Mainstream Media Claims Bitcoin Burns More Energy Than Ireland – Does It?

Mainstream Media Claims Bitcoin Burns More Energy Than Ireland – Does It?

A mainstream media assertion made recently implies that cryptocurrency is quite costly in terms of energy consumption. “Bitcoin has been alarming people for years,” the report notes, pointing to the amount of electricity used for its mining – almost as much as a small nation needs. But is that really so?

Also read: Japanese Internet Giant GMO Boosts Own Bitcoin Mining Output With 7nm Rigs

Bitcoin Said to Use ‘Almost’ as Much Electricity as Ireland

Mainstream Media Claims Bitcoin Burns More Energy Than Ireland – Does It?Mainstream media is often preoccupied with exploring and revealing the negative effects of cryptocurrencies. A common criticism towards Bitcoin is that its energy-intensive mining is too expensive for the planet.

The latest mention of this feature comes from a respectable outlet. In an article titled “Why bitcoin uses so much energy”, “The Economist explains” the reasons noting that “Bitcoin has been alarming people for years because of the amount of electricity needed to mint new virtual coinage.”

The magazine quotes Alex de Vries, a bitcoin specialist at PwC, who estimates that “the current global power consumption for the servers that run bitcoin’s software is a minimum of 2.55 gigawatts (GW), which amounts to energy consumption of 22 terawatt-hours (TWh) per year – almost the same as Ireland.” The piece adds that bitcoin miners consume more and more power with no signs of a slowdown. “Why does bitcoin require so much energy to make something that exists only electronically?” the Economist asks.

Let’s skip the lecture on how bitcoin transactions are recorded in the ledger, how “the miners’ race, known as ‘proof of work’, could be superseded by ‘proof of stake’,” and get straight to the point by asking in our turn – Does Bitcoin really spend as much electricity as Ireland, and what does “almost the same” consumption really mean?

Bitcoin Burns at Least One Malta Less Than Ireland

Mainstream Media Claims Bitcoin Burns More Energy Than Ireland – Does It?It seems the Economist got it wrong in two respects. Let’s take a look at the energy consumption of Ireland first. According to the data compiled in the CIA World Factbook, the country has used 25 TWh of electrical power in 2017, and over 26 TWh yearly between 2011 and 2014. Consumption, in this case, means the total electricity generated in the country, plus imports and minus exports, as quoted by Indexmundi. And according to Eurostat, Ireland is among the EU countries with the highest increase in gross energy consumption – 38% between 1990 and 2015, when it consumed almost 24 TWh.

The statistics reveal a difference of 3 TWh, if we use the 2017 data for reference, between the 22 TWh claimed in the article and what Éire actually consumed last year – 25 TWh. Using a similar comparison to illustrate the discrepancy, 3 TWh is more than what Malta or Andorra need in a year – 2 TWh and change, each. So, it’s safe to say that Bitcoin uses less electricity than Ireland by a substantial margin.

Mainstream Media Claims Bitcoin Burns More Energy Than Ireland – Does It?

Now, let’s talk about the financial side of things. Each mined BTC block currently generates 12.5 new bitcoins (the next halving will occur in 2020). A block of transactions takes 10 minutes to get mined, on average, which means approximately 1,800 bitcoins are minted each day. That translates into a daily BTC network reward of roughly a little more than $11 million (at the time of writing).

The reward should allow miners to cover their costs for electricity, but also all other expenses of their business – salaries, amortization, maintenance, rent and so on. Let’s not forget the electricity needed to power the cooling systems. Actually, the electrical energy consumed by cryptocurrency mining is believed to account for around half of all costs. Let’s assume that it’s half of the total reward, $5 or $6 million. Do you want to know how much the Irish consumers pay for their daily electricity consumption?

Last year, Eurostat revealed that Ireland has some of the most expensive electricity in Europe, actually the fourth highest rates in the EU, as of November, 2017. It has been reported that Irish customers pay an average of 23.1 cent per kilowatt-hour (kWh) of electricity, which is 13% higher than the EU average. According to Eurostat, electricity prices for household consumers in Ireland were averaging €0.24 per kWh (~$0.28, with taxes) in the second half of 2017. The simple arithmetic shows the Republic has paid an average of $19 million dollars for electricity daily, last year.

Mainstream Media Claims Bitcoin Burns More Energy Than Ireland – Does It?

With the current state of crypto markets, it’s true that mining is getting less profitable, if not more expensive. According to a recent study, its profitability in different countries varies significantly. Using a Bitmain’s Antminer S9 at an energy consumption of 1.5 kWh earns about 0.0008 BTC in 24 hours and mining a single bitcoin requires approximately 45 MW of electricity. That means that in the Czech Republic, where electricity is priced at €0.06 per kWh (~$0.07), mining 1 BTC would cost around €3,000 (~$3,500). And in Germany or Italy, bitcoin mining is prohibitively expensive – it eats more than €6,500 ($7,500) per coin.

