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Canadian Bitcoin Scams Increasing As Hackers Use Spear-Phishing Strategy

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US Lawmakers Ask IRS to Encourage Cryptocurrency Innovation, Clarify Position on Staking Rewards

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A group of US Congress members is asking the Internal Revenue Service (IRS) to clarify its position on crypto staking rewards. 

In the letter dated July 29th, lawmakers David Schweikert, Bill Foster, Tom Emmer, and Darren Soto explain to IRS Commissioner Charles Rettig the difference between proof-of-stake and proof-of-work protocols. 

“The Bitcoin network is secured by a relatively small number of ‘miners’ who validate transactions as they ‘mine’ new Bitcoins. In ‘proof of stake,’ in contrast, all token holders can contribute to network security by ‘staking’ their tokens, and so many, or even most, token holders end up holding newly created tokens. This means that network security in proof of stake does not require massive amounts of energy consumption.”

The lawmakers say tax policies should not discourage American taxpayers from taking part in the growth of the nascent sector. The legislators want the IRS to levy taxes only when the staking rewards are sold and not when received.

“It is possible the taxation of ‘staking’ rewards as income may overstate taxpayer’s actual gains from participating in this new technology. It could also result in reporting and compliance nightmare, for taxpayers and the Service alike…

Similar to all other forms of taxpayer-created (or taxpayer-discovered) property, such as crops, minerals, livestock, artworks, and even widgets off the assembly line – these tokens could be taxed when they are sold.”

The letter is the latest in a series of efforts from Congress to address IRS policies on cryptocurrencies. 

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Source: https://dailyhodl.com/2020/08/06/us-lawmakers-ask-irs-to-encourage-cryptocurrency-innovation-clarify-position-on-staking-rewards/

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LINK Conquered $10 Moments Before Bitcoin’s Rally: Chainlink Price Analysis

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  • Chainlink saw an impressive 32% surge over the past week as the coin edges toward $10.
  • The resistance at $10 is expected to be very strong and will require some significant volume to overcome.
  • Against Bitcoin, LINK is struggling to break 90,000 SAT.

LINK/USD: LINK Bulls Spike Toward $10 Before Falling To $9.40

Key Support Levels: $9, $8.58, $8.00.
Key Resistance Levels: $10, $10.50, $11.

Chainlink saw a massive price increase in July 2020 as the coin reached as high as $8.71 toward the middle of the month. From there, it went on to drop until support was found at $7.00, which allowed LINK to rebound higher at the end of the month.

In August, LINK continued to push upwards as it broke above the previous resistance at $8.71 and managed to spike as high as $10.00 moments before Bitcoin lifted its head. The coin has since dropped to $9.45 after finding reliable support at $9.00.

linkusd-aug5
LINK/USD. Source: TradingView

LINK-USD Short Term Price Prediction

Looking ahead, if the buyers regroup and push higher, the first level of resistance lies at $10. Above this, resistance is located at $10.50 (1.272 Fib Extension), $11, and $11.27 (1.414 Fib Extension).

On the other side, the first level of strong support lies at $9.00. Beneath this, support lies at $8.58 (.236 Fib Retracement), $8.00, and $7.62 (.382 Fib Retracement).

The RSI has dropped lower from overbought conditions today as the bulls start to reach exhaustion. So long as LINK remains above 50, it will keep in its bullish trend. Additionally, the Stochastic RSI produced a bearish crossover signal, which is a negative sign.

LINK/BTC: Bulls Turned Away From 90,000 SAT Resistance

Key Support Levels: 75,000 SAT, 70,000 SAT, 62,000 SAT.
Key Resistance Levels: 90,000 SAT, 95,000 SAT, 100,000 SAT.

Against Bitcoin, LINK also performed remarkably well in July as it surged as high as 95,000 SAT (1.414 Fib Extension) by mid-July. From there, it fell lower until support was found at 62,000 SAT (.618 Fib Retracement). This support was further bolstered by a rising trend line, which allowed LINK to rebound.

LINK has surged during August as it reached the 90,000 SAT level today. Unfortunately, it was unable to break this level as it dropped lower to where it’s currently trading at 81,000 SAT.

linkbtc-aug5
LINK/BTC. Source: TradingView

LINK-BTC Short Term Price Prediction

Looking ahead, if the sellers push LINK lower, the first level of support lies at 75,000 SAT (.382 Fib Retracement). This is followed by support at 70,000 SAT (.5 Fib Retracement & rising trend line support) and 62,000 SAT (.618 Fib Retracement).

On the other side, the first level of resistance lies at 90,000 SAT. Above this, resistance is expected at 95,000 SAT (1.414 Fib Extension), 100,000 SAT, and 103,000 SAT (1.618 Fib Extension).

Likewise, the RSI dropped lower from overbought conditions but still remains above the 50 line as the bulls remain in control. However, the Stochastic RSI is primed for a bearish crossover signal that could see LINK returning to the rising support line.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/link-conquered-10-moments-before-bitcoins-rally-chainlink-price-analysis/

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Dave Portnoy: I’m Coming to Bitcoin

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Dave Portnoy is arguably one of the most influential and somewhat controversial legacy market traders out there.

Portnoy made major headlines last month after saying that the legendary investor Warren Buffett is “washed up.” He has regularly been posting videos where he’s supporting the merit that stock markets “always go up” and, at times, claiming that he’s making money off stocks he didn’t even know he owned.

Now, the poster-child of the day-trading boom, says he’s “coming to Bitcoin.” And he has upwards of 1.7 million followers behind him.

Dave Portnoy and The Winklevoss Twins

Yesterday, Portnoy posted a video where he officially invited the founders of Gemini – a well-known cryptocurrency exchange, the Winklevoss Twins, to explain Bitcoin in detail to him.

Shortly after, Tyler Winklevoss tweeted that the invitation is accepted.

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Today, in a true Portnoy fashion, the influencer doubled-down:

Of course, it’s entirely possible that Portnoy isn’t really serious about starting his foray into Bitcoin and cryptocurrencies, but it’s undoubtedly something worth considering.

Robinhood Army Coming to Bitcoin?

It’s no secret that influencers and their massive following can influence the price of an asset. The most recent example of this is Dogecoin.

As CryptoPotato reported earlier in July, Dogecoin surged by more than 100% in less than a couple of days. The reason for this wasn’t attributed to complex fundamental or technical indicators.

Instead, a person on TikTok urged his followers to buy the token on the count that it’s practically worthless, and if they invested just a small sum then, it would be worth a fortune if the coin hits $1.

That’s not the only case of retail interest driving a tremendous increase in the price of an asset. Another example came from the legacy market when Hertz stock pumped 1000% after filing for bankruptcy. Reports indicate that at least 160,000 Robinhood traders own the stock.

Whether Portnoy comes to Bitcoin or not is something we have yet to see, but if one thing true it’s that he has a massive following that could, potentially, influence the price.

Featured image courtesy of Business Insider

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Source: https://cryptopotato.com/dave-portnoy-im-coming-to-bitcoin/

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