Crypto Market 13

Determining the real market capitalization of crypto assets

A study from 2019 concluded that up to 80% of trades on unregulated cryptocurrency exchanges could be wash trades. A 2019 report by Bitwise Asset Management claimed that 95% of all Bitcoin trading volume reported on major website CoinMarketCap had been artificially generated, and of 81 exchanges studied, only 10 provided legitimate volume figures. Cryptocurrency does not exist in physical form and is typically not issued by a central authority.
So, yeah, that’s why I said, this is a Ponzi scheme for people that have more money to to make than it is for any regular guy to say, I got something invested in it. Now, mind you, I do understand that it’s also a financial transaction method, but even that, even that. So the machine that minds the coin, that makes the transaction, kind of gets a certain small percentage, but still the actual value of that is not worth it. Like all investment decisions, how much you pour into crypto will depend on your risk tolerance.
However, the accounting treatment of cryptocurrencies is still uncertain as there has not been official guidance on the issue from the International Finance Reporting Standards or The American Institute of CPAs . With cryptocurrencies still in the early innings, there are many issues surrounding its development. It’s interesting to contemplate the philosophical and political implications of cryptocurrencies. Cryptocurrencies are inherently political because they challenge the traditional “social contract” that societies operate under. According to this theory, members of society implicitly agree to cede some of their freedoms to the government in exchange for order, stability, and the protection of their other rights.
Over 380,000 crypto market traders have been liquidated in the past 24 hours, resulting in over $875 million in positions closed. Since that time, the crypto market has taken a turn so it is expected that there might be a change in institutional investor sentiment in the coming week. However, the general crypto market sentiment continues to skew largely into the negative, which means no significant inflows should be expected. Investors are concerned that a potential bankruptcy of FTX, once the world’s third-largest digital exchange by trading volume, will spill over to already battered crypto and stock markets.
Join Public and gain the tools and confidence to start trading cryptocurrencies, stocks and other top markets. Over the last few years, there’s been greater crypto adoption by non-crypto-native businesses, Hume says. Your holding period in virtual currency received as a gift includes the time that the virtual currency was held by the person from whom you received the gift. However, if you do not have documentation substantiating that person’s holding period, then your holding period begins the day after you receive the gift. For Forex Market on holding periods, see Publication 544, Sales and Other Dispositions of Assets. If you receive virtual currency as a bona fide gift, you will not recognize income until you sell, exchange, or otherwise dispose of that virtual currency.