Panic spreading as bitcoin price goes up and down


There is rising concern about a proposed US law as $6000 was shaved off the price of bitcoin.

Bitcoin dropped from Sunday’s high of (AUD)$57,262 to $51,454 at 7am Wednesday as fears grow about the impact of the US President Joe Biden’s proposed $675 billion infrastructure bill.

Bitcoin has surged in recent weeks after a topsy-turvy year.

It took a dive when Elon Musk hinted Tesla might dump its cryptocurrency holdings in May.

A crypto clampdown by Chinese regulators in June also hit the price hard.

Now there are jitters about a provision in the infrastructure bill which could raise $37.81 billion from crypto investors, with some warning it could “kill” the industry.

RELATED: China bans bitcoin to make own cryptocurrency

“This is a deeply misguided provision that, if adopted, will do far more harm than good to US interests,” lawyer Jake Chervinsky wrote in a lengthy Twitter thread.

He explained the bill would expand the definition of a “broker” to include “any person who (for consideration) is responsible for and regularly provides any service effectuating transfers of digital assets”.

That could lead to increased Internal Revenue Service reporting requirements.

The “brokers” may also been forced to collect customer data including names, addresses and phone numbers.

“This definition is so broad, it could apply to nearly every economic actor in the US crypto industry, if read literally,” Mr Chervinsky said.

“This sounds insane, but it really might happen.

“Most crypto legislation goes nowhere, so it’s easy to ignore. Not this time.

“This provision is part of the bipartisan and otherwise popular infrastructure bill, which is moving quickly through Congress and is highly likely to pass.

“First, it defies logic to adopt a regulation for which compliance is literally impossible, unless the goal is to kill the industry.”

The provision was included to essentially help fund the massive cost of the bill.

It must include “pay-for” provisions to raise revenue for new spending so that it’s revenue-neutral as a whole, Mr Chervinsky explained.

The Joint Committee on Taxation has projected that, collectively, the provisions in the bill would boost revenue by $68.87 billion.

IRS Commissioner Charles Rettig requested broader authority from Congress in June to collect information on cryptocurrency transactions.

Mr Rettig said that these transactions, by design, were often “off the radar screens”, while noting that the most recent market cap in the crypto world exceeded $2.7 trillion and more than 8600 exchanges worldwide.

An original revenue-raising provision that was struck from consideration after losing Republican support involved giving $50 billion to the IRS to beef up its enforcement and tax-collecting initiatives as means to crack down on filers who are not fulfilling their obligations.

Senate Majority Leader Chuck Schumer said he hoped to move forward with a vote on the infrastructure bill this week.

— with Fox News


Source link


Panic selling is crypto investors’ biggest mistake, new survey reveals


The importance of storage and passwords is best known by crypto enthusiasts who know how easy it is to lose access to their digital assets. A recent survey conducted by Cryptovantage named “Coin Storage Security: A closer look at crypto storage and passwords” aimed to identify investors’ sentiment toward the safekeeping of their crypto investments. 

Based on 1,021 United States-based cryptocurrency owners’ responses, most choose to store their digital investments on crypto exchanges, with Coinbase sitting in first place at 34.7%. Wallets from Binance and Robinhood also hold a large user base for storing crypto at approximately 25% and 26%, respectively.

Some 73% of the respondents sided with American finance company SoFi to be the most secure crypto wallet, although less than 9% use it as their go-to wallet. Trying to understand investors’ take on storing crypto passwords, the survey found that “61% of respondents believed their crypto passwords were safe, while about 12% felt theirs were not.”

Surprisingly, crypto investors are widely divided in how they opted to remember passwords to their wallets. The top four methods to remember passwords included password managers (26.6%), handwritten notes (18.6%), password safes (15%) and taking screenshots (10.3%). The report read:

“39.7% of respondents had previously forgotten their crypto password. 95.6% of them were able to recover their investment.”

Out of the lot, 85.7% have used a recovery service to retrieve their lost or forgotten passwords, which highlights the “potential to seriously alleviate some fears and trust issues among current and potential investors.” The unfortunate investors who lost complete access to their crypto wallets ended up losing $2,134 on an average.

The survey also confirmed that roughly 33% of respondents had fallen for a crypto scam, which was mainly targeted through emails (47.7%), websites (45.2%) and fake mobile apps (44.6%).

In addition to scams and password mismanagement, the surveyed investors showed panic-selling as one of the biggest mistakes (38.2%) followed by investing everything in one coin type (32.5%). In this case, password loss amounted to 12.5%, making it the lowest among the group.

Related: New study reveals high demand for payments in cryptocurrency

Running parallel to the findings above, Cointelegraph reported a study on U.S. consumers’ sentiment toward crypto payments. Based on the 8,000 surveyors, 59% of consumers who have never held crypto are interested in using it to make crypto purchases.

Additionally, more than 60% of surveyed crypto owners indicated their interest in making online purchases through crypto.