Do you think bitcoin mining is expensive, in terms of energy consumption and other costs? Share your thoughts on the subject in the comments section below.  


Images courtesy of Shutterstock, Eurostat, CIA World Factbook, Index Mundi.


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Dark Web Alleged Silk Road Conspirator Handed to US Authorities

Dark Web Alleged Silk Road Conspirator Handed to US Authorities

Dark web alleged Silk Road conspirator, Gary Davis of Ireland, agreed recently to be extradited to the United States. Once on US soil, he will face charges levied against him five years ago in connection with the eventual conviction of Ross Ulbricht (who prosecutors claim was the site’s mastermind). Mr. Davis, should he be convicted, would receive a life sentence.  

Also read: US Presidential Candidate Would Pardon Snowden, Ulbricht on First Day

Alleged Silk Road Conspirator Extradited to US

A visibly upset Roger Ver, CEO of Bitcoin.com, took to his personal Youtube channel, wearing a Freeross.org t-shirt. Mr. Ver set about reminding viewers of two ominous happenings in recent weeks as they related to the crypto community. Ross Ulbricht’s appeal to the Supreme Court of the United States was refused, upholding a Circuit Court decision affirming his life sentence without the possibility of parole. He, Mr. Ver also reminded, has been languishing in prison for half a decade now.

Mr. Ver also lamented news a former employee at Bitcoin.com, Gary Davis, 29, was to be extradited from his native Ireland. Mr. Davis faces charges stemming from his alleged involvement in Silk Road. Silk Road was an online marketplace, one credited with demonstrating a use case for cryptocurrency as peer to peer cash. The site matched buyers and sellers, and often those voluntary exchanges ran afoul of US law.

Dark Web Alleged Silk Road Conspirator Handed to US Authorities
Gary Davis

Mr. Davis was arrested by Irish law enforcement after US Judge James C. Francis IV, of the United States District Court for the Southern District of New York, outlined three counts of indictment: conspiracy to distribute narcotics, conspiracy to commit computer hacking, and conspiracy to commit money laundering. US prosecutors asked Mr. Davis be extradited as far back as early 2014.

As of late June of the present year, Mr. Davis waived his final appeal from being sent to the United States, and essentially agreed to extradition. He was forced to capitulate shortly after Ireland’s highest court ruled 5-0 the process engaged in by US and Irish law enforcement was legal. Mr. Davis had two days to further appeal to the EU Court of Human Rights. He declined.

Mistaken Identity, Isolation

Mr. Davis will be caged in New York’s Metro Correctional jail, presumably until trial or plea. In advance of just this scenario, a legal team has already been assembled in the US, sources explained. They will have their work cut out for them if Mr. Ulbricht’s plight is any indication of what’s in store. The original Federal Bureau of Investigation (FBI) indictment pegs Mr. Davis as “Libertas,” allegedly Mr. Ulbricht’s right hand at Silk Road. The site was said by the FBI to have generated in excess of a billion dollars, with Mr. Ulbricht’s take in the teens of millions. Law enforcement officials in the US claim Mr. Davis was paid $6,000 a month to be a kind of customer service representative at Silk Road.  

Mr. Davis had been fighting extradition based on his Asperger’s syndrome spectrum, arguing health care wouldn’t be of similar quality in the US while awaiting justice in this matter. Speaking for the Irish Court, Judge McKechnie explained Mr. Davis’ defense did not ultimately constitute an obligation upon the government of Ireland, and cleared the way for his being handed over to US authorities.

Dark Web Alleged Silk Road Conspirator Handed to US AuthoritiesDuring his four year appeal process in his native country, Mr. Davis reportedly explained to a psychiatrist the entire case was due to mistaken identity. A copy of his passport on Mr. Ulbricht’s hard drive, he noted, was a mystery. Mr. Ver, in his video, highlighted how Mr. Davis had never been to the United States, and would essentially be uprooted from everything he’s ever known.

Indeed, Mr. Davis’ defense made a similar argument about isolation in the United States. An Irish Justice agreed, stressing he wished to emphasize how he “in no way seek to diminish or trivialise the very real concerns and worries of the appellant and his family as he faces the prospect of extradition to the United States and being imprisoned there. Such a prospect would be daunting for an individual in robust mental health let alone someone coping with a significant mental health condition.”

Is the Silk Road case an important story for the crypto community? Let us know in the comments section below. 


Images via Pixabay.


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Irish Crypto Exchanges On The Receiving End As Banks Close Accounts

A study conducted by Amarach Research and Red Flag recently revealed that the number of people in Ireland who currently own cryptocurrencies is around 120,000, or about 2.5% of the population. This is an increase of 300% in a period of four years. Such a remarkable growth in the adoption of cryptocurrencies in Ireland is

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Bitcoin Businesses Denied Banking Services in Ireland

Bitcoin Businesses Denied Banking Services in Ireland

Leading companies from the crypto sector in Ireland have complained they are being denied services by some of the country’s major financial institutions. Among the affected businesses are bitcoin exchange Bitcove, winner of the bank-sponsored “Best Business Startup” award, and Ireland’s “longest running” bitcoin broker, Eircoin.  

