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Not Legal Advice… America: The world’s most creative junkie

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Not Legal Advice… America: The world’s most creative junkie

Not Legal Advice is a monthly column from Zachary Kelman, Cointelegraph’s general counsel. He is a New York-licensed attorney specializing in political, legal and regulatory issues surrounding Bitcoin, digital currencies and blockchain technology.

For two decades, United States presidents kept the American military in Afghanistan to back the fragile local government, tasked with keeping the Taliban at bay. Earlier this month, the U.S. military left, and the Afghan government that the U.S. armed forces supported collapsed like a pitched tent whose pole had been removed. It was obvious to all observers that fundamental change in Afghanistan was always impossible, and American military intelligence must have known this inevitable reality. What is unclear is why, at this particular moment, the U.S. finally pulled out.

The answer might lie in an increasingly powerful, yet often overlooked, force affecting decision-making in Washington, DC: U.S. sovereign debt risk. With $28 trillion of gross national debt, unparalleled money printing and quantitative easing, as well as decades of low interest rates, America has spent most of its monetary ammo in the past decade. This has caused policymakers to break the glass and let loose trillions in emergency spending, frightening America’s sovereign debtholders who suddenly have more reason to fear the once-unthinkable prospect of American sovereign debt collapse. Into this void steps President Joe Biden and the 117th U.S. Congress.

Related: On quantitative easing, crypto and modern monetary theory

One would think the obvious method of allaying debtholder concerns lies in the balance sheet, by increasing tax rates or decreasing spending. However, tax hikes and budget slashing are tantamount to shutting down an open bar at a house party right when it’s getting fun. The winning political formula here is always the IOU — increasing taxes upsets voters and harms market optimism, while cutting spending causes politicians to fail to deliver on promises and reduces their access to the gravy train. However, much like a clever junkie, the U.S. can always find a way to reassure pesky Treasury holders and debtholders that America is still “good for it.”

Ending the war in Afghanistan may not directly result in a reduced military budget, but it does signal the end of the attitude that caused America’s unrelenting post-9/11 foreign interventionism. By ending the war, America is effectively telling the world that it has ended the codependent relationship contributing to its addiction, without having to outright quit cold turkey.

Likewise, budget hawks allege that the creation of the arguably impossible crypto tax reporting requirements outlined in the amendment to the recent U.S. infrastructure bill will result in the federal government gaining tens of billions of dollars in “lost” revenue without having to increase tax rates. Since raising taxes sends a negative market signal that harms economic stability, and since passing trillions of dollars in spending without so-called “pay-fors” sends a negative signal to wary U.S. debtholders, this affords an opportunity for policymakers to have their cake and eat it too. Threatening to hold the American crypto community upside down and shake them until tens of billions of dollars come out — even if their actual unpaid tax bills are a fraction of that — can provide temporary relief to worried debtholders, who are likely crypto neophytes themselves, without the loathsome burden of actual fiscal responsibility.

Related: Let’s be clear: Blockchain technology is infrastructure

Anyone who has had close family or friends suffer from a drug or gambling addiction knows the difference between a real change in an addict’s habits and the superficial promises and decisions they use to disguise their continued addiction. We know how important our support and optimism can be and hold out hope until we are burned a few times as it becomes obvious no fundamental shift has occurred. As the old tools of monetary policy become rusted and worn out and America shifts to a policy of wild quantitative easing and unprecedented public spending, America’s debtholders have good reason to hope the nation has found a way to keep chugging along, especially given the dollar’s central position in the world monetary system. For America’s sake, let’s pray it can remain history’s most creative junkie for years to come — hopefully without having to throw the crypto industry under the bus again.

This article is for general information purposes and is not intended to be and should not be taken as legal advice.

