BAKKT Starts Accepting Deposits NEXT WEEK!!!
Now, let’s have a quick look at all the interesting news items we have here. First up, remember how we told you that Bakkt Bitcoin Daily and Monthly Futures will launch on September 23rd? Well, it looks like on September 6th, Bakkt will open its warehouse to customers’ Bitcoin. For the second piece of news, it looks like, as the gold forgery crisis increases, it really raises the demand for Bitcoin, which is an easily verifiable store of value. And finally, the last news for the day, the Portuguese tax authority has just announced that they are not going to tax cryptocurrencies in the country. If you find these pieces of news interesting and want to know all about them, then please make sure you stay right until the very end of the video.
The Market Today
Now, let’s see how the crypto market is performing. Today, the market is still in its bearish trend, seen by many of the cryptocurrency tokens that are in the reds. Bitcoin is losing 2.42% over the past 24 hours. Similarly, ETH is dropping by 3.1%. However, we can notice a slight gain of 0.04% from the XRP token.
Bakkt’s Bitcoin storage warehouse will go live next week
According to a report on Coindesk, Bakkt, a bitcoin futures exchange and digital assets platform, has just announced to the public that they will open their warehouse to customers’ Bitcoin on September 6, in anticipation of its impending futures contract offerings. Their Twitter read:
“On Sept 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23. These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and custody.”
So, for those who are curious and not too sure what a physical delivery of bitcoin is, a physically-delivered Bitcoin futures contract is a type of a contract where customers are given the actual cryptocurrency instead of a cash payment once the contract expires. Bakkt actually announced it had secured the necessary regulatory approvals to launch the physically-delivered Bitcoin futures contract earlier this month.
It looks like Bakket will be offering customers access to a margined daily product since their value proposition is to offer traders a regulated alternative to existing spot markets. Kelly Loeffler, Bakkt’s CEO, mentioned to CoinDesk that its daily contract is designed to provide a margined instruction stating that.
“so when you think about transacting on the futures exchange you’re operating within a [federally] regulated exchange.”
Gold forgery crisis increases demand for Bitcoin
As reported on Reuters, a forgery crisis is disrupting the global gold industry, raising the need for more traceable storage of value, such as Bitcoin. For those who are unaware, let me give you a bit of context on the situation. There has been an arising problem with forged gold bars coming into the world’s largest financial institutions. These are made of real gold but are fraudulently stamped with the logos of major refineries. These counterfeit bars allow gold from conflict zones and sanctioned countries, such as Iran and North Korea, to trade at the premium of ‘clean’ gold. Nic Carter, the co-founder of blockchain analytics firm Coin Metrics, commented on the case:
“This is such a big problem because it’s very costly to reverify gold at each step, so gold relies on a trusted supply chain. Now the integrity of the supply chain is in question”.
So, this is where Bitcoin and cryptocurrencies jump in. For digital currencies, it is super simple and easy to verify authenticity. With the blockchain technology, it can track the origin of every single coin. Nic Carter also added that:
“Bitcoin provides auditability guarantees that are incomparably better than those provided by gold, doing away with the need for a trusted supply chain, costly overhead for storage, or costly inbound verification.”
Through Bitcoin’s use of cryptography, it’s almost impossible to fake a token. The equivalent double-spending coins would require billions of dollars in computer equipment to conduct a costly 51% attack.
Portugal won’t tax cryptocurrencies
According to a recent release by the Portuguese Tax Authority (PTA), it looks like the tax authority won’t be taxing cryptocurrencies. Now, the news was in response to a request for more information from a company that was interested in mining cryptocurrencies. In their words:
“An exchange of cryptocurrency for ‘real’ currency constitutes an on-demand, VAT-free exercise of services.”
But that’s not all. PTA also added that no income tax should be paid by individuals using cryptocurrencies. For purchasing, using, or selling crypto, they are all tax-free too. While most nations strictly regulate digital tokens, the Portuguese courts and fiscal systems are showing their sympathy for the lack of connection between the fiduciary and cryptographic way of minting currency. However, it is worth noting that businesses using cryptocurrencies do have to pay the same taxes, like VAT, Social Security, or income taxes, which is independent of the underlying payment method.
So what are your thoughts regarding all the news?
Are you eager to see the launch of Bakkt Bitcoin Daily & Monthly Futures?
Will the world ultimately turn to Bitcoin and other tokens for a better store of value?
Are you excited to hear that the PTA is not taxing cryptos?
Don’t hesitate to pop a comment right below to share your thoughts. And guys, please don’t forget to like and subscribe to go into the draw to win $70 worth of Bitcoin. It’s your girl Cindy with CryptoPig. I’ll see you guys on Monday.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.