Since Bitcoin (BTC) created a new record high in late December 2017, the cryptocurrency market has faltered. Since that important month, a broader asset class has issued losses that can even yell at gamblers, because the value proposition of cryptocurrencies is sometimes misunderstood and ambiguous. However, an industry insider claims that cryptocurrencies may be subject to significant downwind in the coming months.
Dovey Wan, the founding partner of the password-friendly Primitive Ventures, recently accepted her familiar Twitter campaign to convey her local insights into China’s tax reforms and how these changes affect publicly traded assets. After breaking the new rules of China, it is said that it can ensure that the “super-rich” pay the full amount of the membership, and he draws attention to the potential influx of buying pressure that real estate and cryptocurrencies may see.
First, Wan points out that the value of detached homes and apartments may expand in the coming years, especially in hotspots such as San Francisco, New York, Bangkok, Phuket and Vancouver. If overseas properties are not profitable or attractive, the influx of funds may flow into the broader encryption ecosystem, but will not flow in the way consumers expect.
Because exchanges are banned, some may think that an over-the-counter (OTC) desk can be a viable legal entry.However, Wan pointed out that this is not the case and explained that the dark pool exposed the tax evacuee’s account to China’s “eye of all eyes.” With this in mind, mining operations, such as large-scale direct casting of bitcoin, may continue to be adopted by Asian powers.
Interestingly, Primitive Ventures’ partners have made it clear that the pseudonym of encryption, borderless and decentralized nature may not be as good as it is now, and point out that the government cannot properly tax this asset class.
The original text can be found at: https://www.newsbtc.com/2019/01/27/bitcoin-vc-china-tax-reform-could-help-crypto-assets-bloom/