Zachary Kelman serves as general counsel of Cointelegraph. He is a lawyer focusing on the regulatory environment that surrounds digital currency and financial technology, whether that’s obtaining licenses and designing compliance policies to meet newly crafted laws in the Philippines or meeting and crafting policies with Caribbean regulators. Prior to co-founding Kelman PLLC, he managed the compliance program for Coins.ph. Zachary has represented and advised entrepreneurs on best legal practices for their business across the fintech space.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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BTC, ETH, XRP, ZEN, SNX, WAVES, AVA – Technical Analysis Sept 16

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BTC, ETH, XRP, ZEN, SNX, WAVES, AVA – Technical Analysis Sept 16

Bitcoin (BTC) and Ethereum (ETH) have broken out from descending parallel channels.

XRP (XRP) is trading above the $1.05 horizontal support area.

Horizen (ZEN) is trying to break out above the $108 resistance area.

Synthetix (SNX) has broken out from an ascending triangle.

Waves (WAVES) has moved above the $26.80 resistance area.

Travala.com (AVA) has broken out from a descending resistance line.

BTC

BTC has been moving upwards since Sept 14. On Sept 15, it managed to break out from a descending parallel channel and accelerated. 

The upward move is supported by both the RSI and MACD, which are increasing. The former has even crossed above 50. 

BTC is approaching the 0.618 Fib retracement resistance level at $49,050. However, due to a confluence of Fib levels, it’s possible that it could increase all the way to $50,750.

ETH

On Sept 15, ETH broke out from a descending parallel channel that had been in place since Sept 7. It has been increasing at an accelerated rate since. 

The upward move is supported by both the increasing MACD and RSI readings. 

However, ETH has reached a confluence of Fib resistance levels between $3,625 and $3,635. These levels are the 1:1.61 length of waves A:C and the 0.618 Fib retracement resistance level (white).

XRP

On Aug 13, XRP broke out from the $1.05 horizontal resistance area. It proceeded to reach a high of $1.41 on Sept 6 before dropping sharply the next day. 

Following this, it validated the $1.05 area as support. 

However, even though XRP is trading above the $1.05 support area, indicators are bearish. The MACD and RSI are both decreasing.

ZEN

ZEN has been increasing above an ascending support line since July 16. On Sept 6, it was rejected by the $108 horizontal resistance area and returned to validate the support line once again. 

However, ZEN rebounded and made another breakout attempt on Sept 15. 

Despite the strong bounce, ZEN failed to break out. In addition, both the RSI and MACD have created bearish divergences. 

Therefore, at the current time, we cannot determine if ZEN will be able to move above this resistance.

SNX

SNX began trading inside an ascending triangle on May 21. After several unsuccessful attempts, it managed to break out on Sept 15. 

The breakout is supported by the increasing MACD and RSI values. 

The closest resistance area is found at $23.80.

WAVES

WAVES has been increasing above an ascending support line since July 20. 

On Aug 31, it broke out above the $26.80 resistance area. 

After this, it returned to validate the area as support, also touching the ascending support and Supertrend lines (green icon). It has been moving upwards since. 

The closest resistance area is at the all-time high level near $38. 

AVA

On Aug 14, AVA broke out from a descending resistance line that had been in place since April and reached a high of $5.40 on Sept 6. 

However, it was rejected by the $5.40 resistance area and fell. 

It then found support at $3.50, creating two lower wicks. In addition to this, the RSI has generated a hidden bullish divergence, which is a common sign of trend continuation.

Therefore, AVA could be on its way to revisit the $5.40 resistance area.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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AMC to Support Ethereum, Litecoin, and Bitcoin Cash Following BTC Adoption

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AMC to Support Ethereum, Litecoin, and Bitcoin Cash Following BTC Adoption

AMC Theatres will accept payments in Ethereum, Litecoin, and Bitcoin Cash by the end of 2021, in addition to bitcoin.

AMC Theatres, the world’s largest theater chain, has announced that it will accept more cryptocurrencies for payment by the end of 2021. The cryptocurrencies that it will support include bitcoin, ethereum, litecoin, and bitcoin cash. This marks yet another notable adoption for the cryptocurrency market, which has had a stellar 2021.

