• The Cardano founder called the new bipartisan infrastructure bill evil for crypto.
• The bill will make it mandatory for all non-custodial players to report KYC and customer details to the IRS.

Cardano founder Charles Hoskinson has joined the discussion about levying crypto taxes as proposed in the infrastructure bill. Earlier this week U.S. Senators proposed the implementation of crypto taxes in its new infrastructure bill. Thus, any transactions made in crypto for infrastructure dealing will attract taxes generating an additional $28 billion in taxes.

The proposal has received strong criticism from the crypto community. On Friday, July 30, crypto lawyer Jake Chervinsky discussed a new provision that has been added expanding the Tax code’s definition of “broker” that captures everyone in crypto. Interestingly, this also includes some non-custodial players like miners to have a mandatory KYC.

The Tax code will also mandate IRS reporting! Thus, brokers will have to submit Form 1099 to their customers as well as to the IRS. For this, brokers will need to collect all customer data like name, address, phone number, etc.

The lawyer further goes to explain that the law involves every section of the crypto market. This includes DEX, P2P, PoW miners, PoS validators, and many more. Hoskinson called it a “terrible move for crypto”. On his Twitter timeline, the Cardano founder wrote:

Bad laws destroy the economy. Please people take this one seriously. It will be terrible for Crypto.

The changing regulatory landscape

Many from the crypto industry have acknowledged the active participation of regulators in the crypto space. Some institutional players also noted that better regulations will bring more clarity, in turn, helping the crypto markets to evolve further.

Related: U.S. lawmakers introduce crypto taxes in infrastructure deal, pegs $28 billion in additional revenue

However, there could be more to this than what meets the eye! Decoding the proposal for average and retail investors, lawyer Chervinsky also explains that that the definition is very broad. Thus, every participation in the crypto economy including DEX, DeFi participants, liquidity providers, protocol governors, etc, could be affected.

The lawyer explains that unlike brokers, it will impossible for non-custodial actors like miners, LPs, and others, to get all the information required for Form 1099s. Chervinsky notes that the matter is serious and the community should not take it lightly.

Most crypto legislation goes nowhere, so it’s easy to ignore. Not this time. This provision is part of the bipartisan & otherwise popular infrastructure bill, which is moving quickly through Congress & is highly likely to pass.

The infrastructure bill is estimated to cost > $1 trillion. Congress scored the new “broker” definition at $28b in added tax revenue. I have no clue how they got this number, or how it’s even possible to calculate. Regardless, this is no way to handle major new regulations.

The lawyer and Hoskinson further call it a misguided provision and good more harm than good to “U.S. interests”. The lawyer notes that squeezing miners with this bill will be like following China’s path. The U.S. cannot afford to make this blunder, he notes.

Widely followed on-chain analyst Willy Woo says Bitcoin (BTC) traders shouldn’t expect the current market cycle to end up resembling the 2013 BTC bull run.

In a new episode of What Bitcoin Did with Peter McCormack, Woo says the crypto space has a “cycle imprint” in which traders are looking too much at past bull runs in order to time the current one.

Woo says that some traders might be hoping that Bitcoin experiences something similar to its 2013 mid-cycle crash, in which the flagship cryptocurrency dropped nearly 80% before breaking new highs.

“We’ve got this cycle imprint. People are now cycle-imprinting 2013 now that we’ve got this big dent in the bull market. I think everyone’s now agreeing that it is still a bull market, and now we’re cycling back to 2013…

I’m beginning to think this is not going to happen. I’m actually siding towards this being unlike anything. I think we’ll go past the end of this year, and there’s a fair amount of likelihood that it won’t come into a full-blown bear market like we saw in the prior cycles, and then people start talking about the extended cycle theory.”

According to the closely followed analyst, Bitcoin is more likely to experience a random grind upwards with less dramatic peaks and shorter bear trends.

“I think this thing is just going to do a crazy wander around demand and supply and the halvening has less impact. And maybe Michael Saylor is right: there is no top. It just keeps wandering and discovering. You might have things that we just experienced, mini-bear seasons.”

In June, MicroStrategy CEO Michael Saylor outlined a slew of catalysts that he believes can drive Bitcoin’s price in the coming years.

As for the current state of Bitcoin, Woo names the $42,000 level as the key area to break before BTC can start challenging the $50,000-$60,000 range. At time of writing, Bitcoin is trading at $39,120, according to CoinGecko.

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Featured Image: Shutterstock/Mia Stendal

• Analyst Lark Davis mentions some potential altcoins seeing pretty strong development.
• Just a spoiler here, the top five crypto-list doesn’t include Bitcoin.

As we enter into the eighth month of 2021, the overall cryptocurrency market continues to trade strong. At press time, the overall crypto market is up 6.4 percent with a market cap of $1.63 trillion. Since the beginning of 2021, the year-to-date gains of the overall crypto space stand at more than 100 percent.

Popular analyst Lark Davis has come up with his prediction for the top 5 cryptocurrencies to invest in for the next month of August. So without much ado, let’s get started!

