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IRS Sends Crypto-Related Warning Letters | Bitcoin News Summary Aug 31, 2020

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Certain US taxpayers identified as crypto users – allegedly due to disclosures by US crypto exchanges – have received letters from the tax agency warning them to either pay taxes on or disclose their crypto holdings. This is the second such round of letters, indicating the IRS is serious about crypto taxation.

Coinbit, a major Korean crypto exchange, was seized by law enforcement following accusations of fraud. It is suspected that 99% of all BTC volume traded on the exchange for the past year was faked through wash trading. Coinbit’s owner, Chairman Choi Mo, and his management team are accused of inflating transaction volumes and manipulating token prices using a number of ghost accounts.

Fidelity Investments, one of the world’s biggest asset managers, is seeking regulatory approval from the SEC for a new Bitcoin fund. Details are sparse but so far it seems accredited and institutional investors will be able to invest a minimum of $100,000. Fidelity already operates a Digital Assets fund and has more than $2.7 trillion in assets under management.

The Federal Reserve’s chairman, Jerome Powell, announced that the US central bank is changing its approach to average inflation targeting, Powell said in a statement that the FED will tolerate higher inflation in the future. Immediately after, global markets and Bitcoin reacted by pumping initially and retracing back almost as quickly.

Before we conclude, this week’s “Bitcoin quick question” is who created Bitcoin?

The honest answer is – no one knows.

Bitcoin was introduced to the world in late 2008 by Satoshi Nakamoto, which is a pseudonym.

He, she or they managed to combine previously existing cryptographic solutions with new groundbreaking ideas giving birth to bitcoin.

Nakamoto, by maintaining his connections with other developers and cryptographers through forums and email lists, was active in Bitcoin’s development and mining during the first two years of the network.

He has mined an estimated 800,000 Bitcoins, worth almost $9 billion today, and disappeared in April 2011 saying “he has moved to other projects”.

Many people have claimed to be Satoshi since then, yet none of them have been able to prove that they are indeed him.

Do you believe he will eventually return one day? If so, let us know in the comments.

Have a question you want us to answer? Just leave it in the comment section below. And if you want to support our videos, consider using the Brave browser for faster, ad free browsing that can also earn you rewards. Just visit the link in the description below.

That’s what’s happened this week in Bitcoin. See you next week.

Having delved into futures trading in the past, my intrigue in financial, economic, and political affairs eventually led me to a striking realization: the current debt-based fiat system is fundamentally flawed. This revelation prompted me to explore alternative avenues, including investments in gold and, since early 2013, Bitcoin. While not extensively tech-savvy, I've immersed myself in Bitcoin through dedicated study, persistent questioning, hands-on experience with ecommerce and marketing ventures, and my stint as a journalist. Writing has always been a passion of mine, and presently, I'm focused on crafting informative guides to shed light on the myriad advantages of Bitcoin, aiming to empower others to navigate the dynamic realm of digital currencies.

View all Posts by Alexander Reed

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