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The power of retail is here. Meme stocks surged in value driven by Reddit’s WallStreetBets’ community and further pushed through Instagram meme pages and the Fintwit community. Companies are beginning to realize that if they listen to the masses it might just be a good business decision. Companies are beginning to accept crypto payments because, well, that is what the people want.
Remember what happened when Elon tweeted that Tesla would accept BTC. The price of BTC surged to +$60k and Tesla made a neat $101M in profit. Questionable for sure, but still. Online payment companies that started offering platforms to trade crypto have made a TON of money in transaction fees. Who else is accepting crypto as a form of payment? Several firms you may have heard of are Microsoft, Home Depot, Starbucks, and several others.
Next to the list will be AMC. On their earnings call, they stated that they will start accepting crypto payments by the end of 2021. The question we have is BTC the correct cryptocurrency to accept as payment? True, it is the most popular and is definitely secure. Yet, should it really be a form of “payment?”
One big thing to note that even YOU may not be aware of is every time you make a purchase with cryptocurrency through a credit card is that it could be a taxable event. Why? Well it comes down to the difference in price from when you purchased the crypto and when you sold it (swiped the credit card). The reason people aren’t complaining is because they probably have no idea. Volatility might balance things out, but good chance you will owe money. This brings us to our next question….
Should Bitcoin become THE form of crypto payment? Bitcoin is looked at as a store of value, hedge against inflation, and as an investment vehicle. It seems like if this becomes the main form of payment we would be going back to when gold or silver was the norm but now + taxes. There are plenty of alternatives like stable coins that could be a great medium of exchange. Furthermore, stable coins being pegged to the dollar also avoids capital gains tax because barely fluctuates (typically pennies which balance each other out).
What do you think would be the best cryptocurrency to use as payment? Tweet at us or send us a message to let us know!
What else:
Gensler Tells Warren SEC Needs More Authority to Regulate Crypto (coindesk)
INSIDE CUBA’S BITCOIN REVOLUTION (bitcoinmagazine)
$1.5 million ‘women-led’ NFT project was actually run by Russian dudes (input)
Venezuela cut off power to BTC mining plants despite legalization (cryptoslate)
NB Greenlights Indirect Crypto Investments for Commodities Fund (coindesk)
Unchanged crypto tax bill will be put to a vote on Tuesday (cointelegraph)
USDC Builder Circle Says It Wants to Become a National Crypto Bank (coindesk)
Testnet gives Cardano (ADA) its first ever smart contracts (cryptoslate)
NFTs Over DeFi: OpenSea Just Overtook Uniswap on Ethereum Usage (coindesk)
What do our followers think?
Given the decrease in participation we decided to take a week off. We will be back next week!
FMA People’s Crypto Portfolio:
chainlink stays in…for now.
The portfolio has moved back into solidly positive double digit territory as we bounce off our all-time low. Cardano has absolutely crushed it, up over 110% since inception while Bitcoin is down 12% in the same timeframe. As we eye a new high for the portfolio, geo-political pressures in Afghanistan and regulatory pressure on Binance make us a bit cautious. We might have diamond hands, but the world sometimes doesn’t. The FDA is giving “full-approval” to vaccines and we think that this won’t sway anyone in the anti-vax cohort. The peak of COVID-19 is behind us and we’re thinking that things will be back to normal relatively quickly even though some cities have implemented new mask mandates. As 2022 rolls around, we might even be able to focus on something other than Coronavirus for once. It seems like everyone wants their cut of Crypto payments, stay tuned for more government regulation in the space…
If you would like to see a live view of the portfolio, you can do that on CryptoCompare.
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We look forward to doing this all again next week, take care!