BlackBull Markets | Aug 11, 2021 12:10AM ET
Cryptocurrency is having a material impact on traditional finance, stocks, and markets more than ever. It is arguably no longer an isolated ecosystem, divorced from anything other than indeterminable mania and depressions.
Supporting this supposition are the developments in the crypto space just this year; several crypto-backed ETFs became tradable in North America, Bitcoin appeared on the balance sheet of several Fortune 500 companies, and crypto-exchanges have achieved public listings. Speaking of the devil, the NASDAQ listed Coinbase Global (NASDAQ:COIN) has reported its earnings yesterday, comfortably beating its earnings expectations.
Fittingly, I plan to mark the occasion by crafting one of my periodical recaps of the crypto space.h2 Coinbase beats earning expectations/h2
AMC Entertainment Holdings (NYSE:AMC) has announced, alongside its earnings report, that it will begin accepting Bitcoin by the end of the year. I suspect the announcement was for two important reasons. The first, to help distract from the bad earnings report. Admittedly, the theatre lost less than expected, but the report was still less than desirable (US$0.71 vs US$0.94 expected loss per share).
The second reason is to appeal to its meme investor base, like GameStop's (NYSE:GME) foray into NFTs. However, unlike GameStop’s foray into NFTs, AMC's move into Bitcoin is far more practical and has the potential to pay off in the long term (predictions of Bitcoin reaching 100K are rearing their heads again). As of writing, Bitcoin is comfortably above 45K, after spending the beginning of August sub-40K.
h2 Lawmakers rejected an attempt to amend tax rules targeting crypto/h2The amendment sought to clarify language regarding who would have to abide by the new reporting requirements.
As it stands, Crypto advocates believe the tax rules are too broad and would lead to some entities being unable to comply because they are not privy to the information that is required to be reported. Ultimately, the US cryptocurrency space will be profoundly negatively impacted. This is an opinion shared by Coinbase CEO Brian Armstrong and Kraken CEO Jesse Powell, who believe cryptocurrency firms are likely to shift overseas in response.
At any rate, decentralized projects have been known to roll back transactions made during hacks. In this instance, the founders of Tether, a decentralized coin, has already stepped in and frozen US$33 million worth of coins associated with the hacker’s addresses.
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