Expect ‘Large increase’ in Cryptocurrency Taxes Filed for 2018, Says Bittax CEO

Why did you decide to launch Bittax? Are Bitcoin taxes too cumbersome to calculate for the average person? 

Gidi Bar Zakay: I’ll admit that, like everyone else, I was also prejudiced against bitcoin. But when I was approached by the tax authority while serving in a public position at the Institute of Certified Public Accountants and was asked to comment on a circular that they intended to issue regarding bitcoin, I realized it has potential. That this is what the world needs right now.

Not everyone can calculate crypto taxes from their own home. The regular and familiar calculation method – FIFO (First in First Out) – isn’t so simple to calculate either, but calculating tax in a way that will simultaneously represent the actual activity in coins, prevent double taxation caused by the exchange of altcoins, allow the user to present the whole image, prevent data omission and save tax payments on activity that does not reflect an actual transaction, is a complex task which cannot be performed with Excel or a simple calculator at home.

Is your service aimed at Israeli citizens only or is it global?

The service is currently active in Israel but will soon be exported to the USA and then to Europe.
Our company is currently only listed in Israel, but it is expected to operate internationally.

How does it work – how much is it? Is it simply a self-service calculator or do you have experts that can help clients directly? 

This is how the system works: the user copies their addresses into the system and receives a full overview of their activity.

The users indicate which transactions belong to them, which were forwarded to a third party and which are taking place at the exchange. If the users do not remember certain transactions, the system will make recommendations and attempt to help them remember.

If the users have reached a full overview, the system will warn them of the missing data. The system is unique because of its calculation method. The system does not use the regular and common methods but performs a specific identification of the coins sold and calculates the tax liability accordingly.

This method, patent pending, of which is in the process of being registered, reduces the tax liability by 70-25%, according to the type and scope of activity.

Of course, if the user requires assistance, we are available to guide and assist as much as possible.

What kind of approach does the Israeli government have on cryptocurrency taxes?

The Israeli tax authority treats cryptocurrency as assets and taxes the profits through the capital gains tax. This decision does not come as a surprise – many governments around the world made it, and it is somewhat understandable. Most people don’t use cryptocurrencies at coffee shops and grocery stores, but as instruments for investment and trade.

Once any person would be able to use bitcoin for daily purchases, I believe that most governments will acknowledge it is a tax-free coin.

How many people around the world do you estimate owe cryptocurrency taxes today? In other words, how big is your potential market? 

When examining the activity data from the different exchanges, we are looking at hundreds of millions worldwide.

How many of them currently pay taxes?

Very few. This process will take time, for both the users and the authorities.

Once the coin owners will understand that regulation will result in international adoption of the coins, and the governments will understand how to collect these taxes and how to proactively approach the users, this process will unfold naturally. I expect to see a large increase in the number of reports filed for 2018 in two or three months and an even greater increase in the reports for 2019.

Bitcoin Taxes

A poll in April 2018 revealed most people saying ‘you’ll never catch me’ when it comes to paying taxes on their crypto gains. Is this a problem for the tax agencies? Is it difficult for the gov’t to determine whether an individual owes taxes in this case? 

We’ve heard these statements from the global crypto community, and we can understand them. As a group, we believe in the ideology of a decentralized system and find it difficult to accept that someone else does not view crypto as a coin and demands taxes for it. But today, we can see that the authorities around the world receive the information.

The authorities approach some of the exchanges and demand to receive the data. Many countries grant them the power to do so. Some of the exchanges share the information following the authorities’ request, and once the data is in their hands, it is not difficult to reach the users.

Do you think the bear market of 2018 was partially due to the billions owed in taxes from the previous year resulting in ‘massive selling’ as Tom Lee suggested?

I think that the market’s decline is the positive outcome of people who tried to use crypto in order to make easy money without actual activity backing it, and then left when they realized that the celebration is over. I think that the market is in excellent condition. Those who stayed are the people who truly believe in the future of cryptocurrency and are genuinely interested in developing it.

Considering that 2018 was a downward year for cryptocurrency prices across the board, would filing taxes on crypto losses be particularly recommended this year?

If someone had a profitable activity at the beginning of 2018, through coins or other capital channels, it would be helpful for them to report their losses at the end of 2018. However, it will not be possible to offset losses incurred in 2018 against the huge profits gained in 2017.

What is the best jurisdiction to consider for people who’d like to pay little to no crypto taxes? 

