Bitcoin Forum

Bitcoin is not made to apply taxes on it - BTC economic model is different

Bitcoin is not made to apply taxes on it as Bitcoins Economic model is different. If governments want to earn money through cryptocurrency, they must invest in it. It is upto governments to buy Crypto using their reserves and hold it instead of applying taxes as taxes cannot help much since there are privacy USDs.

Taxes are permanent, as long as it is a gain being made by a citizen, the government wouldn't care if it is from bitcoin or any cryptocurrency.
The economic model for bitcoin is different said by you, still, if it is converted into fiat and it is a profit, it would be considered as a gain and that is when the taxing starts. We still need cash and somehow we have to convert it which will give us a gain which is taxable.

Bitcoins created by mining are self-generated capital. Hence, the provisions of capital gains would not apply at all. Accordingly, the income tax authorities may choose to tax the value of bitcoins received from mining under the head Income from other sources.

Okay, some news about taxes on btc but, I am doubtful to how will they ever do that? How will they implement taxes if most transactions in bitcoin can be anonymous? (I think there's a big picture I am missing here).

They are not taxing bitcoin itself. They are taxing your capital gains which is in USD. Do you pay taxes in gold or stocks? No, you pay the USD. That's what they want. The government don't have to buy crypto, that doesn't make any sense. They don't care what you buy but it you are making profits, you'll have to pay your taxes.

Bitcoin idea is not about taxes. It is about a decentralized system without banks, governments and taxes.
Theoretically if the government had more than 60% bitcoin(power), they would control transactions. This is unrealistic these days ;D ;D

basicaly what u say is true, but because we got a profit from it, and on my country any profit from an investment is subject to tax , and of course everything based on fiat currency, instead of digital currency for paying or buying something, bitcoin now its a store of value , people wont spend it for something like buying iphone or cars, they just hold it.

Some government can't live without collecting taxes so don't expect them from stop taxing you through personal income tax and many ways of collecting taxes. Bitcoin can't be taxed of course but the users of bitcoin in some country are obliged to report their income through cryptocurrency, I'm still lucky that my earnings with bitcoin is still free from tax, I hope it will remain at least until the mass adoption begin in my country.

Yes, taxes are imposed on any gain regardless of where that gain is coming from, crypto or not. It is something the government has done to raise the money for public spending since always. Nothing is going to change.

Yes, there is no different economics that Bitcoin or any other crypto has. This is as long as the crypto gets converted to fiat the norm of taxes applies. There is not a matter of opinions - it's the law.

Actually, nothing is created for taxes. But unluckily, the governments do not like that. So they taxes us for things they called public facility, infrastructure, education and health cares which in fact, they do very bad.

There are ways to escape the government tax. You can use a fake account or p2p transactions. As long as you stay outside any website requires KYC or personal data. It is the best to use decentralized exchange

Governments needs taxes so no need to use the decentralized technology to encourage the black money market. And every citizen supposed to pay taxes to their government for the development related things but they also need to collect the fair amount as tax, like less than 10% is accepted in overall but if a government is looking for 40 to 50% then there is nothing wrong with evading it.

What are privacy USDs? You mean privacy oriented coins to ensure about anonymity?

I agree governments must think about investing into cryptocurrencies if they want to make money from it but I do think taxes also will help them to make money. When you are even transacting P2P, for a product, if government is aware of production and sales of that product then either seller or buyer needs to pay tax for that. There are very less possibilities for governments to go unnoticing about the production of any goods.

So, government will definitely work on taxation for all bitcoin payments and they may or may not be showing interest on investing into bitcoins aside taxation.

That is something really stupid, you know that right? Where is it written that you are not allowed to tax bitcoin? Do you make the rules? Nope. The government will tax bitcoin. Taxes are one of their main revenue. If bitcoin isn't taxed, everyone is going to jump into bitcoin and no one would be paying any taxes. No matter how much you hate taxes, taxes are important to keep a country developed! Stop paying taxes and stop enjoying a safe environment with proper infrastructure and environment.

If any government accept the bitcoin or any other crypto as legal tender then there will be no taxes for using it but it may not happen, while everyone have to pay taxes for their purchases and income tax if they are earning above certain level what government determines. So pay your taxes because its one of the duty if every earning individuals.

Well afaik they aren't exactly planning to apply tax to BTC, but rather the transactions you do with it. It may be converted immediately or stored as whatever, they may let it work so that buyers still remain anonymous or whatnot. Not to mention that I doubt that we would even be able to completely remove the financial system we have right now, or at least, the control that the higher-ups have anyway (even if the system changes). So even if BTC wasn't taxable, they'd still have methods to do so since they'd still have a system implemented for transactions.

Due to the increasing popularity of cryptocurrency and many people who get their property through crypto, crypto is currently subject to taxes for every transaction. The crypto taxation system has been implemented in developed countries with different tax rates according to applicable regulations.

The cryptocurrency tax object will increase the country's tax income significantly.

What is a risk for imposing taxes on Crypto users is that the crypto price is very volatile. and certain assets will certainly experience a decline, and the tax imposed will remain.

Who says so? Government won't care whether it is bitcoin or not, if it counts as money, they will tax it, you don't mess with the bllod of the government, they know how to take you down real bad. Also what economic model are you talking about? Can you elaborate on that one.

I totally agree with OP, in fact BTC was made to eliminate all kinds of control by governments, banks, third parties, what happens is that as the adoption of bitcoin advances governments try to get their own slice of it It is now very easy for governments to say or impose that those who have BTC or even those who operate with cryptocurrencies must pay taxes. These things do not seem correct to me, Bitcoin is a totally different economy from the traditional one, also a government should not demand to pay taxes for cryptocurrencies if they do not trust cryptocurrencies, most of government are opportunistic and want to obtain liquidity at any cost.

