Topic: Legislation will prevent Bitcoin from being used as an everyday currency? - page 2. (Read 538 times)
October 01, 2021, 11:43:15 AM
As of now, yes its almost impossible to use it as a payment because we are going to pay more taxes for the same thing we do with cryptos but in future the things may change when the society force them to make such changes in the government monetary policies. Even now its hard for someone to spend cryptocurrency and also when it comes to tax reporting.
October 01, 2021, 08:35:20 AM
This does not necessarily have to be done, as it is classified as an asset, but it is a temporary measure to collect taxes and impose legislation, but it is also difficult for governments to include digital currencies as securities.
The solution can be in the preparation of independent legislation about cryptocurrencies, which is something that will only happen when many people invest in cryptocurrencies, then you will get independent laws and this may happen within 10 years.
Until then, most countries don't invest much in tracking tools, so as long as you care about privacy, you don't need to pay taxes (I don't encourage you not to pay taxes or try to do that)
The solution can be in the preparation of independent legislation about cryptocurrencies, which is something that will only happen when many people invest in cryptocurrencies, then you will get independent laws and this may happen within 10 years.
Until then, most countries don't invest much in tracking tools, so as long as you care about privacy, you don't need to pay taxes (I don't encourage you not to pay taxes or try to do that)
October 01, 2021, 12:42:46 AM
but i think there software that can tracking your portofolio, balances and make tax information for you so loss profit and other will be calculated by sytem and we only print and give it to gov
Yes, I suppose a lot of people will be fine using such software, just as they buy Bitcoin on centralized exchanges and leave it there, or buy through Paypal or similar services. But I think that privacy-conscious forum users would not be happy to have everything they buy tracked by a third party and the government. At least I think it departs from the original idea of Bitcoin being a P2P electronic cash system.
If someone's using a card connected to a CEX they'd be more inclined to report and pay tax on every transaction, no matter how small, a privacy conscious person who sells BTC for fiat via other means probably won't bother unless they're making a bigger purchase where it's harder to avoid paying, i.e. when buying real estate.
September 30, 2021, 09:16:12 PM
I know that the legislation is very varied around the world, but as far as I know in most countries, it is regulated as a financial asset and not as a currency, therefore, every time you spend you create a taxable event.
Someone who buys $1k today and goes out a couple of hours later to buy a coffee for $3 when the price of bitcoin has gone up 3% owes taxes on the profit of the proportional part of that $3. If tomorrow he buys something else but the price has gone down below when he bought bitcoin, he can deduct losses on that proportional part.
I believe that in countries where bitcoin is regulated as a financial asset, it will be difficult to use it for day-to-day payments, even with LN. I can't imagine people filing their tax returns with thousands and thousands of payments. Unless an app is created that does it automatically, but that would mean giving the data of all your transactions to a third-party.
Another thing is countries like El Salvador, which recognize it as a currency, and I imagine that citizens do not have to account to the IRS for every transaction they make.
What do you think about it?
Someone who buys $1k today and goes out a couple of hours later to buy a coffee for $3 when the price of bitcoin has gone up 3% owes taxes on the profit of the proportional part of that $3. If tomorrow he buys something else but the price has gone down below when he bought bitcoin, he can deduct losses on that proportional part.
I believe that in countries where bitcoin is regulated as a financial asset, it will be difficult to use it for day-to-day payments, even with LN. I can't imagine people filing their tax returns with thousands and thousands of payments. Unless an app is created that does it automatically, but that would mean giving the data of all your transactions to a third-party.
Another thing is countries like El Salvador, which recognize it as a currency, and I imagine that citizens do not have to account to the IRS for every transaction they make.
What do you think about it?
It is difficult but not impossible.
Of course, restrictive/draconian regulations will always be unwelcoming to crypto users and holders but at the end of the day they can only do so much to shut the network down.
Especially when it comes to BTC as a store of value. Regulators could possibly legislate to restrict fiat-crypto exchanges/transactions, but there is no way that they can restrict the holding of decentralized assets or just cross-crypto exchanges.
September 30, 2021, 09:41:41 AM
The situation you have described, is true! In countries where bitcoin js classified as a financial asset, it creates a problem for using bitcoin as a currency for regular purchases. But that's what most of the governments want! Since they have understood that they can't control bitcoin, they are trying curb its usage in a different way! Declaring bitcoin as a financial asset is one of such ways.
But we can't really expect a lot of friendlyness from the government itself. Because most governments truly sees bitcoin as a challenge rather than an opportunity. We can't expect another country to follow the same path as El-Salvador.
But we can't really expect a lot of friendlyness from the government itself. Because most governments truly sees bitcoin as a challenge rather than an opportunity. We can't expect another country to follow the same path as El-Salvador.
September 29, 2021, 03:03:35 AM
but i think there software that can tracking your portofolio, balances and make tax information for you so loss profit and other will be calculated by sytem and we only print and give it to gov
Yes, I suppose a lot of people will be fine using such software, just as they buy Bitcoin on centralized exchanges and leave it there, or buy through Paypal or similar services. But I think that privacy-conscious forum users would not be happy to have everything they buy tracked by a third party and the government. At least I think it departs from the original idea of Bitcoin being a P2P electronic cash system.
September 29, 2021, 02:49:57 AM
yes it is tax maybe becoming one problem tho
but i think there software that can tracking your portofolio, balances and make tax information for you so loss profit and other will be calculated by sytem and we only print and give it to gov
but i think there software that can tracking your portofolio, balances and make tax information for you so loss profit and other will be calculated by sytem and we only print and give it to gov
September 28, 2021, 10:26:14 PM
I know that the legislation is very varied around the world, but as far as I know in most countries, it is regulated as a financial asset and not as a currency, therefore, every time you spend you create a taxable event.
Someone who buys $1k today and goes out a couple of hours later to buy a coffee for $3 when the price of bitcoin has gone up 3% owes taxes on the profit of the proportional part of that $3. If tomorrow he buys something else but the price has gone down below when he bought bitcoin, he can deduct losses on that proportional part.
I believe that in countries where bitcoin is regulated as a financial asset, it will be difficult to use it for day-to-day payments, even with LN. I can't imagine people filing their tax returns with thousands and thousands of payments. Unless an app is created that does it automatically, but that would mean giving the data of all your transactions to a third-party.
Another thing is countries like El Salvador, which recognize it as a currency, and I imagine that citizens do not have to account to the IRS for every transaction they make.
What do you think about it?
Someone who buys $1k today and goes out a couple of hours later to buy a coffee for $3 when the price of bitcoin has gone up 3% owes taxes on the profit of the proportional part of that $3. If tomorrow he buys something else but the price has gone down below when he bought bitcoin, he can deduct losses on that proportional part.
I believe that in countries where bitcoin is regulated as a financial asset, it will be difficult to use it for day-to-day payments, even with LN. I can't imagine people filing their tax returns with thousands and thousands of payments. Unless an app is created that does it automatically, but that would mean giving the data of all your transactions to a third-party.
Another thing is countries like El Salvador, which recognize it as a currency, and I imagine that citizens do not have to account to the IRS for every transaction they make.
What do you think about it?
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