Forbes: Fail of SegWit2x Shows Bitcoin is Digital Gold

Kyle Torpey, Bitcoin writer at Forbes believes that SegWit2x failure proves that Bitcoin is a true digital gold
13 November 2017   2269

Signatories to the New York agreement on the implementation of the Segregated Witness protocol and the increase of block size refused to implement the hardfork due to the lack of consensus within the community, and this proves that the basic bitcoin protocol is digital gold, and not just an improved version of PayPal or Visa payment systems. Kyle Torpey writes about this for Forbes.

Part of the community considers bitcoin as an asset of a new class, unattainable for governments, banks and third parties. Others consider bitcoin to be an innovative payment system.

Representatives of the first camp oppose the controversial changes in the system, in order to avoid the risk of non-fulfillment of obligations of one of the parties associated with the preservation of value in a digital asset. Their opponents see in hardfork the opportunity to increase billing performance and reduce transaction fees.

In addition, a new version of PayPal can indeed be developed on top of the basic bitcoin protocol, but only if the community stays true to the idea of ​​digital gold. Otherwise, you can not create a more secure system based on less secure.

Torpey is convinced that bitcoin is digital gold, but you can still run an improved and reliable version of PayPal on top of Bitcoin.

The most likely version of the "improved PayPal" is the Lightning Network technology, which allows you to send cached transactions using special payment channels, and not directly through the block system. In this case, the detachment acts as a "court" for resolving disputes.

In addition to the two-tier payment solution, the Lightning Network also contains a number of compromise technological characteristics in the context of centralizing confidentiality and reducing transaction costs.

For example, representatives of ZCash presented a draft of a reliable payment system on top of the bitcoin block or ZCash blockchain, which will not be able to freeze users' funds and will not know about the purpose of transactions.

Although the idea of ​​blockchain is to eliminate intermediaries, Kyle Torpey believes that, perhaps, one should think about the advisability of developing a centralized model over a decentralized basis. Such a payment system will not be able to steal users' funds, prohibit the conduct of transactions or establish surveillance over network members.

Crypto currency is not suitable for making payments, unless its liquidity is provided by those who consider it as a means of preserving value. With the growth of liquidity, the probability that one transaction will greatly affect the price of an asset decreases, as volatility decreases.

A more secure payment system will be developed precisely on the basis of a highly liquid asset.

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   129

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.