Cryptocurrency price LIVE – Bitcoin down 9% and Shiba Inu down 17% amid crisis in crypto mining capital Kazakhstan

How to calculate tax bills with cryptocurrency

Because cryptocurrency is considered property, it’s subject to capital gains when exchanged or sold at a profit — including exchanging digital coins, cashing out to US dollars, or making a purchase.

Form 1040, used to file an annual income tax return, has a question about “virtual currency” on the first page.

“The Internal Revenue Code and regulations require taxpayers to maintain records that are sufficient to establish the  positions taken on tax returns,” it says on the IRS website. “You should therefore maintain, for example, records documenting receipts, sales, exchanges, or other dispositions of virtual currency and the fair market value of the virtual currency.”

Fake websites and crypto

One fairly widespread scamming technique involves websites that appear to be a new cryptocurrency mining operation or investment opportunity.

The sites encourage investors to wire in money, sometimes offering investment “tiers” and promising greater returns.

But when users attempt to withdraw their cash, they are unable to and told to input even more cryptocurrency.

Crypto scammer caught in Spain

An unnamed scammer, supposedly Europe’s “most wanted crypto scammer” was found and arrested by police in Spain on Saturday.

He has been charged with seven counts of fraud and money laundering.The scammer had assets worth over €2.5 million ($2.83million) frozen by the authorities.

“I’ve never been more excited about the potential of the Internet,” Ohanian added.

“And that’s largely thanks to Vitalik Buterin.”

Buterin is the co-founder of Ethereum and also co-founded Bitcoin Magazine in 2011.

Ohanian on Buterin, continued

“No one person could’ve possibly come up with all of the uses for Ethereum, but it did take one person’s idea to get it started,” Ohanian added about Buterin.

“From there, a new world has opened up, and given rise to new ways of leveraging blockchain technology—some of which I’ve invested in.”

“Whether it’s startups like Sorare reinventing fantasy sports or Rainbow users showing off their NFT collections, none of this would’ve existed without Vitalik’s creation.”

Ohanian on Buterin

“Thanks to Reddit’s r/Ethereum community, I’ve had the privilege of following Vitalik Buterin’s career from early on, which is why I’ve taken a certain pride in watching his legacy grow,” Ohanian wrote of the programmer.

“Sure, we can talk about the value he’s created as the platform’s co-founder, including Ethereum’s impressive market cap of around $400 billion, the dazzling world of decentralized apps and this year’s boom in the trading of NFTs.”

“What makes Vitalik so special, though, is that he is a builder’s builder.”

Ethereum cofounder named Time influential person

One of the co-founders of Ethereum, Vitalik Buterin, was named one of Time magazine’s 100 Most Influential People of 2021.

Former executive chair of Reddit Alexis Ohanian praised him in a write-up for the piece.

Risks of investing in cryptos, part four

Another risk of investing are the charges and fees.

Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.

Risks of investing in cryptos, part three

A third risk of investing in cryptocurrencies is product complexity.

The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks.

There is no guarantee that cryptoassets can be converted back into cash.

Converting a cryptoasset back to cash depends on demand and supply existing in the market.

Risks of investing in cryptos, part two

Another risk of investing is price volatility.

Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.

Risks of investing in cryptocurrencies

Investing in cryptocurrencies means taking on a number of different risks.

The first is Consumer protection.

Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.

What are Altcoins, continued

Simon Peters, crypto-asset analyst at eToro, said: “They build on the success of bitcoin by slightly changing the rules, economics or use cases to appeal to different users.”

“Altcoins vary greatly in their use cases and practical application. They typically have a form of technology they underpin or provide a liquidity solution to a product or service.”

What are Altcoins?

Altcoin stands for alternative coin, a type of virtual currency that uses the so-called blockchain to allow secure transactions. 

Altcoin is a category of cryptocurrency rather than a currency itself, and there are more than 900 different altcoins available.

What is the Metaverse? continued

Meta’s VR boss Andrew Bosworth said: “The metaverse is a set of virtual 3D spaces where you can share immersive experiences with each other when you can’t be together.”

