Taso's Tech Talk: Last Bitcoin Update for 2018

As we approach the end of the year, BTC and cryptocurrencies in general remain weak and it looks like this market space will end the year on the current softer note. The final BTC video for 2018, discusses the Hurst cycle relationship and how this reinforces the current bearish trend. Furthermore, a new approach is introduced that evaluates intraday data and the underlying trend condition. This method too reinforces the current bearish tone that, for now shows little sign of changing.

On the Federal Council Report

The federal council published its 170-page report on the legal foundations of the blockchain in Switzerland. It incorporates the findings of the consultation that took place in September and to which the Bitcoin Association also provided some inputs. All in all, it is great that the Swiss government not only recognizes the potential of the blockchain, but also applies the right strategy for allowing the blockchain-ecosystem to flourish.


In particular, the report focuses on removing barriers and establishing legal certainty in various legal areas except taxes, which are planned to be looked at in 2019. It does not propose a specific “blockchain law” like Liechtenstein and it does not try to pro-actively steer the development into a specific direction. This is the right approach and in the Swiss tradition of a principles-based legal system that ensures freedom of innovation and a sound foundation for economic prosperity.


A particularly interesting idea is the proposal to create a new exchange category for crypto exchanges that list security tokens. Before 2016, Finma could have allowed such exchanges at its own discretion. But then, the Financial Market Infrastructure Act was introduced in order to make the Swiss regulatory environment compatible with that of the European Union. It mandated that exchanges must be one of three specific types (stock exchange, mutual trading facility, or organized trading system). Unfortunately, none of these types fits the needs of crypto exchanges very well, making it necessary to create a new type in order to allow such exchanges to exist in Switzerland. This shows once again how the traditional Swiss approach of having principle-based laws that give a lot of discretion to citizens and regulatory agencies are much more innovation-friendly than overly detailed European-style laws.


Another interesting question that we discussed before in this blog is the storage of crypto assets for clients and what happens to them in the case of a default. Here, the report is not as optimistic as it could be regarding the current legal situation, but we welcome its conclusion that a legal clarification is desired and that clients should get their assets back when the custodian defaults, assuming the assets can be clearly identified as belonging to the clients.

Is the Ethereum system a legal subject?

There are some hints that abstract systems like Ethereum should legally be treated like their own entities. The latest such hints comes from the context of value-added tax (VAT or MWST in German), where the taxation of transaction fees is practically impossible when trying to find a taxable relationship between miners and users. If the government ever wants to charge VAT on IT-services rendered by abstract systems such as Ethereum, it cannot get around recognizing these abstract systems as legal subjects. In the context of VAT, they could treat them like foreign firms, thereby enabling tax authorities to demand VAT (Bezugsteuer) when firms "import" IT services from such systems. However, such a change would require the law to be adjusted, which is not worth doing at the current adoption rate of blockchain-based services (we estimate that the ESTV misses out on about 50'000 CHF in taxes by not being able to levy VAT on services rendered by systems such as Ethereum).

So for now, all these services should remain untaxed as everything else would cause completely disproportionate costs to everyone involved. That is at least the position we have taken in our comment to the latest draft of the Swiss federal tax authority (ESTV) on how to treat crypto currencies from a VAT-perspective. The important part is to have a perspective on how it could potentially be done in case the economic significance of transaction fees from blockchain-based services grows by a few orders of magnitude.

Technical Analysis Update for Bitcoin

Technical Analysis Update for Bitcoin

In the last BTC update, I suggested that the risk was skewed to the downside. This was clearly incorrect given strong gains seen over the course of July. Also, I had suggested that the 200D Hurst cycle phase that began off the 7-Feb low was completed on 14-Jun. Having evaluated price action since 14-Jun, a decision has been made to shift the cycle phases slightly to the right to accommodate the low on 25-Jun.

Technical Analysis Update for Bitcoin

Technical Analysis Update for Bitcoin

The Hurst cycle approach was developed by J.M. Hurst and is a powerful analytical and trading tool. The premise is that markets moves in cycles of varying nominal lengths and that all these cycles are interrelated. We are thus able to analyse price action on all frequencies, from short-term to long-term, and formulate an opinion on where price action is in relation to the overall trend/cycle structure.

Bitcoin Association Switzerland 2018: General Assembly

The Bitcoin scene in Switzerland has been strong since Mike Hearn, former Bitcoin developer and author of Bitcoinj, organized the first local Bitcoin meetup in February 2011. Over the years we have grown from a handful of people to over 5’500 Bitcoiners,  making Switzerland home to one of the biggest Bitcoin communities in the world.

To foster this development the not-for-profit Bitcoin Association Switzerland (BAS) was founded. Since 2013 we serve as a vehicle to talk to regulators and organize educational and networking events, making us one of the oldest Bitcoin Associations of the world.

