Connect with us

Blockchain

Bitcoin’s on-chain solution has its hands full dealing with WBTC

Published

on

Last week, when Arcane Research reported that the number of Bitcoin transactions going up was not met by high transaction fees on-chain, people shifted their attention to SegWit. It was soon found that SegWit usage in 2020 is becoming popular again and 65 percent of the transactions are using digital signatures.

It was a monumental development considering the scalability issues facing Bitcoin were being dealt on Bitcoin itself, without the help of other off-chain solutions that were coming into the picture.

However, a certain ERC20 token backed 1:1 by BTC is ruffling its feathers again.

Source: Skew

According to Skew Analysis, Wrapped Bitcoins registered a new all-time high market cap after USD value locked under WBTC crossed $200 million. On 1 April 2020, TVL (Total Locked Valued) of WBTC was $6.1 million, sharing a mere difference of $300K with Lightning’s $5.8 million TVL.

In the past 4 months, however, WBTC has taken a resounding lead, a development that brings back the initial argument of whether Bitcoin on Ethereum is proving to be a better scaling solution.

There is no debate regarding the interest in WBTC. In fact, the interest was there in SegWit transactions as well.

Source: blockchair

According to data from Blockchair, as on 9 August 2020, 50% of the transactions were facilitating SegWit usage – a positive sign. However, it is important to note that SegWit usage has been higher, much higher in the past.

Hence, in terms of performance, it hasn’t exactly been groundbreaking for the on-chain solution.

On the other hand, Bitcoins locked in WBTC were 16,806.72 at the time of writing, an astonishingly high number considering it was only about 500 BTC in April 2020.

In simpler terms, for every 2 steps forward Segwit took in terms of development, WBTC has been taking 20 steps ahead.

So, what does the future hold for both of them?

Their functionality is the polar opposite.

Segwit transactions are on-chain. Hence, it is a decentralized method of execution and the fact that it resides with the Bitcoin network is less complex.

For WBTC, centralization screams from all sides of the structure as BitGo handles the initial custody of the tokens whereas Kyber and Ren release their BTC holdings to supply the initial liquidity. Therefore, third parties are definitely present here.

The challenge for SegWit remains the same – To simply outperform WBTC in terms of capabilities. However, with WBTC practically obliterating Bitcoin’s off-chain solution left, right, and center, it is a big ask for SegWit to overcome the WBTC growth.

Only time will tell how Bitcoin’s on-chain solution will hold up against a foreign entity, rapidly proving to be “better.”

Source: https://eng.ambcrypto.com/bitcoins-on-chain-solution-has-its-hands-full-dealing-with-wbtc

Blockchain

New Israeli Bill Proposes to Consider Bitcoin as a Currency and Not an Asset

Published

on

A newly-proposed bill with the legislative branch of the Israeli government Knesset submitted several changes to Bitcoin’s taxation. Instead of viewing BTC as an asset and subjecting sales to capital gains tax of 25%, the new legislation plans to recognize it as a currency.

New Proposal: Bitcoin As a Currency Not An Asset

According to a local publication, four representatives from the Yisrael Beiteinu party have presented the new bill on Tuesday. It seeks to amend the taxation of activities related to cryptocurrencies by altering the Income Tax Ordinance to view them as currencies for tax purposes.

Currently considered and recognized as assets, the sales or conversions of digital assets such as Bitcoin subject them to capital gains tax (25%). It provides taxation relief on capital gains only for short-term lenders and certain bonds-related activities as they are taxed at 15%.

However, the four reps argued that the perception of virtual assets needs reexamination. They reasoned that while cryptocurrencies are a relatively new concept, the Income Tax Ordinance hasn’t been amended in years and is falling behind the emerging new digital reality.

The four reps urged Israel to be “among the leaders” of the virtual currency field, whose merits are emphasized during this period of uncertain economic future.

You Might Also Like:
Tel Aviv. Source: TimeOut
Tel Aviv. Source: TimeOut

Amendment In Reporting Of Digital Assets

The Knesset saw another bill proposing changes in regards to cryptocurrencies. This one sought to enable reporting of digital assets once every six months or once a year.

If accepted, this would be a significant change from the current format that requires cryptocurrency sellers to submit a tax report to authorities within 30 days of the transaction. Additionally, people need to pay an advance on the tax rate applicable to the transaction’s capital gains.

The explanatory memorandum of the proposed bill reads that “the Minister of Finance, with the approval of the Knesset Finance Committee, may accept cases in which an annual or semi-annual reporting obligation applies to property types. The submission of the report will be paid in advance in the amount of tax applicable under the provisions of the Ordinance on capital gains due to a sale.”

Manny Rosenfeld, Chairman of the Israeli Bitcoin Association, asserted that these proposed bills could enable the country to surface as a global financial center and a leader in the cryptocurrency field.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited – first 200 sign-ups & exclusive to CryptoPotato).

Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.


