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There are two main things incentivising me against using it as a form of payment. 1) Purchases with Bitcoin are a capital gains tax event. Or they might be?
by oraphalous 5y ago
There are two main things incentivising me against using it as a form of payment.
1) Purchases with Bitcoin are a capital gains tax event. Or they might be? I can't be arsed figuring that out. It's hard to blame Bitcoin for this one.
2) There are not enough things that I am conveniently able to purchase with bitcoin for me to go full bitcoin (e.g. accepting salary payments in bitcoin)... This is a network effect thing. Every alternate payment system has to solve this problem.
1 is a massive barrier to solving 2. Regulatory environment needs to be fixed first.
- URSpider94 5y agoWhy is #1 a concern? If your BTC appreciated vs USD while you held it, then you'll owe tax on it. If it declined, then you can claim a loss to offset other gains. It's just paperwork. I would imagine that any BTC wallet services worth their salt will be able to spit out an automatic 1099 at the end of the year that can be imported into your tax software. For #2, I can't see companies offering to pay employees in BTC - it opens them up to too much legal risk.
- oraphalous 5y ago1) Cause it's effort... as opposed to one single capital gains event when I sell - I would have zillions to colate for all my purchases at different price points. It's not the fact of having to pay tax... it's the effort of tracking what tax I have to pay. 2) Mebbe - no idea either way.
- donmcronald 5y ago> 1) Purchases with Bitcoin are a capital gains tax event. Or they might be? I can't be arsed figuring that out. It's hard to blame Bitcoin for this one. Yep. There’s no way I would ever use crypto currency as a day to day currency.
- ezekg 5y agoPrivacy-friendly coins may be the way out of the current regulatory mess.