The Breakdown First Five - Thursday, October 24, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. BRICS Bitcoin

Russia is pushing Bitcoin as a way to trade among the BRICS bloc during this week’s summit. Russian lawmakers suggested that Russian mined Bitcoin could be sold to members of the economic organization and then used to purchase Russian exports, circumventing western sanctions. Russian miners had already put forward a plan to offer data center construction in friendly nations earlier this month. 

4. Denmark’s Crypto Tax

A proposal to tax crypto unrealized gains in Denmark has caused consternation on Bitcoin twitter. The proposal would impose a 42% tax on Bitcoin profits dating right back to the Genesis block. The policy was outrageous to most Bitcoins, but merely brings crypto in line with other assets already covered by the existing unrealized gains tax. At the moment the proposal is yet to be put in legislation, but Danish Bitcoiners should be prepared for commencement in 2026. 

3. Saylor Backs Down

Michael Saylor has backed away from statements that discouraged self-custody, which called those worried about confiscation “paranoid crypto-anarchists”. All week Bitcoiners have been weighing in on why self custody is still important, even as ETFs and custodians define Bitcoin for new large investors. Vitalik Buterin even weighed in, calling Salyor’s view “batshit insane.”

Saylor is now supporting self-custody for those able to do so. 

2. Tesla Still Holding

According to Arkham Intelligence, Tesla is still holding their Bitcoin. The data analytics firm said they now suspect last week’s movement of $770M in BTC was either wallet rotation or a change in custody arrangements, potentially to borrow against the assets. Tesla’s Q3 earnings didn’t mention the transactions, save for the Bitcoin being still on the balance sheet. The firm has $33B in cash on hand, so they’re not in a position where they need to empty the cold wallets. 

1. Tigran Free

After eight months locked up in Nigeria, Binance executive and legendary IRS investigator Tigran Gambaryan is free. The government dropped money laundering charges due to Gambaryan’s declining health, making it clear it was not due to lack of evidence. Charges will proceed against Binance as a corporate entity. Gambaryan isn’t on the plane yet, but it seems his ordeal is almost over.