadrupled to $1.6 billion.
“The increase in underwriting net revenues was due to significantly higher net revenues in both equity underwriting, primarily driven by strong initial public offerings activity,” the bank said in its release. “The increase in financial advisory net revenues reflected a significant increase in completed mergers and acquisitions transactions.”
Financial advisory revenues totaled $1.12 billion, rising 43% versus last year. Consumer and wealth management produced $1.7 billion of revenues in the first quarter, up 16% versus a year ago.
Management and other fees of $1.1 billion was 12% versus last year, reflecting higher assets under supervision, which rose 25% to $637 billion.
Link Global Technologies Announces Participation at the H.C. Wainwright Cryptocurrency, Blockchain, & FinTech Conference April 27, 2021 (Virtual Conference)
At 30% CAGR, CryptoCurrency Market Cap Size Value Surges to Record $5,190.62 Million by 2026, Says Facts & Factors
[225+ Pages Research Report] According to the recent research report; the global Cryptocurrency Market in 2019 was approximately USD 792.53 Million. The market is expected to surge at a CAGR of 30% and is anticipated to surpass USD 5,190.62 Million by 2026. Top market players in the market are Bitfinex, Bitfury Group Limited, Bitstamp, Coinbase, Inc., OKEx, Circle Internet, financial Limited, Ripple Labs, Inc. and others.
New York, NY, April 12, 2021 (GLOBE NEWSWIRE) — Facts and Factors have published a new research report titled “Cryptocurrency Market By Type (Bitcoin, Ethereum, Ripple, Litecoin, Dashcoin, Others), By Component (Hardware, Software), By Process (Transaction, Mining), and By End-Users Analysis (Banking, Real Estate, Stock Market & Virtual Currency, Others): Global Industry Outlook, Market Size, Business Intelligence, Consumer Preferences, Statistical Surveys, Comprehensive Analysis, Historical Developments, Current Trends, and Forecasts, 2020–2026”.
“According to the research report, the global Cryptocurrency Market was estimated at USD 792.53 Million in 2019 and is expected to reach USD 5,190.62 Million by 2026. The global Cryptocurrency Market is expected to grow at a compound annual growth rate (CAGR) of 30% from 2019 to 2026”.
Cryptocurrency Market: Overview and Definition
Cryptocurrency is a virtual or digital currency. It is the internet-based medium of exchange that conducts financial transactions by using cryptographical functions. Cryptocurrencies support blockchain technology to achieve decentralization and transparency. The cryptocurrency is not controlled by any central authority. Cryptocurrencies can be sent between two parties directly using both private and public keys. The transfers can be made with minimal processing fees, which allows the users to prevent the high fees which traditional financial institutions charge.
Cryptocurrency transaction supports the blockchain technology and cryptography. It provides minimum exchange rates, interest rates, or charges across all transactions globally. These parameters are anticipated to boost the cryptocurrency market over the forecast years. Cryptocurrency leverages blockchain technology. Blockchain digital technology helps to conduct financial transactions. Blockchain supports all types of changes by enhancing transaction processing speed and providing efficiency in real-time processing. Blockchain offers a robust environment for real-time secure data sharing. This may drive the cryptocurrency market in the future years. Cryptocurrency’s legal status varies significantly from country to country and is still undefined or changing in many of them. Although some countries have specifically allowed its use and trade, others have banned or limited it. Further, numerous government agencies, courts, and departments have categorized bitcoin differently. These parameters may hamper the growth of the market. Furthermore, the lack of awareness about cryptocurrency and bitcoin owing to the ban on its advertisement on digital channels like Facebook, Twitter, Bing, etc. may restraints the market growth. To protect data from hackers, to prevent potential fraud, and to reduce the chance of robbing data, many tools are provided by blockchain technology. This may bring lubricant opportunities in the cryptocurrency market. Moreover, the emerging new technology and developments in the market, acceptance of cryptocurrency in the various industries may provide numerous opportunities in the market.
The cryptocurrency market research report delivers an acute valuation and taxonomy of the cryptocurrency industry by practically splitting the market on the basis of different types, applications, and regions. Through the analysis of the historical and projected trends, all the segments and sub-segments were evaluated through the bottom-up approach, and different market sizes have been projected for FY 2020 to FY 2026. The regional segmentation of the cryptocurrency industry includes the complete classification of all the major continents including North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Further, country-wise data for the cryptocurrency industry is provided for the leading economies of the world.
The major type of the global cryptocurrency market includes bitcoin, ethereum, ripple, litecoin, dashcoin, and others. Among these, bitcoin led the market with a major share above 40% in 2019 and it is further expected to continue the trend over the forecasted period.
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Cryptocurrency Market: Key Segments
By End-User analysis, the cryptocurrency market is divided into banking, real estate, stock market & virtual currency, others, Among these, the stock market & virtual currency headed the market in 2019 with more than USD 500 million and it is anticipated to grow in the future years.
On a component basis, the global cryptocurrency market is segregated into hardware and software. Among the components, hardware was the largest segment used in the cryptography market. The hardware segment held the major share of the entire market in 2019. Furthermore, the hardware segment is expected to continue its dominance over the forthcoming years.
