Cryptocurrency

Police in Iran have recently seized 7,000 computers used as cryptocurrency miners, it’s biggest haul so far. These miners were located inside an abandoned factory.

In late May, Iran banned the mining of cryptocurrencies such as Bitcoin for nearly four months as part of efforts to reduce the incidence of power blackouts blamed by officials on surging electricity demand during the searingly hot and dry summer.

According to blockchain analytics firm Elliptic, around 4.5% of all bitcoin mining takes place in Iran, giving it hundreds of million dollars in revenue from cryptocurrencies that can be used to lessen the impact of U.S. sanctions.

El Salvador recently become the first country to adopt Bitcoin as legal tender, other other counties in Latin America may follow suit.

By contrast, cryptocurrencies like bitcoin allow anyone with a mobile phone to send or receive funds, regardless of location. A software app known as a “wallet” manages the cryptocurrency as needed. Such wallets are safeguarded on phones and protected by passwords or biometric mechanisms like fingerprints.

This is what people mean when they talk about cryptocurrency’s decentralization. We don’t notice much in developed countries because we have no shortage of banks to choose from. But banks may be scarce in developing countries, with 70% of people in El Salvador being unbanked. With crypto, you no longer need a bank.

In a 13-part series on Twitter, Jack Dorsey announced that Square is considering making a hardware wallet for bitcoin.

11/Layer 2 is essential for growth. The orders-of-magnitude growth we imagine requires a mix of custodial, off-chain, and second layer solutions that allow people to ‘get off of 0.’ What tech investments can enable seamless, scalable, L2 native support for a hardware wallet?

Deputy associate chief counsel Robert Wearing of the IRS said that the agency would seize cryptocurrency assets to settle unpaid taxes.

The perceived authority to seize an asset like bitcoin from the IRS stems from a 2014 notice it issued claiming that “virtual currency is treated as property for Federal income tax purposes.”

But there is still some question as to how the IRS would accurately determine the BTC holdings of taxpayers, let alone compel them to relinquish their bitcoin.