Topic: DNotes 2.0 - Staking, CRISP Interest, DNotes Pay - page 241. (Read 148868 times)

Once again, this market has proven to be very resilient. The growing global demand to invest in our industry has been nothing short of being spectacular. When there is so much money to be made in a brief period it can perpetuate the “gambling mentality” for a while. The weak hands that cashed out in a fast and furious correction often recover from their painful experience as the euphoria continues. Soon they will be back taking another chance.

80% of businesses failed within the first 10 years of existence. I would venture to say that 90% of the projects in our industry will fail. There are many challenges to overcome with significant problems remaining unsolved – stability, capacity, trust, basic knowledge, consumers protection, and other regulatory hurdles; just to name a few. But it takes time for any early stage industry to sort things out.

We are mindful of many of those challenges right from the start and have positioned DNotes very differently. Our foundation has been built. I trust that throughout 2018, our industry will witness an amazing business model in full strategic execution mode with very deliberate moves in solving industry problems.

In conjunction with our funding efforts, utilizing Reg. A+ Mini-IPO Title IV Tier 2 to raise up to $50 million from accredited and non-accredited investors worldwide, we are also drastically expanding our software development capabilities by closely aligning with a world-class 60 employee software company in the Chicago area. This will be a multi-year large scale project. They will serve as our software development arm with great capabilities for us to ramp up quickly. I have already signed off with a large down payment to proceed immediately. We feel very fortunate to finally found a perfect fit. They share our vision, mindset, and culture. Together we can do amazing things and solve many of our industry challenges and technology constraints.  

I'm going to have to disagree with your roller-coaster metaphor dzonikg28, but stand with you on your intended points. In fact, I'm going to go a step further. Roger Ver is talking about the weaknesses of bitcoin and this seems to be hurting its value. The more the large holders and miners see value being hurt by disfunctionality in bitcoin, the more they are likely to support genuine improvements to its code. And the more the code behind bitcoin improves, and the more useful bitcoin is, the higher its true value can climb.

As for futures contracts and commercial traders manipulating the price, I think it is unlikely. I have no doubt that given the skill and opportunity, they would certainly do it. And I imagine that the current low is a great time for them to buy a reserve to sell futures against. I just don't think they've got what it takes to pull it off. But that doesn't mean there hasn't been an incidental effect. It is hard for the whales to cash-out a significant amount without impacting the price. But selling a chunk to futures traders is a good opportunity and it is possible that taking advantage of that has hit the price a little.

This article from a couple of days ago talks about the concept:
https://www.bloomberg.com/view/articles/2017-12-21/bitcoin-billionaires-may-have-found-a-way-to-cash-out

But I'm most comfortable putting it down to the range of complex influences that have caused previous dips in prices. Some of it might be algorithmic trading. Maybe after watching it climb fast, unreasonable expectations have made the slight slowdown seem worrisome. Possibly the fact that bitcoin has attracted many inexperienced investors to try their hand means the market is more emotional and reactive than more standard types of investments. Maybe the weather has more to do with the price of bitcoin than its functionality does. How about Christmas putting a pinch on budgets causing investors to cash in despite a drop in price? If the Christmas budget theory is correct, maybe we can expect a leap in price as people invest their cash presents where they'd never risk money earned through hard work.

So the only thing I know for sure is that Jamie Dimon is green with jealousy that the market ignored him, but reacts when Roger Ver goes public. But you've got to be enjoying the media circus that spends a month calling bitcoin a bubble, and then when the price dips, writes pages speculating about what strange thing could have interrupted such a strong climb.

I don't know the specifics of U.S. tax law, so this is just my Canadian take on it. If Dan sells his bitcoin for Litecoin, he will have a gain** or loss on his disposal of bitcoin, calculated as the price he sold it for minus the price he paid for it. The "adjusted cost" of the litecoin will be be whatever he sold his bitcoin for, plus fees, etc. It does not take into account that part of what he received in bitcoin profit, was paid out in income tax. This adjusted cost will be what he uses to calculate his gain or loss when he sells his Litecoin.