Also read: Swiss Crypto Company Acquires License to Distribute Funds to Investors

Banks Close Accounts of Award-Winning Startup

Several Irish businesses have been forced to either stop trading cryptocurrencies or seek partners abroad after local financial institutions refused to offer them banking services. Some of them have lost their bank accounts, while others have never been allowed to open one in the country, the local press reported.

Bitcoin Businesses Denied Banking Services in Ireland

Bitcoin exchange Bitcove, which has been operating since 2014 and had previously worked with Allied Irish Banks (AIB), Permanent TSB and Bank of Ireland, is one of the affected companies, The Irish Times reported. One of its co-founders, Peter Nagle, told the newspaper the banks closed its accounts stating they do not support companies offering cryptocurrency exchange facilities. The trading platform has since been using the services of “a more progressive banking partner” in Europe.

“Particularly disappointing was Bank of Ireland. We were participants on the Ignite startup program, which is backed by the bank. Our business and its progress were reviewed monthly by a panel which included Bank of Ireland representatives. At the end of the incubator Bitcove won the award, but then just a few months later our accounts were frozen and eventually closed,” Nagle explained.

One of Ireland’s First Bitcoin Brokers Also Hit

Bitcoin Businesses Denied Banking Services in IrelandAnother crypto firm that has suffered from the clampdown is Eircoin, one of Ireland’s oldest bitcoin brokers, which closed a couple of months ago. An affiliated consulting business was also refused banking services. “We are being shuttered due to a negligent and defensive banking system,” Eircoin’s cofounder Dave Fleming said, quoted by the Irish daily. He added that his company, along with other cryptocurrency sellers, had previously consulted with the Central Bank of Ireland which told them that as long as they were abiding by the regulations their operations were in line with the law.

Bank of Ireland, one of the four largest Irish commercial banks, admitted in a statement it was not providing banking services to virtual currency exchange platforms, but noted that its customers were not prevented from transacting cryptocurrency. AIB Group, another “Big Four” bank, denied it was refusing services to companies from the crypto sector. A spokesman was quoted as saying, “We don’t discriminate in relation to providing banking services to cryptocurrency companies nor have we been systematically exiting such companies.” According to the official, some of these businesses are unable to comply with the anti-money laundering and know your customer requirements that the bank is obliged to adhere to.

Bitcoin Businesses Denied Banking Services in IrelandThe Banking and Payments Federation of Ireland (BPFI) stated that it wasn’t aware of any policy to close accounts of companies trading cryptocurrencies. However, the organization presenting 70 traditional financial institutions noted that Irish lenders are expected to take measures to minimize the risk of facilitating “financial crimes which are enabled by cryptocurrencies,” such as money laundering and terrorism financing.

Sharp Contrast

The negative attitude of the legacy financial institutions towards crypto businesses sharply contrasts with the view of Ireland as a crypto-friendly jurisdiction in general. Recently, it was reported that a new government-backed platform will promote the country as a hub for developers of applications based on the technology behind cryptocurrencies. Blockchain Ireland was launched by the Irish Blockchain Expert Group in partnership with a young company called Consensys. The initiative is supported by Enterprise Ireland, the Department of Finance, members of the industry and representatives of academic institutions. The agency promoting foreign investment in the country, IDA Ireland, has also backed blockchain and crypto projects.

Bitcoin Businesses Denied Banking Services in Ireland

Cryptocurrencies and the related economic activities received another recognition by authorities in Dublin with the decision of the Irish revenue service to issue guidelines on the taxation of crypto transactions. The new “Tax and Duty Manual” clarifies related matters and confirms that in most cases the existing tax regulations apply to the crypto sector. According to the advisory, crypto incomes and profits are subject to direct taxes such as corporate tax, income tax, and capital gains tax. Officials have also stated that for VAT purposes bitcoin constitutes a currency. The Irish tax agency regards cryptocurrencies as “negotiable instruments” and exempts them from the value added tax.

Do you think the bank clampdown on crypto businesses in Ireland is temporary? Share your thoughts on the subject in the comments section below. 


Images courtesy of Shutterstock, Bitcove, Eircoin, BPFI.


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Study Finds Irish Crypto Userbase to Have Quadrupled in Four Years

Study Finds Irish Crypto Userbase to Have Quadrupled in Four Years

Research has indicated that Irish attitudes regarding cryptocurrency are increasingly positive, with the Irish cryptocurrency user base estimated to have quadrupled in last four years.