That is why I think that in the near future, many people will prefer privacy and anonymity coins, because nobody likes them to identify how much money they move and where, and nobody likes to give a report on the origin of their money funds, because that's what the banks demand.

If we look at the history of imposing taxes, things are not done this way. Governments impose taxes on anything that brings them a return, and this may include anything, including drugs, in some countries.
Privacy-focused cryptocurrencies make it impossible for governments to track them, but other cryptos are easy to track.
Also, tax laws differ from one country to another, as many countries do not even know what Bitcoin is.

I don't think that OP is going to back in this topic, pretty sure this is a troll that wants to elicit an echo chamber of his/her thoughts and seeing that a lot of replies don't agree with him, I think that this is a failed attempt. Also what sort of economic model is OP talking about that makes bitcoin different?

Even though I wish so hard that raising our voices regarding taxes on Bitcoin would be heard, it is just not gonna happen. Governments want their cut and given numbers we have seen over the years, that cut is so juicy that they certainly can't resist.

They cannot implement taxes on the coins you have but at some point you will cash the Bitcoins for fiat, right?  That is where you will be caught and have to pay taxes.

In case we can build a community and market where everyone accepts bitcoins/crypto and we don't have to cash bitcoins for fiat then maybe some people would evade taxes but still, that is far away because bitcoin is struggling to get legal status in first place in most countries. For example, a lot of people use bitrefill and similar services to pay their bills and I don't think they can be forced to pay taxes because they are anonymous.

You are right there is a tax on whatever kind of earnings you make, whether you earn by crypto trading or you earn by mining them. One can evade taxes by using DEX but in all seriousness, I wouldn't recommend doing it because firstly you will be caught at some point and secondly the DEX have still not managed to sort the high transaction fees associated with Ethereum.

I guess you must explain why government should not apply tax on cryptos. Even I agree that government may invest into cryptos, but why not apply tax? If you have any other valid point for your argument, please add that as well which may help us to understand your perspective more easily.

Bitcoin is really not taxed, but the profits made from trading BTC are taxed. For the government, it does not matter how you got a profit, as long as taxes are paid on time. And if at some point you decide to withdraw your profit to a bank card, this will attract the attention of the fiscal service employees.

Taxes does not only have downsides. Taxes means for a specified asset you can declare both gains AND losses. In other words, if your gains are taxed in year 1 and you have losses in year 2, you can also declare the losses and reduce your overall taxable income. The taxation coin has two sides so to say. ;) You ned to use a wise strategy to maximize your positive outcome in the end.

The government will never be able to take tax from bitcoin because it is completely out of the control of the government. If the government invests in bitcoin it will make a profit but will not get any tax here everyone invests and makes a profit as they wish if bitcoin becomes an economic model the amount of investment in the economic sector will increase but not in the world of crypto. The government will be able to change the economic model for the conversion of fiat currency at will.

That is why some banks hate cryptocurrency. In my country, a lot of banks here don't accept money from Trading/cryptocurrency. They will either suspend your bank account or freeze it.
You need to be wise to withdraw your money here in my country. Withdrawing large money here will indeed stress you out due to its needed more works to approve it.

I imagine that your country is of a stable economy, that has very good liquidity, because it is the only way that they can track those who have crypto, very few economically developed countries that do not have any problem with BTC, in the case of countries with Hyperinflation also tend to have this type of controls, it is curious that the two opposite poles have this in common, of course there is a country that does not have any restrictions and is hyperinflationary in nature, this is the case of Venezuela, because this country is not prohibited from cryptocurrencies nor do they require any tax for using them.

The only restriction they have is for miners, who must register with a government body, of course this is to take control and know who is dedicated to this.

Do you really think that government would just let pass into those people who had earning lots compared to those who had typical day jobs?
Its already anticipated that government would really be finding ways on extracting out taxes out of those earners here in cryptocurrency which is really something huge and shouldnt really be passed.
Even if your personal opinion talks about that bitcoin isnt made to apply taxes on it but remember that those services out there connected with crypto transactions can easily be imposed or implement
or subject for them to follow up regulations which simply means that they wont really be having any choice but to comply or else say good bye into their business.

If the government buys cryptocurrency, it means that it supports and is optimistic about it. This will have a very positive impact on the market. Many countries do not realize that cryptocurrency is legal and legal, so they can only profit through taxation.

That will not be a problem for the government if they can only profit through taxation because many people will try to use crypto. And once they have the money, the government can start the tax for them. Maybe that will happen in the future once the government realizes what they should do after they accept crypto to make crypto grow more than now. The government can try to mining crypto use their unlimited resources and we know they can do that easily.

This is probably one of the most compelling reasons to invest in bitcoin, because there are a huge number of people in the world who do not want to pay taxes, these taxes were imposed from head to toe, and then old bitcoin turned out to be nearby, I think many invest in it knowing that they will not pay taxes in the future and in the present ...

Somehow to it you may have a strong point because bitcoin is decentralised and covers up the real owner as anonymous but I think if cryptocurrency account is tied or link to the bank and the government do have a task plan for that fiat account, then it should be tasked when money enters into it but on the real terms of bitcoin white paper, it is suppose to be anonymous but my question is whether government is making such income task remittance from fiat or cryptocurrency because if they ask for cryptocurrency then it is means bitting themselves.