Headline Feb 03, 2018/ ''' CRYPTO CURRENCIES CRAMPS '''

''' CRYPTO CURRENCIES CRAMPS '''

FOR NAVEED -HAMMAD- IMRAN the very hard, hard reality is that it is inconceivable that any government, for example the United States-

Would find it, inconceivable that the government would simply accept enormous revenue losses  from a larger underground economy and from tax dodges on trading profits.

The only question is how heavy-handed the response would be.......Oh, dear, dear Me.

*BLOCKCHAIN TECHNOLOGIES* can also make it difficult for the I.R.S to tax cryptocurrency  trading profits.

Here is a simple tax dodge that would be hard for the I.R.S. to prove : Suppose A, B and C are  electronic addresses you own.

*You let the I.R.S know you own A,.........but not B and C*.

You buy one Bitcoin $15,000 and park it at A, expecting the price to go up. Just a few hours later, when a Bitcoin is worth $15,500, you send that Bitcoin to B and then to C.

A few months later, when your Bitcoin is now worth $25,000, you send it from C to A and tell the  I.R.S. :

''I sold the Bitcoin to an anonymous counterparty at B back at $15,500 and just now bought a Bitcoin from another anonymous counterparty at C for $25,000.''

As a result, you owe taxes on capital gains of just $500 rather than $10,000.

The I.R.S. can observe all the transactions between A, B and C on the Bitcoin Blockchain, but it cannot disprove that B and C are ''arm's length'' counterparties that is, independent and not colluding.

RULES in the United States that require financial institutions to verify the identity of address holders do not solve the problem, because as far as the I.R.S. knows-

B and C could have been set up by a foreign institution that does not comply with such rules.

BUT, Merium, Rabo, Saima, Zainab, Zilli, Dee, Sara, Seher, Lakshmi, *A US trade war with China* could spin the world on different axis.

*Let us for a moment stop and take a look at how this great nation, Japan, is discerning things in this market economic chaos..........
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CRYPTOCURRENCY TRADING  in Japan has spiked in the last year, with the  country's army of retail investors emerging as a major force in bitcoin's spectacular rally.

The country's global share of the bitcoin market has jumped after clampdowns by authorities in China and South Korea, presenting the prospect of  lucrative business for cryptocurrency exchanges. 

TOKYO : JAPAN'S Line Corp plans to launch a cryptocurrency exchange a move that comes as  regulators investigate such exchanges after-

*Hackers stole $530 million in digital money  from Coincheck in one of the world's biggest cyber heists*.

Line said in a statement on Wednesday that it has applied to Japan's financial regulators to operate an exchange, with the application under review.

Japan's Financial Services Agency, which oversees registrations of new exchanges, said on Monday   it would investigate all cyptocurrency exchanges in Japan for security gaps after the hack at the Coincheck exchange.

The theft on Friday of 58 billion Yen {$532.84 million} of NEM coins from Coincheck has highlighted the security vulnerabilities on trading an asset that global policymakers are struggling to regulate.

It has also drawn into focus Japan's approach to regulating cryptocurrency exchanges.

Last year, it became the first country to regulate exchanges at the national level -a move that, at the time, won praise from cryptocurrency traders and exchange operators for boosting innovation while protecting consumers. 

''We should be aware of the need to balance between communicating, to beginners or inexperienced users, the value of these financial products and the risks they entail,'' a Line spokeswoman said.

The FSA has registered 16 cryptocurrency exchange so far, with another 16 awaiting clearance as they continue to operate.

Shares of Line, which is controlled by South Korea's Naver Corp, jumped 4 percent by early afternoon, against 0.25 percent gain for the benchmark Nikkei average.

LINE said it will start trading cryptocurrencies through ''Line Financial'', a new company that will also provide loans and insurance via its Line messaging app.

Line currently provides money transfer and payment services to 40 million users through its app.

And with that I revisit Davos to hear Jamie Smith  the woman on a mission to teach us about  blockchain, and in the process hear out Joseph Lubin's rare insights :

''If you put all the economic, social and political systems we have built on a more trustworthy, secure and equitable foundation -they will be much, much better.''

The softly spoken Canadian, who runs a global blockchain company called ConsenSys, also has a warning to the Davos doubters.

''It's not a religion,'' he says. ''There will be people who have vested interests that will try to protect their way of doing business.

*The smart ones are getting out ahead of this*

At the sidelines of an oversubcribed GBBC event, Jamie Smith has a similar message.

The Honor and Serving of the latest ''Operational Research'' on Economics and Markets continues.

