http://bitjuice.com / Posted on April 14, 2014, 7:46am
Q How do you use bitcoin as a tax haven?
A. Bitcoin has all the necessary qualifications of a tax haven:
Q So anyone who has a bitcoin is not paying taxes on their profits?
A I believe most people prefer to comply with tax rules, or at least I hope so. But if you choose to do so [evade taxes], currently there is little the IRS can do to come after you.
Q Is the IRS or are regulators doing anything about it?
A The IRS is looking into it, they recently issued guidance that made it clear that bitcoin is subject to regular reporting requirements, like any other transaction. Whether taxpayers choose to comply with that is left to be seen. I suspect that most taxpayers will choose to comply, but I think it’s a great weapon in the hands of tax evaders.
Q Right, anyone who wants to hide out clearly, because it’s such a nascent market right now. If you own bitcoin, do you even know how to have it taxed, are their accountants who even know how to calculate the taxes on this?
A The IRS recently released guidance how current tax law applies to bitcoins, and I think the guidance addressed most of the issues. For example, bitcoin is treated as property rather than currency, which means that every time you dispose of it you have to account for gains and losses as a result of change in the exchange rate since the time you first purchased the bitcoin you disposed of. Yes, the rules are there, there are some issues left unresolved, but if taxpayers want to comply with tax rules, even if they use bitcoin, they can do so. It’s burdensome, but it’s possible. – See more at: http://bitjuice.com/Tax-Evasion-Bitcoin-Better-Than-An-Offshore-Bank-Account#sthash.i8yKzNfo.dpuf
http://www.govtech.com / by Aman Batheja / April 14, 2014
Texas will not treat Bitcoin and other virtual currencies as legal money, according to a new memo from the Texas Department of Banking. Yet some companies that deal in Bitcoin transactions could draw state oversight, even if they are based outside of Texas.
Texas Banking Commissioner Charles Cooper issued a memo this month outlining the agency’s policies involving virtual currencies like Bitcoin.
“At this point a cryptocurrency like Bitcoin is best viewed like a speculative investment, not as money,” Cooper said in a statement.
In his memo, Cooper provided reasoning that echoed the IRS. Last month, the federal agency announced that, for tax purposes, it would treat Bitcoin as property instead of currency because no government recognizes the virtual currency as legal tender.
http://www.ihavebitcoins.com / By admin on 2014-04-14
With the concept of digital currencies gaining traction in several parts of the world, newcomers to the Bitcoin ecosystem are presented with a multitude of exchanges to aid them in their digital trading. However, sensational news headlines and panic mongering concerning hackers and untrustworthy management has intimidated many new entrants to the market.
Investors and traders are looking for a stable and secure exchange to trade digital currencies with ease, and a drama-free experience when it comes to withdrawing their funds. In short, they are looking for a “white shoe firm”.
To meet consumer’s demands, itBit, a Singapore based exchange has committed itself to a high level of security and regulatory compliance. itBit is a bitcoin exchange built with global equity exchange standards. Institutional investors, commercial businesses, and retail investors can use the platform to trade bitcoin with U.S. dollars, Singapore dollars and Euros worldwide. The exchange relies on top tier finance and security practices, employing state of the art exchange technology, Thomson Reuters for screening and continuous suspicious activity monitoring, and Jumio for identity verification.
http://cryptocrimson.com / 14 Apr 2014 Posted by Aaron Sines
“Here’s to the crazy ones. The rebels. The troublemakers. The ones who see things differently. While some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.” – Apple Inc.
This slogan was the central focus of Apple’s “Think Different” ad campaign that went on to receive the 1998 Emmy Award for Best commercial and the 2000 Grand Effie Award for most effective campaign in America. Many argue that since the passing of the late Steve Jobs, Apple has lost this vision — some would say the company’s position in regards to bitcoin is supportive of this theory.
To get straight to the point of a possible explanation for Apple’s apprehension in respect to bitcoin — it is quite simple. In a Forbes piece by the Bitcoin Foundation’s Jon Matonis he explains, “With the introduction of Passbook, Apple has launched mobile payments on iOS and competing virtual payment systems, including bitcoin, must be terminated.”
