Inflation isn’t a gimmick nor is it an exaggeration. It’s already here with us as we go shopping for food and staples. Inflation worldwide is only gaining momentum every month. U.S. producer prices posted their largest annual increase in more than a decade amid intensifying inflation pressure. In the 12 months through July, the PPI, producer price index, jumped 7.8%, a record high since the measure was introduced in 2010. The producer price index for final demand increased another 1% in July after rising 1% in June. Three-quarters of the inflationary spike was driven by a record monthly increase in final demand services, while the goods advance was half what it was in June – pretty solid pace! The buying power of fiat money keeps vanishing. If Afganistan will require more international troops to regain control of the situation, then, God forbid, the inflation pace will be even higher. Meanwhile, as gold struggles for self-identification in the digital era, deflationary cryptocurrencies look more and more as an ingenious solution to this problem. As volatility will gradually normalize, Bitcoin will soon be classified as one of the prime antiinflation remedies.

One of the most challenging tests for cryptos’ outlook was the recent SEC chief Gensler’s request from Congress for more authority to oversee crypto markets. As Treasury Secretary Janet Yellen agreed the markets should be more transparent for tax authorities, she also warned “not to overregulate” Bitcoin. If cryptos were perceived solely as threats to global political stability, they could have been banned “Chinese style” globally a long time ago. Why are the big world governments lingering? Well, it’s not that easy for sure. But is it the only reason?

Some governments are keen to introduce their digital currencies – so they see unregulated blockchain as the biggest threat to their money printing sovereignty. But, look, we haven’t heard any mentionable news about the digital dollar for quite a long. Why?

A currency’s unrestricted convertibility to any desirable asset class has been always, through human history, a necessary (although not sufficient) prerequisite of its stability. Perhaps, many decision-makers, by the very fact of quietly playing down the original roadmap for digital dollar, already admitted that Bitcoin IS a bona fide digital dollar. Moreover, it could be the very Bitcoin (and, maybe, some other prominent coins as well) that will shield the dollar from hyperinflationary loss of value at the end of the day. The only question remaining is why some of us will be able to benefit from this, while others won’t. Is the ongoing selection process fair?

Cryptocurrencies have come a long way. They are no longer in their early stages. In 2021, we have seen how not only retail but institutional investors have been actively investing in cryptocurrencies. Also, the latest Coinbase report suggests that institutional investors are behind the meteoric rise in the popularity and market capitalization of DeFis.

Bitcoin has grown from its cyclical minimum by 57 percent, while the fear and greed index, slowly but surely, has already reached 74, indicating ample amount of greed. Bitcoin is on a roll. The bull is strong and there’s no stopping. Bitcoin prices bounced back sharply after an attempt of interim correction below the $45,000 mark, reconfirming the dominating bull.

Almost always, this metric makes it possible to understand exactly where the bottom of the market is, but never where is the peak. Unlike fear, greed has no limits. But the risks must be gradually reduced in any case.

Meanwhile, the sudden push of crypto regulation into the recently voted by Senate infrastructure spending bill created an explosion effect. The $550 billion infrastructure bill would require all companies with ties to digital assets to report data to the Internal Revenue Service that they don’t have undisclosed liabilities. The tax provision, estimated to raise $28 billion over a decade, was included in the legislation as a way to help pay for new investments in roads and bridges.

However, one of the most prominent Bitcoin influencers and Tesla CEO Elon Musk pronouncedly voiced his concern over such an overt attempt to impact the cryptocurrency space, which could purportedly kill swathes of the local crypto industry.

In similar fashion, on Friday in his Twitter post, Coinbase CEO Brian Armstrong criticized such a spontaneous amendment to the infrastructure bill proposed by Senators Rob Portman and colleagues. The amendment — which won the approval of President Joe Biden — for allegedly ruling “which foundational technologies are OK and which are not in the crypto world.” Indeed, what crypto has to do with infrastructure and how it is possible to assign labels without conducting even a hint of research?

Armstrong described the amendment as “disastrous” and explained that for unknown reasons the wording would force “proof of stake validators to comply with the impossible, but not proof of work miners.” He said that by doing that “… the government is trying to pick winners and losers” and likened it to Senators deciding “that iOS is OK but Android isn’t.”

Musk answered the thread saying that he agrees and highlighting that “this is not the time to pick technology winners or losers in cryptocurrency technology.” He believes that there is no need for such measures since “there is no crisis that compels hasty legislation.”

In response to that, the U.S. Treasury Department agreed to clarify that only cryptocurrency companies it considers brokers will need to abide by the planned compliance with proposed IRS reporting requirements. Apparently, the lawmakers became unhappy with the mounting discontent and, above all, wanted to quell concerns over the controversial legislative provision.

Therefore, according to this timely clarification, most other participants in the nearly $2 trillion crypto market industry – from developers and miners to hardware and software providers – won’t see any implications at all, for as long as they don’t act as brokers. The Treasury’s guidance won’t grant, according to Bloomberg, blanket exemptions based on firms’ self-identification and instead will focus on whether a firm’s activities qualify it as a broker under the U.S. tax code.

