Are American tax laws holding Bitcoin back?

[BitHodler]

I mentioned in another thread that even faucets micro wallet (FaucetHub) is stop working with faucets, AML5 requires that each user be verified which is insane for people who click for few a few dollars a month.

That's unfortunately the unwanted side effect of this industry getting more mature. I still think that we haven't seen the worst of what regulations will be imposed on crypto as a whole.

It's simply impossible to grow your business when you play by the rules, which is a damn shame because that could potentially slow down adoption. People wanted crypto to grow larger and larger, well, here they have it.

In a year or two probably everything centralized will require some degree of verification. 

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[bitvalak]

Some countries have already called bitcoin as a commodity asset, not as a currency exchange tool.  There should be no tax to be paid.  In the future it is possible that bitcoin still has the potential to become a currency when all bitcoin has been mined.

[sovie]

Governments are in no mood of showing soft mood towards cryptocurrency be it USA govt or china. This is something we have to accept. With rise in adoption of bitcoin, we will see more such strictness from government bodies. bitcoin has to survive on its own.

[tartibaya]

I think it would be dangerous to try to get a tax on Bitcoin. Claiming Bitcoin taxes means getting to know him officially. And what kind of tax will you impose on people? There may be injustice in this case. People can only store bitcoin. Imagine that the dollar was not used.

[Asmonist]

This is really so painful for tax payers but we have nothing to do with it as law abiding citizens. Somehow this may also some of the reasons of holding bitcoin back. American tax laws are really so strict and some countries are somehow adopting to it as well.

[theskillzdatklls]

The answer is obviously yes. Governments and Bitcoin's incentives are almost entirely opposite. Which is unfortunate because any wholesome government that truly wanted what is best for it's citizenry would be working to figure out how to utilize this technology for good. But the lack of transparency, corruption and all the rest is in part how governments thrive. So yes, they will hold back such markets, both by policy but also out of self-preservation more than anything.

The one major thing is that they have to take it at least some % seriously because if they totally stop innovation and allow other countries to monopolize the technology, they can fall behind which they don't want either. So it's a very tricky one for them to operate with, and I'd argue very hard to predict as well the overall outcomes 5-10-20 years down the road with respect to their overall policy/plan.

[carlisle1]

It is my understanding that in America, every cryptocurrency transaction has to be reported as a capital gain in the end of year taxes. That means for every trade or every cup of coffee you buy with Bitcoin, you have to report capital gains. Someone correct me if I’m wrong on this.

Basically if this is true, then essentially in America right now, Bitcoin is just a long term investment rather that a method of payment. Could this be holding Bitcoin back from a greater potential for value?

how could this bring bitcoin back?every individuals worldwide need to pay taxes in every profit they gain so what should be the mistakes in paying taxes about for a cup of coffee?
this is the problem in misinterpretation about the advantage of crypto,people think that because crypto is decentralize they think that all of them are save in paying taxes .if this is all our views then expect no progress we will be facing even if we took another 10 years from now.

[DreamStage]

I do not think such thing will be happening.

Laws are what many countries that want to make usage of bitcoin are looking for.
As to make it legal thus making it worth buying / selling for and using within those country.

That also grows that specific country's economy as it is a solid +1 on both sides:
- Making it legal in a certain way
- Making it profitable in terms of economy growth

[Murat]

of course, it's true for some reasons, It's true that US tax authority has taken some steps towards Bitcoin and Cryptocurrency for maintaining their economy in a proper way, I think if Bitcoin holders and the trader will pay their tax according to their income tax so there is nothing hassle they will face, I think still Bitcoin is a tool for holding money not payment tool, so when you have stored your money by Bitcoin then you have to get helped by your lawyer, I think it doesn't mean any special thing or any disturbance to this platform.

[AntonDalrymple]

No one of the government could not be wish to distroy their financial income source, Even they are alway desire that the all type currency will be transact in ligal way, so that reason amireca will not be take any typrs of terms bywhich cryptocurrency counted as a unbenefited trading. so if we have to buy every cup of coffee with Bitcoin;it will be more benefitable for economical support as a effective laws.