“What comes after the internet? Instead of looking at a screen, you get to be in the experiences.

“You don’t have to experience it in VR. Most people initially will experience it on screens they already have.”

Facebook’s Mark Zuckerberg called it “the next version of the internet,” and predicted the true metaverse will be ready within the decade.

What is the Metaverse?

The Metaverse has a broad definition. It is an internet, but it is immersive – so you live within it.

The platform will have games, social networks, videos, shopping, health and fitness and more.

Why is Bitcoin bad for the environment?

The problem surrounds the amount of energy used to mine a single Bitcoin.

The investor didn’t give up on new coins and bought into SHIB after hearing rumors that it had been found in Tesla‘s source code and would potentially be used as a payment option for the company.

The rumor turned out to be untrue, leaving the trader in the red again.

The third and last time was before the new coin Matic was announced. The trader said they bought up the coin too close to the announcement date.

“Anyway, don’t believe in rumours and hype, just stick to your usual crypto plan”, the trader said.

Trader details their cryptocurrency losses

An investor revealed online how they lost a fortune after buying cryptocurrency based on rumors — three times.

The anonymous trader described the losses on Reddit, saying their first loss on Cardano hurt the most.

“Everything about the announcement seemed legit: It’s not a sh**coin, Smart contracts are a thing and there was a lot of hype,” the trader said.

The trader said as soon as Cardano went live, its price tanked leaving the trader at a huge loss.

What is an NFT marketplace?

An NFT is a non-fungible token.

Non-fungible tokens, in contrast to Bitcoin, are each unique and cannot be replaced by something else.

The majority of NFTs exist within the Ethereum blockchain. Ethereum is a cryptocurrency that has the ability to support NFTs.

NFTs can be anything digital, and are commonly being used as a way to buy and sell digital art.

An NFT marketplace is used to list NFTs and ensure they are accessible for trading.

Marketplaces allow users to promote their NFTs, where buyers can browse through and bid on what they would like to purchase.

Expert predicts Bitcoin crash

One finance expert thinks Bitcoin’s worth could tank as low $10,000 per coin.

Carol Alexander, professor of finance at Sussex University, told CNBC that Bitcoin will “probably crash” in 2022.

The professor warned last year: “If I were an investor now I would think about coming out of Bitcoin soon because its price will probably crash next year.”

She referred to Bitcoin as more of a “toy” than an investment.

Top five NFTs of 2021

Last year, Non-Fungible Tokens exploded in popularity.

Here is a list of the top five NFTs by price in 2021, according to Investopedia.

1. Everydays: The First 5,000 Days – a collage by Mike “Beeple” Winklemann
2. Human One – a “kinetic video sculpture” by Winklemann, again
3. Cryptopunk #7523 – pixel art character that resembled a “Covid alien”
4. Cryptopunk #3100 – pixel art character with blue and white headband
5. Cryptopunk #7804 – pixel art character alien smoking a pipe

How risky are NFTs?

Buying an NFT is risky because it’s like buying a collectible. It is a bet on whether or not the value of the item will go up.

NFTs are also still a new market, so it may not be as in demand as other markets yet.

Why are NFTs popular?

Non-Fungible Tokens give collectors the chance to own an entirely unique digitized item.

Crypto commentator Jonathan Marriott said that people like the sense of community around the works.

What is an NFT?

A Non-Fungible Token is a digital piece of work, like art or music, stored on a blockchain.

It cannot be replicated and it’s unique to whoever owns it.

It has become a popular digital collectable as influencers, artists and celebrities use NFTs to promote their brands or products.

Petition to list Shiba Inu on Robinhood

A petition launched this year on Change.org to “Kindly request of Robinhood to list Shiba Inu coin!”

Recently, the petition has surpassed more than 554,000 signatures. Originally, the goal was 500,000 – but recently it has been lifted to 1million signatures.

Shiba has been added on more major exchanges including Coinbase Global.