Cryptocurrencies have went/shot up in value and with Ether hitting USD$3000 and Bitcoin at USD$43,000 the gains have been pretty substantial. Looking at my cryptocurrency portfolio has been crazy and although I did DCA a few hundred into it the past few months, I feel that I should have put in more. Well, in hindsight, I will always think that way. There have been a few news that might have spurred this. Although there might be other news as well which you can share in the comments below.
US Infrastructure bill
The Bipartisan Infrastructure Framework is the largest long-term investment supported by Joe Biden and Kamala Harris which is about USD$1.2 trillion. It primarily aims to improve sustainable transportation networks, repair roads and build a national network of electric vehicle chargers in the country. This infrastructure bill will also involved cryptocurrency as new tax-reporting requirements on various parts of the blockchain system will also be discussed. This might be seen as the government accepting cryptocurrencies although it also means that taxes will have to be paid accordingly but it is a huge step of wider acceptance from the government. But of course, to lay down rules on how the taxes should be paid is not easy and there different opinions surrounding it.
For example, an amendment from Senators Ron Wyden (D-OR), Cynthia Lummis (R-WY), and Pat Toomey (R-PA) explicitly exempt miners from any reporting requirements where this would free them from the obligation of providing 1099 tax forms, which in many cases would be impossible to comply with given the pseudonymous nature of blockchain transactions., but Senator Portman (R-OH) unexpectedly proposed his own competing amendment which excludes only proof-of-work mining and some wallet project.
This is indeed disappointing to the crypto industry as this could mean that proof-of-stake work would have no tax exemptions. The amendment has yet to pass and the US citizens have to let their senators know which side they are supporting. And even so, it would not go into effect till 2023 hence there could be changes or improvements made to it. Although it is not finalised yet, it will be interesting to see how cryptocurrencies will be further regulated by the government. It was also noted that taxes from the crypto will help to partly pay for the Bipartisan Infrastructure Framework. This is a developing story hence do correct me if there are any mistakes.
JPMorgan rolls out Bitcoin Fund to wealthy clients
JPMorgan is offering the clients of JPMorgan Private Fund a passively managed fund where they are working with NYDIG, a cryptocurrency firm. JPMorgan is the biggest US Bank by assets and this sends a very clear message as traditional financial institutions begin to provide crypto as part of an asset to their clients. Late last month, JPMorgan also provided access to four funds from Grayscale Investments and one from Osprey Funds: Grayscale Bitcoin Trust, Grayscale Bitcoin Cash Trust, Grayscale Ethereum Trust, Grayscale Ethereum Classic Trust and Osprey Bitcoin Trust.
Ethereum Hard Fork ("London Hard Fork")
I have been seeing this on Reddit but haven't really read up on it except I know that it is an improvement being done. So from what I have gathered, it is an update of Ethereum and the greatest benefit is that it will enable the network to handle more transactions per second and hopes to also tackle the high gas fees.
Another change essentially sets the stage for a major transformation of Ethereum that will make it harder for miners to earn money and could eventually make mining irrelevant
The London Hard Fork are a set of five Ethereum improvement proposals (EIPs). EIP-1559, included in the London Hard Fork, aims to change speed and incentivisation of Ethereum mining. - Taken from economictimes
Overall, I am not very much keeping up with news on cryptocurrency, I understand the premise and usage of it. I really believe that it opens up so many avenue for different things. I have seen articles on cryptocurrencies providing avenues for people to earn income through NFTs, games, staking and many other ways. Of course, the only thing I have done is to keep some of my cryptocurrencies at Hodlnaut, with the rest in cold storage using Ledger and some small amount on exchanges. There is definitely huge potential and with the acceptance of it from the US government coming soon, although we are not sure if it's for the better or worse, we know that it is now being made known to a wider audience. All the best to everyone and for me, HODL-ing on!
In other news, dining out will resume on 10 Aug 2021. Really can't wait for that, I am now fully vaccinated since I brought forward my second dose. Happy that we are moving towards opening up as more new measures are implemented for dining out. Hmm, where should I eat on 10 August 2021? 🤔
You can also find me on- Facebook SingaporeanTalksMoney
- Instagram page SingaporeanTalksMoney
- Youtube SingaporeanTalksMoney
► How I Protect My Bitcoin (20% discount code): Get your ledger from HERE and you can use this 20% discount code: FRIEND-4X2BBJ5 (Using my affiliate link will help me where Ledger will pay a small incentive that's not from you but from them) - USD$25 discount coupon: THANKS-SHLRTVJ or THANKS-V35SSK5
► Get USD20 equivalent for your initial deposit of at least USD1000 on any of the supported asset: https://app.hodlnaut.com/signup?r=_JF037Nb0
► Where I Buy my Cryptocurrencies (Binance.sg): Referral ID = 350349
► Where I Buy my Cryptocurrencies : Coinhako
► Where I buy my stocks
FSMone: P0364886
Tiger Brokers
Interactive Brokers (Open an account today and start earning up to $1000 of IBKR Stock for free!*Terms and Conditions apply)
► Google Pay: v89ph61
References:
https://www.cnbc.com/2021/08/05/ethereum-just-activated-its-london-hard-fork-and-its-a-big-deal.html
https://economictimes.indiatimes.com/markets/cryptocurrency/what-is-ethereums-london-hard-fork-and-how-will-it-impact-investors/articleshow/85072054.cms
https://www.theblockcrypto.com/linked/112877/white-house-says-crypto-tax-enforcement-will-help-pay-for-bipartisan-infrastructure-deal
https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/28/fact-sheet-historic-bipartisan-infrastructure-deal/
https://www.theverge.com/2021/8/6/22612663/infrastructure-bitcoin-tax-blockchain-proof-of-work-stake-ethereum
Getting pumped up now
ReplyDelete