Bitcoin Forum

When Bitcoin will be universally accepted accepted by Government, of course it will be taxed accordingly. Do you think it will still be as in demand as it is right now, that makes its price higher and higher everyday.

Does the bitcoin community is ready for this?

For me, even if the government doesn't really accept bitcoin, we are being taxed as a bitcoin user. Every transaction we made, we pay a fee to miners, I think I can call that as a tax.
And I don't think bitcoin will be having a tax these years, not after a lot of years.

Taxing would not affect usage of bitcoins in any way.More people would be interested in buying bitcoins continuously which would increase its demand and hence its price also.We recently saw japan legalizing bitcoin.Japanese know very well that their bitcoin earnings would be taxed but still they showed more interest in buying bitcoins which created a great demand for bitcoins and it led to the rise in price of bitcoins also internationally.

Bitcoin is already taxed! Whether we intelligently accept this or ignorantly argue it, there's tax placed on Bitcoin whenever we make any transaction with Bitcoin. Of course whenever we make conversion into fiat the tax becomes obvious as banks exemplify this. Also, don't miners get paid through our transactions? Shouldn't we equate that as tax too. Anyway, tax or no tax, I don't see this affecting the usage of Bitcoin.

I think it will still in high demands, most of  the transaction is hidden and unknown, so the government will have difficulty to track the transaction, and now we are already being taxed, when we want to convert the Bitcoin to the Fiat, and up until now the demands is still high

Bitcoin will be taxed if the government will accept and make it as a legal currency. If they will tax bitcoin then that is when they are going to make profits because they know that there is a high profit in bitcoin and i think it will be still in high demand because the people will feel more comfortable becuase of the legality of bitcoin that is backed by the government.

I don't think it will be taxed like how government taxes owning real property. Government taxes property in a yearly manner and depending how big your estate is (well in most states). Most likely bitcoin will only be taxed in terms of its use. So it will not be taxed because you are just holding it, but likely when you profit from its use. More of an income tax.

Government cant really taxed bitcoin transactions directly because the transactions offered by bitcoin is from user to user and not under any company or corporation thats why the demand for bitcoin is getting high because free lancers choose this kind of payment from their work or project.

No it won't. Taxing btc is removing one of the features that made it popular to users right now. There will still be use for btc of course but the decline in users would be a lot.

Tax or no tax will not have any adverse effect on the demand for bitcoin, in my country exchanging bitcoin to fiat via banks attracts some little deduction from the account of the buyer I.e indirectly taxed but this did not discourage exchangers from there operations I believed even with introduction of tax the demand for bitcoin will soar.

No. that is very impossible. The reason why many people got interested to the bitcoin is because of being decentralized. The government can't control the bitcoin and it can't be taxed.

Taxing Bitcoin can actually make it more popular. Why? It is because when the government will fully tax Bitcoin it can mean that the government is somehow recognizing Bitcoin and getting involved with the currency will not anymore be somehow illegal.

Actually, a lot of governments are already putting tax on Bitcoin transactions and if you gain some income out of your Bitcoin transaction and you declared it then you should be paying some tax. Tax is not the enemy of Bitcoin.

Bitcoin is already being taxed in most of the major countries. But instead of reducing the demand it has opposite effect. When a government recognises any commodity, then people of that country start trusting it. Where many people are skeptical of Bitcoin being an illegal currency. Such steps by government rather work in favor of bitcoin.

Well said, and I agree.  It has had a great effect on BTC.  Let's keep the positive progress...

My bitcoins are already taxed at the point when I sell them.
This does not decrease my demand for them. But it means more work for me.
I have to study all those taxe rules and make my tax declaration.
Profit is still there, and that is the most important thing.

Bitcoin is taxed already in most countries. Some countries see bitcoin as a commodity and they take capital gain tax on your profits you make from the trading that are done. In many countries they charge you VAT on all the things you buy with bitcoins. In some countries they charge you both capital gains and VAT.

