Bitcoin Taxation: Major Challenge

[Pursuer]

challenge for who?
the government is always facing a challenge asking people to pay their taxes and this is not just for bitcoin it is a general problem because people don't want to pay taxes. and bitcoin is not yet that big to even be considered a large enough tax revenue for the tax authorities specially in most of the countries with small bitcoin adoption. they don't even talk about bitcoin since it is small and the number of people adopting it is negligible.

[jose111]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes. I guess it is fair enough for those who earned hundreds of thousands here in the crypto world. But for those who are just starting to earn, the government should not. Still, I am in favor of the taxation. But the government should also consider the status of the bitcoin's market price.

Actually in any part of our economy there will be a taxes. It is usual thing that the governments are putting taxes in any establishments or anything that can be the source of gathering income or profit. However, thee are times that the taxes given by the government are unreasonable that's why some of us are disagreed about it. But in the other hand it is good to pay the taxes when it's in reasonable value because this taxes are used to built a lot of government projects to be much enhance and developed our respective countries. Reasonable taxes are good for a better changes.

[CenaCena]

They will eventually tie your name to your Bitcoin address.  Before you tell me hell no it wont work look at all the fools signing up for KYC for a few pennies.  Now imagine the government threatening violence and jail time if you try to get around the system.  99% OBEY.  Now your stuck in the perfect tax trap with every transaction being recorded and public. 

Good point. I hadn't thought about that. They're certainly going to have to tie your name and your cell phone number to your Bitcoin address. Otherwise, how else can they trace your income and spending? Still, I admit we have to pay taxes because this is the way to pay for all the facilities a society usually needs.

[kaisa]

bitcoin is not an entity or services business, bitcoin is a digital payment tool and some say bitcoin is a commodity. Should be taxable is a provider of technology and exchanges because they obviously make money from taking fees from traders.
I think it's not fair if the government impose a tax for traders because the bitcoin fluctuations cannot be reconciled. so traders sometimes lucky but also a lot of losses.

[1Referee]

the government is always facing a challenge asking people to pay their taxes and this is not just for bitcoin it is a general problem because people don't want to pay taxes.

Because being forced to pay tax is no different from extortion.

Usually what happens if people aren't willing to pay tax, the government makes sure they freeze your salary, your bank account, seize your stocks or other digital assets that are being controlled by a central party. It's a measure to make you pay because they can make life impossible for you if you don't, because what will you do when you are stripped and have nothing left? They can't do that with Bitcoin you hold yourself.

Instead of people worrying about governments, ignore them and mind your own business. Stay away from centralized shit and you'll be fine.

[Andrew S]

Sincerely I do not understand what exactly we need the government to pay taxes on the crypto currency.  They did not create it, they do not get it, but they want to get the taxes.

[Reid]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes. I guess it is fair enough for those who earned hundreds of thousands here in the crypto world. But for those who are just starting to earn, the government should not. Still, I am in favor of the taxation. But the government should also consider the status of the bitcoin's market price.

I can say that I am a little bit afraid of that because my country is one of those who can put an enormous taxation on the income that I get, if they will do this personal percentage tax, this would be awful. Somebody would not afford that.

Yes.
Tax and transaction fee. That would really be itchy if you convert it to your own currency.

Then the widespread acceptance of bitcoin will again be slowed down. People looking forward to that will again be in dismay and would regret that they bought bitcoin. Again a panic sell could happen that could bring the value down.

Don't want this to happen so maybe they should stop the taxation and let it be. Besides, miners are already paying a lot of money for their electric bills and they are getting a lot of money from that.

[Theb]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes.

Uhmm if you don't know even properties or assets have taxes, assets such as real estate and stocks are taxed under capital gains while money coming from your job or other ways of earning money are taxed via income tax. So even if Bitcoin is counted as a currency it can be taxed by two ways which is either capital gains or income tax or even both. It will be capital gains tax when your BTC increase its fiat currency value and it will be income tax if your earn BTC as a form of payment, also you can be tax with its capital gains if you decided to hold it rather than converting it right away to fiat currency. The bottom line is no matter how you earn BTC or any other cryptocurrency the government will always have a cut on it by way of taxes.

[richardsNY]

Besides, miners are already paying a lot of money for their electric bills and they are getting a lot of money from that.