Further support of Apple’s stance against bitcoin came on January 16th of 2014 when a patent dubbed “Method to send payment data through various air interfaces without compromising user data” was published by the US Patent and Trademark Office. Then just days later came Apple’s well-publicized removal of the Blockchain app which ensued with dozens of angry iPhone users destroying their devices in a most public matter.
Last month, Jimmy Wales, Wikipedia’s co-founder, announced on twitter that he was “playing with Bitcoin” and had bought 0.1 BTC through Coinbase. This caused an influx of happy responses from Bitcoin users. On reddit post, Jimmy Wales asked the Bitcoin community how Bitcoin could be incorporated for donations on Wikimedia.
On a reddit post, Jimmy Wales wrote,
Fred Wilson is the co-founder of Union Square Ventures, a venture capitalist firm that has made investments in companies like Tumblr, Twitter, Foursquare, Zynga and Kickstarter.
Wilson compares bitcoin to the internet, in that both operations are completely open to the public and have no central authority calling the shots. He says:
Wilson feels that bitcoin is an open source dedicated to allowing others to build stuff with.
He says the services that blockchains offer will be replicated for different applications other than bitcoin. Wilson believes the architecture surrounding blockchain programs is too valuable for other platforms not to adopt.
Very soon, on April 23, 2014, Moscow will host the first conference about Bitcoin. And we continue to announce new participants and new formats of communication and discussion.
Conference program includes speeches by renowned experts of cryptocurrency industry (Bastian Brand, Porhunov Alexey, Ivan Montik, Nick Grebnev, ArtemTolkachev, VytautasKaralevičius, Maxim Kiselev, DmitriyGunyashov, Eli Sklar etc.) on the most pressing industry issues. Each block of reports will be followed by three roundtables on the future, safety and legal regulation of cryptocurrency.
We are glad to present you participants ofthe first Russian Conference on Bitcoin.
The list of speakers of round table on “Bitcoin: pyramid investment scheme or coin of the future?” is as follows:
• Alexey Porhunov – Bitcoin-enthusiast, consultant and coordinator of several bitcoin-projects.
• VytautasKaralevičius- CEO of European Bitcoin exchange Spectro Coin(Lithuania).
• Maxim Krupyshev – Kiev geek, managing director of Smetner, CEO at Fruitwallet.Founder of Satoshi Square Ukraine and Bitcoin Foundation Ukraine that develop cryptocurrency in Ukraine.
coindesk.com / By Nermin Hajdarbegovic / Published on April 14, 2014
BTC-e was down briefly on Sunday, following a powerful distributed denial of service (DDoS) attack against its servers.
DDoS attacks against bitcoin exchanges have gained notoriety since the ‘massive and concerted’ attack which targeted multiple organisations earlier this year.
infoworld.com / By Serdar Yegulalp / April 14, 2014
Bitcoin may finally be coming into its own as a cryptocurrency, despite the implosions of several online exchanges and the IRS regarding the digital cash system as property, not currency. But the real value of bitcoin may reside with other applications for its underlying algorithms.
A startup named Storj.io has hatched one such idea: use the blockchain, or the ledger of bitcoin transactions distributed across computers that interact with bitcoin’s network, as a way to denote where files are stored in participating servers on the network. The files themselves are public-key encrypted before being inserted into the network.
journalgazette.net / By CURT ANDERSON / Published: April 14
MIAMI BEACH, Fla. – Two police officers burst through a hotel room door with guns drawn, yelling “Police! Get down!” just after an alleged money laundering transaction went down. But instead of briefcases stuffed with a drug dealer’s cash, this exchange involved an undercover officer with supposedly stolen credit cards and the virtual currency bitcoin.
The February arrests of Pascal Reid and Michell Espinoza marked the first time any state has brought money laundering charges involving bitcoins, according to Miami-Dade State Attorney Katherine Fernandez Rundle.