The authority to which crypto-related taxes are paid is determined by the user’s tax residency. The tax residency is determined by, among other things, the number of days spent in the country during the relevant year.

Some countries are friendlier towards cryptocurrency, and I’ve heard of some that even treat crypto as a coin. But will a person leave everything and move to another country simply for tax considerations? Then they must have an abundance of crypto… I would love to meet that person. It’s possible that the entire world has been looking for their identity for the past few years.

What are your predictions for the upcoming year? Do you expect more and more people to start paying cryptocurrency taxes?

I believe that in 2019 we will be looking at a continued effort to closely supervise the crypto market by the authorities, accompanied by an increase in tax payments by the users. What matters now is making sure that the privacy of the tax-paying users will not be affected.

Therefore, we are working on a solution which will maintain the privacy of the users throughout their relationship with the tax authorities, and will only expose the necessary information, addresses and personal data not included.

This solution will be beneficial for both the tax authorities and coin owners around the world because it’ll be worthwhile for the users to report their earnings willingly and not wait for the authorities to locate them.

Author: Allen Scott
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Bitcoin’s Fair Market Price is $14,800, Says Cryptocurrency Bull Tom Lee

Cryptocurrency bull Tom Lee says bitcoin’s dismal price of roughly $3,400 is wrong because its actual fair market value is $13,800 to $14,800.

The Fundstrat founder said he made the assessment by considering the number of active wallet addresses, usage per account, and supply metrics.

“Fair value is significantly higher than the current price of Bitcoin,” he wrote in a note, as reported by Bloomberg. “In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”

Lee said bitcoin’s price going forward will depend on mainstream acceptance of the cryptocurrency as an asset class and growing consumer adoption.

He also insisted that bitcoin’s fair market value would easily rocket to $150,000 if BTC wallets approach just 7 percent of Visa’s 4.5 billion account holders.

Tom Lee: Stop Focusing Only on Price

While Lee has made countless headlines for his bitcoin price targets, he refused to give one this time, saying he’s getting annoyed with everyone’s pathological obsession with mundane daily price fluctuations.

“We are tired of people asking us about target prices,” he quipped.

Despite the bear market, Lee remains ever-bullish about the future of the cryptocurrency industry as we head into 2019, as evidenced by his gleeful holiday tweet with the Rockettes.

Four weeks ago, Lee doubled-down on his year-end bitcoin price target of $15,000, saying the current market downturn is an “awkward transition” that will pass.

Lee said the next big trend — which is just around the corner in early-2019 — is institutional investors making giant leaps into crypto.

Bitcoin Futures to Launch in Early-2019

To facilitate institutional investments, Bakkt, which will facilitate bitcoin futures trading, is scheduled to launch on January 24.

Bakkt will provide custody and price discovery for bitcoin — which is regulated as a commodity by the CFTC — in a way that will prevent market manipulation and fraud.

Similarly, Nasdaq — the world’s second-largest stock exchange  — also plans to launch a bitcoin futures product in the first quarter of 2019, as CCN reported. So the race is on.

Roger Ver: Crypto’s Future is ‘Brighter Than Ever’

Tom Lee’s bullish outlook was echoed by Roger Ver, an early bitcoin enthusiast and bitcoin cash evangelist. Last week, Ver said that the long-term future of cryptocurrency “is brighter than ever.”

Ver — a polarizing figure who has been hailed as “Bitcoin Jesus” by some and lambasted as “Bitcoin Judas” by others — dismissed skeptics’ claims that the frequent hacks in the crypto ecosystem prove that crypto is a magnet for con artists.

Ver clapped back by saying the hacks and repeated attempted hacks are actually “bullish signals that cryptocurrency is here to stay for the long-term.”

He says the high-profile hacks merely underscore that virtual currencies are valuable.

“The fact that hackers are trying to hack it shows it’s worth something,” Ver reasoned. “If it wasn’t worth anything, hackers wouldn’t be wasting their time trying to hack it.”

Mike Novogratz, the founder of Galaxy Digital Holdings, is also unfazed by the state of the crypto market today. “Revolutions don’t happen overnight,” he said.

Novogratz predicts that 2019 will be a watershed year because big things are happening behind the scenes to prepare for a major explosion.

The former Goldman Sachs partner says institutional “FOMO” (fear of missing out) will drive the market up as cryptocurrency assets gain more mainstream acceptance and traditional finance players hop on the crypto bandwagon.

