Novogratz to Make Another Bullish Forecast on BTC

Galaxy Digital founer believes that thanks to institutional money, the price of Bitcoin will reach $ 8,000 this year
14 February 2019   680

The founder of Galaxy Digital, Mike Novogratz, in a conversation with Bloomberg, expressed the opinion that in March of this year, custodial solutions for cryptocurrency will start to run, which will pave the way for institutional money.

All the architecture that institutions need to feel comfortable with this is being put in place. You’re going to start to see custody come online.
 

Mike Novogratz

Founder, Galaxy Digital

He stressed that at the beginning of spring, signs of the emergence of “smart money” will be visible on the market. According to him, only Fidelity investment company has 200-300 customers who are interested in Bitcoin investments. However, he notes, big business will enter the market gradually, as caution is characteristic of whales.

Over the next six to 12 months you are going to see institutions put a small amount of their assets. A small amount of institutional assets is a lot of money.
 

Mike Novogratz

Founder, Galaxy Digital

The increase in demand will inevitably affect the price - thanks to institutional money, the price of Bitcoin will reach $ 8,000, Novograz is sure. After that, being “digital gold”, Bitcoin will become even more distinguished from the rest of cryptocurrencies.

Arguing about the lingering “cryptowinter,” the founder of the Galaxy Digital said that last year showed “how painful bursting bubbles can be.” Now that the frenzy of retail investors has faded, and with it the inflated prices of thousands of digital assets, the industry is preparing for a structural shift from the “people's revolution to institutionalization”.

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   142

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.