Government taxing your crypto - what?

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Avatar for NotAgainPls
2 years ago

We are kind of accustomed to the fact that when government gets their hand on something it's probably for the worst in terms of the retailer small guy. It has always been this way.

They let us toy around with crypto when we were buying stuff like pizza with 200 Bitcoins and such but i strongly believe they never saw something like what happened with Covid coming. Everyone working from home, fiat currencies falling, printing money like there's no tomorrow and then this small guy turned into something new for a store of value.

Hello crypto - bye taxes. And then the big pump came, even the less tech savvy guy you knew was aware of cryptocurrencies. A ton of projects where blooming, some jokes became recurrent and actually they started to gain traction (im watching at you $DOGE), and we came to this state. Still projects coming our way but we're in a spot where we should be both excited and careful.

Governments are starting to recognize crypto.

This is a huge step forward, even tho we always go against centralization and the fact that if they're not your keys, it's not your money.

This means they actually believe it's big and strong enough that needs regulation. And the reality is that everything that reunites a bunch of people needs some kind of regulation. They don't open banks for cryptocurrencies (Kazakhstan for example) just so you are more comfortable with crypto, they do it to indirectly regulate it.

If you use their accounts they can see the movements, if they can see the movements they can actually tax you for them. And if they can actually tax you for them, they can regulate it.

I leave it to your interpretation if this is both good and bad, just plain bad, or plain good.

Im my humble opinion we always need some kind of guidance when it comes to economy, if you leave it to users they will enjoy it but they will destroy it eventually. So yeah, im torn between these two options.

What should i do? Run from crypto? Go back to the banks?

I am not a financial advisor. I can't tell you what to do. But there's not an asset in this world that can generate revenue by sitting still somewhere.

Crypto has a wide range of tools to turn your holding into a profit. You got yield farms, you got staking, you got lending, you got liquidity providing.

They all carry some kind of risk but they all offer a whooping 350% more (at least) than what your bank can give you for the same asset. Again, and i can't stress this enough, do your own research, and they do have risks.

Cryptocurrency it's a high volatility asset and should be treated as such. If you plan on investing and you wanna minimize the risks you got stablecoins, and do as i do and don't hold BCH. Use it. We need to spend it. It's money and should be used as such.

I have a goal actually from now with BCH, i wanna buy a new laptop with this currency. I shall not accept conversion of any kind. I wanna transfer BCH, i want a receipt that says that i got it with BCH.

Every project has the value we decide to give them. That's what this whole world it's about. We provide the value to the asset. And myself, well, i wanna use Bitcoin Cash as money and i shall do so. You should do it too!

Let them slowly adopt the currencies. We shall profit from that every step of the way.

Thanks for the read!

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Avatar for NotAgainPls
2 years ago