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.
‘Rich Dad Poor Dad’ author Robert Kiyosaki might be the industry’s next major advocate, as he considers that cryptocurrency might be the future of financial investment.
Speaking with a well-known Bitcoin bull Anthony ‘Pomp’ Pompliano on his radio show, Kiyosaki indulged into how Bitcoin is worth keeping an eye (and maybe money) on as an alternative asset. He commented, saying:
“I think it’s important, especially for old guys like me, to understand the crypto world because that’s the world that’s coming into view right now and us real estate and gold guys are being phased out.”
Old Investment Options Vs New Financial Opportunities
Likening the investment opportunities as a “battle” between the “old guys” (who more commonly look to real estate, property and gold as investment options) and “young guys” (who are interested in seeing the value of cryptocurrency), Kiyosaki pointed out that both assets have pros and cons.
“I’m looking for the other point of view” [of cryptocurrency as an investment], Kiyosaki explained, introducing Pomp to the show.
The popular financial author also emphasised that it’s worthwhile keeping an open mind about the future of finance, saying “you better check out the world of crypto, even if you’re closed-minded.” He offered that cryptocurrency enthusiasts are savvy, aware and are “so far down the road when it comes to financial intelligence.“
Limited Supply: The Major Advantage of Bitcoin
In the show, Pomp explained that one of Bitcoin’s key benefits above all other financial opportunities are the full transparency and verifiability that cryptocurrencies offer. This means that everyone at all times can know exactly how much Bitcoin exists, exactly how much is being produced every day, and the supply is known with 100% certainty.
Kiyosaki noted that the fact that millions and trillions of dollars are being printed every day highlights the weakness of fiat currency, whereas Bitcoin will always have a set supply. Both Pomp and Kiyosaki consider the limited supply of cryptocurrency as a massive advantage in an asset. Kiyosaki offered:
“At the same time as the Fed is printing dollars, Bitcoin is tightening. Bitcoin is getting harder and the dollar is getting softer.”
Pomp added that the circulation of Bitcoin faces “quantitative hardening” as a result of the Bitcoin halving event which occurs every four years. If the demand for Bitcoin should stay the same, the value of the cryptocurrency should continue to appreciate, given that the token becomes more difficult to manufacture.
Read more: What Is The Bitcoin Halving?
The Benefit Of Programmatic Control Of Bitcoin
As Pomp pointed out, another huge benefit of Bitcoin is that it is decentralised, meaning the supply is not regulated by a central authority. This structure means that there is a trust in an algorithm for the manufacturing of Bitcoin, rather than a party of people who are able to change their minds when to change the quantity of the asset being created. Pomp stated:
“The computer code can only be changed if over 50% of the people vote to change it… The US dollar is a sovereign currency, which can be manipulated. Bitcoin though is the separation of state and money. It’s the first time we’ve seen a currency, outside of gold, which cannot be manipulated by governmental policy. I think we’ll see every single currency becoming digital.”
This decentralisation stands as one of the most attractive concepts about cryptocurrency, as many investors and traders resent the centralised and regulated aspect of fiat currency.
Earlier this year, Kiyosaki spoke about his distrust in the government and the ability to print more dollars. He offered advice, backed by his own economic knowledge, regarding why he has started considering Bitcoin as one of the biggest financial opportunities available.
Read more: Rich Dad, Poor Dad Author: Buying Bitcoin Now Is “One Of The Biggest Opportunities”