You will even find that some countries are Bitcoin friendly and they charge zero tax on bitcoin commerce.

http://kryptomoney.com/bitcoin-tax-policies/

Nothing is impossible for the Government If they want something they could get it. If Bitcoin gets legally accepted by a country, Government would impose such laws and regulations on transacting Bitcoin. There's no such thing as a free entry into the market without getting taxed. To add Government can manipulate everything.

To answer the question, We are already taxed due to transactions fees. But once the government started to play a part in this industry for sure above that transaction fee is another tax imposed by the Government itself. The demand will depend on how will Bitcoin react at the market. We all know that Bitcoin is volatile, if it continues to grow then demand would increase for sure. But, potential investors would limit their investment to avoid big losses not only because of the tax but to make sure that they will not engage in something beyond their control.

Well this is unevitable because offcourse we know how tax works that it could help the community not totally go in bankrupt. But at least it is not the same tax as other countries to its workers. Sometimes taxes are just so high that your wont hold your income in the amount that was promised to you. For me its ok to have taxes to avoid imbalance in a countries economy. It would still be in demand because now adays it is still in its discovery among other localities.

I think it will still be in demand.  In fact I think most bitcoin users are just hoping that taxing will not happen even though deep inside thier heart they know this will eventually happen. Since this is still new and not evryone knows about this, tax is still out of the question.  But even if tax will be imposed,  I think everybody is ready for it.

In my country it is pretty clear that the capital gains tax does apply to cryptocurrencies, so that doesn't really effect the demand so far, demand is growing...

It is impossible to have a tax because it is decentralized , and if that will somehow happen  it eill still be in demand, if they  its users are still earning profit out of it. If it is still profitable to its users, tax won't be a problem and its demand will continue increasing , same as its price is rising. But I think it would be impossible to be taxed.

When government intend to start taxing bitcoin, I don't think that will deter a lot of people from bitcoin, The only set of people that would ,move are those who cannot compromise on anonymity because when you file your returns, you then need to disclose some information as well which invariably, means exposing your identity. Aside that, people who have been working and earning salary didn't stop working because government taxed them. Its a civic responsibility for every citizen to pay tax.

I believe it can be tax as soon as the govertment acknowledge the bitcoin to replace their currency.Then their legislative body which are composed by congress and the senate will make the laws to impose tax on their bitcoin and amending it to for the people to comply. Like today we currently pay taxes using our current paper money this is will going the same to bitcoin we will pay taxes using bitcoin.

I think that bitcoin, which is taxed, will not be as popular as it is now and its value can drop dramatically. It will be at the level with conventional currencies and will not be of interest to investors.

I wouldn’t bother paying tax for bitcoin as long the price of bitcoin stays above 3-4K USD. The reason is simple, I’m earning huge money from the internet with very little efforts and if my government is going to provide me more security against my taxes then Im more than happy to pay my government. The price is already very high as we all know, then why we should hesitate paying tax over it. We know very well how crypto currencies work, they can sometime give us shit profits but at few times the profits could be 10 to 50 times more than our investment. You earn more than enough with them so its all right to pay the tax.


Bitcoin demand will be same as it is today because anyway we are getting something without resections! Its better than getting banned! :-)

If bitcoin will be taxed, it means that it is under the government. Therefore it is legalize. If this happens, I think that the demand will fall because of additional fee which is the tax. Just imagine if you are going to get your profit but you can't get that completely because of tax.

surely demand will still go up even though bitcoin is accepted universally because it can facilitate any transaction.
i think all bitcoin communities are well prepared for this

It is illegal to tax the trading of a commodity in the way that you're talking about. If you would done your research you would say that since 2016 Bitcoin is been legally considered a commodity and not a currency in the United States, making it impossible to tax in the way that you are speaking of.

First of all taxing bitcoin is a pretty hard thing to do as the owner of bitcoins can't be identified by address itself. But government can tax the bitcoins only when we sell them for bank transfer as there the KYC is necessary and banks are also involved, otherwise there is no way to tax bitcoins as far as I know.

