Tax on crypto ? Really ?
It's interesting to read about taxation on crypto. Even funny sometimes.lol
So, some governments are asking for tax on crypto. I see India for example asking 30%. lol I didn't check the information, and I'm not sure about it, but let's suppose that's true.
First of all taxes are usually restorable. Because we kind of get them back in our oldness in form of pension. And of course governments kind of use all those taxes to improve the country. I'm ok that everyone lives in such system and have to pay them because we are kind of related to fiat system, and we have to pay them to not get our accounts blocked. And even though we know for sure that the principle isn't that transparent because when they use the money from taxes, they don't usually ask citizens. There is no voting system about where that money should go, or how it should be distributed. We just trust that to taxation machine, counting on the honesty of authorities. ☺
But what we can say about crypto ? Will they use the taxes in crypto to pay us pension in crypto ? Will they use that crypto to build the infrastructure of the country ? Or maybe bitcoin became an asset, and they will just convert everything into bitcoin and enjoy holding it ? How the hell people should pay taxes in crypto if they earn so many kinds of cryptos and why they have to count the amount they earned in crypto, in fiat ? Let's suppose I earned a token on hive-engine. The price of that token is so low, what make me earn about a few dollars per month. Do I have to pay taxes in this case ? Do they have an account in hive-engine where to send some tokens ? lol
Ok, let's suppose that I want to pay taxes on the coin I earn from my content, what I always stake to have some influence. Should I pay taxes for what I staked even if I didn't withdraw any ? Or maybe I should pay the tax from the tip I get in LBRY for making a video ? Do we pay taxes by the way if one of our relatives decided to just give up some fiat money from hand to hand ? Or governments are also counting on the honesty of citizens ? In this case I'll be very honest. And of course generous. lol
Ok, now seriously ! There are so many anonymous cryptocurrencies. They are created that way by design. The purpose of many crypto is to not have the intermediate. How are they going to deal with those ? Or they will ask keys from everyone holding crypto ? In this case we all know the concept: ''Your keys, your crypto''.
Anyway, I don't really know how taxes could be paid in crypto. And what funds they will use for that.
I would agree paying in crypto, only if the elections are on the blockchain and no one will be able to fake it. And only if all the transactions will be public, and I know how that will benefit the country. But we all know that gonna never happen. ☺
Maybe they will try to tax your crypto and give you your pension in state issued central bank digital currency. I guess whether they can enforce this or not depends on where you hold your crypto, in a regulated exchange or your own custody, and also whether you ever want to convert your crypto assets back to fiat currency.