Brian Kelly to See Bitcoin as Internet in 80s

Founder and CEO, BKCM LLC believes that Bitcoin is in early stage of its development
16 April 2018   1187

Founder and CEO of the BKCM LLC investment company , Brian Kelly compared the crypto-currencies with the "Internet in the 1980s", stressing that bitcoin is still in the early stages of its development, on CNBC.

Speaking about the potential of bitcoin, Kelly stressed that he used to compare crypto-currencies with the Internet as he was in 1995, but over time he realized that the reference should be made to a much earlier stage.

I think this technology is going to work, it’s going to be game changing, but it’s very early days, so we can have this massive volatility. 

Brian Kelly

Founder and CEO, BKCM LLC

Kelly compares bitcoin with Internet companies, such as Cisco and Microsoft, at the stage of their formation, where bitcoin could play the role of a router or an Internet protocol. At the same time, he emphasizes that the classification of bitcoin as a security or a company is incorrect.

This is an open source software, you can’t think of it as a company, and that’s where people make their mistake [...] This is not a stock, this is not a company.
 

Brian Kelly

Founder and CEO, BKCM LLC

The expert also mentioned the recent report of Barclays, whose employees compare bitcoin with an infectious disease. Kelly noted that it was after such negative articles he "wanted to buy an asset, be it bitcoin or not."

On Friday, Kelly said, he supports Tim Draper, who expects the bitcoin rate to reach $ 250,000 by the end of 2022.

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   188

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.