1. Ethereum (ETH)

Currently, Ethereum (ETH) is trading at $2463 with a market cap of $287 billion. Two days back we reported that Ethereum is set for a massive show for the rest of the year. Some market experts are giving targets as high as $8000-$10,000.

Furthermore, the Ethereum community is eagerly waiting for the London hardfork scheduled ahead this week on August 4. What’s getting investors excited is the EIP-1559 protocol implementation which will introduce ETH fee burning, essentially reducing the transaction costs.

This will lead to a deflationary economic structure which according to Lark Davis has a strong positive impact for the long term. Another major thing is the EIP 3657 with founder Vitalik Buterin announcing the expected timeline for merging the Ethereum 1.0 and Ethereum 2.0.

Read More: Vitalik Buterin gives expected timeline for Ethereum 1.0 and 2.0 merge

This is a big positive for ETH investors as it will help to drive the prices higher.

2. Polygon (MATIC)

Polygon formerly MATIC, has had a solid run up this year. The Ethereum layer 2 scaling solution has some good projects up its sleeves. Polygon’s MATIC token is up 100x year to date with 9900 percent gains. As of press time, MATIC is trading at a price of $1.01 with a market cap of $6.7 billion.

Analyst Lark Davis believes that Polygon has still a lot of gas left in it with his long term targets of $5 and $10 in place. The analyst believes that Polygon will benefit as Ethereum continues to face congestion issues as of now. Thus, Polygon will cater to the scalability requirement of users on the Ethereum blockchain.

Thus, as far as Ethereum continues to struggle with scalability-related matters, projects like Polygon shall do well. Besides, Polygon has also received major backing from tech-entrepreneur Mark Cuban.

Polygon has entered into the blockchain gaming and NFT ecosystem through its new division Polygon Studios. This division will focus on bringing the Web 2.0 world to Web 3.0.

3. Terra (LUNA)

The third coin on the analyst’s list is Terra’s LUNA. Its mirror protocol helps users to be market makers for traditional stocks like Apple and Microsoft. Thus, it helps to build the bridge between the crypto world and Wall Street.

Besides, there are some other exciting projects as well! Terra has recently raised $150 million in funding to create its own DeFi ecosystem. Another major thing to watch out for is the upcoming Columbus-5 upgrade on Terra. the three key upgrades coming to the Terra ecosystem are:

1. Burn all seigniorage.
2. Upgrade to Stargate – enabling IBC and protobuf migration (10x-100x tx speed).
3. Ozone and Wormhole Launch.

The Terra’ ecosystem’s dollar-pegged stablecoin is the UST. Thus, if you want to issue the UST, users need to burn LUNA. This will create supply pressure on the cryptocurrency pushing its price higher.

The upgrade to stargate will bring LUNA to the cosmos inter-connected blockchain ecosystem. Thus, LUNA’s IBC (Inter-blockchain communication protocol) will allow users to transfer tokens across zones while running multi-chain smart contracts.

Furthermore, the Columbus-5 upgrade will bring along the Ozone and Warmhole launch. Ozone is an insurance mutual DeFi protocol that will facilitate levered coverage of technical failure risks in the Terra DeFi ecosystem. This will further help to drive ahead Terra DeFi ecosystem growth.

Warmhole serves as a bridge connecting Terra to Solana. Several projects on Solana are already using the UST stablecoin. But for now only the ERC-20 version of UST can be ported over Solana but this increases friction significantly. Warmhole will alleviate this friction by creating a direct bridge from Terra to Solana which will lead to further UST adoption.

4. Polkadot (DOT)

Lark Davis remains extremely bullish on the Polkadot (DOT) ecosystem as of now. At press time, the DOT token is up 13.5 percent and trading at $16.42 with a market cap of $18 billion. The Polkadot (DOT) price shot all the way to $50 during the peak of the bull run in mid-May 2021.

The analyst is very bullish about the ecosystem that’s growing around Polkadot. Kusama, the early-stage deployment on Polkadot and the scalable multi-chain network is getting much popularity. Through its multiple parachains, Kusama has managed to lock up to 10 percent of its native KSM tokens after its first parachain auction.

Thus, Kusama going live is a big bullish indicator for Polkadot as it helps to realize the big dream of getting multiple parachains live on the Polkadot network. Lark Davis also predicts that the parachian auctions for Polkadot will be coming soon. So with all the hype building around, the DOT price can go further to the north.

5. Cardano (ADA)

Cardano registered a solid bull run in 2021 becoming the fifth-largest cryptocurrency by market cap as of date. At press time, Cardano’s ADA is trading at $1.31 and is 60 percent up since the beginning of this year.

The Cardano blockchain has recently seen some token sales happening on its platform. Furthermore, it also becoming the preferred platform for the rapidly emerging NFT market.

Besides, Cardano is making some key moves for future growth and getting more market share. The cFund investment strategy developed by Cardano founder Charles Hoskinson is gaining momentum as it gains massive smart contracts ability. The smart contracts on Cardano shall be reportedly live by September this year.

Although Cardano has faced some major delays in its timeline of implementing some key projects, the founder has been working hard on it. Lark Davis believes that the Cardano smart contracts are surely coming by the end of this year, if not September. Overall, it looks like altcoins could take a lead for the coming month.