It's pretty hard for such a thing to actually happen, although, if you are constantly withdrawing money in form of Fiat currency from exchangers, you could end up getting taxed for that money.
However, Bitcoin's nature is that it makes it not regulated by governments or banks, provided that you use a Bitcoin-only ATM, your money doesn't even show anywhere for it to be taxed. No matter what laws might be passed in the future, there are plenty of ways to avoid them.

Bitcoin is very hard to tax. Imagine the technology and manpower required to track all the addresses of everyone who spends or sends Bitcoin. :o

At some point, you will have to spend your bitcoins or encash them for fiat. That is when governments will check if you have been regular with your taxes. If you have evaded taxes, you can get into trouble.

When I think of bitcoin being taxed, I think of the effect gas, alcohol and tobacco taxes have on the price of gasoline, cigarette packs and cases of beer. And the effect property taxes have on rent.

A lot of people want marijuana to be legalized and taxed. I'm not certain if those people realize how much cheaper cigarettes & other things were before taxes were added to them.

What is it with the bubble heads in this forum?

In most countries it's taxed right this very minute. They don't care that it's decentralised. They don't care that it's 'on the internet'. They don't care that you took a risk. If you bought it for less than you sold it and it goes over your personal tax allowance then there's some tax.

If you sell enough of your sweaty work out thongs to perverts, that's taxable. If you sell enough finger paintings of Barbra Streisand, it's taxable. They're both far sillier and more abstract than Bitcoin but it's all the same thing.

You're welcome not to pay it. Don't be sad if they turn up at your mansion with a fleet of supercars outside and take it all away and shove you in jail. 

There are countries where it isn't taxable. If you live in one then congrats. If you don't then pay some bleedin' attention.

In my country right now I don't consider it taxable for the main time, because the wallet site that I've been using already affiliated with central bank of the country which mainly the site was taxed and license registered. For now the development of the wallet site was still on going for further improvement which most of us doesn't know when will it will be taxed fully with all transaction including withdrawals. If that will happened I don't think that the demand of bitcoin will be like this what we are experiencing right now, it maybe changed and it may caused sudden drop of bitcoin economy; so the freedom of currency will be removed by that time of imposed bills on it.

The fact that there can only be 21 million bitcoins that can be mined would surely keep the demand at a high rate, be it taxed or not. It is a finite asset and we will one day come to a time that all the bitcoins have been mined and you can only imagine what the price would be by then.

It is beiing taxed even now, but if the government is going to use it as payment and charge taxes, i think it will be more in demand and tax will not going to be a hindrance.

That is right, tax is a normal thing in this world because we are paying tax so we can have a fund for the government which they will use for executing different projects or services that can benefit for all the people who are covered within that country or government and if they will charge tax in bitcoin then there is no problem with that and that will just lead for having more demand because most of the people still trust government rather than the other people so if they will declare tax to bitcoin then it means that government is promoting it and it is safe.

If you will cash out your btc to fiat via exchanges, you need to pay taxes.

Tax authorities will probably not tax bitcoin itslef (so if you just hold coins in your wallet) but bitcoin transactions especially converting to fiat. But it's not possible to discover and trace all transactions so there will be always users who will not pay. In my country there are no taxes at all related to bitcoin but maybe this will change in the future if the governement will need another source of income for the budget.

Yeah as the poster said above you are supposed to pay capital gains tax already. There are ways to get away with not paying but its illegal. If you have a large amount and are looking to cash out, just pay the tax even if it does suck.

The tax for bitcoin will reduce its popularity and price. Many authorities use money from taxes not for their intended purpose and this currency was created for a tax evasion.

Getting taxed for the use of Bitcoin is unlikely to happen, but if it does happen, the situation people find themselves in will determine whether Bitcoin will be in high demand or not. If people happens to be making more profits than they’re being charged, then they continue. But if they feel like they’re losing, they will quit from it.