With respectful dedication to the Leaders, Students, professors and Teachers of the world. See Ya all on !WOW! -the World Students Society and Twitter- !E-WOW! -the Ecosystem 2011:

'''Economic Growth'''

Good Night and God Bless

SAM Daily Times - the Voice of the Voiceless

Headline Feb 01, 2018/ ''' BLOCKCHAIN -*BITCOINS*- BOOMERANG '''

''' BLOCKCHAIN -*BITCOINS*- 

BOOMERANG '''

''IF THESE BEAUTIFUL *crypto-currencies* companies -give the World Students Society just about and up to 8% of their market value-

As a  gift-token of their great perceptions of the students of the world, I and the students would straighten up and listen very carefully and get thinking and get devising.

*THE WORLD IS BUSINESS* : Right? And on that the World Students Society will never ever, face an abyss.

Crypto-currencies and *blockchain  technology* are just too brilliant to pass by. The world, the world over, you all will soon be returning to it.

So, what we need is an international committee of some real brilliant and original thinkers to think through on this. So, I nominate.......

I nominate Naveed Iqbal Querishi, specialist in finance, KSA, Asst Professor M Hamad Khan/UK, specialist marketing, and Imran Khan, specialist capital markets-

To study this in greater detail, and let The World Students Society, have their best thinking.

JAKARTA/KUTA : THE RAIDING team found two cafes still using bitcoin as a means of payment, but 44 businesses including car rentals outlets-
Hotels, travel companies and jewelry stores, previously offering the service, had now stopped.

One of the cafes used bitcoin only for transactions of more than 243,000 rupiah, or about 0.001 bitcoin.

A single transaction took about 1 1/2 hours to be processed and included a fee of  123,000  rupiah so this had discouraged its wider use for payments, said the authorities.

The official declined to name the businesses because he was still waiting for instructions from Bank Indonesia in Jakarta.

''The next step is we will ban them as mandated by the law. We ask them not to use it anymore. Along with the Directorate of Special Crime Investigation unit, we will enforce the rule that all transactions in Indonesia must use rupiah.''

And only 8,000 nautical miles away, The Davos reception, however, has not been entirely positive.

UBS chairman Axel Weber reflected the mood of many in high finance when he told delegates-

*That his bank wouldn't touch Bitcoin, a crypto-currency that runs on blockchain, in case investors blame his business when its value collapses*.

There's opposition from environmentalists too, who worry about the amount of power blockchain  transactions require.

Joseph Lubin, the co-founder of a popular crypto-currency platform called Ethereum [one whose best known users are is probably DJ Gramatik] is not perturbed.

The former software engineer who did a stint at Goldman Sachs before turning his attention to   Blockchain, is evangelical about its powers.

''Our thesis is that the world has built tremendous layers technology, but it's not all on a foundation that is vulnerable to corruption and manipulation,'' he says referring to the current infrastructure of the Internet.

The core technology underlying cryptocurrencies, known as *blockchain* is premised on anonymity : Transactions are public but linked only to an electronic address.

THIS is a big, part of what makes blockchain so attractive.

BUT anonymity is also the main fuel for the underground economy, which is now conducted largely  via cash. The underground economy is a significant source of lost tax revenue.

The Internal Revenue System estimates that it loses around $500 billion annually because of  unreported wages alone.

And the underground economy in the United States -estimated at 8.4 percent of output -is relatively small compared with those of other countries.

If the cryptocurrencies were to replace cash as the preferred anonymous medium of exchange, they could significantly expand the underground economy because they are so much more convenient than cash.

There is no need to visit an A.T.M., and you can securely pay people regardless of their location.

No wonder Steven Mnuchin, the Treasury Secretary, expressed concerns recently that Bitcoin could become ''the next Swiss bank account.''

The I.R.S understands this, which is why it has been pushing to break the anonymity of cryptocurrencies.

In November, it persuaded a federal judge  to order  Coinbase, a popular Bitcoin exchange, to reveal the identity of the customers for more than 14,000 accounts [representing nearly nine million transactions].

The Honor and Serving of the latest ''Operational Research'' on crypto-currencies and Future continues.

With respectful dedication to Professor Richard Holden of Economics at the business school of University of New South Wales, and  Professor of Law Anup Malani, University of Chicago and-

Students, Professors and Teachers of the world. See Ya all on !WOW! -the World Students Society and Twitter-!E-WOW! -the Ecosystem 2011:

''' Classical Music '''

Good Night and God Bless

SAM Daily Times - the Voice of the Voiceless