🇺🇸 Doomscroll News

Tag: Cryptocurrency

  • The Crypto Eradication and Corporate Fraud Retribution Act (Hypothetical)

    The Crypto Eradication and Corporate Fraud Retribution Act (Hypothetical)

    Preamble: To ensure the integrity of financial markets, discourage speculative and potentially illicit activities associated with certain digital assets, and hold accountable high-level corporate executives who defraud investors in smaller public companies, this Act establishes a stringent taxation regime for digital assets and dedicates the resulting revenue exclusively to the prosecution and incarceration of culpable C-suite executives.

    Section 1: Taxation of Digital Assets

    • (a) Capital Gains and Income: All realized capital gains and income (including staking rewards, mining income, airdrops, and interest) derived from digital assets shall be taxed at a rate of 90%.
    • (b) Capital Losses: No capital losses from digital asset transactions may be deducted against gains from digital assets or any other form of income.
    • (c) Annual Wealth Tax: An annual wealth tax of 10% shall be levied on the total market value of all digital assets held by a U.S. person (individual or entity) as of December 31st each year, regardless of whether the assets have been sold or generated income.
    • (d) Transaction Tax: A 5% excise tax shall be imposed on the fair market value of every digital asset transaction, including purchases, sales, exchanges (crypto-to-crypto, crypto-to-fiat, fiat-to-crypto), and payments for goods or services. This tax is payable by the U.S. person initiating the transaction.
    • (e) Reporting: Taxpayers must report all digital asset holdings and every transaction, regardless of value, on their annual tax return with detailed information including dates, values, counterparties (where identifiable), and transaction IDs. Brokers and exchanges must issue detailed 1099 forms for all customer activity.
    • (f) Penalties: Failure to comply fully with reporting requirements or tax payments under this section will result in penalties including, but not limited to, a fine equal to 100% of the unreported assets’ value or unpaid tax, plus potential criminal charges including tax evasion. Egregious non-compliance may result in asset forfeiture.
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  • Ethereum Classic on Coinbase: Seriously? Let’s Talk About That Hash Rate and the 2020 Ownage.

    Forget the deep history lesson. Let’s talk about the here and now, and the flashing red warning light whenever Ethereum Classic (ETC) pops up on major exchanges like Coinbase: its security is fundamentally shaky.

    Why? It boils down to one critical factor in Proof-of-Work cryptocurrencies: Hash Rate.

    Hash Rate = Security (or Lack Thereof)

    Think of hash rate as the total computing power protecting the network. Miners use this power to validate transactions and add blocks to the chain.

    • High Hash Rate (like Bitcoin): Makes it incredibly expensive and difficult for anyone to gain 51% control and attack the network (e.g., reverse transactions, double-spend coins).
    • Low Hash Rate (like ETC): Makes it comparatively cheap and easy for attackers to rent enough computing power to overwhelm the network and launch a 51% attack.

    And with ETC, this isn’t just some abstract threat. It’s a documented reality. Remember August 2020? Ethereum Classic didn’t just get 51% attacked once – it happened three times within that single month. Yes, you read that right. Attackers repeatedly gained majority control, reorganized thousands of blocks, and successfully double-spent millions of dollars worth of ETC. The very ledger that’s supposed to be immutable got forcibly rewritten, not just once, but again and again in rapid succession. It got owned. Publicly and embarrassingly.

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