Also Read: Ireland Clarifies Taxation of Crypto Transactions

Study Finds Irish Crypto Sentiment to be Moving “From Suspicion to Curiosity”

Study Finds Irish Crypto Userbase to Have Quadrupled in Four YearsA study carried out by Amárach Research in partnership with communications firm Red Flag has found Irish citizens to be viewing cryptocurrencies in an increasingly favorable light. The survey queried 1,000 Irish citizens aged over 16 years, and claims to be “the first in a series” of polls examining Irish engagement with financial innovations.

The research estimates that 120,000 Irish citizens currently own cryptocurrency, a 300% increase in four years. In total, the study estimates that 180,000 Irish citizens have at some point owned BTC.

General awareness of cryptocurrency appears to have substantially increased following the significant media coverage of last year’s bull run, with 85% of respondents indicating that they were familiar with bitcoin – up from less than half of Irish adults in 2014 as was found in a separate study conducted by Amárach.

Millennials are Three Times More Likely to Own Cryptocurrencies

Study Finds Irish Crypto Userbase to Have Quadrupled in Four YearsUnsurprisingly, millennials were found to be the demographic most likely to engage with cryptocurrency, with 25 – 34 year olds estimated to be three times more likely to own crypto assets than the average person.

Despite the significant uptick in Irish crypto user adoption, Gerard O’Neill, the chairman of Amárach, stated that “Cryptocurrency advocates still have a long way to go in driving higher adoption in Ireland.”

Deirdre Grant, managing director of Red Flag Ireland, concluded that “This is a fast-growing sector in Ireland, particularly among young men. But, the level of understanding is still quite low, with one in eight respondents believing [cryptocurrencies] are used mainly by criminals.”

Irish Regulators Provide Tax Guidance for Crypto Users

Study Finds Irish Crypto Userbase to Have Quadrupled in Four YearsLast month, Ireland’s Revenue Commissioners published a manual seeking to provide clarity regarding the tax obligations of the nation’s cryptocurrency users.

The document asserted that businesses and individuals transacting in cryptocurrency will be taxed according to existing regulations, with gains and losses on cryptocurrency trades accruing capital gains tax for individuals and corporate tax on chargeable gains for companies.

Do you think that cryptocurrency is a topic that most people are now familiar with? Join the discussion in the comments section below!


Images courtesy of Shutterstock


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Bitcoin in Brief Wednesday: Zug Tests Blockchain to Decide on Fireworks and Digital IDs

Bitcoin in Brief Wednesday: Zug Tests Blockchain to Decide on Fireworks and IDs

The city of Zug, home of the Swiss Crypto Valley, will invite its residents to take part in an experimental blockchain-based vote. They are expected to share opinions on several questions of local importance, including the fireworks display during the annual Lakeside Festival and the use of digital IDs to borrow books and pay parking fees. This and other fintech and crypto-related stories from the Alpine nation and other corners of Europe are featured in today’s edition of Bitcoin in Brief.   

Also read: Bitcoin in Brief Tuesday: POT Saves World, Coinbase Pumps ETC, Binance Wants EUR

Zug Experiments with Blockchain-Based Vote

Bitcoin in Brief Wednesday: Zug Tests Blockchain to Decide on Fireworks and IDsAuthorities in the Swiss city of Zug plan to ask local residents to participate in a consultative blockchain-based vote this month utilizing the city’s electronic ID system. They will be able to vote via their smartphones by downloading and installing an app. The experimental vote will be held between June 25 and July 1. Citizens will be asked if they are in favor of setting alight fireworks during the annual Lakeside Festival, and whether they think digital IDs should be used to borrow books from the library, pay parking fees, and for identification on regular referendums.

According to Swissinfo, the results of the vote will be non-binding. Nevertheless, the initiative, which aims to test whether blockchain can be used on a broader scale, highlights again the positive attitude of Swiss authorities towards cryptocurrencies and the underlying technology. The canton of Zug, dubbed Switzerland’s Crypto Valley, has become home to many fintech startups and even established crypto companies like the Chinese giant Bitmain, which has opened an office there.

Bitcoin in Brief Wednesday: Zug Tests Blockchain to Decide on Fireworks and IDsFor some time now, Zug has been accepting cryptocurrency payments for municipal services, including company registrations using bitcoin and ether. The city introduced its eID system to provide citizens with digital access to council services. The pilot phase of the project started last fall. The system is based on blockchain technology.

New Swiss Body to Simplify Capital Markets

In another example of Switzerland’s serious approach to fintech innovations, leading representatives of the country’s financial, technological, academic and legal sectors have recently formed the new Capital Markets and Technology Association (CMTA) to facilitate the use of blockchain in financial markets. In a press release, they noted that “the blockchain technology has the potential to reduce the complexity of the capital markets system and lower the barrier of entry for startups.”

According to CMTA’s founders, the lack of legal certainty is slowing and can potentially compromise development in the field. They hope to facilitate access to funding for new businesses by defining a set of industry-supported open standards. These should ultimately contribute to value creation throughout the economy said Jacques Iffland, CMTA’s chair and partner at Lenz & Staehelin, the largest Swiss law firm.