Based on the process, the global cryptocurrency market is classified into transactions and mining. Among these, the mining segment held a significant share of the total market nearly 65% in 2019. The mining segment is likely to exhibit lucrative growth in the future years.
By region-wise, Europe region led the market in 2019, with around USD 400 million and it is anticipated to increase over the forecast period.
Browse the full “Cryptocurrency Market By Type (Bitcoin, Ethereum, Ripple, Litecoin, Dashcoin, Others), By Component (Hardware, Software), By Process (Transaction, Mining), and By End-Users Analysis (Banking, Real Estate, Stock Market & Virtual Currency, Others): Global Industry Outlook, Market Size, Business Intelligence, Consumer Preferences, Statistical Surveys, Comprehensive Analysis, Historical Developments, Current Trends, and Forecasts, 2020–2026” report at https://www.fnfresearch.com/cryptocurrency-market-by-type-bitcoin-ethereum-ripple-litecoin-640
Key Insights from Primary Research
According to the primary researchers operating in the global cryptocurrency market, the market was valued at around USD 700 million and is expected to be valued at over USD 5,000 million in the future years.
The cryptocurrency market is predicted to witness a significant growth of nearly 30% during 2020-2026 due to the acceptance of cryptocurrency across various industries.
By Process, the mining segment held a significant share of the total market nearly 65% in 2019 and it is predicted to grow in the future years owing to providing hardware-specific solutions for cryptocurrency mining.
By type analysis, the bitcoin category led the market with more than USD 300 million in 2019 attributed to capitalization in the crypto market.
On the basis of components, the hardware segment held the major share of the entire market that is nearly 70% in 2019. Furthermore, the hardware segment is expected to continue its dominance over the forthcoming years.
On the basis of End-User analysis, the stock market and virtual currency segment-headed the market with around USD 500 million in 2019 and is anticipated to witness major growth in the forecast period.
Facts & Factors is a leading market research organization offering industry expertise and scrupulous consulting services to clients for their business development. The reports and services offered by Facts and Factors are used by prestigious academic institutions, start-ups, and companies globally to measure and understand the changing international and regional business backgrounds.
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What is Coinbase, the first major cryptocurrency company to go public?
What happened? Natanz, one of Iran’s most important sites for uranium enrichment, was hit by an explosion that affected the power system that supplies the centrifuges. The damage will likely set back the country’s efforts to enrich uranium to weapons-grade levels by some time. So far it’s unclear whether it was a cyberattack similar to the Stuxnet malicious worm jointly developed by Israel and the US that destroyed one-fifth of Iran’s centrifuges in 2010, or a bomb like the one that caused a July 2020 fire in the same facility.
Why now? The timing of the attack as US-Iran nuclear talks are ongoing is no coincidence. Israel fiercely opposed the original agreement championed six years ago by the Obama administration and was delighted when Donald Trump walked out of the deal in 2018 and later slapped crippling economic sanctions on Iran. To move talks forward, President Biden is willing to lift some of those sanctions, but Tehran, cautious about looking desperate so early in the discussions, has been playing hard to get.
The Israelis now worry that Iran has restarted enriching uranium at higher levels and that many of the deal’s so-called “sunset clauses” expire in 2026, so Iran could begin to significantly expand its nuclear program while (technically) adhering to the terms of the agreement. Tel Aviv feels it’s urgent to stop version 2.0 of the nuclear deal before Iran comes even close to getting the bomb.
How does it affect the US-Iran nuclear talks? It’s too soon to ascertain whether the attack will diminish Iran’s key bargaining chip: threatening to enrich uranium faster. What is virtually guaranteed, however, is that its aftermath will poison the domestic political environment in Iran, where any concession to “Great Satan” is always a hard sell, even more so now with a presidential election coming up in two months.
While the Americans’ negotiating hand has strengthened, Natanz will further erode a mutual willingness to compromise — which is already very low after Iran stopped complying with the deal’s terms on uranium enrichment in May 2019, and the high-profile assassination of a top Iranian general ordered by Trump in early 2020.
Who benefits? Clearly, Israel, for two reasons. First, whatever the full extent of the damage, it has physically undermined Iran’s nuclear program, in the near term at least. Second, it has complicated a diplomatic process the Israelis would like to stop. Iran is now left to choose between a forceful retaliation that would delay any lifting of sanctions and an easing of economic hardship inside Iran, or a muted response that could make Iran’s leaders appear weak just at the moment they’d like to be driving a hard bargain.
What happens next? The fallout from Natanz will put immense pressure on the Vienna talks, likely hardening Iran’s position and reducing the odds of reaching an agreement before the presidential vote in June. Regardless of the election outcome, the decision on whether to rejoin the nuclear deal will be made by Supreme Leader Ali Khamenei.
Negotiations will continue. Iran’s sanction-plagued economy suffered mightily last year due to the pandemic and low prices for the oil it’s still able to export. Doing whatever it takes to get an agreement may not be popular for many conservatives at home, but US sanctions relief is too big an economic incentive for Iran to ignore.
In short, both the US and Iran still want to return to the original deal. That’s why, unfortunately for Israel’s government, the question is not if but when a new nuclear agreement will be signed.