Monat: Oktober 2018

ETH course analysis – Are we coming from the downward channel?

The share price recovered slightly. Temporarily a week maximum of 739.46 euro could be reached. Even if a slight upward trend could form, Ethereum moves sideways since reaching the weekly high and tests a resistance at 700 Euro.

The price for Bitcoin trader has risen this week

After last week’s crash an uptrend was formed for the Bitcoin trader, which is currently running into a resistance at about 700 Euro. The most important support is at 636.21 Euro, the most important resistance at 739.46 Euro. As also in the case of Bitcoin trader recovered well, moves however up-to-date sideways: The Ethereum course oscillates around the EMA100 and tried several times to rise over 700 euro. So far, this has only worked out sustainably on 10 February. On the positive side, however, the share price has been following a tentative upward trend since 7 February. Together with the development of the maxima since 3 February, the share price is moving in a triangle-like formation in which support and resistance converge. A positive breakout from this formation would be desirable, as we are moving close to the resistance of the downward-channel (marked violet) since mid-January.

The MACD (second panel from above) is just above zero. Furthermore, the MACD line (blue) currently rises above the signal (orange).

The RSI (third panel from above) is at 53 and thus neutral.

The price estimates presented by the crypto trader are not recommendations to buy or sell

Overall, the situation is neutral – as one would expect with the current sideways trend as seen here: Crypto Trader Review 2018 » Full Scam Check. Similar to last week, the behavior of the price at the downward-trends is interesting: A breakthrough through the blue resistance of the triangle-like formation would pave the way to crypto trader prices beyond the violet-marked downward-channel.

The support is defined by the blue upward-trend and is at 636.21 Euro. Falling below this level would mean an end to the existing upward trend. Should the price fall even lower, another interesting support line would be the EMA 840, which currently stands at 565.18 Euro. This corresponds to the EMA20 on the weekly chart, which is why breaching it for more than a week would be a warning signal for further downward movements.

The resistance is described by last week’s maximum price and is at 739.46 euros. A rise above this value would not only confirm the upward trend, the downward channel would also be tested. Another resistance is described by the price before the big fall and is 796,324 Euro.

Extension of speculation period for crypto currencies to 10 years?

The following article is a summary of CryptoTax’s elaboration on the extension of the speculation period for cryptoassets. It was written by Klaus Himmer, CEO and Co-Founder of CryptoTax. Further information on this topic can be found at www.cryptotax.io.

The background to the debate is the wording of Section 23 (1) sentence 1 no. 2 sentence 4 EStG:

„In the case of [private] assets within the meaning of sentence 1, the [speculative] period is increased to ten years if they are used as a source of income in at least one calendar year.

Since a grammatical interpretation leaves little room for interpretation, it is widely held that this provision also applies to crypto currencies.

The extension of the speculation period – an anti-abuse provision

The extension can be traced back to the 2008 Corporate Tax Reform Act and was introduced on the basis of tax-saving models – so-called container leasing models. Special purpose vehicles sold containers to private investors and offered them rental contracts and often a fixed surrender value at the end of the lease term. The investors generated rental income with the containers, which for tax purposes represents income from other services within the meaning of § 22 No. 3 EStG, as containers are also regarded as private assets. The investors were able to reduce the rental income by a so-called deduction for container wear and tear (AfA).

This is intended to reflect the depreciation of the asset and is measured on the basis of the normal useful life. The useful life is generally determined by the individual circumstances of the asset. In order to facilitate the procedure in practice, there are additional flat-rate data for types of assets in so-called depreciation tables of the Federal Ministry of Finance. Transport containers therefore have a flat-rate useful life of ten years.

The income from other services within the meaning of § 22 No. 3 EStG can thus be reduced annually by the flat-rate depreciation of ten per cent of the acquisition costs of the container, which regularly did not correspond to the actual wear and tear of the containers and was shown by the fact that the agreed surrender value was considerably higher than the tax book value.

https://www.youtube.com/watch?v=0UeleqfZ744

Does it make sense to apply it to crypto currencies?

However, the lump-sum depreciation usually only has a temporary effect, as a discrepancy between the tax book value and the actual market value is taken into account at the latest when the asset is sold as part of a private sale transaction by adjusting the acquisition costs accordingly. Since, prior to the 2008 Corporate Tax Reform Act, sales of private assets were tax-free after one year without exception and the depreciation discrepancy was therefore not taken into account for tax purposes, such container leasing models became attractive investment and tax-saving models.

The extension of the speculation period to ten years was intended to make such models unattractive and thus constitutes a tax avoidance regulation. A teleological interpretation of the standard, taking into account the intention to legislate, thus clearly shows that the extension of the deadline cannot be applied to non-depreciable digital assets.

In the social media and other information media, there has recently been increasing discussion as to whether the holding period for income generation through the use of Bitcoin, ether or other crypto currencies should be extended from one year to ten years. Income can be achieved with cryptoassets by different possibilities. On the one hand, users can actively participate in the block discovery processes. Through the various consensus protocols, staking can also be used in addition to mining to generate passive income.

Furthermore, decentralized network nodes based on a remuneration structure can also generate income. Crypto currencies such as Dash, PIVX or Zcoin have implemented master nodes in the existing system for this purpose. Since these sources of income are at the same time an essential basis for the functionality of the blockchain-based systems shown, a tenfold increase in the holding period in Germany would have a dampening effect on the spread of these innovative technologies and thus on Germany as a technology location in addition to the effect on the investment behavior of investors.