Month: November 2016

R3 Sends Cease-and-Desist to Bitcoin Developer Peter Todd

Bitcoin and banks were never supposed to go hand-in-hand. So, in 2015, when the world’s largest financial institutions began investigation the technology behind Bitcoin, blockchain, it took many people by surprise. Now, approximately two years after those efforts began in earnest, it seems there’s somewhat of a clash taking place between Bitcoin and the consortium through which the world’s largest banks investigate blockchain technology, R3. Read More

2016 Limited Edition American Silver Eagle Proof Sets Finally Released

With a one-year lapse in availability, the United States Mint is returning in roaring fashion with its annual 2016 Limited Edition Silver Proof Set, which went on sale at noon today.

Silver prices have fallen since 2011, when it neared record prices. A strong dollar and rebounding economy, according to experts, has undermined that silver bull run. Read More

Check Out President Trump’s 24k Vodka

Trump’s 24k vodka might now be defunct, but its demonstrative of the President’s love for the yellow metal, and a big reason why the goldbug community supported the businessman for President. The vodka bottle even looks like a gold brick.

Donald Trump predicted back in 2006 it’d be America’s favorite vodka. Read More

Broncos Add Silver Lombardi Trophies to Locker Room for Stretch Run

The Denver Broncos added silver Heisman Trophies to their locker room recently to celebrate their three Super Bowl Championships as football enters its stretch drive.

“That’s cool,” Broncos safety T.J. Ward said. “I like seeing those on a daily basis.” Read More

Bruno Mars Sparkles & Shines on 24K Magic

Ladies have been swoonin’ over Bruno Mars for some years now, and since he’s dubbed his most recent album “24K” that gives us here at GoldSilverBitcoin a reason to listen and review. 

Mars’ most recent downplays the swoonin’ ballads that have made the hearts of women everywhere flutter for a funkier approach. But, in the glossy production of 21st century technology, something is lost in all that funk. With that said, Mr. Mars lookin’ back in the past for inspiration also helps him look into the future, and he puts his own spin on things. Read More

JP Morgan Publishes Code for Permissioned Ethereum

JPMorgan has uploaded the code for its private, Ethereum-inspired blockchain code to popular code repository Github. Quorum, which JPMorgan calls a “permissioned implementation of Ethereum supporting data privacy,” is essentially a blockchain focused for enterprise use. 

JPMorgan promises “high speed and high throughput” processing of private transactions. “Quorum addresses specific challenges to blockchain technology adoption within the financial industry, and beyond.” Read More

I Confessed to the FBI about Bitcoin

I was quite surprised by it. I had somehow managed in 2013 to receive my first-ever letter of interest from an investor for GoldSilverBitcoin.

The sender claimed to currently be working for the Drug Enforcement Administration (DEA). His name was Carl Mark Force IV, and, according to his resume, he was the agent tasked with making contact with Dread Pirate Roberts, the administrator of the well-known darknet website Silk Road. Read More

India Considers Ban on Gold Imports to Undermine Black Market

Is India thinking about banning gold imports?

That could be as the trade body Indian Bullion & Jewellers Association (IBJA) informed its 2500 members through text that the government is considering a ban on gold imports into the country per part of a larger crackdown on black money. Read More

Bitcoin Development Turns Political, Faces Possible Resistance

There’s been no parallel in the history of Bitcoin’s code changes for how the code change to increase the digital currency’s block size has played out. So controversial has been this change (or lack thereof), which would theoretically enable more transactions per second, it’s been dubbed the ‘Bitcoin Block Size Debate.’ Now, Bitcoin Core, the open-source project’s main development team, is doing some much-need Community outreach in an attempt to calm rising tension and divisions. Read More

Obama Administration Blocks New Gold Mining Claims Outside of Yellowstone

The U.S. moved Monday to block gold mining outside of Yellowstone National Park, and the Obama Administration is seeking to keep industry out of natural and environmentally sensitive areas. 

Mining claims on 30,370 acres to the north of Yellowstone would be prohibited for at least two years. A long-term ban is being considered, according to Interior Secretary Sally Jewell on a visit to Montana’s Paradise Valley, according to The Missoulian. Last week interior officials blocked new oil drilling in the Arctic Ocean, and cancelled 25 oil and gas leases in west Colorado, as well as 15 in northwestern Montana. Read More

How a Bitcoin Accepting Securities Lawyer Profited from Cubs Game 7 Victory

Wrigleyville erupted after the Chicago Cubs won Game 7 of the 2016 World Series.

Adam Tracy, Chicago-based securities lawyer and big time White Sox fan, thought about it the night before the ‘loveable losers’ clinched November 2 their first World Series victory in 108 years, vanquishing the Cleveland Indians.

