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> Includes a provision mandating that cryptocurrency payments be converted to U.S. dollars within 24 hours of their payment So there’s a massive, planned liqui
by alextheparrot 9y ago
> Includes a provision mandating that cryptocurrency payments be converted to U.S. dollars within 24 hours of their payment
So there’s a massive, planned liquidation period (Aka tax time) - this can’t be exploited at all.
- lithos 9y agoTax season is almost 4 months long in the US.
- alextheparrot 9y agoMy intuition was that taxes would be paid mostly near the deadline. I ran the numbers [0] based on IRS numbers to check this intuition. While it is a matter of degree, and it is definitely less pronounced than I initially thought, the last week sees roughly double the number of filers than the minimum week, with another peak in early February. I'm not aware of a comparable comodity market where there would be a seasonal, forced sell-off to actually speak to the effects. I am, however, convinced that this at least presents an opportunity for adverse behaviors which could make this an untenable policy. It also doesn't speak to that there are 8 months for the markets to prepare for exploit this period. [0] https://www.irs.gov/newsroom/2018-and-prior-year-filing-season-statistics https://www.irs.gov/newsroom/2018-and-prior-year-filing-seas... Results (2017): Week : Filers (Millions) January 27 : 8.3 February 3 : 11.1 February 10 : 11.4 February 17 : 9.6 February 24 : 8.9 March 3 : 8.1 March 10 : 7.6 March 17 : 7.2 March 24 : 6.9 March 31 : 7.5 April 7 : 8.9 April 14 : 13.1 April 21 : 13.9
- dragonwriter 9y agoTax filing and tax payments are not necessarily simultaneous.