Bitcoin in Brief Wednesday: Zug Tests Blockchain to Decide on Fireworks and IDs

Swissquote Bank Ltd, a leader in online banking, and Temenos, which specializes in banking software, are also behind the initiative. CMTA promises to work to create toolkits that can be used by new or established companies, businesses and startups to access funding and raise capital securely and efficiently, using new technologies and leveraging digitalization. The association is based in Geneva.

Irish Blockchain Startup Delivering Aid to Refugees Raises €1m

Bitcoin in Brief Wednesday: Zug Tests Blockchain to Decide on Fireworks and IDsAn Irish startup, using blockchain to facilitate the distribution of humanitarian aid, has raised an estimated €1 million from investors, according to industry sources quoted by The Irish Times. The Dublin-based Aid:tech is working in refugee camps, often in hotspots like the Middle East. On Wednesday, Enterprise Ireland and SGInnovate, the venture capital arm of the Singaporean development authority, announced simultaneous investments in the Irish company. This is the first time both state-backed organizations have allocated funds to support a blockchain business, the Irish daily notes. Amsterdam-based Blue Parasol Investments and Tin Fu Fund, a closed private equity fund managed by Shenzhen Capital Group, also took part in the funding round.

Aid:tech aims to increase transparency in the distribution of aid, welfare, remittances, donations, and healthcare services through digitizing their delivery using blockchain technology on its platform. According to the company, only a fraction of the estimated €306 billion (~$360 billion) transferred each year by non-governmental aid organizations is currently delivered via transparent systems which, the startup claims, are extremely expensive to administer. The blockchain technology employed by the Irish firm would allow all international aid to be accounted for, including the distribution of medicine, food and other essentials, the publication details.

Government-Backed Platform to Promote Ireland as a Blockchain Hub

In an attempt to highlight Ireland’s capabilities in the blockchain ecosystem, authorities in Dublin have launched a new government-backed platform. Blockchain Ireland, founded in partnership with a young company called Consensys, aims to create conditions for greater cooperation between startups working in the sector, both on national and international level. The platform was launched by the Irish Blockchain Expert Group and backed by Enterprise Ireland, the Irish Department of Finance, leading members of the country’s blockchain industry and representatives from a number of academic institutions.

Bitcoin in Brief Wednesday: Zug Tests Blockchain to Decide on Fireworks and IDs

The online platform is a source of useful information about the Irish blockchain ecosystem. It will be used to promote the country as a blockchain hub by highlighting the Irish technology sector and business environment which turn Ireland into an ideal location for blockchain-enabled business, Silicon Republic reports. The services it will be offering include providing information on setting up a new company and support for blockchain projects in Ireland. Its activities, however, will stretch beyond Irish borders. Blockchain Ireland will be working to develop the European and international blockchain ecosystem as well.

What are your thoughts on today’s topics in Bitcoin in Brief? Let us know in the comments below.


Images courtesy of Shutterstock.


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Ireland Clarifies Taxation of Crypto Transactions

Ireland Clarifies Taxation of Crypto Transactions

The Irish revenue service has published a manual with guidelines aimed at eliminating the uncertainty surrounding the taxation of crypto transactions. Investors and traders of digital coins, businesses working with cryptocurrency and tax advisors, of course, can now find answers to many but not all of their questions. The notice has been issued at a time when tax authorities across Europe are trying to tap into crypto incomes and profits in the absence of dedicated regulations in most cases.  

Also read: Poland Backpedals on “Irrational” Crypto Tax After Strong Backlash

Cryptos to Be Treated Under ‘Normal’ Tax Rules

The “Tax and Duty Manual” issued by authorities in Ireland attempts to clarify matters related to crypto taxation and mostly confirms that the existing regulations apply to the crypto sector. The document provides guidelines on the tax treatment of various transactions involving cryptocurrencies. The Irish Revenue Commissioners, the government agency responsible for customs and taxation, emphasizes that the advisory published this month is to be used as a reference for tax purposes only, as it does not cover regulatory and other aspects.

According to the instructions, direct taxes such as corporation tax, income tax and capital gains tax are applicable but each case should be reviewed separately, according to the individual facts and circumstances. In general, businesses accepting crypto payments for goods or services should keep records of crypto transactions. No special rules have been introduced so far and taxable profits should be calculated according to the current tax legislation.

Ireland Clarifies Taxation of Crypto Transactions

The profits and losses of a company transacting in cryptocurrency must be reflected in accounts and are taxable under “normal CT rules,” the document states. Ireland’s Taxes Consolidation Act from 1997 recognizes that some businesses operate and prepare their accounts in a “functional currency” other than euro. The authors of the manual point out, however, that cryptocurrencies cannot be considered functional currencies as defined in Section 402(1) of the TCA. Therefore, accounts for tax purposes cannot be maintained in crypto. Instead, euro or other fiat currency should be used.