AMC expands crypto payment options

The company’s CEO, Adam Aron, tweeted the news on Sept 16, saying that crypto could be used to pay for online ticket and concession payments by the year’s end. AMC revealed that it would accept bitcoin in August 2021, to much fanfare.

This year has already seen Tesla accept bitcoin as payments for its electric vehicles, though it suspended that later. PayPal has also expanded into cryptocurrencies and is ramping up its support for the market.

The news of AMC Theatres accepting cryptocurrency payments will please investors, as the chain is a notable brand with some clout. The firm has also come to the attention of the public lately for its support from within Reddit’s wallstreetbets community. While the support was not quite as strong as it was for GameStop, those retail investors have helped drive the price of AMC’s stock up.

In short, the acceptance of crypto payments should stir further interest from a community that is already knowledgeable about crypto. Incidentally, GameStop also announced a foray into the blockchain and crypto space when it announced that it was working on a series of NFTs.

Bitcoin and crypto steadily seeing greater adoption

The crypto world has been subject to a lot of good news in terms of adoption this year. The support coming for crypto payments has been varied, with entities in a highly varied set of industries taking the step. The signs have been very optimistic at the retail level.

The travel industry can benefit a great deal from bitcoin payments — and a luxury hotel in Switzerland has gone to facilitate that. Switzerland, which is known for its hub of crypto companies and entrepreneurs, has over 85,000 merchants supporting crypto payments.

Other established companies supporting crypto payments include auction house Lloyd’s. Auction houses have been very interested in blockchain technology, particularly NFTs. Many of them have conducted auctions for NFTs, selling them for many millions.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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El Salvador’s Chivo Bitcoin Wallet Crosses 500,000 Users

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El Salvador’s Chivo Bitcoin Wallet Crosses 500,000 Users

El Salvador’s Chivo bitcoin wallet has already crossed 500,000 users, as revealed by local news reports.

El Salvador’s digital bitcoin wallet Chivo has already hit half a million users, according to reports from local media. The country introduced the wallet on Sept 7.

Users receive $30 in bitcoin when they download the wallet for the first time as an incentive. As of Sept 7, the country had purchased 400 bitcoins for its coffers — which by all accounts is ambivalent in terms of its success.

El Salvador’s bitcoin integration is off to a somewhat rocky start, as there have been several protests against its adoption. Protests have come from both opposition forces and citizens — with the latter marching in the streets and even filing a lawsuit.

The country has used a number of measures to incentivize people to use bitcoin. Foreigners, for example, are exempt from paying capital gains tax on their bitcoin profits. In addition, they receive permanent residency if they decide to move and have an entrepreneurial venture.

https://s32659.pcdn.co/wp-content/uploads/2021/09/El-Salvador.mp4
Source: /u/kiarga

Some El Salvadorians have taken to Reddit to talk about the general sentiment surrounding bitcoin. The country celebrated its Independence Day on Sep. 15, and many protested against the current government in the streets. News broke that vandals destroyed bitcoin ATMs in the country, which is further evidence of displeasure with the new law.

One Redditor spoke about bitcoin further cementing existing inequalities — a concern that was one of the major issues citizens have with the government. They also note that the bitcoins in the Chivo wallet could be seized by the government.

One thing that cannot be denied is the fact that BTC payments do indeed reduce costs for cross-border payments. Other countries in the region are keeping a close eye on the development, which is the first of its kind.

Will more countries follow?

It’s unlikely that a large swathe of countries will follow El Salvador’s lead. Most governments are determined to release their own central bank digital currency (CBDC). Those that have accepted cryptocurrencies as an asset class have done so begrudgingly and are laboring to form a regulatory framework.

The idea of making bitcoin legal tender has been rebutted by China, India, and Russia. With important economies dismissing the asset as having such an important role in the economy, most other countries will likely take the same position.

Having said that, the El Salvador bitcoin experiment could turn up some surprising results. If bitcoin does indeed become the medium for cross-border transactions, then this could encourage more countries to do the same.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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