1. Bitcoin is Now Legal in China
Image from: BTCNN
After the ordering of Bitcoin ban in 2017, Shenzhen Court of International Arbitration has decreed Bitcoin (BTC) is now legal to be owned, transferred, and ultilised as a medium of payment for goods and services in China. The court was quoted as saying;
“Chinese court confirms Bitcoin is protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law because of its property nature and economic value.”
Businesses in different parts of China has started to adopt Bitcoin as a medium of payment and the adoptation of blockchain technologies is seen as a huge significance. Experts also predict that this ban lift is probably to defeat the extreme fraud, hacks, and scams plaguing the crypto space.
2. Ripple Briefly Become Largest Altcoin By Market Cap
Ripple (XRP) overtook Ethereum (ETH) to become the largest altcoin by market capitalisation again on Nov. 6, after rising 18% in 24 hours.
Market capitalisation overview. Source: CoinMarketCap
XRP’s price increased as markets reacted to various factors, including new uptake of Ripple’s xRapid platform, but it remains ambiguous which specific reasons caused the rally. xRapid is the payment network which uses XRP as its transfer medium, was responsible for a previous bull run in September.
3. Billionaire Ex-Google CEO Eric Schmidt: Ethereum Has Huge Potential
Billionaire Eric Schmidt, the former CEO of Google, is becoming a bitcoin and blockchain enthusiast who stated ethereum could be a “powerful platform” with major potential. He trusts that interesting developments are happening with ethereum that could revolutionise how business and society functions these days. He says:
“And if ethereum can manage to figure out a way to do global synchronization of that activity, that’s a pretty powerful platform. That’s a really new invention.”
Other Google executives who are also cryptocurrency enthusiasts such as Google co-founder Sergey Brin and CEO Sundar Pichai. The two tech billionaires both have young sons who mine Ethereum.
4. Student Invested $5k in Ethereum & Owes $400k in Taxes Now
A college student in the US invested $5,000 worth of Ethereum in May 2017 and within merely months, the price of ETH went from $50 to $1,281 at its peak. The student had a net profit of $875,000 with an initial investment of $5,000 during the market’s peak. In the US, crypto investors must declare taxes and major crypto exchanges such as Coinbase have tax filing systems built in to automate the process for its users. The student acknowledged that he will be meeting with a tax attorney to resolve the issue.
“I’ve scheduled a consultation with a tax attorney that specializes in cryptocurrency and alternative investments. I appreciate it all very much, these last few months have been mentally trying.”
5. China’s Central Bank Widens Its Regulatory Scrutiny to Crypto ‘Airdrops’
In the 2018 financial stability report, published Nov. 2, the People’s Bank of China has extends its scrutiny to include token airdrops, which it categorised as “disguised” Initial Coin Offering (ICO). The report further emphasised on the the bank’s anti-ICO and crypto trading stance, stating that ICO as a form of “illegal” fundraising, and causing widespread risks of financial fraud and pyramid schemes. According to the bank, a total of 65 ICOs were completed in China before ICOs were banned in July 2017. During this period, the total number of participants in ICOs exceeded 105,000, with total funding reaching around 2.6 billion yuan (about $375.4 million) which accounted for 20% of ICO financing worldwide.