Crypto News Update: taxes on crypto and an on-chain NFT marketplace for Sotheby‘s
In this new weekly update we‘ll summarize all the essential news and events in the crypto world from May 1 to 5. We list all the highlights for you so you‘ll be heading into the weekend updated on everything!
The White House wants to tax crypto mining with 30%
A bill has been proposed by President Biden's advisors, suggesting a 30% tax on the electricity usage of crypto miners in the United States. This is aimed at reducing the impact that crypto mining has on the environment. They argue that this could reduce both mining and energy consumption. Currently, crypto companies do not have to pay for the costs they generate in terms of environmental pollution and high energy prices. The crypto community is far from pleased with this proposal. The energy used in mining is said to be more sustainable than before. In addition, bitcoin mining can act as a stabilizer of the electricity network. The community also says that mining will not decrease, but will rather move to Russia or other countries.
Sotheby's auction house announces on-chain NFT marketplace
The well-known auction house Sotheby's already has a metaverse where Non-Fungible Tokens (NFTs) can be purchased from 2021. Now, Sotheby's has launched a marketplace where users can buy NFTs based on Ethereum (ETH) and Polygon (MATIC). This system will be fully on-chain, allowing buyers to pay in either ETH or MATIC, both of which are the native tokens of the blockchain. This also enables direct transactions between users. There is a 2.5% fee for sellers, while royalties for the resale of artwork will be paid out directly on-chain to artists through the marketplace's smart contract. Michael Bouhanna, the Vice President and Head of NFTs at Sotheby's, says that the ability to expand Sotheby's Metaverse with a full on-chain peer-to-peer market is an important step in the evolution of the digital art and collectibles space.
Ethereum whale moves millions of Ether after 8 years
Another transaction has taken place between wallets that have been inactive since the 2014 ICO. This wallet contained a whopping 2,365 Ethers, of which 2,360 have now been moved to a new wallet. During the ICO, they were sold for just $0.31 per Ether, meaning the buyer paid $733.15 for 2,365 Ethereum. At today's prices, it is worth $4.3 million. This means that the investor in question has made a profit of about 586,000 percent on their investment. However, the receiving wallet has not done anything with the Ethers yet. It is therefore still unclear what the reason for the transaction was.
Argentinians and Turks are investing massively in crypto due to high inflation
The local population in both Argentina and Turkey are investing massively in cryptocurrencies. This is because the inflation in these countries is so high that people are turning to crypto to escape the devaluation of their local currency. The annual inflation rate in Turkey is 50%, but in Argentina it is even higher at 104%. In the Netherlands, the annual inflation rate is approximately 5.2%. Crypto seems to offer a solution for this problem. Stablecoins in particular are popular: USDT and USDC are widely purchased by Argentinians. In Turkey as well, people recognize the value of stablecoins. Last week, the trading volume of USDT reached record highs against the Turkish lira. The lira, like the Argentine peso, is subject to inflation, causing people to convert their lira into stable assets.