In Your Face, Naysayers

Here’s a flashback to some quotes about inventions that were initially dismissed that later went on to change the world.

  • “There is no reason anyone would want a computer in their home.” —Ken Olsen, computer pioneer.
  • “Apple is already dead.” —Nathan Myhrvold, former Microsoft CTO, 1997.
  • “Airplanes are interesting toys but of no military value.” —Ferdinand Foch, French general.
  • “[Online] shopping, while entirely feasible, will flop.” —Time magazine, 2000.

Author: Samantha Chang
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BTC Price Drops Below $5,000 — Where Does Bitcoin Go From Here?

It appears that the great reckoning has arrived: the long-anticipated time when Bitcoin and the cryptocurrency market’s excessive hype has run out of steam.

From starting 2018 at a high price point of around $16,000, Bitcoin’s value has now dropped below the psychological mark of $5,000, an event that most crypto enthusiasts did not think would happen, after months of holding at the $6,000-6,500 range.

It’s very depressing news indeed, especially after last year’s remarkable bull run.

However, the public response to the market plunge does not give the impression that any sort of reckoning has arrived. While many average investors are likely operating at a severe loss, the HODLers and big names seem unfazed.

With Ripple now second in market cap and several previously well-performing tokens taking heavy losses, we could be at a point where the market is putting on a new face and entering 2019 with a different personality — one where stability and increased scrutiny on funding and operations will determine how the price plays out, as opposed to what is now largely just the mindset of investors.

Here, we’ll take a look at what some well-known crypto enthusiasts are saying, as well as the general public sentiment. We’ll also dive into what Bitcoin’s future looks like.

Anthony Pompliano Made the Prediction

Anthony Pompliano, a well-respected venture capitalist who is one of the most ardent supporters of Bitcoin and decentralized technology, actually predicted in late August that BTC price could drop significantly.

Pompliano, who has both personal and professional investments in Bitcoin, said that the Bitcoin could fall to as low as $3,000, a complete-180 from a prediction of $50,000 in January. To his credit, he dared to correct himself and realize that the market is far more nascent — 4 years from $50,000, as he said.

In a recent podcast, he, like many long-term investors, said that he sees bear markets as a good thing as “[they] get rid of the tourists so that the true entrepreneurs can focus on building sustainable value.”

When speaking about fund managers who last made a profit in the bull run of 2017, “Pomp,” as he is affectionately called, doesn’t see another profitable run until 2020.

Others Are More or Less Optimistic

Anthony Pompliano is a long-term man through and through, and this sentiment is shared with several other notable figures.

Tom Lee, co-founder of Fundstrat Global Advisers, has brought his Bitcoin valuation down from $25,000 to $10,000 by the year’s end.

Speaking to CNBC, he said:

While bitcoin broke below that psychologically important $6,000, this has lead to a renewed wave of pessimism. But we believe the negative swing in sentiment is much worse than the fundamental implications.

He also sees Bakkt as a part of an important setup in infrastructure for institutional trading, saying that it is a “part of a broader creation of infrastructure necessary for institutional involvement.”

Andreas M. Antonopoulos, much loved by the community, makes a different point:

Many had bought into the crypto market at the worst possible time, and Antonopoulos is right.

Now, more than ever, the tribalism and irrational, evidence-absent bickering by crypto community members should be passed up in favor of a more rational, thoughtful approach where people are given a safe and accessible way to enter the crypto market.

Reddit, a bastion of cryptocurrency investors, displays sentiments across the spectrum. For the most part, redditors urge investing no more than one can lose and hodling for the long run. Several individuals have unfortunately lost a great portion of their savings and this makes it all the more necessary that people approach cryptocurrency investing with caution.

Some are also happy to see the market being purged of terrible projects.

As this necessary bloodletting takes place, it’s important to remember Antonopoulos’ words.

Institutional Investors Still in the Game

wall street and bitcoin

Institutional investors, meanwhile, are settling in for the long game.

Just as the bear market had begun and Bitcoin had dropped below $6,000, Big Four firm KPMG released a report that spoke positively of digital assets.

While they believe that it a long way from mainstream adoption, they also conclude that the market is too big to ignore, saying:

In 2018, we are seeing a wave of new entrants in the market such as security token platforms, stablecoins, and even established financial services institutions that are launching crypto products and services. Cryptoassets are now impossible to ignore.

