Bitcoin to be Like a Flu, Barclays Says

Analyst Joseph Abate found a lot of common between "digital gold" and infection
10 April 2018   1347

Barclays Plc analyst has found enough similarities between bitcoin and infectious diseases in order to build a valuation model for the asset, originating from the world of epidemiology. This is reported by Bloomberg.

The analyst broke the pool of potential bitcoins-investors into 3 groups: susceptible, infected and unreceptive. He argues that when the price rises, the infection spreads.

As more of the population become asset holders, the share of the population available to become new buyers -- the potential ‘host’ population -- falls, while the share of the population that are potential sellers (‘recoveries’) increases. Eventually, this leads to a plateauing of prices, and progressively, as random shocks to the larger supply population push up the ratio of sellers to buyers, prices begin to fall. That induces speculative selling pressure as price declines are projected forward exponentially.
 

Joseph Abate

Analyst, Bloomberg

A similar dynamics is observed in the spread of infectious diseases, when the epidemic reaches the so-called threshold of immunity - "the point at which a sufficient portion of the population becomes immune such that there are no more secondary infections" the analyst writes.

The main variable that determines when the BTC price is replaced by a fall is the share of the population who is aware of bitcoin and who wants to invest (susceptible population), Barclays says. Studies show that in developed economies, everyone knows about bitcoin, and the share of the susceptible population is small, the analyst writes.

Analyst team believes that the speculative froth phase of cryptocurrency investment -- and perhaps peak prices -- may have passed.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   144

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.