Cryptocurrency E-News Review: Sunday, 05/23/2021
China has made news in the cryptocurrency space since announcing that it was planning on preventing businesses and banks from using cryptocurrencies. Even through the announcement, China had stated that individuals would be able to keep their cryptocurrencies only that they had to be mindful of the volatility of the market. The cryptocurrency market decreased after the news but increased the day after. It was later announced that China was going to look to prevent cryptocurrency mining and the market again reacted by decreasing. China has reversed stances on cryptocurrency in the past due to volatility and concern for the cryptocurrency exchanges that were being used. Now the concern is volatility and the environmental impact of mining. We will see if China reverses policy or if new regulations will be implemented.
On a different note, we were able to see that art and NFT’s are becoming synonymous in the cryptocurrency world. There are various businesses and sporting events that are allowing for the use of cryptocurrency NFT’s to be bought and sold with cryptocurrencies. The MLS is allowing art to be bought during specific games that allow for each team’s soccer match posters to be painted on a canvas and included in an NFT. The NFT’s can only be bought during the soccer matches specific times and allow for art, soccer, and technology to be showcased.
Continuining on to the topic of the United States, there are new guidelines to documenting tax events in cryptocurrency. While previously cryptocurrency buying, selling, trading between fiat or cryptocurrency and paying and receiving cryptocurrency payments for services was the only events that were documented, now new guidelines want the exchange balances, business payments, and any business with over $10,000 to be written on the taxes. While this may be seen as another news that affects the cryptocurrency market, it allows for cryptocurrency to be seen as legitimate.
Cryptocurrencies are interesting when they are voluntary. This is not investment advice and only information to understand what cryptocurrencies are.