Here’s what happened this week in Bitcoin in 99 seconds.
Bitcoin’s Price has fallen back to the psychologically-important $10,000 level. Transaction fees have remained remarkably low this week, with multiple reports of 1 satoshi per kilobyte transactions being confirmed within a few blocks. During this week Coinbase and Bitfinex will also be integrating SegWit – a technological upgrade to the Bitcoin protocol which reduces transaction fees even more.
Bank of America admitted in a report to the SEC that cryptocurrency represents a competitive threat. BofA, currently the second biggest US bank, has barred its clients from purchasing crypto with its credit cards. Citigroup and JP Morgan have also prohibited credit card usage for crypto purchases. If major banks are worried, Bitcoin must be doing something right.
The Israeli Tax Authority ruled that Bitcoin will be classified as an asset rather than as a currency. This means that capital gains tax of 25% will apply to crypto profits made by individuals and up to 47% tax will be imposed on crypto profits made by businesses. Businesses which sell crypto will also be liable for a 17% VAT charge. These heavy taxes will likely slow cryptocurrency adoption and development in the country.
Venezuela’s President Maduro announced that the country will accept all cryptocurrencies, including Venezuela’s own “petro” coin, for trade and government services. This makes Venezuela the first country to recognize cryptocurrency as legal tender;
That’s what happened this week in Bitcoin. See you next week.