**In Canada, if you are a frequent trader, speculator, etc, your gains will be classified as income (100% taxable) as opposed to capital gains (50% taxable). There is no way they will ever be able to keep track of the thousands of individual trades each trader makes, so it will be messy for a while. A lot will change when cryptocurrencies can be held in tax-deferred retirement accounts or tax-free accounts such as the TFSA (Canada).

I agree with what Alan said in a previous post - income tax gives me a headache.  

I agree. It is difficult to comment without reading the relevant sections of the bill. As reported, if accurate, it would indicate an ignorance over-sight that will get very messy.

I am neither an accountant nor a lawyer. But I don't see how exchanging one digital currency for another can be practically accounted as a taxable event. What is the basis to establish a gain or a loss? Until the investment is finally converted back to $, a gain or a loss can not be established.

On the other hand, this is a clear taxable event: as an example - I purchased my first (1) BTC in 2014 at $500 using Coinbase and sold my first Bitcoin, also at Coinbase in 2017 at $5,500. In my 2017 tax return I will have to report $5,000 as earning or capital gain whatever the final classification is.  

The tax act in Sec. 13303 amends IRC Section 1031 (a)(1) to delete “property” and replace it with “real property” … So, you can see that now I can no longer take the position that my Bitcoin to Litecoin exchange was a like kind one under Sec. 1031, and I have to recognize the gain when I do it.

I guess I need to see the full language.  But when you're trading currencies straight across, they're exactly the same value at that time.  So no realized value is gained in that trade.  Of course when you cash out to dollars, you would be subject to capital gains.  As far as I know, "Bitcoin" is still considered an asset by the IRS.  Anyone have a different take?

As Alan mentioned recently, there should be a minimum threshold for increased reporting duties, as there should also be a minimum threshold for taxation. Does it really make sense to tax a 14 year old kid who collects from faucets, and exchanges what little money was earned in different cryptocurrencies into Bitcoin? Pardon the melodramatic scenario, I wanted to use an extreme example to illustrate a point.

At any rate, I hope that increased taxation also comes with increased representation for American cryptocurrency holders.

Tax Reform Bill Eliminates Crypto Tax Loophole

https://dcebrief.com/tax-reform-law-eliminates-crypto-tax-loophole/

Hi DNotes, I can't wait to see the animated videos. I'm sure they are going to be a breath of fresh air
The video-studio sounds awesome and I am positive it will have a huge benefit for the DNotes brand in the long run. This is the type of news that you need to share with people. I never knew you built a video-studio until now.


I think you should look into a tool called IFTTT (If This Then That). Its a very useful tool to automate posts on various social media platforms. I use it to share my YouTube videos immediately on my Facebook and Twitter accounts when its published. You can do much more https://www.youtube.com/watch?v=NP0G9TBAyXs&t

I hope this helps. I will think of more things.

There is a lot of politics in the background of course, but honestly a crash was imminent anyway. Bitcoin is a constantly uptrending roller coaster. And a roller coaster sometimes goes a little down to then go up even faster. Bitcoin will recover regardless of Roger Ver and the crap he is talking all day.

Sounds awesome Dyna, I think one of the reasons why Bitcoin has performed so well in recent years is because of exposure. The more exposure we can give the DNotes coin the more people will start to become aware of DNotes and what it stands for.

You guys are really doing a great job and its evident that you are here to stay despite the recent challenges you've faced. The current rise in the price of DNotes is proof that you guys are on the right track and that the community is recognizing the efforts you're making.

I believe it has a lot to do with Roger Ver's interview on CNBC.  I think the Bitcoin Cash folks are trying to make a move against the BTC Core team. It might be having side effects on the whole market.
https://www.youtube.com/watch?v=icxTLRh8qJ8&t=246s

So, anyone have thoughts on the recent market crash? Are Futures Contracts causing instability? Market manipulation? Seems rather odd how quickly it happened and, how deeply. Also odd how one commercial trader predicted it almost exactly...