To be honest, he was a  bit sour about the North Siders potentially going all the way. He figured, win or lose, there’d be some sort of rioting. Maybe he’d make some money off it to make himself feel better. Read More

ChangeTip, One of Bitcoin’s Best Known Brands, Couldn’t Find a Buyer

ChangeTip, an internet app which has facilitated tips over the web via bitcoin for two years, wanted to make it worthwhile for internet users of all varieties to produce quality internet content. “We had a vision for a company that would allow people to spread appreciation on the web for things they enjoyed,” says ChangeTip CEO Nick Sullivan. Now, the experiment is over, and at the end of November ChangeTip will have processed its last bitcoin tip. One of the most recognizable brands in Bitcoin couldn’t find a buyer.  Read More

Man Who Set Self on Fire in Australia Bank Complained about “No money for food”

Two people were in critical condition and four others suffered serious burns when a man set himself on fire in a bank in Melbourne, Australia earlier this week.

The 21-year-old man, one of the critically injured patients, walked into Commonwealth Bank in the Melbourne bank carrying flammable accelerant and started a fire about 11:30 am AEDT.
Read More

IRS Seeks Transaction Records of All Coinbase Users Over Two Years

IRS has targeted the transaction records of Coinbase users in a case brought forth in the U.S. District Court, Northern District of California, as ZeroHedge tweeted late November 17. 

 

 

The John Doe summons (a summons issued to a person whose name is unknown at the time of service) , relates to numerous persons who might “failed to comply with provisions of the internal revenue laws.” The summons acknowledges that the identity of the persons whose information has been summoned is “not readily available from sources other than Coinbase.”

The summons seeks information “regarding United States persons who, at any time during the period of January 1, 2013 through December 31, 2015 conducted transactions in a convertible digital currency as defined in IRS Notice 2014-2021.” It’s a testament to how Bitcoin businesses can serve as a valuable point-of-information for the Bitcoin digital currency created in 2008 by the pseudonymous Satoshi Nakamoto. 

The US Internal Revenue Service inspector general (IG) warned that the agency needs to overhaul its strategy for bitcoin and other digital currencies.

A report laments how US tax officials have failed to create a cohesive strategy to tax Bitcoin as property in the two-and-a-half years since it decided to do so. The report cites Bitcoin’s lack of control for third-party tools to report transactions.

The IG stated:

“The IRS needs to ensure that it develops a strategic plan that includes management oversight as well as adequate internal controls for its virtual currency programs. Until a comprehensive virtual currency strategy is developed, the IRS is open to the risk that undetected noncompliance of virtual currency taxable transactions will result in an increase to the Tax Gap.”

“Due to the potential complexity of reporting otherwise simple retail purchase transactions related to virtual currencies, further guidance is needed to help taxpayers voluntarily comply with their tax obligations,” the IG said.

The case has been assigned to Magistrate Judge Jacqueline Scott Corley, who presides over civil cases and has served as a settlement judge in nearly every type of federal litigation. Prior to her 2011 appointment to Court, Judge Corley was a partner at Kerr & Wagstaffe, LLP in San Francisco specializing in federal practice where she served many types of clients including government entities.

Since Coinbase did not add other crypto-currencies, such as Ethereum and Litecoin, until 2016, the IRS summons will pertain specifically to Bitcoin users.

India Currency Controls Lead to Thaw over Gold Market

Capital controls often lead people to alternative assets, and it seems India’s decision to phase out 500 notes and 1000 notes is doing just that as India’s jewelry stores were left with empty shelves as gold demand spikes in the region.

Many people came in and cleaned up the shelves with the big notes, but by Tuesday they had disappeared and now a thaw has taken hold over the gold market. There’s panic in India.

People must endure long bank lines to exchange or deposit old currency notes after the government’s demonetization plan to undermine countefeiters and Indians with undeclared income stashed away. 1/4 of India’s economy is on the black market, according to the Finance Ministry, and not many Indians pay income taxes.

Prime Minister Narendra Modi seeks to end corruption. He says the move is a fight for the “honest” citizens against those with “cash lying under the mattresses and in the sacks of the corrupt.” He wants to steer the country, which is historically cash centric, towards bank accounts and digital payments.

“The people who have their vaults can shake governments. They are very powerful people. Should I be scared of such people?” Modi said at a rally Monday in the state of Uttar Pradesh.

“No!” the crowd roared back.

“I have your blessings. That is why I have taken on such a big fight,” Modi said.

Half of the citizens in India are said to use cash, and the decision has caused great concern for these individuals. ATMs are short on cash and who knows how long until they can be reconfigured.

“Parents cracked open their piggy banks, the sick deferred medical procedures, and others struggled to find ways to pay tea sellers, auto rickshaw driver and vegetable merchants who take cash only,” according to the Washington Post. “Civic offices, hospitals and gas stations were instructed to accept the old currency but this edict has not always been followed, resulting in some panic, fistfights and even sporadic reports of looting.”

Thus, few are buying gold. Some jewelers were raided. They were suspected of accepting the old currency and issuing forged receipts. Some shops didn’t open, fearing raids.

Jewelers believe in a few months, sales will continue once more. Gold imports will likely have fallen on the year after posting more than 900 tons last year.

The government added new excise duty on gold in recent years, and last spring a 42-day jewelers’ strike added to the issues in the gold market.