Inflation isn’t a gimmick nor is it an exaggeration. It’s already here with us as we go shopping for food and staples. Inflation worldwide is only gaining momentum every month. U.S. producer prices posted their largest annual increase in more than a decade amid intensifying inflation pressure. In the 12 months through July, the PPI, producer price index, jumped 7.8%, a record high since the measure was introduced in 2010. The producer price index for final demand increased another 1% in July after rising 1% in June. Three-quarters of the inflationary spike was driven by a record monthly increase in final demand services, while the goods advance was half what it was in June – pretty solid pace! The buying power of fiat money keeps vanishing. If Afganistan will require more international troops to regain control of the situation, then, God forbid, the inflation pace will be even higher. Meanwhile, as gold struggles for self-identification in the digital era, deflationary cryptocurrencies look more and more as an ingenious solution to this problem. As volatility will gradually normalize, Bitcoin will soon be classified as one of the prime antiinflation remedies.

One of the most challenging tests for cryptos’ outlook was the recent SEC chief Gensler’s request from Congress for more authority to oversee crypto markets. As Treasury Secretary Janet Yellen agreed the markets should be more transparent for tax authorities, she also warned “not to overregulate” Bitcoin. If cryptos were perceived solely as threats to global political stability, they could have been banned “Chinese style” globally a long time ago. Why are the big world governments lingering? Well, it’s not that easy for sure. But is it the only reason?

Some governments are keen to introduce their digital currencies – so they see unregulated blockchain as the biggest threat to their money printing sovereignty. But, look, we haven’t heard any mentionable news about the digital dollar for quite a long. Why?

A currency’s unrestricted convertibility to any desirable asset class has been always, through human history, a necessary (although not sufficient) prerequisite of its stability. Perhaps, many decision-makers, by the very fact of quietly playing down the original roadmap for digital dollar, already admitted that Bitcoin IS a bona fide digital dollar. Moreover, it could be the very Bitcoin (and, maybe, some other prominent coins as well) that will shield the dollar from hyperinflationary loss of value at the end of the day. The only question remaining is why some of us will be able to benefit from this, while others won’t. Is the ongoing selection process fair?

Cryptocurrencies have come a long way. They are no longer in their early stages. In 2021, we have seen how not only retail but institutional investors have been actively investing in cryptocurrencies. Also, the latest Coinbase report suggests that institutional investors are behind the meteoric rise in the popularity and market capitalization of DeFis.

Bitcoin has grown from its cyclical minimum by 57 percent, while the fear and greed index, slowly but surely, has already reached 74, indicating ample amount of greed. Bitcoin is on a roll. The bull is strong and there’s no stopping. Bitcoin prices bounced back sharply after an attempt of interim correction below the $45,000 mark, reconfirming the dominating bull.

Almost always, this metric makes it possible to understand exactly where the bottom of the market is, but never where is the peak. Unlike fear, greed has no limits. But the risks must be gradually reduced in any case.

Meanwhile, the sudden push of crypto regulation into the recently voted by Senate infrastructure spending bill created an explosion effect. The $550 billion infrastructure bill would require all companies with ties to digital assets to report data to the Internal Revenue Service that they don’t have undisclosed liabilities. The tax provision, estimated to raise $28 billion over a decade, was included in the legislation as a way to help pay for new investments in roads and bridges.

However, one of the most prominent Bitcoin influencers and Tesla CEO Elon Musk pronouncedly voiced his concern over such an overt attempt to impact the cryptocurrency space, which could purportedly kill swathes of the local crypto industry.

In similar fashion, on Friday in his Twitter post, Coinbase CEO Brian Armstrong criticized such a spontaneous amendment to the infrastructure bill proposed by Senators Rob Portman and colleagues. The amendment — which won the approval of President Joe Biden — for allegedly ruling “which foundational technologies are OK and which are not in the crypto world.” Indeed, what crypto has to do with infrastructure and how it is possible to assign labels without conducting even a hint of research?

Armstrong described the amendment as “disastrous” and explained that for unknown reasons the wording would force “proof of stake validators to comply with the impossible, but not proof of work miners.” He said that by doing that “… the government is trying to pick winners and losers” and likened it to Senators deciding “that iOS is OK but Android isn’t.”

Musk answered the thread saying that he agrees and highlighting that “this is not the time to pick technology winners or losers in cryptocurrency technology.” He believes that there is no need for such measures since “there is no crisis that compels hasty legislation.”

In response to that, the U.S. Treasury Department agreed to clarify that only cryptocurrency companies it considers brokers will need to abide by the planned compliance with proposed IRS reporting requirements. Apparently, the lawmakers became unhappy with the mounting discontent and, above all, wanted to quell concerns over the controversial legislative provision.

Therefore, according to this timely clarification, most other participants in the nearly $2 trillion crypto market industry – from developers and miners to hardware and software providers – won’t see any implications at all, for as long as they don’t act as brokers. The Treasury’s guidance won’t grant, according to Bloomberg, blanket exemptions based on firms’ self-identification and instead will focus on whether a firm’s activities qualify it as a broker under the U.S. tax code.

Dollar, Bitcoin, Out-of-control Inflation and “Crypto Amendment” to Infrastructure Bill: How Are They Interlinked?