But if it is not taxed then bitcoin has the potential to become illegal currency, and this is more detrimental to us, in my opinion will not be different from the previous bitcoin conditions provided they have to accept bitcoin as a legal tender, and I keep wondering. How to calculate any user income tax because bitcoin is not centralized.

It will be hard for it's decentralized and can access anonymously. Those companies accepting btc can be taxed by the government and those charges can be put to it's user through transaction fees. But putting tax one by one when just by having btc is not necessary.

Guys I am amazed, isn't bitcoin taxed in your country? You are wrong guys, in my country (and I believe not only in my country) bitcoin is taxed. Why? Because every business you have, doesn't matter which currency you use, you have to pay taxes. Customers pay you in bitcoin and that transaction is officially recorded. Maybe taxes will be paid like this: taxes will be cut from btc converted in usd at the moment you received coins or there will be another method.

Exchanges here in my country is also taxed since it's business. And for business to run legitimately, they should be licensed and recognized by the government no matter how currency you used.

For me, I see no problem at it since while we are enjoying the benefits that bitcoin is giving us, we must accept that for bitcoin to become fully globally adopted, it should be recognized by the government. Plus the fees that exchanges charging us is still not to the point that it's not fair for all concerns.

Tax is not the main priority of the people so that I do not think that it will cause a big problem to bitcoin. However, I do not think that bitcoin can be tracked or bitcoin users can be forced to pay tax. It is hard to find who are using bitcoin. Therefore, I think we do not need to worry about this issue

Tax or no tax, bitcoin will still be popular and in demand. It is not the main features of bitcoin. And if ever, it will be hard for the government to track which one is not paying their bitcoin tax.

in my country, and probably in most, you SHOULD be taxed for every income like bitcoin,ebay sales, amazon sales, etc.. but it's not that well regulated, I mean even online sales aren't taxed because government doesn't want to bother with that. BTC isn't taxed in my country, even tho it should be taxed as every other income, and I doubt that it will be taxed any time soon or at all.

Welllll I think a lot of people are also in crypto because it's kind of hidden and a way to invest without the government really having knowledge on it (or at least it seems so currently). I think they recently released a statement that the US government has been tracking bitcoin transaction since 2015, so they're for sure building up some knowledge there I think.

I think that taxing will not affect bitcoin demand by any way.In future,mostly all governments would start taxing bitcoin earnings since bitcoin would be predominantly used by most people.Since most people would use bitcoins at that time,so its demand would be very high and hence its price also.So,even if it is taxed,no body will be willing to leave using such a valuable return giving bitcoin.They would be ready to pay taxes and would still continue to use bitcoins.

I think, it will be. But that's quite impossible since Bitcoin is decentralized. But if that happens, it will also be. As a matter of fact, it will catch the interest of more people because it will be legal in countries. So it will still be in demand. The reason why they'd still demand for Bitcoin is thst, they are still earning profit from it and taxes will just be a small amount.

In a couple of years or when bitcoin hits $10,000. Yes the demand could increase more in the future. I'm not sure about the tax because every country has different tax rules that follows. The government here in my country accepts bitcoin but doesn't recommend using it because they say there's a high risk of getting scammed (which is true if new users aren't informed on different kinds of scamming).

Your country is very much concerned about the safety and bright future of her countrymen. Your government seems sincere with the public and it is good if they are not putting any tax on bitcoins. As far as taxation of bitcoins is concerned, I think it will negatively affect the popularity of bitcoins.

but we cant avoid that to happen if more people will entertain this system government will notice that many people are getting good earnings and they will start to do some rules to get some share, we cant deny the fact that government always finding ways to earn from their people and sharing some taxes from bitcoin will follow.

Of course it will affect the popularity of bitcoin as far as tax implementation is concerned on this matter here. It could gather negative feedback's since the freedom that we had here has gone through comfortable earnings that always given us good chances to show up for better future.

I'm sure if the state will control all transactions with bitcoins and to impose their tax on the bitcoin very quickly lose its appeal. That's why I'm against the legalization of bitcoin. If bitcoin will be taxed then it could become unprofitable.

