IRS Sends Crypto-Related Warning Letters‌‌ | This Week in Bitcoin – Aug 31, 2020

Hi, I’m Nate Martin
from, and here’s what’s happened
this week in Bitcoin. Certain US taxpayers
identified as crypto users – allegedly due to disclosures
by US crypto exchanges – have received letters
from the tax agency warning them to either pay taxes on
or disclose their crypto holdings. This is the second such round of letters, indicating the IRS is serious
about crypto taxation. Coinbit, a major Korean crypto exchange, was seized by law enforcement
following accusations of fraud. It is suspected that 99%
of all BTC volume traded on the exchange for the past year
was faked through wash trading. Coinbit’s owner, Chairman Choi Mo,
and his management team are accused of inflating
transaction volumes and manipulating token prices
using a number of ghost accounts. Fidelity Investments, one of the world’s
biggest asset managers, is seeking regulatory approval
from the SEC for a new Bitcoin fund.

Details are sparse but so far it seems
accredited and institutional investors will be able to invest
a minimum of $100,000. Fidelity already operates
a Digital Assets fund and has more than $2.7 trillion
in assets under management. The Federal Reserve’s chairman,
Jerome Powell, announced that the US central bank
is changing its approach to average inflation targeting, Powell said in a statement that the FED
will tolerate higher inflation in the future. Immediately after, global markets
and Bitcoin reacted by pumping initially and retracing back
almost as quickly. Before we conclude, this week’s “Bitcoin quick question” is
who created Bitcoin? The honest answer is – no one knows. Bitcoin was introduced to the world
in late 2008 by Satoshi Nakamoto, which is a pseudonym. He, she or they managed to combine previously existing cryptographic solutions
with new groundbreaking ideas giving birth to bitcoin. Nakamoto, by maintaining his connections with other developers and cryptographers
through forums and email lists, was active in Bitcoin’s development
and mining during the first two years of the network.

He has mined
an estimated 800,000 Bitcoins, worth almost $9 billion today, and disappeared in April 2011 saying
“he has moved to other projects”. Many people have claimed
to be Satoshi since then, yet none of them have been able
to prove that they are indeed him. Do you believe he will eventually
return one day? If so, let us know in the comments. Have a question you want us to answer? Just leave it
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for faster, ad free browsing that can also earn you rewards. Just visit the link in the description below. That’s what’s happened this week
in Bitcoin. See you next week. If you've enjoyed this video,
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