Bitcoin Cash Rockets 15% Despite Big Tax Drama

Bitcoin cash (BCH) wasn't held back by its on-going tax drama on Monday, as the coin surged to 15% gains leading into the morning.

Posted in: Cryptocurrency News
Published:
January 27, 2020 2:24 PM UTC
  • Bitcoin Cash surges 15% as cryptocurrency’s home-grown tax drama rages on.
  • Previous references to communist “Non-Debate Philosophy” have been edited out of Jiang Zhuoer’s tax proposal.
  • Bitcoin.com executive chairman Roger Ver recently cast doubt on the particulars of the BCH mining tax plan.

The fortunes of bitcoin cash haven’t been impacted by the furor surrounding its recently announced mining tax. The coin outperformed its nearest competitors with a 15% surge on Monday, while the controversial tax debate rages on.

On the same day, Bitcoin.com executive chairman Roger Ver appeared to cast doubt on the details contained in the tax plan. Specifically, Ver fears the proposed $6 million booty could become a slush fund for unaccountable BCH developers.

Bitcoin Cash Price Pumps 15%

The price of bitcoin cash increased 15.4% leading into Monday morning, as it rose from $321.94 up to $371.37.

Bitcoin Cash gained 15.4% leading into Monday, outperforming the rest of the coins in the top ten. | Source: TradingView

That leaves BCH on 23% gains for the week, up from the $300 price recorded last Monday. The coin’s monthly high of $387 could be exceeded imminently if the morning’s market surge continues.

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BCH’s price has been on the rise ever since appearing to find a bottom in December. In the five weeks since then, the coin’s value has increased 111%.

CoinMarketCap still supplies inaccurate data to its estimated 20 million monthly users. On Monday, CMC recorded $4 billion worth of trade volume for bitcoin cash – up from $2 billion just 24 hours previously.

But a measure of transparent volume from Nomics.com suggests true volume is closer to $200 million.

Non-Debate Philosophy Reversed?

When Jiang Zhouoer first put forth the bitcoin cash tax plan, the mining farm CEO said he would be following a “non-debate philosophy.” (A reference to Chinese communist organizational philosophy which has now been removed from the article.)

But on Monday, one of the plan’s four cosigners seemed to have some grievances about the details. Roger Ver questioned the wisdom of handing over $6 million worth of BCH for it to become a “universal basic income” for developers.

Quoting Deryk Makgill on Breaking Satoshi, Ver posted to the bitcoin cash subreddit (which he moderates):

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I’m worried this could easily turn into a slush-fund boondoggle for developers, a sort of universal basic income for them that gives them more leeway to turn Bitcoin Cash into science project instead of the tight leash and collar with clear success metrics it should be.

In a recent Reddit AMA, the tax plan’s creator, Jiang Zhuoer, gave vague answers concerning some of its particulars. No clear goal or timeline on how to best spend the $6 million has been offered thus far.

According to Makgill (and Ver), this way of running things reeks too much of a Washington D.C bureaucracy.

I don’t think forking over a pot of money and then saying “figure out something useful to do” is a very smart way to get useful things done. This seems to be a recipe for the kind of money grubbing and inefficiencies you see in D.C. non-profits, public works projects, and grad-school programs… The money should come with very clear goals, timelines and specific financial incentives.

The bitcoin cash miners tax is scheduled to be implemented via a soft-fork on May 15. The tax itself is said to be set in stone, but numerous wrinkles are still being figured out.

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Editor’s note (1/27): An earlier version of this article incorrectly referred to Roger Ver as Bitcoin.com’s CEO.

This article was edited by Sam Bourgi.

Last modified: January 27, 2020 7:10 PM UTC

Greg Thomson @@gregthomson88

Greg Thomson is a blockchain and cryptocurrency journalist who wades through the dirt so you don't have to. He contributed to numerous crypto news outlets before joining CCN.com and Hacked in 2018. Based in Glasgow, Scotland.

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