Irish tax officials have explained crypto income taxation, as well. “Profits and losses of a non-incorporated business on cryptocurrency transactions must be reflected in their accounts and will be taxable on normal income tax rules,” the notice reads. They have also informed taxpayers that gains and losses incurred on cryptocurrencies are chargeable or allowable for capital gains tax if they accrue to an individual, or for corporate tax on chargeable gains for companies.

Bitcoin Is Currency as Far as VAT is Concerned

In the absence of common European guidelines on how to treat cryptocurrencies for tax purposes, many member-states have decided to base their VAT (Value Added Tax) policies on a ruling by the Court of Justice of the EU from 2015. The Luxembourg-based institution has drawn a parallel between “virtual currencies” and fiat money, when they are used for payments. The Republic of Ireland is now joining these countries confirming that bitcoin constitutes a currency for VAT purposes.

Ireland Clarifies Taxation of Crypto TransactionsIn result, cryptocurrencies like bitcoin are regarded as “negotiable instruments” and exempt from VAT in accordance with the Irish VAT Consolidation Act of 2010. The manual notes this applies to companies buying and selling cryptocurrencies and acting as owners of crypto holdings. On the other hand, value added tax is due from suppliers of goods or services sold for cryptocurrencies. The taxable amount, however, should again be calculated in euro and at the time of the supply.

The Irish Revenue Commissioners point out that the value of bitcoin and other cryptos may vary between trading platforms. In the absence of a single exchange rate, a “reasonable effort should be made to use an appropriate valuation for the transaction in question,” the manual says, without detailing what “reasonable” and “appropriate” may mean in practice.

Income received from mining operations will generally be outside the scope of the value added tax. Crypto mining is not considered an economic activity for VAT purposes yet. It’s worth noting that no instructions have been given on the taxation of incomes, profits and other flows related to initial coin offerings. The document issued by the Irish revenue service does not say anything about digital tokens and token sales.

Do you think the Irish tax manual provides enough clarity in regards to crypto taxation? Share your opinions in the comments section below.  


Images courtesy of Shutterstock.


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Not Dead: There’s Good Reason to Be Long on Bitcoin

Not Dead: There’s Good Reason to be Long on Bitcoin

With western Christianity set to celebrate the basis of its theology this weekend, bitcoiners the world over might be showing up to churches in droves, hoping one resurrection might lead to another. The ecosystem’s main prophet, Tom Lee of Fundstrat Global Advisors, has outlined four reasons why enthusiasts ought to be bullish on the future: growing trust in digital everything, the awakening millennial boom, crypto recognized as a genuine asset, and Wall Street’s inevitable entry into the space.  

Also read: Massachusetts Censures Five ICO Crypto Startups in a Single Day

Though it’s Looking Bleak, Tom Lee Believes There’s Good Reason to be Bullish on Bitcoin

Cryptocurrency portfolio holders have not had a great few months. In fact, it has been downright miserable, and appears to be getting worse. Enter Tom Lee, quarter century professional financial veteran, who has been relatively “on” when it comes to generally predicting bitcoin prices.

He recently gave a talk about the basis of the crypto economy, and why it matters. First, understand Mr. Lee is a researcher. This means fundamentally he manages no capital, but rather his entire business is based on the trust of his clientele.

His are not opinions in the advocacy sense, as he urges everyone listening/reading to come to their own conclusions. He’s merely presenting data and making inferences. He’s no idealogue. He’s not a cypherpunk.

Not Dead: There’s Good Reason to be Long on Bitcoin
Tom Lee

Mr. Lee’s thesis begins by positing how bitcoin is a head-scratcher for legacy finance. It was started with zero dollars invested, no venture capital, no board. It grew without going public. Even his own clients disagree with any emphasis on cryptocurrency as an investment strategy.

Nevertheless, modern equities have gone digital in significant ways. The top five tech stocks in the S&P 500, for example, are all digital. And what the digitization of economies allows is for decentralization of money. Centralization is increasingly looked upon as a vulnerability, as when the Malaysian central bank mistakenly wired 50 million USD to a hacker.

Furthermore, monetary systems are built on trusting governments, and that trust has steadily been eroding both in the United States and around the world. In fact, for Americans, trust in government is at a fifty-year low. In places like Brazil, Argentina, Greece, trust has bottomed out, and right alongside a blossoming of crypto interest. These simple facts would seem to not bode well for the future of fiat.

Millenials Are the Largest Single Generation in History

Trust erosion in government-backed banks has infected the present millennial cohort. Having lived through their parents getting rekt in 2008, this group is very distrustful of centralization. According to a 2016 survey, 92% of millennials do not trust banks. Cryptocurrencies like bitcoin are creating what they crave: decentralization, digital scarcity, and native trust – keys to future adoption.