We have different governments and if you are just talking about the USA then it will be a hard fight and I doubt they will accept it. It is like surrendering their loved US dollar with another currency.
That won't happen to them. They would rather create another coin than accept what bitcoin is specially right now where it is so valuable.

I really don't think it will ever be taxed . That will eliminate one of it's best features : being decentralized !
Most of the transactions are hidden/unknown/untraceable/secret .. Who's going to tax who exactly ? ..
And even if it happens , it will make it even more popular and people will gain more trust in it since it will be approved by governments !
But i really don't think this will ever happen .

What? Since when did Bitcoin earnings not taxable?  For your information anything that is involve receiving money in any form that is counted as income is taxable by law. It does not matter what kind of money you receive it in it does not make you immune to paying tax even in Bitcoin. I am guessing that you are not reflecting your Bitcoin earnings in your tax report, well you should be as an audit from your tax department can give you lots of trouble.

Currently, Bitcoin is not "universally" accepted but guess what? Governments didn't wait to tax it! You have to report the profits you made and so pay the taxs depending of the profits

Not really, I think not. The most sought-out feature of BTC I think is that it is decentralized and government can't control the transactions and interfere with any kind of taxation. That will definitely cause a huge amount of decrease in demand for BTC. Also, I think the current transaction fees is pretty huge, and if more taxation would have been introduced, then the average person would also stop bitcoin, thus decreasing the demand of BTC furthermore.

I think if bitcoin is acceptable to the government there will be a tax problem that must be done. And the question is if bitcoin is taxed, whether it will affect the bitcoin request itself. I do not think there will be any impact on the decrease in bitcoin demand. The demand for bitcoin will increase from time to time. Do not we all know that in transactions in bitcoin there is already a piece of administration. Or by transferring to the bank and there is already a piece. Whether it's a piece of taxation or not, this proves that the demand for bitcoin keeps on increasing. So I do not think it will affect the bitcoin request.

Bitcoin community wont really be ready since this thing wont really happen on bitcoin world and its impossible for it to be accepted on all government of the world and they cant directly taxed bitcoin and we know all that but government could possibly get tax from those establishments and services which do accepts bitcoin but the main problem here is that if people would be honest enough to pay up their tax.

I know that there are some countries where bitcoins is taxed accordingly and still people are patronizing as they always did. But i believe that the taxation should be implemented only when people are using their fiat to purchase bitcoins and not when they are exchanging it to fiat. Taxation must be implemented when bitcoin is being used to buy goods and services just like other currencies.

As long as the tax won't be that big, that will still make its users profitable from Bitcoin. Or maybe, even if it will be taxed, it will still be indemand because of its expensive value. But ofcourse, it won't be possible since Bitcoin is an open source system, decentralized and has no physical value. Government can only make it legal or nor but won't be able to tax it, in my opinion.

It is already being taxed in many countries. For instance take USA. In USA, Bitcoin is considered as property and is liable to tax on capital gain. So does some more countries where Bitcoin is legalized. Meanwhile Japan has recently ended any kind of tax on Bitcoin. Indeed a welcoming move by the government.

As far as the volatilization and anonymity remains with bitcoin,its use shall not be affected by tax.
Bitcoin amateures are already paying transaction fee to networks as a kind of tax.
If government ordains tax on bitcoin alter than network fee,traders would still like to have it more because at that time it will be demanded more than before due to legalization.

I dont see any reason why bitcoin been taxed is going to reduce the amount of demand that is going to happen in short it will even encourage the massive adoption as well because taxing it means giving it recognition in which will open a new horizon of opportunities that will attract a lot of new people into the crypto space, business will openly accept without the fear of doing anything illegal, there wont be the name calling all around again among other advantages that will come with that tax issue.

Probably it could affect the bitcoin world but not big enough that could make bitcoin into down. But probably it will back to its normal status as what is bitcoin now. Yes it is still in demand from the market because the community have already familiarize  about bitcoin. Tax that have collected by the goverment is just a small amount and still they are earning from bitcoin.

