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Puerto Rico, Taxes, and a Bitcoin Utopia

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It’s tax time, and many Americans are waking up to the harsh reality of the gains on their crypto trades. The process is complicated, confusing, and costly. Everything from bitcoin purchases to airdrops are subject to capital gains tax, and the Internal Revenue Service (IRS) is lighting a fire under holders to collect what is owed.

In November, federal regulators ordered Coinbase to release records of users that had more than $20,000 in transactions between 2013-2015, impacting more than 14,000 traders.

It is no wonder crypto traders are looking for alternatives.

One group of crypto entrepreneurs, led by Brock Pierce of the Bitcoin Foundation, headed to Puerto Rico to escape some of the tax drama of the mainland. Their plan? To build a crypto-utopia. And the process has already begun.

Currently, the group, which they’ve named Sol, has already started the process of searching for properties on the island. “The Monastery,” a 20,000 square foot hotel the group has rented out, acts …

Telegram and the Future of ICOs

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As regulators worldwide begin to crack down on ICOs, start-ups are becoming more weary of the risks associated with public offerings. In many cases, companies are skirting these regulations with air drops, or the distribution of free tokens, at least for the time being.

One of the most notable ICOs that may be skipping its public offering is Telegram. Despite the cancelation rumors, the messaging app already enjoys the position of first ever billion-dollar ICO. EOS also had a big raise. So far, Telegram has already raised over $1.7 billion in private sales, as confirmed by recent SEC filings.

"The goal of fundraising is to gain access to capital to allow a team to build a product and company. It appears Telegram has already achieved their goal so there would be no reason to conduct a public sale," explained Anthony Pompliano of Morgan Creek Capital Blockchain.

Telegram has remained silent regarding the possible delay or outright cancelation of their public offering, but not go…

Is this Bitcoin Rally Just a False Flag?

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The world was taken by surprise this past week when BTC surged above $8000 for the first time in weeks. On 4/12/18, BTC shot up an incredible $1000 in only 30 minutes, one of the fastest price increases ever recorded in such a timeframe. Currently, the price hovers just under 8k, and the crypto space is on fire with speculation that the long bear market is finally over.

But are we really out of the woods? Let’s examine what may have caused this recent spike, and determine whether it’s time to pop the champagne and celebrate, or if this all just a mirage before yet another drop.
First, what happened on 4/12?

There are a couple different theories about what triggered this. In no particular order, they include:
Institutional money getting in on the game: world renowned firms like Soros Fund Management have announced this past week that it will begin trading cryptocurrencies,in spite of Soros himself dismissing cryptocurrencies are recently as January. Venrock (the venture capital fund owned…

The Bitcoin Chain Death Cycle In 2018

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Cryptocurrencies have struggled to gain their footing in 2018 following a barrage of regulatory concerns, hacks, and high-profile scams. While many headlines suggest that this is the beginning of the end for cryptos, the tremendous amount of institutional wealth flowing into the space suggests otherwise. It may get much worse though, before it gets better.

Still, it is important for any investor to recognize the hurdles ahead.

Many cryptocurrencies, including King Bitcoin, still face blockchain destroying vulnerabilities. While the recent additions of the Lightning Network and SegWit removed some of the most daunting concerns of a potential ‘Chain Death,’ the threat still exists, and it’s more than just Bitcoin at risk.

Bitcoin vs. Bitcoin Cash

Last year’s Chain Death Spiral fears stemmed from the battle between Bitcoin and the Bitcoin Cash hard fork / airdrop. Following the August fork, miners migrated between the two coins, testing the profitability of each. As miners switched betw…

Crypto Trading Terms

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Here is a great infographic by https://cryptojh.com/. They have left out FA - Fundamental Analysis but otherwise its a very nice list. Enjoy!

Why America Can’t Regulate Bitcoin Review

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I recently read an article titled “Why America Can’t Regulate Bitcoin”.

It literally blew my mind. I will provide a brief summary of the contents but the reader should read the entire article to understand just how accurate the author is - https://twitter.com/Beautyon_ and how much diligence and research into case law was performed.

Basically, the reason you can’t regulate Bitcoin is because it is hexadecimal code which is just text. This code and the blockchain can be printed on paper, if desired. The text is protected by Freedom of Speech in the US Constitution. In order to regulate Bitcoin you have to remove the First Amendment.

