Tag: kraken exchange

Bitcoin Price Could Reach $350,000 by 2044 Depending on Millennials’ Investment Game Plan

According to leading US-based crypto exchange, Kraken Exchange, Bitcoin price could shoot through the roof to $350,000 by 2044 if millennials were to invest more than 5% of their inherited wealth into this digital asset. Millennials represent a generation of persons born between 1981 and 1996 and are depicted by characteristics, such as tech-savvy, risk-takers, achievement-oriented, ambitious, and confident. 

Keeping fingers closed

According to the tweet, a Bitcoin price prediction of $350,000 could be attained by 2044 if millennials invested approximately $971 billion into Bitcoin, assuming a 2% inheritance tax and 5% investment allocation. 

It is estimated that in the US alone, $70 trillion will be transferred from baby boomers, persons born between 1946 and 1964, to Bitcoin-friendly generations like millennials in the coming decades. Notably, 70% of this amount is expected to be transferred in the next ten years. 

Moreover, it is speculated that these estimates are noteworthy as the younger generations have a higher probability of purchasing Bitcoin. 

According to a 2019 survey, 42% of participants aged between 18 and 34 years acknowledged that it was likely for them to buy Bitcoin in the next five years compared to only 8% of respondents aged above 65 years. 

Additionally, an Edelman’s study revealed that 17.2% of millennials already own crypto, and this number is higher for the wealthy ones because 25% of them possess cryptocurrencies, whereas 31% have shown interest.

Millennials prefer tech products

Kraken Exchange also noted that millennials were more likely to invest some money into Bitcoin as this generation favored crowd-sourced information, tech products, transparency, and mobility. Moreover, they had distrust in banks.

It is also speculated that the projections presented could be bigger as the figures were only based on the United States. 

Earlier this year, billionaire investor Tim Draper urged millennials to consider Bitcoin investments. He was of the idea that Bitcoin would be a gamechanger for young people who wanted to ensure that they had sufficient money for retirement.

Image via Shutterstock

California Court Orders Kraken Exchange to Reveal Identities of Users who Have Transacted in Crypto

Kraken users who might have failed to comply with their tax obligations may no longer have a hiding place. This is because a Federal Court in the Northern District of California has given the United States Internal Revenue Service (IRS) the authorization to serve a John Doe summons on Kraken and its parent company, Payward Ventures Inc. 

Per the Press Release from the Department of Justice, the IRS wants to obtain the information of Kraken users who have transacted as much as $20,000 worth of cryptocurrency from 2016 to 2020, all in a bid to fish out those who have not properly complied with accurate tax reporting standards.

While the exchange has not been indicted for wrongdoing, the John Doe summon is simply an order that seeks to get specific information, such as those within the stipulated class range of $20,000.

“Gathering the information in the summons approved today is an important step to ensure cryptocurrency owners are following the tax laws,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer.”

Per the release, besides obtaining details on Kraken customers, the IRS will also gain access to documents that will reveal how well Kraken has been complying with best practice policies in its broader trading operations.

For the past few years, the IRS has been solidifying its efforts to crack down on tax evaders, employing private tax contractors to help in this campaign. The digital currency ecosystem is known for its big gains, and with a solid plan to increase the capital gains tax across the board, the IRS’ efforts to clamp down on defaulting tax filers continues. 

The IRS scare has resulted in tax lawyers warning Coinbase users to accurately report their transactions, which is better than getting on the wrong side of the law.

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