DCC/BBA Weekly Update for 12/15/14

Posted by & filed under Finance.

adam-wyatt

This weekly feature is brought to you by DCC Member Adam Wyatt of BullBear Analytics.

Market Commentary (BTC):

There is no doubt that the seismic event that was the Microsoft news, and the price action that followed, have kept both bulls and bears at bay for most of the remainder of the week. Bulls are right to be encouraged by the announcement because, in our opinion, it is one that has broad, long term positive implications for the future of bitcoin and it’s economy. Conversely, the bears can take solace in the fact that the news caused a relatively muted rally (particularly when compared to the PayPal rally) that has since morphed into a continuation of the sideways chop that has characterized bitcoin price action over the past few months.

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Potential Pitfalls and Current Trends in Federal Criminal Law

Posted by & filed under Legal.

Margaret Cullum

Most everyone probably thinks of the Silk Road case when the words “bitcoin” and “criminal” are uttered in the same sentence. However, legitimate businesses need to consider several important points in order to avoid criminal penalties.

First, some businesses may be required to register as a money services business (“MSB”) both at federal and state levels. Money laundering may be sexier and garner more attention, but violations of MSB registration requirements are easier to prosecute yet still carry a significant criminal penalty. Traditional money laundering cases can be difficult to prove, even without the added complications of the high level of user protection available through digital currencies. In the case of Charlie Shrem, he agreed to plead guilty to the charge of aiding and abetting the operation of an unregistered MSB while the money laundering charge was dropped.[1] By accepting this plea, he has cut the maximum sentencing range by 15 years (from 20 years to 5).[2] The prosecutors have thus ensured that prison time is a sentencing possibility while not having to carry the burden of proof required for a money laundering charge.

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An Interview with DCC Member Stuart Hoegner on his work with the Bitcoin Alliance of Canada, Tether, and other Clients

Posted by & filed under Legal.

stuart-hoegner

Interview by David Berger, CEO of the Digital Currency Council, with Stuart Hoegner, an attorney and accountant in Toronto, Canada. He is legal counsel to Tether and General Counsel of the Bitcoin Alliance of Canada.

David: Stuart, your practice is cross-border and cross-disciplinary. Whether law or accounting in the US or Canada, you have unique expertise and are well positioned to serve clients on Bitcoin related matters. Could you tell us a bit about your background and what got you interested in Bitcoin?

Stuart: After I became a lawyer, I spent several years at Ernst & Young in their M&A Tax Group. In 2006, a unique opportunity came along to go in-house as counsel at an Internet gaming company in Toronto. I took the job, transitioned to my own practice when the business was sold, and never looked back.

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Giving in 2015: No Penguin Suit, Cutting into a Steak, or Giving a Piece to the Bank

Posted by & filed under Professional.

dberger002

If you’re my age and have a landline (for those of you under 30, that’s a phone attached to a cord in the house), this is the time of year that you start getting calls during dinner. “Hi Mr. Barjer, We know you want to help poor children. We help poor children. How much you going to give us?” Honestly, does anyone respond positively to these calls anymore?

Today’s donors aren’t opening their wallets for someone interrupting their dinner. Their charitable donations are social, digital and metrics based.

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DCC/BBA Weekly Update for 12/1/2014

Posted by & filed under Finance.

adam-wyatt

This weekly feature is brought to you by DCC Member Adam Wyatt of BullBear Analytics.

Market Commentary (BTC):

After a relatively stable long holiday weekend which saw price bounce off of support at 355 $ on the way up to 390 $, bitcoin is now consolidating once again in the 375 to 380 $ area. As we see it, there are two opposing forces in the market this week which could keep both bulls and bears from venturing too far: 1.) Bitcoin Black Friday merchant selling is most likely going to continue for at least a couple of days + typical end of month selling will create pressure to the downside, and 2.) New money Monday + bullish price action and overly negative sentiment should keep prices elevated for now.

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5 Things Professionals Need to Know about Bitcoin to Avoid Getting Cooked

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dberger002

My mother once told me that if you put a frog in a pot of cold water and slowly bring the water to a boil, the frog would cook. But if you drop a frog in boiling water, it will leap out. I’m sharing my mother’s sage wisdom with you so that you take note of the rising heat and start your ascent up the side of the pot.

If you’re like most professionals, you’ve likely read an article or two about Bitcoin, but aren’t sure if it’s relevant to you. Below are 5 things you need to know about Bitcoin to avoid getting cooked:

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New Study Shows that Bitcoin Faces Reputation Battle Despite Increasing Awareness

Posted by & filed under Professional.

Tom Hashemi

Last week we saw the launch of the Bitcoin Barometer, a nationally representative study commissioned by the Digital Currency Council and conducted by my employer, Reputation Leaders.

The study points to the growing levels of awareness of bitcoin in the UK. At 71 percent, awareness of bitcoin is higher than both Moneygram (67 percent) and Californian start up Square (37 percent). And as can be expected, Paypal and Western Union top the awareness level chart at 99 percent and 87 percent respectively.

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DCC/BBA Weekly Bitcoin Market Update

Posted by & filed under Finance.

adam-wyatt

This weekly feature is brought to you by DCC Member Adam Wyatt of BullBear Analytics.

Market Commentary (BTC):

Following a few weeks of consolidation off of the 453 $ spike high, the bitcoin markets are now getting their sea legs back. 350 $ ended up being the battleground level as bull and bears squared off there over the weekend. In the end, the bulls seem to have won this round as price has now broken back above resistance at 365 and 375 $.
As price approaches the critical 395 to 400 $ resistance zone, it will be interesting to see if there is enough upside momentum to get through there convincingly. If so, it could spell trouble longer term for the bears. If it fails again, down we go again, we think to test double bottom support at 320 $.
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5 Dumb Things said by Smart People

Posted by & filed under Professional.

dberger002

Contrarian investing, going long when the crowd is shorting, is not a new concept. But given the current environment, where celebrities seem to have more influence than reason and high profile people have a microphone or twitter feed in front of them constantly, I’d like to propose a new investment strategy. Let’s call it “Smart People Say Dumb Things”. (Feel free to shorten that into an acronym or write it in Latin to make it sound more erudite if you’d like.)

Smart people have been saying dumb things since the beginning of time.
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LibraTax White Paper: Introduction to Digital Currencies for Professionals

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jake-benson

Below is an excerpt from a white paper published by LibraTax. The full white paper entitled “Introduction to Digital Currencies for Professionals” can be found on the the firm’s website at www.libratax.com. Jake Benson, the founder and CEO of LibraTax, is a member of the DCC.

Tax Treatment of Digital Currency

Digital currencies are subject to tax treatment in the United States that is similar to other asset classes under similar circumstances. In the spring of 2014, the IRS released guidance to the public that explicitly classified digital currencies as property, rather than “foreign currency. ”

“Property” is a fairly non-specific term under the tax code. Since digital currencies are versatile, tax treatment varies based on the context of their acquisition and use. The normal property classification rules under Section 1221 apply to digital currencies. Thus, digital currencies as property can be classified into existing categories of assets under the Internal Revenue Code, such as capital and non-capital assets.
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