How a new wealthy class of crypto-nomads will reshape the global tax system and how small, agile and flexible emerging economies can gain from the inflow of crypto capitals. The new era of the citizen-customer.
Sometime between 3800 BC and 2000 BC a Sumerian, one inhabitant of ancient Mesopotamia — literally the “land between the rivers” Tigris and Euphrates — wrote the following on a clay tablet: “You can have a lord, you can have a King, but the man to fear is the tax collector”.
Wise words from over 4000 years ago.
The cat and mouse game between people and the tax collector has been going on forever, probably even before the first historical records of taxes dating back to ancient Egypt.
But in the last 20 years two epochal trends have altered the…
How a new wealthy class of crypto-nomads will reshape the global tax system and how small, agile and flexible emerging economies can gain from the inflow of crypto capitals. The new era of the citizen-customer.
Sometime between 3800 BC and 2000 BC a Sumerian, one inhabitant of ancient Mesopotamia — literally the “land between the rivers” Tigris and Euphrates — wrote the following on a clay tablet: “You can have a lord, you can have a King, but the man to fear is the tax collector”.
Wise words from over 4000 years ago.
The cat and mouse game between people and the tax collector has been going on forever, probably even before the first historical records of taxes dating back to ancient Egypt.
But in the last 20 years two epochal trends have altered the…
The thinking and the strategies behind Saylor´s bold bitcoin investing.
Michael Saylor is relatively new to the crypto sector. By his own admission he did not know much about bitcoin until February 2020. He then made the news in August 2020 when his company, Microstrategy, announced that it bought US$ 250 million of bitcoin as a treasury reserve. It was the first publicly listed company to make such an historical move. Since then he has built a 90.000 bitcoin treasury reserve worth over US$ 4 billion and no doubt this has influenced other public companies´ decisions to invest in bitcoin, such as Paypal, Tesla, Square and institutional investors such as…
The thinking and the strategies behind Saylor´s bold bitcoin investing.
Michael Saylor is relatively new to the crypto sector. By his own admission he did not know much abot bitcoin until February 2020. He then made the news in August 2020 when his company, Microstrategy, announced that it bought US$ 250 million of bitcoin as a treasury reserve. It was the first publicly listed company to make such an historical move. Since then he has built a 90.000 bitcoin treasury reserve worth over US$ 4 billion and no doubt this has influenced other public companies´ decisions to invest in bitcoin, such as Paypal, Tesla, Square and institutional investors such as…
Financialization will bring new risks and will increase third-party custody well above 50% of current stock. This may be a systemic risk for bitcoin.
Financialization of bitcoin is coming. This is the only reason why Wall Street is interested in bitcoin. The objective is to package bitcoin into some fancy financial product that they can sell for a profit. And sell a lot of it, for lots of profits.
Some say this is good because it increases adoption. Think about a bitcoin ETF. It is no doubt easier for traditional investors to buy an ETF and get an exposure to the bitcoin price rather than buying the real thing with the added complications of self-custody. …
Financialization will bring new risks and will increase third party custody well above 50% of current stock. This may be a systemic risk for bitcoin.
Financialization of bitcoin is coming. This is the only reason why Wall Street is interested in bitcoin. The objective is to package bitcoin into some fancy financial product that they can sell for a profit. And sell a lot of it, for lots of profits.
Some say this is good because it increases adoption. Think about a bitcoin ETF. It is no doubt easier for traditional investors to buy an ETF and get an exposure to the bitcoin price rather than buying the real thing with the added complications of self-custody. …
While institutional investors and large corporations increasingly adopt bitcoin, emerging economies can still gain a first-mover advantage in building a bitcoin centric economy.
Governments around the world have dealt with bitcoin and cryptocurrency adoption substantially in 3 ways: (i) countries like Switzerland and Liechtenstein have been first movers and have fully and openly adopted cryptos thereby creating thousands of new businesses and jobs in their prosperous crypto-valleys, (ii) countries like the USA and Europe have tended to regulate the sector albeit remaining permissive, despite an emerging tendency to over-regulate and the occasional talk of some sort of possible bans, (iii) few countries have banned in one way or another cryptos like China did in the past and India and Nigeria more recently.
While institutional investors and large corporations increasingly adopt bitcoin, emerging economies can still gain a first-mover advantage in building a bitcoin centric economy.
Governments around the world have dealt with bitcoin and cryptocurrency adoption substantially in 3 ways: (i) countries like Switzerland and Liechtenstein have been first movers and have fully and openly adopted cryptos thereby creating thousands of new businesses and jobs in their prosperous crypto-valleys, (ii) countries like the USA and Europe have tended to regulate the sector albeit remaining permissive, despite an emerging tendency to over-regulate and the occasional talk of some sort of possible bans, (iii) few countries have banned in one way or another cryptos like China did in the past and India and Nigeria more recently.
How emerging economies can lead the crypto revolution in commercial banking and enjoy an economic renaissance based on sound money
Introduction
In a recent post Coindesk´s Nic Carter has made a very good case for bitcoin banking. While I share his views on the future that bitcoin will play in revolutionizing the legacy banking sector, I would like to see this issue from a slightly different perspective, that of the emerging economies. The definition of emerging economies is somewhat residual. It includes all those markets/economies which do not make it into the small club of the fully developed economies such as Europe, USA and Japan, to which nowadays China and Russia also belong. …
How emerging economies can lead the crypto revolution in commercial banking and enjoy an economic renaissance based on sound money
Introduction
In a recent post Coindesk´s Nic Carter has made a very good case for bitcoin banking. While I share his views on the future that bitcoin will play in revolutionizing the legacy banking sector, I would like to see this issue from a slightly different perspective, that of the emerging economies. The definition of emerging economies is somewhat residual. It includes all those markets/economies which do not make it into the small club of the fully developed economies such as…
Andrea Bianconi
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