Saylor's Clarification & Denmark's Immoral Tax
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Michael Saylor Clarifies Position on Crypto Self-Custody After Backlash
If you remember yesterday, Michael Saylor and Vitalik Buterin had a bit of a spat over Bitcoin custody. Saylor suggested that institutions like BlackRock and Fidelity were better custodians of Bitcoin than self-custody. Well, today, Saylor has clarified his stance, expressing support for crypto self-custody following heavy criticism from the crypto community.
In a statement, Saylor said, “I support self-custody for those willing and able, the right to self-custody for all, and freedom to choose the form of custody for both individuals and institutions globally.” This came after backlash, including a sharp critique from Vitalik Buterin, who called Saylor’s previous comments “batshit insane” for favoring institutional control over Bitcoin, which undermines crypto's decentralization ethos.
In his original statement, Saylor dismissed concerns over institutional control, calling those worried “paranoid crypto anarchists.” Now, after a firestorm of reactions from Buterin and others, including Jameson Lopp and Max Keiser, Saylor is trying to walk back his comments, saying Bitcoin can benefit from both individuals and institutions.
But this change in tone is interesting, especially when you consider how pro-self-custody Saylor was a few years ago. Back then, he championed Bitcoin as sovereign money, outside of banks and institutions. Now, it seems he’s warming up to institutions having a bigger hand in Bitcoin. It makes you wonder—was this his plan all along? Did he just say the quiet part out loud? What do you think? Email me your thoughts at matt@dailycryptonews.net.
Denmark Proposes Unrealized Gains Tax on Crypto
Here’s something that really pisses me off. Denmark’s Tax Law Council has recommended implementing a mark-to-market taxation system for cryptocurrency, meaning crypto investors would be taxed on unrealized gains or lossesannually, even if they don’t sell their assets. This recommendation is expected to become law by 2026, with regulations coming into effect as early as 2025.
Under this system, crypto investors would have to pay taxes on annual changes in the value of their assets, with rates as high as 42%. Unrealized gains, for those unfamiliar, refer to profits on paper—money you haven't actually cashed out. For example, if you bought 10 Bitcoin for $10,000, and the value went up to $100,000 per Bitcoin, your holding would be worth $1 million. But under Denmark's proposed law, you'd owe taxes on that gain, even though you haven’t sold a single Bitcoin. That could result in a $400,000 tax bill—on money you don’t even have yet!
This is insane. Where are you supposed to get $400,000 if you haven’t sold anything? You’d have no choice but to sell your crypto just to pay the tax bill. Taxing unrealized gains is immoral, and honestly, I don’t know how this is even gaining traction. This could cripple regular, middle-class investors. I think this is part of a broader war on crypto—but it feels more like a war on the middle class to me. What do you think? Email me your thoughts at matt@dailycryptonews.net.
Coinbase’s BASE Platform Moves Toward Decentralization with Fault Proofs
BASE, the Ethereum Layer 2 platform developed by Coinbase, is set to introduce permissionless fault proofs on October 30th—a significant step toward the decentralization of the network. This upgrade will allow participants to submit corrections if they detect fraudulent transactions or other issues, further decentralizing the platform by reducing reliance on a single entity for security.
The fault proof system is modeled after Optimism’s OP mainnet and shares the same Superchain ecosystem. Similar mechanisms have already been implemented by Arbitrum and Optimism to enhance decentralization on their Layer 2 networks.
This is a big step forward for BASE, as it moves to ensure greater security and less dependence on centralized operators. It’ll be interesting to see how this plays out across Ethereum's Layer 2 platforms in the coming months.
Mass Exodus at Portofino Technologies After CFO’s Firing
In other news, Portofino Technologies, a Swiss crypto marketing firm, is facing a mass exodus of staff after the company’s co-founder and CFO was dismissed. This firing led to the resignation of several key personnel, including their head of strategy, global head of business development, and other crucial roles—resulting in 30-40% of the workforce walking out.
The departure of key staff comes after Glassdoor reviews painted a toxic work environment, with much of the criticism focused on the CEO. Despite these challenges, Portofino is actively trying to rebuild, hiring new talent and leadership, but this is clearly a company going through a rough patch. They’ve posted job openings, but anyone considering a role there should probably be aware of the chaos behind the scenes.
The Federal Reserve’s Beige Book Shows Economic Stagnation
Lastly, the Federal Reserve’s Beige Book report was released, showing a subdued economic outlook across the U.S. since September. The report highlights slower manufacturing activity, modest inflation, and consumer demand that’s tapering off. The report suggests we’re in a period of stagnation, with businesses focusing more on replacing workersrather than expanding their workforce.
This could point to interest rate cuts coming in November or December to stimulate the economy. And if rate cuts do come, we may see some positive impact on the crypto markets. Did it already affect the markets today? Let’s check out those crypto prices.
Crypto Prices
Bitcoin is sitting at $67,742, up 1.6% in the past 24 hours.
Ethereum is at $2,536, down 1.8%.
Binance is at $591, up 1.2%.
Solana is at $175, up 4.3%.
XRP is at $0.53, up 0.8%.
Dogecoin is at $0.14, up 1%.
Tron is at $0.163, up 2.2%.
Toncoin is at $5.17, staying pretty much even.
The total market cap is sitting at $2.32 trillion, up 1.1% in 24 hours. Bitcoin accounts for $1.33 trillion, and Ethereum for $305.2 billion of that.
I’ll see you tomorrow. In the meantime, happy hodling, everyone!