If you buy and sell BTC for a profit, technically you need to be paying taxes legally on the gains and therefore, you are being taxed.

Regardless of whether you buy and sell bitcoins, you still have to pay some sort of taxes. If you bought some at a low price and sold it at a high price, even if that is not your main line of business, you still profited from that sale. The governments have a right (yeah, freaking stupid) over those funds. It is stupid to assume that taxes will never affect bitcoins.

Regardless of bitcoin being accepted by the government I think we are already taxed with every transaction we make out of bitcoin. So there won't be much difference of its demands because it will just stay as it is.

Even when the transaction fees was the highest, a lot of people didn't mind the transaction fees and still carry out their transactions. It was even at this point that we witnessed quite an amount of growth in the price of bitcoin which means despite the high charges, a lot of entries was still been recorded and I don't see taxes been any different because but the issue there would be that there won't be any form of anonymous transaction again.

Yes, the only one thing bad about bitcoins now is the taxation they are imposing in name of fee. As you said, it is so true that even now many people are just leaving bitcoins for the fee becoming so huge and it’s not profitable somehow. And if it is taxed under government rules then definitely there will be a decrease in bitcoin business.

I don't think so if the bitcoin accepted by the government and make a tax expense? i think the demand of perhaps there are some who will not use it, because they have to be mistreated because of the tax expense. But you will still earn more in the future if you are going to get a hold of it. Possiblw will be increase and demand it is because it covered by the government.

I don't think it can be compared to tax and trnsaction fees are necessary for bitcoin to survive. We can't just do transactions like sending money, or making purchses without transaction fees as bitcoin or crypto in general wouldn't have a way to sustain it for a long time.

there is no central bank governing the market so I don’t expect it to be taxed and even the transaction fee being paid to miners for transactions should be a form of Tax too, maybe it should be PAYE(pay as you earn) form of tax for bitcoiners.

Just to let you know anything that is involved with receiving money in any form, that is counted as income is taxable by law. It does not matter what kind of money you receive it in. So i think bitcoin will never stop growing.

Even your salary was included in the taxation too and that already applied in my country. If there is a chance to take the advantage from something to get the money and why not? said the governors.

I think the demand for bitcoin will remain high. We are being taxed in form of the high transaction fee and i don't think additional tax will change anything.

many are using Bitcoin for this exact reason, it's difficult to tax

Until now only about 800 BTC holders/year report their BTC earnings. Even if the government wants to tax it, they can't - at least not at this time

that's why the want to regulate the entire thing, once it's regulated things will be easier for the government

In many countries, buying Bitcoin already is a taxable event, but that never was enough reason for people to stop buying it.

Once the bitcoin was officially accepted by the different country, of course, they will file tax to it accordingly. For example here in the Philippines since this is a third-world country, they will use bitcoin as an asset that can help the country to develop more and face issues regarding economy.

Of course even if the government put a tax on bitcoin people will absolutely patronize it, As long as people can get benefit on bitcoin the demand will definitely always high. The question is how can the government detect who are the users of bitcoin and besides bitcoin is not yet legalize but also not yet ban.  

Possible, bitcoin will be taxed if the government willing and create a law for a person who earn on it, but that is a long process. Bitcoin will still in demand because people depend on it and it is great help for us.

This is the issue that is not yet solved until now. Btc community are trying to avoid the government tax but in any  other ways, some countries try to find ways just to get taxed from btc. Anyway, still btc is decentralized and I think eventhough government will success about btc to have taxes, still it will not affect the btc community.

Something so fragile can't be tasked, it's not a fixed value, so it' impossible to tax any of your bitcoins

yes i think bitcoin will become more stable as it is now controlled by a government and banks therfor the volatility of bitcoin will be declined or decrease then it could lead to a lesser demand because investors and traders could not make a descent income anymore. bitcoin will be then used as a secondary payment option and will be mainly used for buying offline and online instead of using it as a source of income or job (e.g trading , investing , mining )