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Is Bitcoin bubble already popping?

Summary:

  • Bank of America argues we are experiencing a Bitcoin bubble burst
  • Polish cryptocurrency traders launch a petition to protest against the latest government’s decision regarding digital currencies taxation
  • Ethereum could gain traction as Golem goes live on the ethereum blockchain, what is it and how does it work?

Most of cryptocurrencies seem to be unlikely to bounce any time soon looking at technical charts as they keep consolidating. While some cryptocurrency pundits suggest that the bear market may have already come to an end, Bank of America researchers present a different point of view. According to their note released on Sunday Bitcoin, being one of the greatest asset price bubbles in history, is finally popping as the virtual currency has already fallen more than 60% since its peak reached in December last year. Having regard to the BofA chart comparing Bitcoin to other bubbles we saw in the past one may suspect that the most famous digital currency is not already out of the woods. Moreover, the chart suggests that Bitcoin has made just a half way of its probable decline if it matches a classic bubble pattern.

link do file download linkA Bitcoin bubble is already popping according to Bank of America analysts. Source: Bloomberg

Do notice that Bitcoin had the greatest jump in comparison to other bubbles, and therefore one may suspect that a plunge could be yet more stern. However, crypto bulls could hold out hope for a more noticeable bounce as the digital currency has yet to break below its crucial support area depicted at the chart below. A short-term view illustrates that Bitcoin is constantly hovering above its local trend line, and until the price stays above it buyers could still count on a breakout of a $7300 mark.

link do file download linkBitcoin keeps moving above its short-term trend line but momentum does not bode well for bulls. Source: xStation5

Polish crypto traders launch a petition against the contentious decision taken by the country’s government regarding taxation

"We are demanding the release of the blockchain technology market and the abolition of all taxes related to this industry", this is the official statement signed by more than 2700 people involved in the cryptocurrency trading. The petition says that Polish crypto traders are compelled to pay horribly high taxes on their virtual currencies activity. They claim that virtual currencies will effectively be taxed "hundreds or even a thousand times". The backlash occurred when the Finance Ministry published its interpretation of the country’s tax code suggesting that all income from cryptocurrency transactions are subject to either an 18% or a 32% tax rate. What’s more, the interpretation sees that selling or buying cryptocurrencies is a "transfer of property" and for that reason is subject to an additional 1% tax rate. To put simply, it implies that even as a trader who lost money it needs to pay tax for turnover. Tax returns in Poland need to be submitted till the end of April, hence traders do not have to much time to reach an agreement. 

Ethereum gains traction as Golem goes live on the ethereum blockchain

link do file download linkEtherum could be about to break out of range trading in the aftermath of the latest news regarding Golem. Source: xStation5

After three years and many software implementations Golem, a peer-to-peer market for putting your computer’s excess CPI power to use for other people, is finally going live on the ethereum blockchain. This app is among the earliest generations of applications based on the ethereum blockchain. The major goal of this app is to create a worldwide supercomputer, but there is still a long way to go to accomplish this aim. Golem works through a so-called software client connecting the two parties being in the Golem’s network - "providers" who want to sell their CPU power, and "requesters" who want to buy it.

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