This article references case law which was proven in courts in the United States that Bitcoin is not money and judges had to throw out money laundering cases using Bitcoin because it’s not money. At some point soon we may see exchanges denominate Bitcoin as zero dollars since it is not money.

Read the full article here - https://hackernoon.com/why-ame…

Vinny Called The Crypto Bottom

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Vinny Lingham called the crypto bottom - https://twitter.com/VinnyLingham/status/975381719238004737 In my opinion the bear market is largely over. In a near future article, I will write about my new positions, including 2 new positions I took today.

Bitcoin bull Tom Lee says alt-coin bear market largely over. You can read the article on Bloomberg now - https://www.bloomberg.com/news/articles/2018-03-20/bitcoin-bull-tom-lee-says-alt-coin-bear-market-is-largely-over

I think things are going to start getting very exciting in Crypto Valley very soon! Stay tuned!

Crypto Market Update

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In my best estimate, the price of Bitcoin (BTC) is going down in the short term. Some traders online are saying that the BTC price will hit $8000 once again. I’m waiting for more deals to appear before making new moves.

Some facts that are true regarding crypto right now are that social media companies are censoring posts related to crypto. As I mentioned in a previous post, some of the 2017 crypto growth is attributed to social media related to crypto. If censorship by major media continues, it will be harder to educate new users about crypto using these channels and onboard them. Another major marketing point which attracts new users is increases in the price of cryptocurrencies as highlighted by the news. If the price does not move up quickly, then this marketing bullet simply does not work.

Also, since Coinbase was forced to stop allowing credit card transactions, new gateways and onramps to crypto have slowed down. If you would like to know my opinion on new value drivers for cryp…

What is the Next Value Driver for Crypto in 2018?

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What I'm looking for is the next big driver of value to the crypto markets. In 2017, we had credit cards and social media. What I'm trying to figure out is what will the 2018 killer value app be for crypto? What can we do to increase adoption to the crypto markets? My goal is to find direct ways to contribute. For example, I have a crypto blog which you can read for free.

Some drivers of value to Crypto in 2018 include:
Working decentralized marketplaces for physical and digital goods to disintermediate from middlemen. Inter-blockchain communication.Killer deployment tools. (DEX) Decentralized Exchanges. I've used https://token.store and it works wonderfully for ETH tokens. The UI is quite intuitive. The exchange doesn't hold your private key. More gateways (on ramps).More smart contracts on Ethereum and other networks.  Please add any additional ideas to this list by tweeting me. https://twitter.com/jaredsc Thank you.

Ripple vs XRP - Explained

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Hacker Noon wrote an excellent article about the differences between Ripple and XRP in a January article. It looks to clear up the misinformation and fake news regarding this coin. I personally learned a lot just by reading this one article and feel I'm a lot more educated on the subject now. One snippet is that apparently Ripple and XRP are not the same thing. Ripple is the company and XRP is one of the multiple product offerings they offer. Banks don't use XRP. They use the Ripple software. Before you invest in XRP, it is recommended that you read this article.
https://hackernoon.com/4-alarming-reasons-ripple-might-not-be-what-you-think-9debc3c86985


What Is My Bitcoin Net Worth?

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There is an ongoing debate about Bitcoin and its utility value. The answer to the question “What is my Bitcoin net worth” is ZERO because I don’t own Bitcoin (BTC). I’m a big proponent for Bitcoin Cash (BCH). If you like friction, buy Bitcoin (BTC). Google “Bitcoin High Fee Coin” and you will get tons of information. There is not enough time for that discussion in this article.

Also, view this link for a great comparison of Bitcoin Legacy vs Bitcoin Cash: https://www.yours.org/content/two-videos-anyone-interested-in-bitcoin-and-bitcoin-d0377afd806a

I like Bitcoin Cash (BCH) and EOS (EOS) because I believe they enable freedom, equality and world peace. Although today BCH may not have as many network effects as Bitcoin (BTC), it is growing fast in all regards. Not to mention Dr. Craig Wright has publicly stated that Bitcoin Cash is patenting everything. In a perfect open world, patents may not be ideal but if it is nChain that owns the patents versus a big bank, I sleep well knowing nC…

Bitcoin Cash Content Project

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New Premium Content Project About Bitcoin Cash by Web Marketing LLC

https://t.co/5XoYfcTfe1 I'm working on writing a fresh piece about "Why Bitcoin Cash Will Win". If you want to add input about $BCH or contribute feel free to visit the link above. Thank you!

— Jared Schlar (@jaredsc) January 12, 2018