[Xxmodded]

United State of America is not allowed using bitcoin as legal currency payment and not available without become legal currency can take tax laws, need to make legal first and government can get and apply about how many percent for tax from bitcoin transaction or currency digital payment transaction of bitcoin, without get legal government not have chance to get tax laws from bitcoin and altcoin.

[Reatim]

Some countries have already called bitcoin as a commodity asset, not as a currency exchange tool.  There should be no tax to be paid.  In the future it is possible that bitcoin still has the potential to become a currency when all bitcoin has been mined.

what?need to wait for all bitcoin to be mined before becoming a currency?do you know how long would it take for the last bitcoin drop will be mined?until our generation end Bitcoin will be still mining because the more bitcoin mined the longer the time it takes.

so don't say that because it is too close for impossibility ,we will be seeing crypto specially bitcoin to become currency sooner,maybe not in whole world but in majority

[moviebuff777]

This is basically what the situation is in the US. Although I’m sure that many people don’t record all of their cryptocurrency transactions in their taxes. At some point, the government is got to be able to track transactions more effectively and it will impact the growth of Bitcoin if the laws don’t change.

[puertorikosena]

I think that it’s not very convenient to use bitcoin as a payment for goods or services. It does not depend on income taxes. It is just not convenient. I think for daily calculations there will be a stable and generally accepted cryptocurrency. But these factors will not affect the number of Bitcoin holders.

[chaoscoinz]

It is my understanding that in America, every cryptocurrency transaction has to be reported as a capital gain in the end of year taxes. That means for every trade or every cup of coffee you buy with Bitcoin, you have to report capital gains. Someone correct me if I’m wrong on this.

Basically if this is true, then essentially in America right now, Bitcoin is just a long term investment rather that a method of payment. Could this be holding Bitcoin back from a greater potential for value?

It's a matter of looking at the glass either half empty or half full. Bitcoin was designed to decentralize transactions of a digital asset acting as a currency, operating within a peer-2-peer based network. The number of assets is scarce being 21 million exact. People adopted  Bitcoin then supply and demand handled the rest, while accompanied by a small (at that time) but budding community. I think that in order to take the next step the regulators have to regulate and issue guidance because this a a new frontier operating within some gray areas because it doesn't quite fit the mold within current legal policies on everything.
  One mold it does fit is the tax sector. The IRS has taken the first initiative to shine a light on a dark road that hasn't been full paved yet. The SEC is the second which told us to use the "Howey Test" to help us the investor navigate these legal gray roads that many cryptocurrencies are leading to!

[Murat]

It's very clear that the USA has always taken steps against this Cryptocurrency system, they are trying to stop this Bitcoin and Cryptocurrency system in their territory but their people still want to get attached to this Cryptocurrency system. when the matter is tax-related then obviously it should be very realistic, you should offer them based on some legal framework which is feasible to the people, I support the tax system because it's the only pillar of any economy.

[Bim abk]

It's very clear that the USA has always taken steps against this Cryptocurrency system, they are trying to stop this Bitcoin and Cryptocurrency system in their territory but their people still want to get attached to this Cryptocurrency system. when the matter is tax-related then obviously it should be very realistic, you should offer them based on some legal framework which is feasible to the people, I support the tax system because it's the only pillar of any economy.

maybe because of their habit of making bitcoin is still used even though the country has made new rules, and indeed it is possible that those who can end this problem are favorable rules for the country and the user. tax is one of the ways to implement the rules because taxes are the state revenue used for state needs, they must find a middle ground for this problem.

[sisule]

Never hope with American will legal using bitcoin as currency payment, they will banned all digital currency payment if can take competitor for USD, ten years after bitcoin running to public and raise higher price above 16k$ but American never interested with bitcoin because can make their money currency USD down and not be interested with many people.