Bitcoin price WARNING: ‘two-thirds of bitcoin owners to sell’ as anonymity scrapped

Friday, December 29, 2017
By Paul Martin

BITCOIN owners could be ready to flog their cryptocurrency assets as South Korea plans to ban anonymous trading.

Fri, Dec 29, 2017

The price of bitcoin dropped to $14,081 Thursday morning, down roughly 16 percent from its $16,895 high on Wednesday.

And now Chris Gersch, director of strategy for Bell Curve Capital, has predicted more turbulence for the world’s most popular cryptocurrency.

Speaking to Bloomberg, Mr Gersch said “two-thirds” of bitcoin owners could sell off their virtual assets as their anonymity is removed, having a huge impact on the already volatile market.

He said: “Bitcoin was founded on the anonymity of everyone, and having your name on a ledger is going to have two-thirds of bitcoin holders, that have never sold, they’re going to start selling.

“That’s what you saw overnight, you had that huge pullback. I think we’ll have resistance at $13,500 but in very light volume – only 500 contracts trade here at the CME.”

This anonymity could also be scrapped in the UK as experts have warned the cryptocurrency will not remain exempt from tax.

Benjamin Dives, CEO of London Block Exchange told “In this world, nothing can be said to be certain, except death and taxes. Cryptocurrency may be new and unique, but it is not exempt from tax liability.”

Mr Dives says individuals who profit from their Bitcoin investments will be required to pay capital gains tax – just like those who profit from the disposal of their stocks, shares and other investment instruments – through their annual self-assessment.

Profits from bitcoin price rises are subject to 20 percent Capital Gains Tax – or 19 percent Corporation Tax if it’s a company doing the trading. Everyone has a Capital Gains Tax free allowance of £11,300 per annum – any gains up to this amount are tax free.

But could bitcoin become a tool for tax evasion?

The Rest…HERE

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