Bitcoin's hash rate / BTC in a deflationary environment / crypto taxes

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Presented by Subscribe | View in browser Hello Bitcoiners! Welcome to another edition of Inside Bitcoin. Today, you'll get the scoop on everything from Bitcoin's hash rate to smart contract oracles. Don't forget our list of Bitcoiners on Twitter. @VidiellaLaura is insightful enough to compare the airplane to Bitcoin, so does that mean we need a BTC museum? And you don't want to miss rabble-rouser @DanDarkPill, who recently was reinstated after a Twitter suspension.  -- Allen       Market Watch: The top four cryptocurrencies are all down this morning. No. 5, LTC, is up a slight 0.72%. It's all alone among the top 10. Bitcoin: $10,229 (⬇️ 1.20%) // $183.3 billion market cap. Ethereum: $180.07 (⬇️ 1.07%) // $19.3 billion market cap. XRP: $0.260 (⬇️ 0.53%) // $11.19 billion market cap. Bitcoin Cash: $303.99 (⬇️ 0.73%) // $5.47 billion market cap. Top 100 Winner: ABBC Coin: $0.09 (⬆️ 18.17%) // $54.8 million market cap. Top 100 Loser: XMax: $0.002 (⬇️ 10.95%) // $38.7 million market cap. Prices are as of 11:19 a.m. EDT.       1. Bitcoin's hash rate is poised to hit 100 quintillion hashes per second for the first time in history. While a date has not been mentioned regarding this event, the hash rate was 94 quintillion hashes per second as of two days ago. The hash rate is a measure of computing power involved in processing transactions on the network. According to RT host Max Keiser, an increase in hash rate typically corresponds to a rise in Bitcoin price. Keiser also predicts fiat currency will begin to feel the strain from Bitcoin's increased strength. -- COIN TELEGRAPH       2. Hacker Noon contributor Kevin Virgil claims a Negative Interest Rate Policy (NIRP) increases demand for cash alternatives like Bitcoin. European banks are beginning to consider negative interest for holding depositor money. On the other hand, deflation reduces the case for holding digital assets. In the event of an economic downturn, Virgil says, stablecoins will be the clear winner, especially if and when altcoins fall to zero value--and most of them will, he proclaims. Another prediction he makes is the advent of centralized sovereign currencies, known as Central Bank Digital Currencies (CBDCs). He goes on to predict future Bitcoin demand will be driven by emerging economies, will continue to be a safe haven asset, and its lower correlations offer benefits diversified portfolios. He encourages sophisticated investors to consider Bitcoin, even in a deflationary environment. -- HACKER NOON Do you think holding Bitcoin is wise in all financial environments? Send your reply to allen.taylor@inside.com.       A MESSAGE FROM AIRBNB Earn money by sharing your space. Millions of travelers stayed in an Airbnb last year. Turn your extra space into extra money. Learn More 3. While Coinbase has 30 million accounts, fewer than 1,000 electronically filed federal income tax returns reported crypto transactions between 2013 and 2015. In July this year, the Internal Revenue Service (IRS) sent warning letters to 10,000 people who may be out of compliance with U.S. tax filing requirements. The IRS considers digital currency as property. That means traders are required to report capital gains and losses. For individuals who do not report gains and losses and get audited, there could be stiff penalties and interest. To calculate the value of cryptocurrency into U.S. dollars, taxpayers must calculate the fair market value of the currency in USD on the date they receive it. When the currency is sold or traded for something else, you do the same for the date that transaction is made and the difference is your gain or loss. There are tax implications for buying goods with crypto, paying employees, and more. -- MARKETWATCH       4. Stellar is partnering with group messaging and file transfer application Keybase to give away $124 million in XLM. Called an airdrop, Stellar Development Foundation is handing out 2 billion XLM over the next 20 months to Keybase users to promote financial inclusion. The value of the crypto is $.006 per XLM, according to Messari. -- FORBES       A MESSAGE FROM MANAGED BY Q Your Guide to Writing a Strong, Clear Resume First impressions are important—especially when it comes to your resume. Use this guide for best practices, inspiration, and strategic tips on how to showcase your professional experience so you can get the job you want or the raise you deserve.  