Thank you BTCWise, we greatly appreciate your passion for DNotes and its success. I agree, we do need more videos, which we have several underway and Tim may be able to elaborate a little on some of that. The high quality well produced animated videos take lots of time and resources, and that is something that can really set us apart from the industry, such as this one https://www.youtube.com/watch?v=ar8C7xBgpIE. We do however intend to supplement that with more casual videos, which has its own challenges. We have even built a soundproof video studio over the last summer, with a lot of trial and error, to be able to produce higher quality videos, Brandon and Tim helped quite a bit with that and we may have some pictures. They will be carefully planned and executed at the right time. As we grow we can dedicate more resources to that effort.

As Alan mentioned we do plan to have a significant PR campaign coming up, building around or two upcoming major projects and we would appreciate everyone who can contribute ideas for not only content but strategic planning around delivering that content. Could be blog posts, articles, videos, press releases, and how do we deliver them.

Thank you, Tim, for another great post.

“Then I realized that they probably aren't investing at all. They're just gambling. When you invest in something, you take some time doing due diligence, then after investing, you expect it to take some time to make a reasonable profit. But when you gamble, you rarely calculate the true odds, and while being ready to lose your bet, you hope for a massive short-term profit.”

Tim, you are absolutely correct. Our industry has been cultivating a “gambling mentality”. Over the long-term this is very bad for capital formation. It creates unreasonable investment return expectations – immediate exit strategy with a high rate of return. That is not sustainable; resulting in major corrections with many getting burnt. Eventually, 90% of the projects will fail. A few among the top 10% will become the surviving unicorns with enough influence to shape our industry.

DNotes is positioned to be among the top 10% survivors. “Where we are right now matters far less than where we are going from here.” Alan Yong

Wow! A one month holiday break? Did they do this last year?

Thank you, BTCWise. I know that you always mean well for DNotes. We welcome comments and suggestions. Actually, we mentioned about cross-PR promotions at the meeting. Just give us a little time. Joe has been working on it.

We will be starting the new year with significant PR campaigns to get the words out. I always believe that it is best to go all in when things are solidly in place than just talking about a concept (ICO) or a wish list of good ideas, in any major PR efforts.

You are welcome Dyna,
I'm happy to hear about the progress you guys have been making. The more developers and partners the shorter the timeline will get which is a massive thumbs-up on my side.

Quick recommendation: When you guys have such important meetings try and make a short five minute video. This can be a video shot at the entrance of the company or even after the meeting. This will help grow your YouTube channel and it will show DNotes users that there are movement. Not many people know about these information threads on Bitcointalk. You guys need to be more creative with your marketing because at the end of the day if people don't see you they won't know you are there.

I really like DNotes and I really want to see this coin achieve greatness. Hope I'm not coming off as too aggressive, not my intention.

Regards,

After reading the article, I can understand why Alan was invited to present at the World Funding Summit. Victoria Silchenko is clearly aware of both the potential of blockchain technology and the lack of substance offered by many ICO projects. And many of her insightful comments made me think again about why people invest in ICOs.

Then I realised that they probably aren't investing at all. They're just gambling. When you invest  in something, you take some time doing due diligence, then after investing, you expect it to take some time to make a reasonable profit. But when you gamble, you rarely calculate the true odds, and while being ready to lose your bet, you hope for a massive short-term profit.

In the article, Victoria stated, "VC deals are expensive: on average it takes 118 hours for due diligence and 83 days to close". And from the effort required by DNotes Global Inc to find registered PCAOB auditors as just one part of establishing a Reg. A+ mini IPO, it is clear that providing a platform that enables investors to conduct due diligence in scrutinising the offering and risk is neither cheap nor easy. Then, as an investor, understanding the provided information and then making an informed investment requires a level of experience or skill that is not common. So when big quick profits are being offered by ICOs, it is understandable that those without training in fintech are attracted to the quick bet over the long-term investment.

Unfortunately, ICOs don't frame their offering as a quick and risky bet with a slim potential of making lasting high profits. The only thing that indicates investors are playing a lottery or some other high-risk game is the slick and eye-catching graphics. Instead, they do their best to imply stability and genuine milestones that will be achieved by experienced developers. And without providing any reliable market research data, many ICOs imply that there is a huge market potential and their product is a unique fit for all of that available money.

