This latest move is a smart way to pull sales from a demographic that is already sympathetic to him. Bitcoin fans are (once again) having their moment in the spotlight. Is the Stablecoin Tether (USDT) really covered by enough reserves? This question has been hanging like a sword of Damocles over the crypto space for a long time. But this could soon be finally clear.Not only the central banks let the money printing machines run at full speed in 2020. Tether Limited, publisher of the stablecoin Tether, also created more USDT tokens than ever before. This article is all about how to cash out your Bitcoins without paying taxes and which countries have the best cryptocurrency tax in general, and specifically for Bitcoin. From moving to a tax haven to moving a country and getting married. Spoiler alert - you do have to pay your taxes whether you want it or not. If you kept your Bitcoin in the online exchange, then getting it out should be relatively easy—assuming the site is back up and running soon. According to Coinbase, it's a simple process that can.
September 18, 2019, 10:00 AM. Giving a shock to investors who wish for SEC approval to a bitcoin ETF, CBOE BZX Exchange withdrew its VanEck/SolidX bitcoin ETF proposal on Sep 13.
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Cryptocurrency fans were thrilled after a major buy-in from Tesla sent Bitcoin prices soaring. DW's Kristie Pladson writes that the hype shows why the digital coin will struggle to be more than an investment tool.
People won't want to spend Bitcoin to buy a Tesla as long as the cryptocurrency's value keeps rising
Since Bitcoin began its price rally last autumn, smashing record after record, crypto experts and enthusiasts have been saying that the tide has turned. After years of volatility, the digital currency has been on a mostly upward slope. Last October, PayPal announced that it would start accepting the digital coin, and many have predicted that Bitcoin would start gaining the long-term stability and institutional backing needed to become a widely used currency.
What to do, then, with the fact that an endorsement from Tesla sent prices soaring some 15%?
The US electric car manufacturer led by Elon Musk, one of the richest people on Earth, announced earlier this week that it had invested $1.5 billion (€1.24 billion) — 10% of Tesla's cash reserves — in Bitcoin and that it expects to start accepting purchases made with the digital currency.
The move marks the biggest corporate purchase of Bitcoin ever and cryptofans are understandably hopeful. But it also highlights the rocky road Bitcoin faces in trying to transform from a punk rock investment tool into the necessarily boring currency that many have claimed it will become.
Musk leans on his reputation
Musk's interest in cryptocurrencies is no secret. He frequently writes about Bitcoin and other digital currencies on Twitter and is popular among the cryptocrowd. The bigger question is why Tesla as a company would put over a billion dollars into Bitcoin when there are so many squeaky wheels going without grease at home. Tesla's vehicle production still lags behind demand, with customers sometimes waiting months for orders to be filled. And little has been done to address worker complaints of low wages and poor working conditions. Why not throw some of that 1.5 billion their way?
DW's Kristie Pladson
One reason might be that Tesla's Bitcoin investment is less about dabbling in exciting investments and more about enhancing the core of its brand.
Tesla and Musk have a reputation for being on the cutting edge of technology. This latest move is a smart way to pull sales from a demographic that is already sympathetic to him. Bitcoin fans are (once again) having their moment in the spotlight. Perhaps Musk felt it was the ideal moment to capitalize on their good will towards him. Tesla accepting Bitcoin payments is bound to boost the company's future-forward image and attract at least a few self-identifying visionaries who will be more than happy to pay for the car of the future with the currency of the future.
There's also the investment aspect. Musk is aware that the cryptocurrency is sensitive. He knew Bitcoin prices were likely to spike when Tesla announced it would start accepting Bitcoin. Now add a $1.5 billion Bitcoin buy-in on top. The 15% jump that followed means Tesla has already made a quarter of a billion dollars from the venture.
A deflation sensation
As exciting as the Tesla-induced surge in the price of Bitcoin might be, we're again looking at the type of volatility that doesn't bode well for the future of Bitcoin as an actual means of payment.
Steadily rising prices make Bitcoin an attractive investment tool. As a means of payment, however, they represent something rather more problematic: deflation. In a report from news agency Reuters, one Bitcoin enthusiast said he regretted using Bitcoin to buy a Tesla in 2016. At the time, the customer paid $130,000 worth of Bitcoin for the vehicle using a Bitcoin payment gateway, a service that allows merchants to accept Bitcoin transactions via a middleman.
A tipping point for Bitcoin?
The $130,000 he spent on the car would have been worth over $14 million today. The 'novelty' of paying with Bitcoin wasn't enough to make up for the lost value, he said.
If I snapped my fingers and suddenly the whole world was using Bitcoin, we would immediately face massive deflation, as people choose to hold on to the currency rather than spend it, driving down prices. For now, it's too good an investment tool to be a useful currency. Ironically, Tesla's move is only reenforcing that fact, at least in the short term.
