@OldBastard
more from that month
Why Is The Crypto Market Falling? As most of us are painfully aware, the crypto market has been taking a beating recently. Given that crypto remains as viable as ever, and in fact new crypto features are being developed at a furious pace, one may reasonably wonder why this broad fall in price has occurred. In my humble opinion, the fault can be laid directly at the feet of my country, the USA. In the "Land of the Free" citizens such as myself are basically serfs, beholden to our masters to submit a tax return every year, and pay a considerable percentage of our "income" to the American government in taxes. This is true whether we are actually residing in the USA or not. Like the serfs of the Middle Ages, we are legally bound to the land of our birth. Now we all know that crypto is a threat to the existing world banking system. At the top of this system is the US Dollar, recognized by most as the world's reserve currency. How serious a threat do the powers-that-be regard crypto? Hillary Clinton said this recently at a conference in Singapore: "One more area that I hope nation-states start paying greater attention to is the rise of cryptocurrency, because what looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential for undermining currencies, for undermining the role of the dollar as the reserve currency, for destabilizing nations ...." Given this threat, what is a group of power hungry government leaders to do? In the case of America, the answer is obvious. Grant new powers to their goons at the IRS, who already have us American citizens grasped firmly by the dangly bits, giving them the authority to squeeze even harder. In the USA, using crypto for purchases is BY LAW considered a taxable event. ( https://www.youtube.com/c/CryptoTips/videos ) How the flip these morons think they are going to track and tax every single transaction should people wake up and start using BCH, (or DASH, or LITE, or NANO), as currency is beyond me, but that's the law. It's stupid, and a futile attempt by an obsolete entity to retain its dominance, but until empires like the USA fall or evolve with the times, we're stuck with it. This is why, IMHO, the crypto markets tanked recently. These tax shenanigans by the US Government, (and if you aren't an American, I would imagine the government of your country is planning something equally stupid), are not just an attempt to gather more revenue, but a sneaky way to attempt to cut off the crypto market at its knees. For who wants to use a "currency" that they need to report capital gains/losses on every time they use it? Now you may say, "So what? I'm not an American citizen. The USA can go f*ck itself!" While a nice sentiment, you have to understand that America, while rapidly declining in influence and prestige, is still a 600 pound gorilla jumping up and down on the world stage, and it's outbursts and tantrums may directly affect you, via not-so-subtle force being applied to your country's government. Don't believe me? Then why isn't there a worldwide outcry to punish those responsible for developing Covid19? Is it because the research on this virus began in the USA, and even after the development work was moved to China, was still largely funded by American institutions? How long do you think it will take for your country, with "encouragement" from the USA, to start enacting similar tax laws? If you're an American citizen like me, you might be interested in series of short videos dealing with how new IRS rules affect crypto. Note that the first 30 seconds or so of each video has the same intro, so you might want to skip past that. TAXES ON CRYPTO GAINS! Staking/Farming/Lending - https://www.youtube.com/watch?v=EkFevRKYL9c If I Use Crypto For Purchases is it a Taxable Event? - https://www.youtube.com/watch?v=rVEfewkJg6E Recommended Crypto Reporting Software - https://www.youtube.com/watch?v=wYHytl0aHdo What If I FAIL to Report My Crypto Trades?? - https://www.youtube.com/watch?v=3Qlb4OjGFQw&t=11s What If The U.S. CHANGES the Tax Laws?? - https://www.youtube.com/watch?v=Ei9eiqwo0CU Notice how Heidi is mostly smiling throughout these videos, and at the end of the last one practically breaks out laughing. This is because Heidi has renounced her American citizenship; she no longer lives in fear of the IRS.
2 comments
I agree with all or most of what you said. The one thing I wonder is why or how those in the crypto markets have not determined workarounds? I have been in the stock market, for example, for 30+ years, and the one thing that is AS important to learn about the markets as much as anything else is how to work around the regulations and taxes. It is a part of the game that is essential to being successful and keeping the most money you can if you want to have the privilege of playing the game.
Exactly. In fact, if you're a real estate investor, I would argue that tax regulations and their effects are the most important factors to determine if you are going to be profitable or not. It may be because folks in the crypto world tend to be anti-government by nature? Thus, they take the attitude, "screw the man!", instead of, as you put it, "playing the game". Too bad, because "playing the game" can be incredibly lucrative. I'm not wealthy enough to take advantage of them, but I just found out about Charitable Remainder Trusts, and they just blew my mind!