So it is understandable that inexperienced investors don't realise how their actions are much more like gambling than investing. And this is made much worse due to a lack of precedence. The failure of ICOs to provide a return on investment, will take a while to become common knowledge. This is likely to be made worse by the greater-fool effect where the first investors know what they're doing and invest large amounts across very few participants. Then they offload their holdings at peak price to many more investors who are investing much smaller amounts. This may go through a few more one-to-many trades until those left holding the worthless bag are great in number, but only invested a very small amount. And while losing a very small investment isn't news and is unlikely to then become common knowledge, it is even less likely to go public because people are embarrassed by bad financial decisions and tend to keep quiet about them.

Everything I've seen DNotes Glabal Inc. do, aligns with the attitudes and processes necessary to attract informed investors who believe they will make reasonable profits over a longer term. Their cryptocurrency DNotes has clearly attracted a range of people from short-term gamblers to long-term investors as well as some very well informed miners. This puts both the company and the currency in a unique position in the market place. And I won't be at all surprised if the investor mindset who are holding DNotes see the logic of participating in a mini IPO that will go towards developing their financial products further and make DNotes2.0 more functional.

"We have already retained the services of Laura Anthony of Legal & Compliance, LCC"

It looks like DNotes Global has the retained the best!

This is an article published on Huffington Post earlier this year:


Regulation A+ IPO or The Mini-IPO; Remarkably Effective and Widely Misunderstood

"Attorney Laura Anthony, founding partner of the corporate law firm Legal & Compliance, LLC, joined Andy Kyzyk, Vice President of Advisor Relations for OTC Markets Group, to host a panel discussion on Regulation A+. The Mini-IPO Investor Webinar was presented by VirtualInvestorConferences.com, created by BetterInvesting (NAIC) and PRNewswire. The purpose of the webinar was to elaborate on how Regulation A+ works and what issuers, investors, attorneys and broker-dealers really need to know.

What is Regulation A/A+?

Good morning. I’m attorney Laura Anthony, founding partner of Legal & Compliance, a corporate and securities law firm with an active Regulation A+ practice. I understand that many of you here today are retail investors and are probably wondering: What is Regulation A or A+?

Regulation A+ is simply a legal process allowing companies to file a registration statement with the SEC that in turn can be used to sell debt or equity securities to the masses to raise capital.

To be clear, it is just a legal process that allows some neat benefits to companies raising capital, such as active advertising and solicitation including through social media. There is no pool of funds to tap into; it is not a line of credit; it is just another process that companies can use to reach out to you, the investing public, and try to convince you to buy stock in, or lend money to, their company.

Like any registered securities, securities sold in a Regulation A+ transaction are not restricted and so they are available to create a secondary market and be traded such as on the OTC Markets or a national exchange..."


Read the full article and you will understand why expert legal advice is needed - https://www.huffingtonpost.com/entry/regulation-a-ipo-or-the-mini-ipo-remarkably-effective_us_586bda82e4b04d7df167d79a

One of the filing requirements for Registration of Reg. A+ mini IPO is a PCAOB compliance audited financial statements - as a result of Sarbanes-Oxley regulations.

The Sarbanes–Oxley Act of 2002 also known as the "Public Company Accounting Reform and Investor Protection Act" (in the Senate) and "Corporate and Auditing Accountability, Responsibility, and Transparency Act. This was to ensure that accurate information is available to investors in making informed investment decision. Of course, all in the name of consumer protection.

Unfortunately, very few registered PCAOB auditors are available. I have been struggling with this issue for the last two weeks. It's a relief that we finally found a good fit. We will be retaining the services Allan J. Brachman CPA, Ltd. of Palatine, Illinois to be our accounting and auditing firm.

We have been making great progress in multiple fronts and keeping ourselves very busy. Things are look great. We are positioning to scale rapidly. 2018 will be an amazing year.