The Higher The Price of Bitcoin, The cheaper It Is To Tax: U.S. court authorizes IRS to seek identities of taxpayers who have used cryptocurrency – May 5, 2021,
Because they labeled themselves crypto-CURRENCY the entire network of cryptocurrency lovers are going to have to get used to the new normal of getting taxed for making or accepting Bitcoins as a method of payment. My Bitcoins haven’t moved, because once I understood what was going on, I could see the writing on the wall.
I comprehend that Bitcoin is decentralized, but if legitimate business owners who pay taxes start accepting it, they’re going to have to start reporting it and if you don’t have the proper person or entity representing you to the tax authorities, your financial life is going to get complicated if you transact in Bitcoin.
The current laws which I’m watching evolve all seem to going in the same direction, which will be to tax and complicate the lives of people who ACCEPT Bitcoin. The way I see it is you’re inviting the taxman into your life if you’re going to use Bitcoin to shop. Buy hold and cash out when your ready is the way I see Bitcoin.
A few weeks ago Bitcoin hit what I thought might be its new all-time low of just below $50,000, if the price of Bitcoin continues to ascend, it will be cheaper for the tax authorities to pursue taxing it. This equates to in my opinion Bitcoin being used by fewer merchants. I could be wrong, but knowing what I know about Gold, I’m glad the attention has left Gold and is now on Bitcoin, because in the event of a fiat market crash if the price of Bitcoin holds up, there will be less incentive for the government to come after gold.
U.S. court authorizes IRS to seek identities of taxpayers who have used cryptocurrency | reuters.com
Interesting times ahead!