Category Archives: News

Banks in Britain and U.S. ban Bitcoin buying with credit cards

February 5, 2018 flippener

(Reuters) – Banks in Britain and the United States have banned the use of credit cards to buy Bitcoin and other “cryptocurrencies”, fearing a plunge in their value will leave customers unable to repay their debts.

Lloyds Banking Group Plc (LLOY.L), Britain’s biggest lender, said on Sunday it would ban its credit card customers from buying cryptocurrencies, following the lead of U.S. banking giants JP Morgan Chase & Co (JPM.N) and Citigroup (C.N).

The move is aimed at protecting customers from running up huge debts from buying virtual currencies on credit, if their values were to plummet, a Lloyds spokeswoman said.

Concerns have arisen among credit card providers because their customers have increasingly been using credit cards to fund accounts on online exchanges, which are then used to purchase the digital currencies.

However, other banks said on Monday they will continue to allow credit card customers to buy cryptocurrencies.

“We constantly review our protections for customers as a responsible bank and lender, and are keeping this matter under close review,” a spokeswoman for Barclays said.

“At present UK customers can use both their Barclays debit card and Barclaycard credit card to purchase cryptocurrency legitimately,” she said.

Bitcoin investors warned they could unknowingly owe tax

February 1, 2018 flippener

Bitcoin investors who made huge gains when the cryptocurrency’s value rocketed last year have been warned that they could unknowingly owe tax to HM Revenue and Customs (HMRC).

Bitcoin Electronic Money (Image: MaxPixel)

However, there is some confusion around the issue, as Ed Molyneux, the boss and co-founder of cloud accounting software provider FreeAgent, explains:

“HMRC sees bitcoin profits being subject to capital gains tax, but there does not appear to be a definitive answer on the issue yet, which could cause confusion among investors.”

It comes down to whether bitcoin is classified as an investment or a currency. Currencies are exempt from capital gains tax, but investments and commodities are not.

Bitcoin – the Revenue comes calling

January 31, 2018 flippener

It is that time of year many a self-employed person dreads, the deadline to submit your tax return and pay anything you owe. But this year there is a question a select few should be asking themselves – have I profited from my investment in crypto-currencies?

If you have, you could be liable for tax.

In 2014 Revenue & Customs published guidelines making clear the different taxes that apply to any earnings from crypto-currencies.

For most people who have bought a few bitcoins some years ago, it is Capital Gains Tax that will be relevant.

Bitcoin keychains on circuit board (Image: BTC Keychain)

This will apply to any profits, once you hit the £11,300 CGT threshold, not just if they are converted into a standard currency but if they are used to buy other crypto-currencies such as Ethereum or to invest in initial coin offerings (ICOs).

But in recent weeks there is some evidence that a few people are making trading in crypto-currencies a full-time job, in which case they are likely to be liable for income tax on their earnings.

Now, the acceleration in the value of Bitcoin and other crypto-currencies happened over the course of 2017 so it is unlikely many people will have incurred tax liabilities in 2016-17, the year HMRC is currently examining.

UK Government Lures Distributed Ledger Projects With $26 Million Fund

January 28, 2018 flippener

The United Kingdom’s technology development arm, Innovate UK, is doubling down on its support for blockchain-based technologies, it announced on Jan. 22.

The U.K.’s nondepartmental public office said it would invest a total of £19 million ($26.6 million) in projects which will result in new products or service in the fields of emerging and enabling technologies, including using distributed ledgers. The agency will also offer a further £12 million ($16.8 million) for businesses trying to recruit graduates to help develop their project.

Blockchain (Image: DavidStankiewicz/Wikipedia)

Respondents have until March 28, 2018 to submit their proposal, and must be run by a business or a research and technology group. The projects’ scopes must cost at least £35,000 and last at least for three months, but can go on to three years with a cost of £2 million, according to the announcement. Also a part of the eligibility criteria is that businesses should be able to raise up to 70 percent of their costs on their own.

Crypto Fear-Mongering at Davos

January 27, 2018 flippener

While cryptocurrencies have been a talking point at previous World Economic Forum conferences, they have come to the fore in Davos this year.

Following a breakout year which saw Bitcoin rise to an almighty high of $20,000, alongside the massive growth of other altcoins, it’s hardly surprising that one of the major talking points at WEF would be the future of cryptocurrency.

With financial industry leaders coming together at the most important annual event on the economic calendar, media outlets took their chance to ask the top minds for their two cents worth on the current and future prospects of virtual currencies.

Cointelegraph is currently attending the summit in Davos and has reported continual resistant perceptions towards cryptocurrencies.

These views stem from a lack of a regulatory framework for virtual currencies which has made some of the world’s prominent banking and financial institutions hesitant about investing and supporting cryptocurrencies.

UBS Chairman Axel Weber said as much in an interview with Bloomberg, saying his firm would not recommend cryptocurrency adoption or investment to its clients until there is clarity on future regulatory action.

As per usual, the vibrant and feisty cryptocurrency community has been watching developments at Davos keenly, and there has been plenty of backlash in response to any FUD or untoward comments about cryptocurrencies.

Bitcoin Demand at $10K Hints at Move Higher

January 25, 2018 flippener

Persistent demand around the $10,000 mark appears to have not only neutralized the immediate bearish outlook on bitcoin, but also hints the cryptocurrency could be building a base for an eventual move higher.

