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Bitcoin [BTC]: Israel classifies the world’s largest cryptocurrency as an asset, and not as a currency

Akash Anand

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Bitcoin [BTC]: Israel states that the world's largest cryptocurrency is an 'asset' and not a 'currency'
Source: Pixabay

The acceptance and adoption of Bitcoin [BTC] as a mainstream form of payment has been the main focus of a lot of proponents in the space, with some parts of the world leaning positively, while others still considering the largest cryptocurrency as a speculative asset.

The latest country to comment on Bitcoin was Israel, with the country’s highest court ruling that the cryptocurrency was an asset, and not a cryptocurrency. This ruling comes in the wake of Israel’s central bank voicing the same decision about the king coin. Judge Shmuel Bornstein stated,

“The Central District Court in Lod accepted the tax authority’s interpretation, and held that bitcoin is an asset and not a currency, and that the transaction in question is therefore taxable.”

The clincher in the decision was the fact that Bitcoin would be taxable, making it fall directly under the norms of the country’s financial authorities. The status of the world’s largest cryptocurrency is still circumspect in the Reuven Rivlin-led country, but the latest ruling on Bitcoin makes it clear that Bitcoin may never come under the ‘currency’ bracket.

Many cryptocurrency enthusiasts in the country have also opined on the court’s decision, with Itay Bracha, Managing Partner at Israeli law firm, Bracho and Co stating,

“The ruling is a signal to all those who have yet to report cryptocurrency-related profits or based their actions on differing legal advice … The ruling is unequivocal, and since it is not new legalization but a judicial interpretation, it applies retroactively.”

Israel has been on the path to ensure that all cryptocurrency trading is above board and since December 2018, the country has been keeping a sharp eye on any nefarious activities involving digital assets. Persons suspected of shady dealings in the cryptosphere are being sent strict notices to disclose all transactional information, according to reports.





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Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.

Bitcoin

Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021

Priya

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Bitcoin [BTC] will likely reach $100,000 with a market cap of over $2 trillion before the end of 2021
Source: Unsplash

The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.

According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.

Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,

“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”

Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,

“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”

Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,

“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”





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