Millenials are going to be a giant economic force, especially when one considers they’re roughly 96 million people, the largest generation in human history. In every financial respect, they’re going to move the needle. The average age of this group is 26 years old, and it’s important to learn to understand their thinking.

Boomers in their 20s embraced the birth of personal computing (1970s, 80s); Generation Xers in their 20s were around for the internet and ecommerce, Amazon, cellular, text messaging, and Google (1990s, 2000s). Each of those previous cohorts adopted disruptive, misunderstood advances the prior generation couldn’t grasp.

Not Dead: There’s Good Reason to be Long on Bitcoin

Presently, 20 year-olds (2000s-on), have grown up entirely digital: Facebook, Uber, online dating, Instagram, crowdfunding, and, of course, bitcoin. All of these, and more, advances in tech have been resisted by the previous two generations, to greater or lesser degrees. Imagine trying to explain to a person in 1990 there would be a half trillion dollar market cap company that would rely on folks voluntarily sharing their information, and its product would be free. They couldn’t conceive of such a thing. Yet, there Facebook is.

The present cohort is primed for decentralized currency, and a good analogy would be to see bitcoin as an emerging market. Generational economic moves tend to last a lot longer than ten years. For example, Boomers’ parents would’ve said the roaring Japanese economy in 1975 was a bubble. It had risen 40 times since 1950, a clearly unprecedented sign of overheating.

However, it turns out the emergence of Japan lasted from 1950 through 1990, a forty-year bull run, increasing 400 times. Many Boomers, such as John Templeton of the Templeton Fund fame, didn’t listen to their parents and are thankful they did not.

In the next thirty years, millennials are poised to make staggering economic gains. Right now, they’re in their home-buying and investing years. Housing tend to peak with every cohort’s peak size, which would mean housing is likely to boom through 2030 if figures hold, according to Mr. Lee.

Not Dead: There’s Good Reason to be Long on Bitcoin

Every year, there’s roughly a trillion dollars people ages 35 through 60 allocate for investment. Today, it’s dominated by Boomers and Gen X. Millennials are just now entering those prime income years. The Silent Generation, the cohort before the Boomers, bought gold during their prime years, and drove the price from 40 USD to over 600 USD in just ten years. Boomers turned 35 years old in 1982, and from 1982 to 1989 there was a stock market boom as they purchased equities like never before. Gen X, a much smaller cohort, didn’t move the numbers quite as much. Millenials are more like the previous generations prior to Gen X.

If the trend continues, millennials will soon have a trillion dollars in savings flow. Bitcoin’s rise around 2016 coincides with the first millennials entering their prime savings years. And for every set of one billion dollars thrown at crypto, it translates into 25 billion in price appreciation, according to Mr. Lee.

Millennials could very well place ten percent of their trillion dollars, 100 billion, into crypto, translating into a two and a half trillion rise per year. Mr. Lee surmises at the end of the millennial cycle, bitcoin’s price could be as high as 10 billion USD.

Not Dead: There’s Good Reason to be Long on Bitcoin

Digital Asset

The St. Louis Federal Reserve branch recently released a paper agreeing crypto is a new asset class, a digital asset. With evolving financial strategies and realities (only 20% of all public tech companies actually earn a profit, for example), and a supermajority of the S&P’s value being “intangible,” value today is largely built on trust, a subject to which we return.

Where people tend to trust their money to grow in value is in the 280 trillion dollar collectables market: gold, art, real estate, government bonds, cars, etcetera. Bitcoin averages around a 200 billion dollar market cap, and if bitcoin captures just 1 percent of that market it would translate into 150,000 USD per coin, Mr. Lee stresses.

Wall Street

Another reason to be optimistic about bitcoin’s future is the prospect of Wall Street entering. Presently the largest exchange today is ICE, and its revenue is right around 4.6 billion USD. Crypto exchange Coinbase, by contrast, has only four currencies on it, and accounts for a mere 3 percent of trading volume. It will make about 600 million this year, Mr. Lee is estimating.

It’s not too far-fetched to think in as little as, say, 18 months Coinbase could overtake ICE as the most profitable exchange in the world. Indeed, legacy firms like Goldman and Morgan Stanley are building gateways into crypto in anticipation.

Not Dead: There’s Good Reason to be Long on Bitcoin

The crypto market cap is already larger than most countries of the world, and has regularly ranked in the top 20, at times bigger than Ireland, Spain, Greece. Wall Street has been heavily invested in such countries, and to think it would avoid crypto entirely is probably not financially rational. It won’t. There’s money to be made.

Lastly, bitcoin and crypto remain largely uncorrelated to other markets, a coveted spot in traditional portfolios known as uncorrelated alpha. Mr. Lee suggests that firms won’t have to dive-in entirely to crypto, and would see a nice rise in gains, less portfolio volatility, if they owned as little as 2 percent. That’s a risk he’s betting Wall Street is going to make.