On May 16th 2018, the Bitcoin Association Switzerland held it’s 6th Annual General Assembly. At the general assembly the most engaged members of our community come together to discuss the past years and future activities.

The last year has been one of the most successful years for Bitcoin and the BAS. The number of Bitcoin Meetup Switzerland members grew more than 100% (2’000 to 5’500), the number of corporate members increased from 9 to 65 and the number of events we organize from 30 to 45. While we had constructive talks with Swiss regulators the Bitcoin price rose to 8’263 CHF ;)

The entire association and our endeavours is run on a volunteer-basis, by unpaid individuals driven by the idea behind Bitcoin.

The Swiss have a thing for voting, you say?

Giacomo Zucco Joins the Board

Myself and the entire BAS board would like to thank our former board member Mathieu Buffenoir Gonzalez for his work over the last years. Serving on the board since 2014, Mathieu represented the non-German speaking part of Switzerland and helped building up the Geneva Bitcoin community.

I’m very happy to welcome Giacomo Zucco on the BAS board. Giacomo is a perfect fit for the board of the Bitcoin Association because of his long-time involvement in the Bitcoin community and achievements in educating corporates as much as individuals. In 2015 Giacomo co-founded AssoB.it, the main Bitcoin Association in Italy as well as the Milan Bitcoin Meetup. In 2016 he founded the non-profit initiative BHB Network, aimed to help the development of Bitcoin open standards and R&D, as well as the consultancy company Blockchainlab Switzerland. He hosted the third Scaling Bitcoin Conference and participated as speaker in many major conference since 2017. With Giacomo's help we plan to grow the number of Bitcoiners in Ticino as well as strengthen our collaboration with Milan and other international Bitcoin communities.

Giacomo Talking to our Members

The General Assembly approved all board members. The new board for 2018 consist of Isabella Brom, Roger Darin, Luzius Meisser, Bernhard Müller Hug, Giacomo Zucco and myself. We are thankful for the trust our members have in the board and I’d like thank my colleagues for their work and their commitment to promote Bitcoin in Switzerland for another year.

If you’d like to support our activities please consider becoming a member https://www.bitcoinassociation.ch/individual-membership.

I’m looking forward to a successful 2018/2019 for Bitcoin and the Bitcoin Association Switzerland.

To the moon.

Lucas

President

Technical Analysis Update for Bitcoin

The Hurst cycle approach was developed by J.M. Hurst and is a powerful analytical and trading tool. The premise is that markets moves in cycles of varying nominal lengths and that all these cycles are interrelated. We are thus able to analyse price action on all frequencies, from short-term to long-term, and formulate an opinion on where price action is in relation to the overall trend/cycle structure.

Bravis Offers a Brave Vision of the Future and Joins as Corporate Member

Today we are introducing Bravis. As one of their first official actions, the freshly founded company joined our association as a corporate member earlier this month.

 

Bravis stands for Brave Visions: Their vision is to enable every person to successfully invest in digital assets. Bravis aims to achieve this through three pillars: Asset Management, consulting, and events.

AMA: Ask Me Anything Session Ipchain (12.03.2018)

AMA: Ask Me Anything Session Ipchain (12.03.2018)

Ipchain is doing a Token Sale at the moment. IPCHAIN database covers the protection of intellectual property (IP) through the use of Blockchain technology and has been developed for the needs of scientists, inventors, artists and companies.

At Monday the 12th of March the CEO of the project Dr. Dominik Thor and Lukas Fiedler (Corporate Strategy) have been in our Telegram channel to answer all questions from the community regarding their project.

Technical Analysis Update for Bitcoin

From a cycle perspective BTC is seen currently trading in the final stage of the first of two 80-day cycles (55 trading days). At this latter stage of the 80-day cycle, the cycle phase is down and highlights the fact that short-term pressure on prices is likely to be bearish. This leaves the 19-Mar low of 7321 exposed and attention will be on whether the 7-Feb low of 6012.62 can remain intact. This is a key chart point and key support.

Introducing nChain

Today we are introducing the nChain Group which joined our association as a corporate member last October when Dr. Craig S. Wright, the Chief Scientist at nChain was invited for a Meetup in Zürich.

The nChain group aims to be global leader in research, development, technology applications and investments to enable infinite innovation in blockchain technologies – especially focused on worldwide adoption and growth of Bitcoin Cash. The Group now includes four business units: nChain Limited – a blockchain research and development business; nChain Holdings Limited – an intellectual property holding and commercialization company; nChain Reaction – a new investment entity; nCrypt – a Bitcoin wallet and exchange in Canada.

nChain_Logo.png

The group of companies has grown to a team of in excess of 60 scientific research, engineering and other professionals primarily based in London, United Kingdom and Vancouver, Canada.

We would like to thank nChain for supporting the values of the Bitcoin Association Switzerland through corporate membership and wish them all the best for their endeavors.