Episode 032: Monday 30th April 2018

Didn’t We Have A Lovely Time The Day We Went To Heathrow

Coming up in today’s show:

  • We’ve been away for a crypto weekend – and we’ve discovered all sorts of new stuff about the Blockchain
  • Paul struggles to find a pint he likes at the pub opposite the hotel and ends up drinking cider instead of John Smiths bitter
  • And the shocking thing we learned about Lastpass which has rocked our crypto world!

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Paul’s Three Big Crypto Insights

  • Online security expert James Wood was very dismissive of Lastpass as a store for secret keys … this shocked me so much we invited him on the show to explain himself
  • The tax management of cryptos is so damn complicated it’s tempting to put my investment money back in a post office saving accounts where everything is so much simpler (but we’ve invited Crypto Tax Expert Joel Harding onto the show to talk us through it)
  • We are in super early with this this and everybody agrees that it’s the internet 1994 all over again

Alison’s Big Crypto Insights

Not a huge amount of discussion on the current market – still a cautious feeling that Bitcoin will drop again before the ‘big rise’.

Big issue with investing or trading in crypto at the moment is knowledge and information:

  • A lot of the trading strategies that work on the stock market don’t work with crypto
  • Huge challenge getting accurate and timely information to base decisions on – doesn’t filter down to ‘mere mortals’ like us (Siam included himself in this)
  • Also, a lot of trading on Bitcoin esp is OTC – this doesn’t affect market movements so we have no way of knowing what’s going on behind the scenes…
  • No one really knows what’s going to happen – importance of building your own trusted network of information and research.

Security and tax

Two most important topics around cryptos – we’ll be getting a couple of experts onto the show to answer our questions.

Security:

  • Scary stat – 2018 is already a record year in terms of thefts and scams linked to digital currencies $670 million USD reported stolen (inc. $400m Coincheck NEM hack)
  • We’re doing things right! Security expert agreed with Paul’s tips on our IT security video around 2FA, making sure you have an up-to-date antivirus and strong passwords
  • But… remember to think offline as well as online. Don’t let you or your family become a target. What information could people find out about you online?
  • First rule of crypto club… we’ve failed that one then!
  • Keep up to date on security and scams: cryptoaware.org, cryptopanic.com [I nearly panicked when I opened this! Looks techy…], hackernoon.com

Tax:

  • Key point – keep a record of EVERYTHING in £ sterling. Every stage of every transaction. [Paul talk about example of Revolut > Euros > Coinbase > GDAX etc.]
  • The type of tax you pay will depend on whether gains are made from investment or trading. If you’re buying with a view of short-term gain, did this is classed as trading. But there’s no black or white definition between the two. You’d pay capital gains tax on any income from investment gains, and income tax on any investment from trading gains.
  • Use Cointracking.info to keep record of transactions? [Do we want to recommend this?]

The future of cryptocurrencies and blockchain technology

Ray Hammond – futurist who predicted what life would be like today in the 1980s. Interesting that he was cautious about the future of cryptocurrency. Doesn’t think it’s going anywhere in the next year or so (can continue to trade) but long-term future will depend on how hard governments crackdown on cryptocurrencies. And perhaps, the future of government…

G20 group discussed international regulation in March but pushed back discussion until July: https://cointelegraph.com/news/g20-and-cryptocurrencies-baby-steps-towards-regulatory-recommendations (also covers each country’s take on crypto)

Ray believes we have bigger problems – need a global structure to manage world affairs, including a global bank (like The League of Nations). Without this, we will see further breakdown between societies and war.

Jon Matonis – Bitcoin will have an impact on fiscal policy. A shift in taxation from income tax to consumption tax (I.E.higher VAT) and move from progressive taxation to regressive taxation

[https://www.investopedia.com/ask/answers/042415/what-are-differences-between-regressive-proportional-and-progressive-taxes.asp] Not a good thing?

Putting crypto to one side, everyone agreed that government and personal data would, in future be held on a blockchain. Thomas Power – in future, attention will be valuable commodity. I.e. big brands will be paying us for our data and attention… possibly with their own tokens (evolution of the Tesco clubcard!)

Scale of technological changes is massive and exponential. Blockchain – ten times as fast as dot.com/e-commerce development. In next 6-10 years, we’ll see more development in information technology than since 1980s.

Other bits and pieces

– Thomas Power … everything will be tokenised

– Gold is analogue Bitcoin

– XBT is the proposed Bitcoin currency code

– Bitcoin is the UBER of money

– Check out the Gartner tech adoption cycle – it’s like the stages of grief for tech!
Technology Trigger + Peak of Inflated Expectations + Trough of Disillusionment + Slope of Enlightenment + Plateau of Productivity

– JAMES … 40% of all tokens stolen have been taken in the past 3 months

[Note: We're happy to attribute sources where we can. If you haven't branded your graphic and you'd like us to add a link, please email us at questions@cryptonewspodcast.com]

This week's Top Crypto Coins:

See https://cointracking.info/coin_trends.php for the latest stats.

Paul's Fantasy Crypto Portfolio:

See http://cryptonewspodcast.com/paul

Paul Teague

Alison's Fantasy Crypto Portfolio:

See http://cryptonewspodcast.com/alison

Alison's Bitcoin-only portfolio: http://cryptonewspodcast.com/BTC

Your Crypto Portfolios:

See https://cryptonewspodcast.com/your-crypto-portfolios/

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