However, concurring with the belief of some investors, they say that institutionalization is necessary for the next phase in crypto growth:

Institutionalization is the at-scale participation in the crypto market of banks, broker dealers, exchanges, payment providers, fintechs, and other entities in the global financial services ecosystem. We believe this is a necessary next step for crypto to create trust and scale.

The Role of Bitcoin Cash

An unavoidable part of this whole incident is the hard fork of Bitcoin Cash, now split into Bitcoin ABC and Bitcoin SV (“Satoshi’s Vision”).

The 2 forks are now part of what Brian Kelly, founder and CEO of crypto investment firm BKCM, call a “crypto civil war.”

Some speculate that the fork must have triggered a sell-off among BCH holders, which in turn — as is the case with the crypto market — caused a lot of anxious and trigger-happy investors to sell more, plunging values even further.

There is no way to be certain of BCH’s role in triggering BTC’s plunge below the $5,000 handle. After all, Bitcoin and the market as a whole has been in a tricky situation for a few months now. Perhaps the hard fork was the inevitable nudge that pushed the market lower.

It does highlight one important point: altcoins are suffering far worse than Bitcoin and this is partially because of how reliant they are on it. These bear markets are essentially mass murders, and if tokens drop significantly in value, they could be wiped off the market.

Kelly put it best:

I think all other assets that are not Bitcoin are in the midst of a liquidity crisis. What we’re seeing across the board is asset prices are down 75 percent or more, in some cases 95 percent. We’re now at a point where projects are running out of money. They’re going to need to start firing employees. They’re going to need to cut costs. You’re going to see consolidation, and some of these assets, inevitably, will get marked to zero.

The Flippening and Changing Face of the Market

Under typical circumstances, the fact that Ripple overtook Ethereum in market cap would have received far more coverage, but circumstances being what they are, the news slipped by with comparatively little attention.

Ripple did overtake Ethereum earlier this year, swapping places for short lengths of time. This time though, it seems to have made a stronger swap, and continues to hold second place.

This is interesting for a few reasons. It appears that there is more backing from Ripple supporters than there is for Ethereum, though whether this will remain in the long run is open to debate. The former has been the recipient of a deluge of positive news in the past few months and has some wondering whether it can topple Bitcoin.

Whether or not this specific instance of the XRP “flipping” BTC will happen is, even now, a guessing game.

However, it does point to a larger aspect of the market: BTC’s market dominance, currently still above 50%, may not last for much longer.

This is a good thing.

The reliance on Bitcoin, which has its own set of technical and adoption issues to deal with, means that all tokens are affected by its performance. If the weight of the cryptocurrency revolution is more evenly distributed among a few tokens, then the dangers of loss would become less significant.

One Last Thing: Bear Markets and Funding

As noted by Pompliano, the bear market has consequences for the thousands of projects and ICOs fundraising in cryptocurrency.

As most of these teams have gathered funds in cryptocurrency — say $50 million — in the form of BTC or ETH or their own native coin, the price drops mean that these teams no longer possess the same amount of funds, and one wonders if they have taken into account the occurrence of a severe bear market phase in their planning.

If not, then it could have further repercussions for the market.

If projects lack the funds to continue operations or, worse, pay back investors, then it could damage the market further — though it could also offer the double-edged benefit of weeding the market of projects that have been badly planned.

This is a problem that extends more generally to industries that are reliant on cryptocurrency. As crypto payments become an increasingly popular choice, volatile markets become increasingly consequential. Stability, then, becomes an essential requirement for the market.

Crypto startups too will suffer, as Pompliano said:

[referring to bankruptcy] Then, and only then, will we start to see the capitulation necessary for bear markets to bottom out. The structure of a volatile market like crypto brings many advantages, but the nuances described above are the dark side. Things will get much worse before they get better. That is okay…Watch closely for the founders who are quietly toiling away with talented teams right now…

Will We Finally See Some Stability?

With a wide range of institutional investment, such as Bakkt, around the corner, the hope is that this institutional involvement will open up access to a broad range of investors, many of whom will apply rationale in investing. This could subsequently bring some much-needed stability to the market.

Stable prices would remove many of the worries of investors. Merchants would not have to worry about accepting crypto payments only for the prices to depreciate, and regulators would not exhibit so much concern about volatility affecting investors.

Stability, coupled with technological development, could also see more investors coming into the crypto space.

The hope now for investors is that the steady drip of institutional investment and adoption of blockchain’s practical applications will see them through this rough phase.

