Bitcoin has the worst start for the last 3 years

For the first time since 2015, Bitcoin – this digital money goes down on New Year’s Day, extending the decline in recent weeks.

Currently, each copper is $ 13,440, down more than $ 1,000 compared to last Friday (December 29) and $ 400 lower than at the end of December 31. This is the first year since 2015, Bitcoin prices have gone down on New Year’s Day.

In 2016, prices rose 0.87% early this year, double year-over-year. However, last year was the boom of Bitcoin, with 3.5% on the first day and more than 14 times the whole year.

2018 is the first year Bitcoin goes down in the first session from 2015.
2018 is the first year Bitcoin goes down in the first session from 2015.

This has helped Bitcoin attract the attention of many traditional investors and financial institutions. Last month, the two world’s leading exchanges, CME and CBOE, allowed the Bitcoin deal, which helped move the chip into Wall Street.

The popularity of Bitcoin also makes a lot of other virtual currency appear. In addition to major rivals such as Ethereum, Ripple, Litecoin, the Bitcoin split several times last year, and the ICO (virtual money issuance to raise capital), the virtual currency has risen more than 1,300 dong.

Bitcoin, however, is still a controversial topic around the globe. Many people believe that digital money is the future of money and the world. Meanwhile, others refer to it as “scams” or “bubbles of bubbles” and claim that Bitcoin will not have a good end. Both JP Morgan Chase CEO Jamie Dimon and investment legend Warren Buffett are skeptical about the virtual currency.

Meanwhile, CNBC’s former investment fund manager Fortress, Michael Novogratz, said the currency could reach $ 40,000 by the end of next year. Moas claims that this price must be $ 400,000. The Nasdaq market also announced plans to enter the market in the first half of 2018.

The UAE and Saudi Arabia apply 5% VAT for the first time

This year, the 5% VAT (value added tax) will be applied to most products and services in Saudi Arabia and the United Arab Emirates (UAE).

The Gulf states have long attracted foreign workers thanks to the tax-free lifestyle. However, sales of oil exports have been steadily declining for several years, prompting them to change.

The UAE estimates that in the first year of application, VAT will bring the budget of nearly 12 billion dirhams ($ 3.3 billion). Gasoline, diesel, food, clothing, electricity and gas bills and hotel rooms are subject to VAT on January 1. Still, many other services are tax exempt, including medical care, financial services and public transportation.

People living in Saudi Arabia have to pay VAT this year.
People living in Saudi Arabia have to pay VAT this year.

Organizations such as the International Monetary Fund have long called on Gulf countries to diversify their revenues and avoid dependence on oil reserves. In Saudi Arabia, more than 90% of the revenue comes from the oil industry. This figure is around 80% in the UAE.

Both countries have taken measures to increase the budget. Arab Saudi tax on cigarettes and carbonated water, as well as cutting some subsidies for people in the country. In the UAE, road fees have been raised and tourism is taxed.

However, both have no plans to apply personal income tax. Most people do not pay this tax. Other countries in the Gulf Cooperation Council – Bahrain, Kuwait, Oman and Qatar – have pledged to apply VAT, although some have postponed until at least 2019.