Inflation isn’t a gimmick nor is it an exaggeration. It’s already here with us as we go shopping for food and staples. Inflation worldwide is only gaining momentum every month. U.S. producer prices posted their largest annual increase in more than a decade amid intensifying inflation pressure. In the 12 months through July, the PPI, producer price index, jumped 7.8%, a record high since the measure was introduced in 2010. The producer price index for final demand increased another 1% in July after rising 1% in June. Three-quarters of the inflationary spike was driven by a record monthly increase in final demand services, while the goods advance was half what it was in June – pretty solid pace! The buying power of fiat money keeps vanishing. If Afganistan will require more international troops to regain control of the situation, then, God forbid, the inflation pace will be even higher. Meanwhile, as gold struggles for self-identification in the digital era, deflationary cryptocurrencies look more and more as an ingenious solution to this problem. As volatility will gradually normalize, Bitcoin will soon be classified as one of the prime antiinflation remedies.

One of the most challenging tests for cryptos’ outlook was the recent SEC chief Gensler’s request from Congress for more authority to oversee crypto markets. As Treasury Secretary Janet Yellen agreed the markets should be more transparent for tax authorities, she also warned “not to overregulate” Bitcoin. If cryptos were perceived solely as threats to global political stability, they could have been banned “Chinese style” globally a long time ago. Why are the big world governments lingering? Well, it’s not that easy for sure. But is it the only reason?

Some governments are keen to introduce their digital currencies – so they see unregulated blockchain as the biggest threat to their money printing sovereignty. But, look, we haven’t heard any mentionable news about the digital dollar for quite a long. Why?

A currency’s unrestricted convertibility to any desirable asset class has been always, through human history, a necessary (although not sufficient) prerequisite of its stability. Perhaps, many decision-makers, by the very fact of quietly playing down the original roadmap for digital dollar, already admitted that Bitcoin IS a bona fide digital dollar. Moreover, it could be the very Bitcoin (and, maybe, some other prominent coins as well) that will shield the dollar from hyperinflationary loss of value at the end of the day. The only question remaining is why some of us will be able to benefit from this, while others won’t. Is the ongoing selection process fair?

Cryptocurrencies have come a long way. They are no longer in their early stages. In 2021, we have seen how not only retail but institutional investors have been actively investing in cryptocurrencies. Also, the latest Coinbase report suggests that institutional investors are behind the meteoric rise in the popularity and market capitalization of DeFis.

Bitcoin has grown from its cyclical minimum by 57 percent, while the fear and greed index, slowly but surely, has already reached 74, indicating ample amount of greed. Bitcoin is on a roll. The bull is strong and there’s no stopping. Bitcoin prices bounced back sharply after an attempt of interim correction below the $45,000 mark, reconfirming the dominating bull.

Almost always, this metric makes it possible to understand exactly where the bottom of the market is, but never where is the peak. Unlike fear, greed has no limits. But the risks must be gradually reduced in any case.

Meanwhile, the sudden push of crypto regulation into the recently voted by Senate infrastructure spending bill created an explosion effect. The $550 billion infrastructure bill would require all companies with ties to digital assets to report data to the Internal Revenue Service that they don’t have undisclosed liabilities. The tax provision, estimated to raise $28 billion over a decade, was included in the legislation as a way to help pay for new investments in roads and bridges.

However, one of the most prominent Bitcoin influencers and Tesla CEO Elon Musk pronouncedly voiced his concern over such an overt attempt to impact the cryptocurrency space, which could purportedly kill swathes of the local crypto industry.

In similar fashion, on Friday in his Twitter post, Coinbase CEO Brian Armstrong criticized such a spontaneous amendment to the infrastructure bill proposed by Senators Rob Portman and colleagues. The amendment — which won the approval of President Joe Biden — for allegedly ruling “which foundational technologies are OK and which are not in the crypto world.” Indeed, what crypto has to do with infrastructure and how it is possible to assign labels without conducting even a hint of research?

Armstrong described the amendment as “disastrous” and explained that for unknown reasons the wording would force “proof of stake validators to comply with the impossible, but not proof of work miners.” He said that by doing that “… the government is trying to pick winners and losers” and likened it to Senators deciding “that iOS is OK but Android isn’t.”

Musk answered the thread saying that he agrees and highlighting that “this is not the time to pick technology winners or losers in cryptocurrency technology.” He believes that there is no need for such measures since “there is no crisis that compels hasty legislation.”

In response to that, the U.S. Treasury Department agreed to clarify that only cryptocurrency companies it considers brokers will need to abide by the planned compliance with proposed IRS reporting requirements. Apparently, the lawmakers became unhappy with the mounting discontent and, above all, wanted to quell concerns over the controversial legislative provision.

Therefore, according to this timely clarification, most other participants in the nearly $2 trillion crypto market industry – from developers and miners to hardware and software providers – won’t see any implications at all, for as long as they don’t act as brokers. The Treasury’s guidance won’t grant, according to Bloomberg, blanket exemptions based on firms’ self-identification and instead will focus on whether a firm’s activities qualify it as a broker under the U.S. tax code.