The smaller miners are mining expensive coins, where the larger farms have the financial resources to plant themselves in more than cost and tax friendly regions. On top of that, they can also demand far lower electricity prices by promising to purchase an insane amount of gigawatts every month. Miners are wanted buyers because they are very consistent with their electricity consumption, which means that the electricity supplier has to waste less of its own resources to make sure you get what you need. We as home electricity consumers are the worst in that regard -- we are responsible for one of the highest percentages of electricity waste in the world.

[Oliveir]

If they want to place tax on Bitcoin as property then they should have ICO program also or project that will determine the total tax of you Bitcoin depending on the price of Bitcoin that day you pay the tax....

[Girlsbit]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes. I guess it is fair enough for those who earned hundreds of thousands here in the crypto world. But for those who are just starting to earn, the government should not. Still, I am in favor of the taxation. But the government should also consider the status of the bitcoin's market price.

In general, no one should pay taxes for the crypt.  This program is not government, they have no influence on it and no support.  So what should we pay for ?!

[Irvinn]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes. I guess it is fair enough for those who earned hundreds of thousands here in the crypto world. But for those who are just starting to earn, the government should not. Still, I am in favor of the taxation. But the government should also consider the status of the bitcoin's market price.

Not so many governments consider bitcoin as a property. Most states classify bitcoin as a financial asset, some as a means of payment and units as a commodity. I was recently surprised by the news that according to the conclusion of a special commission set up by the Government of India, bitcoin can be recognized in this country as a means of payment, that is, as money. This is after so much time the crypto currency was in this country on the verge of prohibition. So it's not all that bad.

[cryptocity90]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes. I guess it is fair enough for those who earned hundreds of thousands here in the crypto world.Miners are wanted buyers because they are very consistent with their electricity consumption, which means that the electricity supplier has to waste less of its own resources to make sure you get what you need.

[KorakPawon]

this means that the government in your country recognizes bitcoin even though it considers it as property, and if it is taxed it has become reasonable because it has become a regulation and is a duty as a tax-ordered citizen.

[Cukfuk]

There should be no taxes on possession. This is silly. Tax on income when selling and transferring money to a bank account - this scheme is quite acceptable.

[Hedda Gabler]

I also strongly agree with taxation, but whether all taxable and if we suffered losses in trade and still be taxed it will make us more loss.

From what I read, if you don't make profits in bitcoin you don't have to pay the tax.

[RodeoX]

I also strongly agree with taxation, but whether all taxable and if we suffered losses in trade and still be taxed it will make us more loss.

From what I read, if you don't make profits in bitcoin you don't have to pay the tax.

People just don't seem to get taxes. in the U.S. you owe capitol GAINS tax. You owe on the profit you made and can actually claim a loss to reduce your taxes if you lost value. Capitol gains are LESS than income tax. If this was income you would likely owe about 35%. Be happy we only pay cap gains. 

[Spaffin]

I also strongly agree with taxation, but whether all taxable and if we suffered losses in trade and still be taxed it will make us more loss.

Taxation should not be attributed to losses. They vseravno we have to pay, we want it or not. In order for the crypto currency to be accepted by the state, we will have to do it. Otherwise, the state will introduce various restrictions on the crypto currency. It will be even worse. However, I admit the possibility of concealing in some cases some operations from taxation, when they obviously can not be taken into account by the state. However, in general, for the whole mechanism to work, taxes should be paid.

[1Referee]

In order for the crypto currency to be accepted by the state, we will have to do it. Otherwise, the state will introduce various restrictions on the crypto currency. It will be even worse.

We shouldn't want crypto to be accepted by the state, and we don't even need it.

Bitcoin's glory days were <2013 years where the majority of the people were actual admirers and users of the utility. The speculative aspect was just an unwanted side effect. Now it's the complete opposite; people want banks, governments, institutions, hedge funds to start welcoming Bitcoin. Why? Just so they can sell high and then exit the market.

Let governments suppress Bitcoin as hard as they can, it will help Bitcoin's utility shine again, which is that decentralized local economies start to emerge and we can focus on that what really matters. Less mass use = less need for scaling solutions = great for everyone.

[Zalura]

Bitcoin is now considered by the government as a property, not an income . This is the reason why they want to put taxes. I guess it is fair enough for those who earned hundreds of thousands here in the crypto world. But for those who are just starting to earn, the government should not. Still, I am in favor of the taxation. But the government should also consider the status of the bitcoin's market price.

I think about taxation not only the government wants to take income from the owners of bitcoin, but it is possible to monitor or try to prevent fraud from criminals who use bitcoin for their money storage. And I think the tax taken is not too large compared to the value from the asset itself, so for the owners of bitcoin it's not a big problem.