What are your predictions for bitcoin/crypto? Let us know in the comments!


Images via Pixabay, Fundstrat, CNBC. 


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PR: 3D-Token ICO – 3D Printing Robots’ Network Expansion Started

3D-Token ICO - 3D Printing Robots

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Turin/London

Simone Paschetto, Politronica’s 3D Printing Robots Network Manager, the Company running on the back of 3D-Token ICO: “Right now I am really very excited; our Projects is meeting great success and our Robot’s Network International Development Campaign officially started. We already received several requests by new candidates to become Network Members, from United States, Canada, Ireland, Portugal, Hungary, Baltic countries, Iceland and Malta, who are showing a terrific interest in the project. 3D-Token ICO is a great accelerator of the project we launched two years ago, which is all about the creation of a Network of thousands of 3D Printers managed by a blockchain based software able to create the just-in-time, decentralized Factory 4.0, disrupting the industry standards by product cost and time-to-market.” Politronica, which has been acquired in 2017 by Etroninvest Ltd., London, counts on a nine years hi-tech research history. The Company was spinned-off from the renowned Italian Tech University “Politecnico di Torino”.

3D-Token ICO was launched on December,18th 2017 and is set to end on February the 11th, 2018. The soft cap of 1 million dollars was reached in just ten days.

Simone: “In order to develop its business, and according to 3D-Token ICO Whitepaper, Politronica is starting now the expansion of its 3D Printing Robot’s Network by looking for Hub candidates worldwide. We offer three 3D-Printing Robots to each new Hub as per a free loan-for-use contract, requesting the affiliate to work for the Network and to take part of the just-in-time manufacturing revolution, as you can see in the following video”
https://www.youtube.com/watch?v=-xoc2pNYDHk

Politronica will provide the affiliate with the bioplastic material necessary for the manufacturing projects and will cover the logistics expenses, granting the affiliate a fee of $ 2 for each printing hour executed (the printing hours will be paid in Ether, https://www.3d-token.com/).

The Network Members will be provided with three Politronica’s QUBIT3D 3D Printing Robots (a FDM 3D-Printing Robot developed with proprietary technology) which as been designed for intensive industrial use, with a printing area measuring 300-400-240 mm, one of the largest currently on the market, original Arduino board, direct extrusion granting more precision and the possibility of using different materials.

After a successful test, started in 2016 in northern Italy, with 50 hubs and 100 3D Printing Robots installed, Politronica is now looking to expand the network and integrate it into a blockchain managed software in order to grow it up to 3000 3D Printing Robots in 1000 new Network Hubs to reach the amount of 22 millions hours of Robot’s Workforce able to transform 300 tons of bioplastic material per year.

Following the change in the global economic model from mass to just-in-time production, Politronica’s goal is to set up the decentralized “Glocal” Factory 4.0 creating a new concept of digital manufacturing able to run within the frame of the new economic challenges.

If you wish to participate to this pacific revolution then make a contribution to get your 3DT and be part of the just-in-time manufacturing technology which is changing the paradigm !
JOIN THE PROJECT at https://www.3d-token.com

Contact Email Address
info@3d-token.com
Supporting Link
https://www.3d-token.com

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Deaf guy goes on date with signer and they liked each other a lot

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All signs point to love! That’s what unfolded during an episode of RTÉ’s First Dates Ireland

John-Charles, who’s deaf, appeared on the reality dating show in search of love. He was paired up with Stephen, a hearing person who studied sign language. And, the two got on like a house on fire! 

„It would have been so strange for me being deaf to be paired with a hearing person who couldn’t sign,“ John-Charles told Stephen at the start of the date. „It would’ve been so awkward if there was an interpreter in between us translating,“ Stephen replied. 

But, awkward the date was not. John-Charles told Stephen that he usually ends up communicating via his mobile phone when he goes on dates with men who can’t sign. „I absolutely hate it,“ he said.  Read more…

More about Dating, Ireland, Sex And Relationships, Sign Language, and Deaf

Ongoing feud between hotel and YouTuber escalates even more dramatically

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Remember that rapidly-escalating feud between the Irish hotel and the British vlogger from last week?

Well, it’s escalated yet again.

So first things first: a quick recap. Basically the whole thing started last Tuesday, when The White Moose Cafe in Dublin, Ireland, shared an email they’d received from vlogger Elle Darby. Darby had suggested a deal where the hotel give her free accommodation in exchange for publicity across her YouTube and social media channels.

The post went viral, Darby’s name was discovered (the hotel had blanked it out but someone discovered it was visible when they turned the brightness up on their screen), and basically everything went south from there. Darby responded in a video, the hotel hit back, both parties were trolled, the hotel issued a blanket ban on all bloggers, and all-in-all it was a splendid example of the internet at its absolute worst. Read more…

More about Uk, Hotel, Feud, Ireland, and Vlogger