After years of the United states classifying cryptocurrency as a bubble, they finally want to cash in. The new tax bill mandates that you not only pay taxes when you exchange your cryptocurrency for cash but every time you do an exchange. Let's say you want to exchange some your bitcoin to Cardano because you believe cardano is huge. You now have to report that to IRS and pay tax on it. They basically want to control the crypto market now that they know its a competition. What they fail to realize is everyone that bets against crypto lose.
The taxes are not the worst thing about this new bill, the worst thing is all the headache-inducing paperwork. While a lot of you might be small time crypto investors like me, there are some that are investing thousands into their crypto portfolio. These people now have to jot down all of their transactions, the amount the coin was worth when they purchased, the profit/loss, the cost now, and etcetera. If you are using bots to make your exchanges, you better pray that the bot record these data which it will not.
I know some of you are thinking, f the government, I'm not paying any tax because transactions are anonymous. Well, that is true, still, you are not invisible and the government knows that. The IRS is partnering up with companies to help them track crypto addresses to their owners. Meaning anytime you post your addresses out for payments, exchanges, or whatever, these companies would be trying to find out who you are.
While this is a bad news for the crypto network, there is still a bit of good news in it. By trying to attack the crypto world, the government is giving us more publicity. This means more people will know about cryptocurrency come 2018 and more people will join. Also, this legitimizing cryptocurrency as currency/property because how can you tax a bubble?
Just remember, they hate us cuz they ain't us
All gifs were found at giphy. None of the gifs were made by me.***
This will be interesting for sure since they want all trades.
This would be my second post on Steem. I would love to hear what you guys think about it. The link to my first post is down below if you are interested:
https://steemit.com/steem/@rajesh-fashek/sphere
I have said for years that people think crypto is hidden from the authorities. Unfortunately, to take any profit from crypto you must bring it into the real world. I will discuss this aspect in my own blog and touch upon it in this post.
https://steemit.com/crypto/@lucky-elephant/the-darkside-of-crypto
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