Prices on CoinDesk’s Bitcoin Price Index (BPI) fell to $9,972.29 yesterday, before witnessing a quick recovery to $11,000 levels. This is the fourth time in last week that bitcoin (BTC) has recovered losses after sinking below $10,000 levels. As of writing, bitcoin is at $10,990 levels. The cryptocurrency has appreciated by 3.38 percent in the last 24 hours, according to OnChainFX.

Bitcoin price chart (Image: geralt/Pixabay)

On Coinbase’s GDAX exchange, BTC witnessed two-way business yesterday with prices hitting highs and lows of $$11, 370 and $9,945, respectively, before closing (as per UTC) at $10,824 levels.

The situation looks no different today as the rebound from the intraday low of $10,450 seems to have run out of steam above $11,000 levels. The cryptocurrency was last seen changing hands on GDAX at $10,970 levels.

Only 20 Percent Of Total Bitcoins Remain To Be Mined

January 24, 2018 flippener

Bitcoin miners passed a significant milestone over the weekend, when they mined the 16.8 millionth bitcoin from the cryptocurrency’s planned total of 21 million coins.

This means that 80 percent of all bitcoins that will be in existence have already been mined. According to estimates, bitcoin will reach its final coin figure sometime in 2140. (See also: How Does Bitcoin Mining Work?)

Over the years, bitcoin has adjusted the number of coins in circulation through a complex calibration of miner rewards and problem difficulty. Bitcoins are awarded to miners who solve complex mathematical problems through intensive computation. The reward number is halved every 210,000 blocks, per bitcoin’s original algorithm.

Immediately after bitcoin’s launch, miners earned 50 coins as reward for solving problems. It was cut to 25 in 2012 and 12.5 in 2016. In two years, miners can expect 6.25 bitcoins as rewards. The difficulty of problems has kept pace with rewards. As the number of rewards has decreased, bitcoin’s problem difficulty has increased, thereby making it more difficult and computation intensive to earn the coin.

Fernhill Corporation Finalizes Design for Bitcoin Mining Rig with Backup Power Supply Systems

January 22, 2018 flippener

[Just a development in the market that I found interesting]

Fernhill Corporation (OTC PINK: FERN) is pleased to report its progress on the development of a bitcoin mining rig with onboard energy storage and peak shaving capabilities.

CEO Adam Kovacevic said:

“Over the last several weeks we have been researching and designing a platform to develop a bitcoin mining rig that has the capability of self-regulating its demand for power. A mining rig specifically built to peak shave can prove to be a viable solution to assist in driving down the high costs of power consumption associated with the bitcoin mining business.”

Peak shaving is the process of reducing the amount of power purchased from a utility company during peak demand hours. Globally, peak pricing structures allow for utility companies to bring on additional capacity to meet the obligations of increased power demands during specific times of the day. This additional capacity comes at a cost to the consumer as typically older, costlier to run power generation equipment is brought online to keep up with peak demand. Peak power pricing is substantially higher than normal rates in order to encourage users to reduce their consumption during these specific times.

Ethereum Mining Rig (Image: MaxPixel) — Mining Rig (Image: MaxPixel)

Fernhill’s CEO concluded:

“The development of a system that can run independently off the grid during peak hours is intriguing. We believe that a feasible solution can be developed to significantly decrease the energy costs associated with bitcoin mining by offsetting the electric demand usage times. Electricity costs associated with bitcoin mining could be decreased by more than 30% in some instances by introducing a system with peak shaving capabilities.”

Fernhill estimates that the first mining rig will be completed and delivered to its client for evaluation in approximately 30 days.

Revealed: The tax-free Bitcoin loophole that could cost Treasury millions

January 21, 2018 flippener

A tax loophole which reduces Bitcoin investors’ gains to zero will be exploited by people filling in their returns for this tax year, potentially creating millions in lost revenue for the Government, experts have warned.

HMRC is expecting to see a surge in the number of taxpayers declaring gains from cryptocurrencies this year after many investors sold their holdings after values soared, leaving them with huge profits.

However the taxman’s anticipated windfall could be far less than expected thanks to a loophole which lets taxpayers class their investment in cryptocurrency as “gambling”, winnings from which are tax-free.

An HMRC spokesman said:

“We don’t normally tax betting and gambling because it is usually not classed as trading income…”

Bitcoin’s Price Drops Below $10,000 for First Time Since Early December

January 17, 2018 flippener

The price of bitcoin has fallen below $10,000 for the first time since early December.

According to CoinDesk’s Bitcoin Price Index (BPI), the cryptocurrency’s value has hit a low of $9,714.02 as of press time. The last time bitcoin’s price was below $10,000 was on Dec. 1, BPI data shows.

Bitcoin Price Chart (Image: NikonD300/MaxPixel)

As of the time of writing, the price had recovered somewhat, trading at $9,737.20. Market analysis suggests that the price could shift in either direction and recent regulatory developments – out of South Korea and China in particular – could roil markets further, according to some observers.

Bitcoin’s come comes amid the backdrop of a wider fall in cryptocurrency markets, a state of affairs which was on full display during yesterday’s trading session. Data from CoinMarketCap shows that many of the top cryptocurrencies remain in the red for the past 24 hours, including ether, which has fallen below $900.

Bitcoin Investors UK