Tesla's Bitcoin endorsement will likely bolster confidence in the cryptocurrency and other companies are likely to follow suit. If they don't invest themselves, they're still likely to move towards accepting Bitcoin as payment, out of fear of leaving money on the table.
There's also the investment aspect. Musk is aware that the cryptocurrency is sensitive. He knew Bitcoin prices were likely to spike when Tesla announced it would start accepting Bitcoin. Now add a $1.5 billion Bitcoin buy-in on top. The 15% jump that followed means Tesla has already made a quarter of a billion dollars from the venture.
A deflation sensation
As exciting as the Tesla-induced surge in the price of Bitcoin might be, we're again looking at the type of volatility that doesn't bode well for the future of Bitcoin as an actual means of payment.
Steadily rising prices make Bitcoin an attractive investment tool. As a means of payment, however, they represent something rather more problematic: deflation. In a report from news agency Reuters, one Bitcoin enthusiast said he regretted using Bitcoin to buy a Tesla in 2016. At the time, the customer paid $130,000 worth of Bitcoin for the vehicle using a Bitcoin payment gateway, a service that allows merchants to accept Bitcoin transactions via a middleman.
A tipping point for Bitcoin?
The $130,000 he spent on the car would have been worth over $14 million today. The 'novelty' of paying with Bitcoin wasn't enough to make up for the lost value, he said.
If I snapped my fingers and suddenly the whole world was using Bitcoin, we would immediately face massive deflation, as people choose to hold on to the currency rather than spend it, driving down prices. For now, it's too good an investment tool to be a useful currency. Ironically, Tesla's move is only reenforcing that fact, at least in the short term.
Tesla's Bitcoin endorsement will likely bolster confidence in the cryptocurrency and other companies are likely to follow suit. If they don't invest themselves, they're still likely to move towards accepting Bitcoin as payment, out of fear of leaving money on the table.
As more institutions hop on board, there is every reason to believe Bitcoin's value will continue to rise. And with the prospect of everyone else spending it, no one will.
Audios and videos on the topic
Bitcoin investing is considered to be a high risk investment, meaning while you have the potential to make massive gains, you also have the potential to incur massive losses. However, with the massive skyrocket of bitcoin prices this December, many wonder if now is the time to sell their assets. Financial advisors disagree on the future course of bitcoin, and banks are both making moves to blacklist and alternatively legitimise it. More and more vendors are beginning to accept bitcoin directly, and brokerages are starting to offer POS methods to instantly turn your bitcoin into cash, at vendors that don't yet accept it. With the world at odds about the future of bitcoin, here are some considerations before deciding to pull out of Bitcoin
Nasdaq, CME, and Cboe, is About to List Bitcoin Futures
When listed, this move may cause an initial massive drop in prices, but should help stabilise bitcoin volatility. This move by some of the biggest markets will also further legitimise bitcoin as a commodity or currency. By listing bitcoin futures on markets, it also become accessible to average investors. Of course, this move risks bitcoin being bought up by the small percentage of investors with the highest buying power, which would destroy the cryptocurrency's de-centralised schema, and lead to the majority of bitcoin end users to move to another cryptocurrency.
Bitcoin Exchange Traded Funds are Coming
Commodity ETFs are already considered to be a low fee option, with commodities generally sold only to pay fees, and cover expenses. As bitcoin needs no physical transfer, assuming that the market stabilises and continues to grow, the lower amount of expenses than other commodities could make it a wise investment. Sweden's bitcoin ETF is already bigger than almost 80% of any American ETF.
Bitcoin Listed Recently at Over 19k per Coin
Can You Pull Your Money Out Of Bitcoin
Bitcoin is volatile, and can both gain and drop thousands of dollars in value, in a single day. Though it's at record highs right now, market, bank, and investor analysist worry that this is another bubble period, where everyone is trying to buy up what they can, before it hits Nasdaq. This artificial cost inflation may lead to a significant crash in the near future, as interest wanes. Since it is currently being bought with the goal of holding it, bitcoin friendly vendors are seeing less transfers, which may hurt the cryptocurrency in the long run.
Conclusion
When To Pull Out Of Bitcoin Account
When bitcoin first started, years ago, it was practically worthless, and advisors had no inkling that it would reach $1,000, let alone $10,000. However, its unregulated nature, volatility, and continual exploitation by hackers and thieves ensure that bitcoin remains a high-risk investment. While bitcoin may be at a record high currently if this is indeed a bubble period and bitcoin crashes, many stand to lose their life saving or incur tremendous losses. Furthermore, if a small percentage of the population is to buy bitcoin and refuse to sell, they can efficiently kill bitcoin, by preventing it from reaching end users and vendors. Alternatively, the fact that more and more vendors are taking steps to accept bitcoin as a primary payment method is encouraging – and opens the door for other cryptocurrencies to gain more steam.