Source: https://cryptopotato.com/new-israeli-bill-proposes-to-consider-bitcoin-as-a-currency-and-not-an-asset/

Continue Reading

Blockchain

Failed Bitcoin deal lands two Indians in police custody

Two Indian nationals, Ramesh Reddy and his friend Prabakaran are now in police custody. The duo was arrested for overreacting, to the extent of threatening and extortion, because of a failed Bitcoin deal. A local news outlet, New Indian Express, reported the incident on Thursday.  Fake Bitcoin deals  As the local police narrated in the […]

Published

on

Two Indian nationals, Ramesh Reddy and his friend Prabakaran are now in police custody. The duo was arrested for overreacting, to the extent of threatening and extortion, because of a failed Bitcoin deal. A local news outlet, New Indian Express, reported the incident on Thursday. 

Fake Bitcoin deals 

As the local police narrated in the report, Ramesh, who is a distributor of Ayurvedic medicines in Bengaluru, was contacted by an alleged fraudster, who only introduced himself as Naresh. He claimed to be in possession of Bitcoins worth about $4.4 million (Rs 33 crore). However, he told Ramesh that those funds are in the United States, and will give him a commission if he could help him (Naresh) move down the funds to India. 

Adyar DCP V Vikraman precisely noted that “he [Naresh] promised 50 percent of that money to Ramesh, only if he found a person who could convert the online currency into Indian Rupees.” At that point, Ramesh reached out to his real estate friend, Prabakaran, on how to execute the Bitcoin deal. They later contacted and persuaded a Chennai-based techie, Mohan, to help them withdraw the funds to Indian.

Ramesh and his friend promised Mohan a one percent commission (i.e., Rs 33 lakh or $44,656) to open an e-wallet through which Bitcoins will be transferred. The money couldn’t be transferred to Indian directly because since it was in the United States, so Mohan had to create an account in the UK to moved to withdraw the money from there. However, the whole effort to execute the Bitcoin deal went sour as the money suddenly vanished, without reaching the UK nor reverting.

A sad ending 

Mohan then realized that the e-wallet accounts, ‘Swift Global Pay’ and ‘Insta Merchant Pay,’ were fraudulent. Naresh, who made this entire proposal, was a fraud.

the DCP added.

Both Ramesh and Prabakaran didn’t believe the outcome of the Bitcoin deal, so they began threatening Mohan, who had to repay them the missing money from the money he borrowed using his wife’s jewels. Even at that, the duo continued threatening Mohan, who later reported them to the police, leading to the arrest of Ramesh and his friend.

Continue Reading

Blockchain

Bitcoin Could Remain Slow Until the November Election

Published

on

Bitcoin is presently trading for about $10,500, which is roughly $100 more than where it’s stood over the past few days, but it’s not quite where we’d like it to be. The fact is that bitcoin hit $11,000 again about 72 hours ago and has failed to keep up that momentum.

Bitcoin Is Struggling as of Late

There are many things that appear to be affecting bitcoin, one being the correlation between it and the stock market. As stocks are taking massive tumbles, bitcoin is also suffering, and so long as company shares continue to drop, the bitcoin market is going to remain in a bearish state.

There’s also the current political scene. As we all know by now, 2020 is an election year. There is just a little over a month left to go before America selects its next president for the next four years. Will the democratic contender Joe Biden come out on top, or will Donald Trump emerge as the country’s president through 2024? Either way, the situation is leading to heavy uncertainty throughout the nation, and many people don’t quite know how to react.

In addition, the death of Supreme Court Justice Ruth Bader Ginsburg is also adding to the concern and worry that are allegedly permeating people’s thoughts regarding the economy. Guy Hirsch – the managing director for cryptocurrency exchange e-Toro – explained in a recent interview:

Uncertainty around the election and in the aftermath of Supreme Court Justice Ruth Bader Ginsburg’s death has caused a panic in equities markets. When traditional assets nosedive as they have today, traders will often liquidate a broad cross-section of holdings while they try to cover liabilities, thus leading bitcoin to drop even more sharply today than any of the major equity indices in the US.

John Todaro – the director of institutional research at Trade Block – appears to agree, though he commented further that the continual drop of standard assets could potentially help bitcoin’s reputation further. With everything else in the red, people may turn to bitcoin as a hedge tool, and bitcoin could potentially return to form in the coming months.

He states:

You are seeing this spread across markets, including in digital currencies. Despite this drop, especially if uncertainty continues and markets become even more nervous about how the US election will play out, it makes sense if bitcoin were to see a significant recovery as equities continue to experience downward momentum.

Will Things Fix Themselves Over the Next Few Months?

Joe DiPasquale – CEO of Bit Bull Capital – mentioned that while the correlation between stocks and crypto has grown, he’s confident bitcoin and digital currencies have what it takes to break away and potentially enter bullish territory all on their own. He says:

While bitcoin’s correlation with the S&P 500 grew notably in recent months, the digital asset space remains highly volatile and able to decouple from traditional assets equally fast.

Tags: , , Source: https://www.livebitcoinnews.com/bitcoin-could-remain-slow-until-the-november-election/

Continue Reading

Trending