Blockchain technology is continuously being compared to internet-technology. Facebook, a company with about 2.3 billion users launches its own blockchain-based currency called Libra. This is a fairly bold move and a lot of thoughts come to mind. When the internet was launched to the public in the 1990s no single company had this many clients or users. In fact, in the history of humanity nobody, not even the largest countries, had this many users for a new currency. This is a unique move in the history of humanity.
Here are a few thoughts about this bold move.
Blockchain is now mainstream, but there are multiple niches that are growing and finding traction in the real world on a standalone basis. Decentralized Applications (DApps) have existed since the advent of P2P networks, but have only gained popularity with blockchain technology.
So, what are these decentralized apps, and why are they important?
The purpose of this analysis is to execute an objective and quantitative evaluation of the Ethereum network. Why? Ethereum’s token ETH price has been in a spectacular free fall for the past few months. From a high of over $1400 in January 2018 to the May push to almost $800, ETH has now reached lows around $240. This surprising price movement made me want to reconsider my thoughts on Ethereum again from scratch and without emotions.
In addition groups are targeting the Ethereum network with a negative campaign using the same strategy they used against IOTA in the past as you can read here. Therefore I would like to make my own opinion.
Today, in the US, crypto coins are seen as property by the IRS. Therefore, according to policy, if you want today to pay for your coffee with 0.00075 Bitcoins worth about $5 dollars, you also must pay tax on these 0.00075 Bitcoin you just spent.
What tax? Here is a rough way on what this tax is. You have to calculate at what USD/BTC price you purchased these 0.00075 Bitcoins, lets say $250 per Bitcoin. You have to look at what USD price you sold these bitcoins, lets say today at $6600. Then you have to look up your tax rate, lets say 30%. Therefore in addition of paying for your coffee with 0.000075 BTC you also have to write a check to the IRS for 0.00075*(6600–250)*0.30=$1.42
It is just the beginning of the coin offering market. In this article we, Block X Bank, an investment bank focused on blockchain, will be exploring using the best data available the past, present and future of the Initial Coin Offering (ICO) market.
Total potential market size
Private Equity Assets under management are valued in total to about $2.5 trillion USD. A Private Equity investor is typically locked in for 7 to 10 years. In general, the investment is difficult to value during that time. And the investor receives back their payment at the time that is solely at the discretion of the fund manager.
Imagine a world where most crypto-coins are regulated securities trading on regulated securities exchanges. And shares in companies, cash flows, dividends, interests, notes, and other existing proven financial products back these coins.