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Billionaire Investor Sets Example Investing in Altcoin ICO

Billionaire Investor Sets Example Investing in Altcoin ICO

    

A billionaire investor best known for buying roughly 30,000 Bitcoins

as part of the first government auction of the digital currency in 2014, is setting precedent as he stands behind a crypto token to be launched by a new startup. Tim Draper told Reuters in an interview that his participation in the initial coin offering (ICO) of Tezos slated later this month will be his first. The new Blockchain platform launched by a husband-and-wife team with extensive Wall Street and hedge fund backgrounds will launch the ICO on May 22.

Tezos incentive

According to information on its website, Tezos takes a fundamentally different approach by creating governance rules for stakeholders to approve of protocol upgrades. They are then deployed on the network automatically. When a developer proposes a protocol upgrade, they can attach an invoice to be paid out to their address upon approval and inclusion of their upgrade. This approach provides a strong incentive for participation in the Tezos core development and further decentralizes the maintenance of the network. It compensates developers with tokens that have immediate value rather than forcing them to seek corporate sponsorships, foundation salaries or work for Internet fame alone.

Draper’s confidence

As a new way of moving and storing money, Draper had told Fox Business in an interview in 2015 that Bitcoin is going to hit $10,000 in the following three years (by 2018). While the Bitcoin ecosystem looks forward to the feasibility of the prediction considering what is probable within the timeframe, it would seem that Draper’s confidence in the unfolding reality around him of what the top digital currency could bring to the table is still sound. This makes his disclosed interest in another aspect of the digital currency sphere – his plan to participate in a token offering and his choice of Tezos as a particular startup to invest in considering it’s a formation of a “husband and wife” team – a point to note.

With its family makeup, the success of the startup’s ICO will be a sheer example of the opportunities the crypto economy could offer the smallest unit of a society – after all, there are businesses owned and run by couples or a family. It would also show that the potential for Bitcoin, as a growing digital currency in various households, is huge in this kind of a business setup. Hence, Draper’s support for the adaptation of the cryptocurrency concept into the family-based business world could be precedential.

"The best thing I can do is lead by example," Draper said in his interview.

"Over time, I actually feel that some of these tokens are going to improve the world and I want to make sure those tokens get promoted as well. I think Tezos is one of those tokens."

Unlike most traditional venture capital firms which are prohibited by agreements with investors from deploying cash into such high-risk assets as digital currencies, Draper said his firm is doing this with Tezos because there is money for such non-traditional investments. In addition, they had anticipated “that certain things are going to happen and finance is going to be transformed."

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

 

Alan Zibluk Market Hive Founding Member

Australia Will Recognize Bitcoin as Money and Protect Bitcoin Businesses, No Taxes

Australia Will Recognize Bitcoin as Money and Protect Bitcoin Businesses, No Taxes

    

The Commonwealth Scientific and Industrial Research Organisation

UPD: The Commonwealth Scientific and Industrial Research Organisation (CSIRO), the federal government agency for scientific research in Australia, stated that Blockchain technology will have a profound impact on the Australian economy. Bitcoin will be treated as money in Australia by July 1, 2017, and will be exempt from goods and services tax (GST). Bitcoin traders and investors will not be taxed for purchasing and selling Bitcoin through regulated exchanges and trading platforms. Over the past two years, the Australian Bitcoin exchange market significantly fell behind growing markets such as South Korea, Japan and South Korea, that control more than half of the global Bitcoin exchange market share.

Two majors factors which drove startups, exchanges and businesses dealing with Bitcoin and other digital currencies in Australia away from the country where the termination of banking services by leading Australian banks due to their anti-competitive nature and the double taxation of Bitcoin trading by the Australian government. Starting July 1 however, double taxation and trading and goods and services taxation on Bitcoin will be exempted. In its 2017 to 2018 budget for “Backing innovation and FinTech,”

The Australian government wrote:

“The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes. Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.”

The government will also protect Bitcoin businesses and exchanges

More importantly, the Australian government’s new vision to spur the growth of fintech and the digital currency market would most likely prevent local banks and financial institutions for unfairly denying banking services to Bitcoin businesses and exchanges. If the above mentioned issues can be resolved by July 1, the Australian Bitcoin market could potentially experience a rapid growth in terms of user base and trading volumes.

The document further read:

“Innovation will drive productivity growth in Australia. That is why the Government’s $1.1 bln National Innovation and Science Agenda (NISA) is designed to enable Australia to take full advantage of new economic opportunities. The Government is committed to establishing Australia as a leading global financial technology (fintech) hub and is announcing a new package that aims to position our local fintech industry as a world leader.”

At the Blockchain NZ conference held in Auckland, New Zealand earlier this week, Bitcoin and security expert Andreas Antonopoulos emphasized the Australian government’s uninvolvement in its local Bitcoin market and the impact of such actions on Bitcoin businesses and exchanges. More to that, Antonopoulos criticized the local government’s taxation policy on Bitcoin, which essentially drove away businesses and users from Australia to other countries.

“Governments can choose to either do nothing – which is okay, make things worse for cryptocurrency trading – like what Australia did by imposing sales taxes on all cryptocurrency transactions, or they can make things easier for companies by reining in the banks and encouraging companies by creating a level playing field,” Antonopoulos said. With Australia’s new policy, the Bitcoin ecosystem in the country could change drastically. Banks will start offering services to Bitcoin exchanges and traders will not be taxed with GST upon the purchase of Bitcoin.

Chuck Reynolds
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Market Hive Founding Member