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Bitcoin [BTC] and other cryptocurrencies to be used to pay taxes in New Hampshire; sub-committee approves bill

Jibin M George

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Bitcoin [BTC] and other cryptocurrencies to be used to pay taxes in New Hampshire; sub-committee approves bill
Source: Pixabay

The State of New Hampshire took a step forward in the recognition and adoption of cryptocurrency as a legitimate means of payment and medium of exchange when its House sub-committee approved a bill that accepted Bitcoin and other cryptocurrencies for taxes. The bill had been introduced early in January by U.S Representatives Dennis Acton and Michael Yakubovich.

The development adds to the progressive recent history of U.S States, all of whom have been positioning themselves as the most cryptocurrency and blockchain friendly states in the United States. Only recently, the state of Wyoming had passed a bill that accords Bitcoin and other cryptocurrencies the same legal status as money.

The bill, HB 470, was passed unanimously by the sub-committee and will now move on to the State’s Administration Committee for a further round of voting. If the bill finds approval there as well, the state of New Hampshire, the ‘Free State’, will join the state of Ohio as the states that accept cryptocurrency as forms of tax payments. However, before being brought into force, the State Treasurer will be required to provide the State’s governor and the Speaker of the House, among others, with a roadmap of how New Hampshire means to implement the bill in the state.



The bill in question before the New Hampshire Sub-committee not only allows State agencies to accept cryptocurrency as payment for any taxes but also recommends that tax payments made in Bitcoin or any other cryptocurrency be converted to fiat to alleviate the risk of volatility that the cryptocurrency market is susceptible to.

The passage of the bill in the sub-committee is also a victory for the State itself as a similar bill was voted down by New Hampshire’s House of Representatives in January 2016. The development will also be an impetus for states such as Indiana where a similar bill, HB 1683, aims to bring an amendment to the tax code that in effect, allows the acceptance of virtual currencies for the payment of taxes and penalties, among others.





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Bitcoin

Bitcoin [BTC] will take another 22 years to regain its all-time high, says research analyst

Akash Anand

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'Bitcoin [BTC] will take another 22 years to regain its all-time high', says research analyst
Source: Pixabay

Bitcoin [BTC]’s rise and fall has been a consistent event that has grabbed headlines in the cryptocurrency space. According to the latest financial analysis conducted by UBS research analyst Kevin Dennean, the fans of the cryptocurrency will have to wait for over 22 years to climb back to its earlier heights of $19,000- $20,000.

Dennean made these claims comparing the pattern of Bitcoin and the cryptosphere with the trends of other financial system crashes like the Dow Jones crash of 1929, the NASDAQ slide in 2000 and the Oil tumble of 2008. The UBS analyst pointed to how a lot of the cryptocurrency’s proponents stated that Bitcoin is en route to a bull surge because ‘other assets did that in the past’. He laid the foundation for the delayed rise of Bitcoin by saying:

“We’re struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are.”

Dennean was also of the opinion that not every bubble that bursts recovers its old highs, taking the example of the Nikkei crash, which after 30 years of its fall, has still not managed to reach its earlier peak, currently trading at around half its all-time highs. The Japanese asset price bubble was an inflated economic bubble in the late 80s where the real estate and the stock market prices were greatly volatile. In 1992, the price bubble burst and Japan’s economic machine came to a standstill.



Another figure used by Dennean was the fact that all the asset classes, including Bitcoin, fell by 75 percent with Bitcoin breaching the 80 percent barrier. After the crash, only the Dow Jones and the NASDAQ provided a reprieve to users after rising back to its earlier highs.

At the time of writing, Bitcoin was trading for $5292 with a market cap of $93.423 million. The 24-hour trading volume was clocked at $12.985.





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