Crypto & Blockchain Daily Brief Sunday, December 29, 2024

The article discusses the Internal Revenue Service's (IRS) challenge in taxing decentralized finance (DeFi) transactions, particularly on platforms like Uniswap. The IRS faces the challenge of taxing DeFi trades due to the lack of centralized intermediaries that typically report transactions. This poses challenges for tax authorities in tracking and taxing DeFi activities. The IRS has been sending letters to taxpayers who have engaged in cryptocurrency transactions, reminding them of their tax obligations and warning that non-compliance could result in penalties or criminal prosecution. The IRS considers cryptocurrencies as property, which means transactions involving them are subject to capital gains tax. However, the unique nature of DeFi platforms like Uniswap, where users trade directly with each other without a central authority, makes it difficult for the IRS to monitor and tax these transactions. The article highlights the importance of taxpayers accurately reporting their cryptocurrency transactions to avoid facing penalties from the IRS. Taxpayers are advised to keep detailed records of their crypto activities and consult with tax professionals to ensure compliance with tax laws. The article emphasizes the need for clearer guidelines and regulations from tax authorities to address the challenges posed by DeFi transactions and ensure that taxpayers fulfill their tax obligations in this evolving financial landscape.

The article discusses the potential price movement of Shiba Inu (SHIB) cryptocurrency in the next 30 days. Shiba Inu has been gaining popularity and investor interest recently, with its price surging significantly. The article analyzes whether SHIB's price will reach $0.0001 in the next month. The analysis is based on technical indicators and market sentiment. The article mentions that Shiba Inu's price has been experiencing upward momentum, and if this trend continues, it is possible for the price to reach $0.0001 in the next 30 days. However, the article also highlights that market volatility and external factors can impact the price movement of SHIB. The article advises investors to closely monitor the market trends, news, and technical analysis to make informed decisions about their SHIB investments. It emphasizes the importance of conducting thorough research and understanding the risks associated with investing in cryptocurrencies like Shiba Inu. In conclusion, the article suggests that while it is possible for Shiba Inu's price to reach $0.0001 in the next 30 days, investors should be cautious and consider various factors before making investment decisions. It underscores the need for a well-informed and strategic approach to navigating the volatile cryptocurrency market.

The CEO of CryptoQuant, Ki Young Ju, has raised concerns regarding the viability of having a strategic Bitcoin reserve in the United States. He questions the practicality of such a move and believes it may not be the best strategy for the country. Ju argues that establishing a Bitcoin reserve would require significant resources and might not necessarily provide the benefits that proponents claim. One of the main issues highlighted by Ju is the potential risk of mismanagement of the Bitcoin reserve. He points out that the US government has a history of mismanaging funds, and there is a possibility that the Bitcoin reserve could suffer a similar fate. Ju also questions the need for a Bitcoin reserve when there are already other ways for the government to acquire Bitcoin if necessary. Additionally, Ju raises concerns about the impact that a strategic Bitcoin reserve could have on the market. He suggests that if the US were to establish a significant Bitcoin reserve, it could potentially manipulate the market and create distortions that may not be in the best interest of the overall ecosystem. Overall, Ju believes that the idea of a strategic Bitcoin reserve in the US raises more questions than answers. He suggests that instead of focusing on creating a reserve, the government should consider other ways to engage with the cryptocurrency market that are more practical and less risky.