Author: Abhimanyu Krishnan
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Bitcoin will still be able to hit $15,000 USD by the end of the year, according to Tom Lee

Tom Lee, the Fundstrat CEO and bullish Bitcoin advocate, has brought his original prediction about Bitcoin’s price down by $10,000 USD.

Fundstrat CEO Tom Lee, a prominent Bitcoin advocate, is known for his bullish approach to Bitcoin’s price. Despite the drastic downturn in the market, Lee still believes Bitcoin will be hitting a high figure by the end of the year.

Speaking with CNBC, Lee claims that the cryptocurrency will be able to reach a figure of $15,000 USD. In August of this year, Lee advocated that Bitcoin would be looking at a value of $25,000 USD. Although Lee is still claiming that Bitcoin will be ranging high, he has brought his figure down by a significant portion.

When Bitcoin was showing signs of non-volatility at the beginning of the month, Lee also claimed that the bottom of the cryptocurrency’s price would be at $6,000 USD. Since then, Bitcoin plummetted to figures of less than $5,400 USD – the lowest that the token has seen this year.

Although Lee is confident that Bitcoin will be able to recover from the dramatic decline following last week’s market crash, he also has noted that the psychology behind the markets is important and that anything below a certain point – that is $6,000 USD – will spark a “renewed wave of pessimism“.

Like other figureheads in the cryptocurrency market, Lee is blaming the decline on “crypto-specific events” such as the hardfork which Bitcoin Cash recently underwent – something which has been stirring the market since the controversy of the split.

At the time of press, Bitcoin is trading for $5,601.29 USD – which is a 0.99% increase in day-on-day trading figures.

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Ethereum will see a price explosion soon, according to Fundstart’s Tom Lee

Tom Lee, a known cryptocurrency bull-ish, has claimed that the history if Ethereum’s market points that the token will face a peak soon.

Cryptocurrency advocate and Fundstart CEO Tom Lee has offered that he thinks that Ethereum will be seeing a major surge soon.

Not shy to be a cryptocurrency advocate, Lee thinks that the token is set for a rebound owing to factors in the market. According to Bloomberg, he thinks that Ethereum will bounce back after suffering a major sell-off this year. Investors have been scared off from the cryptocurrency market and the second-ranked crypto has been hit hard by that, having lost half of its price value in the last three months.

Lee apparently wrote to clients that the token’s underperformance by two standard deviance is a signpost that Ethereum will be boosting soon:

“Ethereum is about to stage a trend reversal and rally strongly. Sentiment is currently overly negative.”

Lee pointed to moments in the past when Ethereum underperformed similarly. He suggested that historically, the losses have been reversed and that a surge can be expected. The Fundstrat CEO is anticipating the coin to reach a $1,900 USD in valuation by the end of the year. Currently trading at $231 USD. Lee expects the token to achieve more than 40% of it’s highest peak. A shocking amount, but according to Lee, it is possible – and can be expected.

Lee also expects Bitcoin to boom again and believes that the original cryptocurrency will hit $25 000 USD by the end of the year. At the time, Lee likened Bitcoin’s market to that of BlackRock’s iShares MSCI exchange-traded fund (ETF).

He pointed out that there is an “important correlation” in their markets:

“Both really essentially peaked early this year, and they both have been in a downward trend… Until emerging markets begin to turn, I think in some ways that correlation is going to hold and tell us that sort of the risk on mentality is those buyers aren’t buying Bitcoin.”

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Tom Lee “May Have Misspoke a Little Bit” in Bitcoin Predictions

Tom Lee, co-founder and head of Fundstrat Global Advisors, explained his previous prediction regarding Bitcoin price, noting that “we still think Bitcoin can reach USD 25,000 by the end of the year or something like that.”

As reported, when speaking at the Asia Blockchain Summit in Taiwan in July, Lee revised his year-end price prediction for bitcoin from USD 25,000 to USD 22,000.

On Thursday, he told CNBC that “Bitcoin has historically traded at 2.5 times its mining costs. It’s not out of the question that it could be over USD 20,000 by the end of the year at fair value.” Later he clarified his position, saying he “may have misspoke a little bit”:
“What I was trying to illustrate was that given where mining costs will be and applying the historical average of 2.5 times mining costs, that would imply fair value over USD 20,000, roughly USD 22,000.” Afterwards, he stressed that bitcoin still can reach USD 25,000 by the end of the year.

