Do You Trust Bitcoin or Bernanke?

  For those following Bitcoin, this interview with Gavin Andresen, the 46-year-old lead software developer for the Bitcoin project in today’sWall Street Journal should be of interest. The chief scientist for the digital currency talks about its appeal - and pitfalls - in a world of fiat money. Politicians and their appointees are entirely cut out of Bitcoin’s monetary loop, Andresen explains, adding that "Bitcoin or a similar technology could threaten the power of not just central banks, but banks, period." It is perhaps the coder's parting words that are most insightful, "I tell people it’s still an experiment and only invest time or money you could afford to lose. If only investors could as easily follow that advice with fiat currencies."

- Source, Zero Hedge:

http://www.zerohedge.com/news/2013-05-04/guest-post-whom-do-you-trust-bitcoin-or-bernanke

Bitcoin Dealers Are Running Into Problems In Canada

Two Canadian businessmen recently got some bad news from their banks.

James Grant, owner of Canadian Bitcoins, got a letter.

Melvin Ng, proprietor of CADBitcoin, got a phone call.

Both men run online exchanges where you can purchase Bitcoins for Canadian dollars.

And both were informed their businesses' accounts frozen by Canada's largest banks.

"It's a weird situation," Ng told us by phone recently. "We're a normal Canadian business, we're registered with the government, and a Canadian bank can just block it off."

Grant was more blunt: "They just don't like Bitcoins."

- Excerpt from a recent Business Insider article, read the full article here:

http://www.businessinsider.com/canadian-banks-closing-bitcoin-businesses-2013-4

Bitcoin Facing Bank Backlash in Canada

"Joseph David has overcome a lot of challenges since starting up Canada’s first Bitcoin exchange two years ago but his latest hurdle is proving tougher that all the others.

Virtex, based in Calgary, is an online market that matches Bitcoin buyers with sellers, with about $13-million of trades under its belt.

But earlier this month Royal Bank of Canada quietly informed Mr. David that it would no longer do business with his company.

“They shut down our account without any reason,” said Mr. David, an ebullient entrepreneur with a background in technology companies. “They just said we have the right to refuse service to whomever we wish.”

For whatever reason, many in Canada’s small but fast growing Bitcoin community are suddenly dealing with the same problem: The banks have decided they don't like the cryptocurrency and they’re shutting down some of the accounts of businesses that deal in it."

- Source, Financial Post, Read the full article here:

http://business.financialpost.com/2013/04/27/bitcoin-canada-banks/

Canada to Tax Bitcoin Transactions

"Canadians using bitcoins, the decentralized crypto-currency that recently went mainstream, must report their incomes and pay taxes as with other earnings, Canada's Revenue Agency (CRA) confirmed following a media request.

The issue was clarified in response to a letter by the Canadian Broadcasting Corporation (CBC) ahead of the country's tax season.

Two separate tax rules are applicable to the electronic currency, CRA spokesperson Philippe Brideau told CBC in an email.

When bitcoins are used as money to buy goods and services, the transaction is treated as barter and is taxable as such. When they are traded at a market for profit, they may be taxed as capital gains.

"When bitcoins are bought or sold like a commodity, any resulting gains or losses could be income or capital for the taxpayer depending on the specific facts," the CRA ruled."

- Source, Russia Today:

http://rt.com/business/bitcoins-currency-taxable-canada-496/