Download the Resume Writing and Formatting Guide 5. PODCAST: Charlie Shrem, host of Untold Stories, interviews Indian billionaire and Parliament member Rajeev Chandrasekhar about his government's views on cryptocurrency. Chandrasekhar, who earned his wealth as a tech entrepreneur and built one of the earliest mobile phone empires in India, talks about how technology can be used as a tool of governance in India. He sees a parallel between cryptocurrency tech today and the early 1980s when the Pentium processing chip was created. With billions of people in India still living in poverty and living outside of the governmental system, India is playing "catch up" in terms of technological innovation. He also discusses the role of regulation in technology and says he doesn't want to stifle innovation or take a "paranoid approach" to regulation. He believes the re-architecting of government will take 7-10 years as India focuses on modernizing its government. -- BLOCKWORKS GROUP       6. A Norwegian Bitcoin investor and millionaire narrowly escaped an armed robber trying to steal his cryptocurrency. The would-be thief was armed with a short-barrelled shotgun when he invaded the crypto-millionaire's Oslo home. The millionaire escaped by jumping from the balcony and onto the street. Known as a brag, it's believed he was targeted by the thief due to his vocal expositions concerning his crypto investments. -- CRYPTOPOLITAN       7. Nearly 60 percent of the adjusted daily-traded crypto volume globally, or $1.8 million USD, is traded on Asian exchanges, according to CoinGecko data. Fifteen of the top 20 exchanges are all located in Asia. Binance, founded by Chinese Canadian Changpeng Zhao, rakes in $400 million USD in revenue each year. Not only are most of the major exchanges located in Asia, but the top crypto mining farms--Bitmain and Canaan Creative--are also in Asia. CoinGecko says 80 percent of the mining pools are in China. ASIC miner manufacturer Bitmain made $2.8 billion in revenue last year alone. Asia is also the leader in crypto fundraising, and Singapore is leading the region with 228 companies funded through the ICO. If cryptocurrency is the future of money, then Asia is the likely leader of the global economy. -- BUSINESS TIMES        8. Securities and Exchange Commission Chairman Jay Clayton says a Bitcoin ETF is close to approval, but the commission needs more information on custody in order to prevent price manipulation. While there has been progress made regarding the security of crypto assets, he says, people need more answers to hard questions. The SEC has come under scrutiny for not already approving a crypto ETF. In July 2018, the SEC rejected a Bitcoin ETF application submitted by Cameron and Tyler Winklevoss, owners of the Gemini exchange. Many crypto enthusiasts are on the edge of the seats awaiting the day when they invest in a Bitcoin ETF. -- CCN       9. Chainlink quietly launched an oracle called Mixicles last Tuesday that promises to give public blockchains more privacy features. An oracle is a third-party data feed used in smart contracts to trigger predefined actions. Mixicles are designed to separate different parts of a smart contract into separate contracts for onchain and offchain actions. In finance, transactions often require a level of privacy that makes public blockchains impractical and undesirable. Mixicles promises to change that with a decentralized tool that allows enterprises to take advantage of public blockchains without compromising user privacy. -- DECRYPT       10. U.S. Founding Father Alexander Hamilton takes anonymous Bitcoin inventor Satoshi Nakamoto to the mat, and to task, over decentralization in this epic rap battle. Seriously, you'll chuckle more than once, but it's just not for laughs. Epic Lloyd of Epic Rap Battles of History plays Hamilton and Timothy DeLaGhetto of YouTube plays Nakamoto in this rap duel that pits the philosophies of the two competing monetary systems against each other in lyric and poised passion. As poetic as it is prescient, whether you're on the side of centralized fiat currency or decentralization, you'll enjoy this video presentation--and you might learn something too. They'll even let you vote on the winner. -- BOING BOING       Inside Bitcoin is written and curated by award-winning journalist and former newspaper editor Allen Taylor. Recognized by the Dallas Bar Association three times for excellence in legal reporting, Allen has since gone on to author, edit, or ghostwrite several white papers, books and e-books, and over 10,000 blog posts for clients ranging from small business owners to global management companies and corporate executives. Learn more about him on LinkedIn. Editor: David Stegon (senior editor at Inside, whose reporting experience includes cryptocurrency and technology).       Ad Earn money by sharing your space. List your place now.

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