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.
Gold has just hit a record high at $2,008 USD, seeming to rally in response to the decline of the United States dollar. As the commodity hits a high, signs point out that Bitcoin could be looking at a positive incline too.
This is coupled with data from Skew.com, which indicates a loose correlation between gold and Bitcoin price. While Bitcoin’s value shows more obvious volatility, there is a medium-term correlation between the two alternate assets.
Declining Fiat Could Mean Inclining Bitcoin
As the US dollar battles to maintain its value – largely as a result of a weakened economy from the global pandemic – other asset classes become more appealing to investors and traders. Peter Schiff, the chairman of SchiffGold, and a well-known gold bull commented that the price of gold, as it reaches record high values, is important to note as the dollar value falls:
“The price of #gold is now above $2,000 per ounce for the first time ever. For now, the significance of the dollar’s record low is lost on the vast majority of investors. But as thousand-dollar milestones fall like dominoes the gravity of the problem will be more widely apparent.”
Prominent crypto trader Scott Melker, known as the Wolf Of All Streets, also pointed out the historic relationship between the US dollar and Bitcoin. Noting that the two experience inverse action, he shows the chart of Bitcoin versus the dollar:
Bitcoin is the blue line. The dollar is the grey line.
See the inverse action? pic.twitter.com/r2SJjSReOo
— The Wolf Of All Streets (@scottmelker) July 27, 2020
Rich Dad, Poor Dad Author: Invest In Bitcoin NOT The Dollar
Looking towards alternate assets for investment, instead of storing funds in fiat, has been echoed by Rich Dad, Poor Dad author Robert Kiyosaki. The financial expert warns investors against the dollar because of the power the central banks have. More specifically, he is averse to investing in fiat because of how easy it is to “print trillions” of dollar bills. Instead, he suggests buying and investing in Bitcoin. Jeff Wang, as a guest on his Kiyosaki’s channel The Rich Dad Radio Show, offered his view:
“If you are heavy in Bitcoin, it is good for you because Bitcoin has been inversely correlated with the dollar. In terms of your dollar valued with other currencies, so if the dollar crashes or goes bad, Bitcoin is going to go up. Historically, that’s how it’s happened… [Bitcoin] is not really correlated with any other asset, I’d say it’s a hedge or an insurance to any other assets that you’re holding.”
This aligns neatly with Kiyosaki’s opinion, as he encourages looking to assets outside of federal control. In June, the financial author commented:
“I like crypto because it’s outside the system. It doesn’t depend on the federal reserve bank or the treasury or Wall Street.”