And it’s likely to be a closely watched test of whether criminal law can adapt to new digital forms of payment.
Bitcoin as a whole is a decentralized system that doesn’t require any third parties to interact with, and can’t be controlled or directly regulated by any central authority. he only thing that any government would have jurisdiction over are exchanges and other services located within its borders, to which the KYC rules would apply.
KYC rules require money-related services to be able to identify all their customers, and self report ‘suspicious activity’ that can be signs of anything from money laundering to terrorist financing. In the traditional financial sector, this makes money laundering much more difficult (although nowhere near impossible). This is because, in order to interact with the modern financial system and transmit money electronically, you need to use a third-party service such as a bank, which are easy points of regulation.
bitcoinx.com / By Steve Shanafelt / April 13, 2014
Wilson told interviewer Alyson Shontell that bitcoin’s technology could open up new markets. Much like fellow investor Marc Andreessen, he sees echoes of the early days of the internet in bitcoin’s potential and community.
As an early investor in Coinbase, Wilson has been following bitcoin’s evolution since 2011. Although he’s clearly excited about bitcoin as an alternative currency, and thrilled to see the rapid adoption of user accounts on Coinbase, he’s even more excited about bitcoin as a plaform.
http://thecointalk.com / By Coin Talk /
The Central European Bitcoin Expo (CEBE) is setting up to be one of the largest conferences to take place in Central Europe. Taking place in Vienna from May 31 to June 1, the expo will feature notable speakers from within the cryptocurrency space, which will provide insight into technology, international legislation and the future of virtual currency in Europe and abroad.
Recently added to the list of speakers for the event were Charlie Shrem and Richard Stallman. These two virtual currency advocates will be joined by the already extensive list of speakers to be featured at the expo including, Dan Held, Adam Vaziri, David Johnson, Kingsley Edwards, Vitalik Buterin and many more.
http://bitcoinowl.com / By Ivan Raszl / Wednesday, April 9, 2014
An increasing number of objects and systems have APIs. In the near future we will have the option to create contracts that are expressed as an algorithm besides or instead of written legal language. Contractual obligations would be automatically enforced on all parties based on a previously agreed set of rules.
The idea is not necessarily dependent on Bitcoin. To an extent we’re already doing this with certain online services. For example when you create an advertising contract on Adwords your ad impressions are automatically targeted, measured and charged according to the contract you have with Google. The only human involvement is the creation and approval of the ads. Everything else is taken care of by algorithms. The problem is Google has been accused of click fraud in the past and the advertiser has to trust Google’s reporting. It would be beneficial for all parties involved if there were no intermediaries and the whole business was more transparent.
The blockchain can take such smart contracts to a higher level by connecting website owners and advertisers directly. Advertisers in the future can rely on an open and distributed advertising network that will be independently verified by a consensus. Each ad impression and click-through can be recorded in the system and websites would receive funds from the advertiser directly without any intermediaries. Such a system would be hard to game because everything would be as secure as Bitcoin itself and advertisers can effectively measure the effectiveness of their ads on various websites and they could automatically exclude sites that are ineffective or commit click-fraud. Such a system could effectively disrupt Google’s billion dollar business and introduce incredible efficiencies in the advertising market.
cryptocoinsnews.com / By Danny Schaffer
One of the primary reasons mainstream society has not yet bought into Bitcoin is that it’s not easy. As a decentralized resource, there’s no 24 hour helpline to sort out your issue when things get sticky. There’s no one company that offers the best solution, no fool proof way keep your funds completely secure. And when your wallet seems to have magically emptied itself, there’s no police station where you can go and report it. With cryptocurrency, you’re out there on your own. The responsibility of your finances is yours and yours alone.
For the Bitcoin community, this sort of freedom and independence is priceless, though many have likely paid a hefty fee for their experience. For the general public on the other hand, it’s a nightmare. Our society was built on solid systems, clear rules and visible authorities. Taking all of this out of the picture seems reckless. And aside from that, with the media on a constant FUD campaign, most outsiders are scared to even talk about the stuff.
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