Canada Adopts International Crypto Tax Reporting Standard
Canada is aimed at having the OECD standard for crypto asset tax reporting in place by 2027, as agreed with 46 countries.
Here we get into some wild proclamations of the demise of Bitcoin and why there are wildly inaccurate.
It’s a bubble which is about to burst
“Blockchain is not a bubble, but Bitcoin is” – Jack Ma
“I don’t know about Bitcoin at all. I’m particularly puzzled. Even if he can really work, the rules of global trade and financial order will be completely changed. I don’t think we are ready. So I’m still paying attention to Alipay, paying attention to the renminbi, the US dollar, and the euro. We have a team that studies blockchains, but bitcoin is not something that I want to do. We don’t care about Bitcoin.”
The founder of the massive technology-driven company Alibaba claimed earlier this year that he while he is looking into the blockchain, he has absolutely zero interest in Bitcoin and took the same approach as George Soros, Agustín Carstens, and Warren Buffet in calling it a bubble.
The term bubble in finance is usually indicative of a price no valid outcome in the future can justify. So, in price terms, Bitcoin might be in a bubble along with other alternative tokens (or altcoins), but in value terms, it is not. Like the Tulip Mania comparison, trying to tie in Bitcoin to a bubbling effect is a bit of a thin stretch.
Bitcoin used to be the kingpin but is now a joker
“Killing the King — How to End the Reign of Bitcoin” – Robert Ussery III
“Bitcoin is frustratingly inefficient compared to its many offspring. Transactions are slower and more costly than ever before, leaving users asking “This sucks! What’s next?”
In his writing, Robert Ussery III slates Bitcoin for many of the issues that have arisen owing to its now-older technology. Issues such as scalability, transaction time and transaction fees which might be getting in the way of seeing the cryptocurrency soar to new heights.
This could be true, except that Bitcoin is still gaining popularity despite the issues. Altcoins have been born out of the want to bring a new face to cryptocurrency and are fighting to resolve the issues, but Bitcoin still bags the number one spot and doesn’t look like it will be shaken off the podium any time soon.
Bitcoin is all the rage – for now…
“The Bitcoin Fad Is Over” – Arnuj Naik
“Unfortunately, Bitcoin has totally failed to serve its purpose… The cryptocurrency is considered “digital gold,” and has regressive transaction fees that make smaller purchases more expensive compared to credit card… The point is that despite being created as a practical, superior alternative to current payment methods, Bitcoin is the inferior option with regressive transaction fees that render smaller purchases pointless, and longer processing times than credit cards.”
This notion is very similar to that of the previous one – where Bitcoin started out strong but has since taken a backseat to the problems it has on the blockchain.
Like the idea that Bitcoin is soon to fall to other cryptocurrencies the fad of the token according to the charts, is not over just yet. If the demise of Bitcoin is owing to other cryptocurrencies stepping in to fulfill the role better – then, in a way, it will have done its job in bringing the world a usable digital currency.
But, if it comes to that, it isn’t quite there yet.
Bitcoin is an investment
“Bitcoin’s a joke, but there is serious money to be made” – David Taylor
“You see despite bitcoin being categorised as a “currency”, it is not a currency. There really is no such thing as “cryptocurrency”. For a currency to be legitimate it needs to be: backed by something, like an asset, or something with intrinsic value, like gold; it must be legal tender (and managed by a local authority); and generally accepted as a medium for exchange… among other qualities.”
David Taylor, who (in his words) wouldn’t touch Bitcoin with a ten-foot pole explains that trying to call Bitcoin a currency is offensive to economists and that it is more an investment than legal tender. He claims that it can’t be taxed and it can’t buy him a Mars Bar and therefore it is not a currency.
If we look at the five elements of a commodity which make something “money”, (that is durability, transportability, fungibility, divisibility, acceptability, and scarcity) then Bitcoin has all of the characteristics to operate and function as tender.