ETH and Taxes
And Lebanon's Currency Loses 90% of Its Value Overnight
While last week when I wrote, I was inspired by my morning long run, this week I’m feeling a little beat up by it.
So, let me get right to this, so I can go back to sitting on my couch and watching Rocky III once it’s done.
Ethereum (ETH) Price Prediction Report
Early last week, my price prediction report on Ethereum (ETH) for Finder was published.
As I mentioned in last week’s edition of the newsletter, please don’t give too much credence to price prediction reports. By that, I mean don’t sell your house and ape into your favorite digital asset because you read in a price prediction report that the asset will/might be worth a whole lot more in the coming months or years.
With that said, these reports still have value. You can deduce a lot about what drives price action in digital asset markets by reading through the commentary from industry specialists. I spent a lot of time sifting through all of the thoughts the team at Finder collected in efforts to include the best of them. Hence, I hope you find both the commentary (below each of the charts in the report) informative.
I was happy to see the report featured in a piece published on Ethereum World News that was also syndicated via TradingView.
More Tips for Crypto Taxes
As I’ve been working on my crypto tax preparation, I’ve been thinking to myself “How can I make lemonade out of this process — a process that reminds me of sucking on some very, very sour lemons.
I figured I could put my suffering to good use and share some helpful lessons I’ve learned regarding crypto tax reporting for a broader audience.
And so I wrote the following piece for Nasdaq on behalf of Finder this week: “5 Tips for Crypto Tax Preparation”
Here’s the intro to it:
“If you’re a frequent crypto trader or if you like to engage with DeFi protocols, doing your crypto taxes can be about as much fun as walking barefoot on broken glass.
Selecting the right crypto tax software can help you review the crypto transactions you made last year and produce the required tax documents. However, you’ll still likely need to check and revise the transactions that may have not been properly documented in the software-generated reports.
So, below are five tips on how to make the crypto tax reporting process a bit less painful and your records a lot more accurate…”
(I guess you’ll have to click the link and read on to find out what those hot tips are!)
What Comes Next for BTC?
I thought The Fed’s 25 bps rate hike this week would be enough to flip $24k from resistance to support for BTC, but that’s not what played out.
Instead, it looks like BTC doesn’t currently have the fuel to break through the $24k level.
This means that maybe it heads back to about $20k. And, if it breaks that, it wouldn’t be surprising to see it revisit $16k or even $14k.
But who knows? Maybe we’re just getting started with the type of mid-crypto winter bull run that happened from Feb. to June of 2019.
Something like that would be in line with trends from previous cycles.
(Not financial advice.)
Lebanon’s Currency Loses 90% of Its Value Overnight
This week, Lebanon’s central bank governor announced a new official exchange rate of 15,000 pounds per US dollar on Feb. 1.
The new rate devalues the Lebanese pound by 90% overnight, while the former rate had remained unchanged for 25 years.
This is truly a heartbreaking scenario.
If you’d like to learn more about it, Nathaniel Whittemore, a man who rocks a black leather jacket like a champ (and I say that as someone who eats vegan) and host of The Breakdown, did an excellent job of covering the issue. Check out what he has to say below:
My heart truly goes out to the people of Lebanon.
One of the most shocking things I’ve learned from studying money is what a privilege it is to live in a country that prints the world’s reserve currency.
While inflation is surely eroding our purchasing power here in the US, the situation is by no means as tragic as what’s happening in Lebanon — or Sudan or Argentina or Nigeria or Turkey.
Very chaotic and uncertain times to say the least.
I hope that BTC has served as a means for some in Lebanon to preserve at least some their wealth.
Take it easy and be kind to one another.
Big Hug,
Frank
Twitter: @frankcorva