Still, he maintains that worrying about a few thousand dollars in the current circumstances, as any return even approaching USD 20,000 would be around 200% percent higher than where Bitcoin is right now, which is USD 6,543.67 at the time of writing, according to data from coinmarketcap.com.

Lee has previously several times determined that the price of Bitcoin should be at least double the cost of mining.

He has earlier predicted that by the end of 2019, a single Bitcoin could be worth anywhere between USD 20,000 and USD 64,000, with an average of USD 36,000. However, his prediction of a bull run following the Consensus 2018 conference in May failed to materialize.

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Author: Sead Fadilpasic
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Bitcoin Sell-Off Caused by Futures Expiring – Tom Lee

Some of the weakness seen in bitcoin over the past week was likely caused by futures contracts reaching their expiry date, according to Tom Lee, Head of Research at Fundstrat Global Advisors.

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In a report released on Thursday, Lee blames the sell-off on “significant volatility” around futures expiry dates on the CBOE and CME futures marketplaces. He further cites a theory by Justin Saslaw, cryptoasset investor at Raptor Capital Management, that says bitcoin seems to fall as the related futures are nearing their expiry date.

“Bitcoin sees dramatic price changes around CBOE futures expirations… We compiled some of the data and this indeed seems to be true,” Lee wrote in the report.

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Furthermore, Lee explained that the inflow of new capital to the crypto market this year has been insufficient to make up for the new supply coming from initial coin offerings (ICOs), mining rewards, and outflows due to capital gains taxes.

Increased volatility in the underlying markets when futures contracts expire is a well-known phenomenon from stocks and other traditional financial markets. There have been six expirations since CBOE launched their bitcoin futures, with the most recent expiry being on Wednesday June 13.

Bitcoin has taken a strong hit this past week, trading down from about USD 7,500 last Sunday to a low of USD 6,135. On Thursday, bitcoin saw a strong rebound and is trading at around USD 6,600 at press time.

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Author: Fredrik Vold
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Bitcoin $25,000: Tom Lee Stands Firmly Behind His Prediction

$25k Bitcoin by the End of Year is Completely Reasonable

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While he may begin to sound like a broken record, Fundstrat’s Tom Lee still isn’t ruling out his end-of-year BTC price prediction of $25,000. Earlier in the year, Lee declared that Bitcoin would reach $20,000 by the middle of the year before ending 2018 on a high note by setting a new record high. With the first half of the prediction looking unattainable, the Fundstrat analyst is refusing to back down.

Lee affirmed his $25k BTC price prediction in a recent interview with Bloomberg saying that it was “completely reasonable.” According to Lee, the number cryptocurrency should be expected to surpass its previous all-time high. The Fundstrat analyst pointed to the emergence of more visibility in institutional activity. In the last few months, companies both within and outside the traditional cryptocurrency ecosystem have launched products and services targeted at large-scale investors. According to Lee, many large institutions are becoming pro-crypto including Nasdaq and Goldman Sachs.

Tom Lee also spoke about the emergence of regulatory clarity for the cryptocurrency market, especially outside the United States. Countries like Japan, South Korea, and Malta have taken steps to create stable operating conditions for the digital currency businesses in their respective countries. Thus, exchange platforms are beginning to expand their operations in these countries. Binance and OKEx have announced moves to Malta, while Coinbase recently announced its new Japan office.

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Bitcoin mining is also another reason why Lee believes BTC price has to reach the $25,000 mark. According to him, the fully loaded cost for BTC mining in 2019 will be around $14,000, reflecting the increased mining difficulty. Thus, the trading price of the crypto has to be about twice the mining cost, so a price estimate of $25,000 is reasonable, according to Lee.

Commenting on other issues in the world of cryptocurrencies, Lee revealed that contrary to popular opinion, there isn’t a great deal of speculation in the crypto market these days.
There isn’t a lot of speculation in the crypto, compared to other markets. The ratio of dollars traded in all exchanges globally to the M2 is about 141:1. For commodities like oil, it is 40:1, and for cryptocurrency, it is 4:1.

On the issue of its use in daily commerce, Lee also said that cryptocurrency is used a lot more frequently than people imagine. He pointed out that most economies outside the United States are, in fact, decentralized. Thus, it is a lot easier to use Bitcoin to transfer money than to use a money transfer agent like Western Union. A large part of this ease comes from the fees charged to carry out a transaction. Money transfer agents can charge up to 15 percent for remittance while BTC transactions only cost a small fraction of that amount.

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Author: MaxPositives
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