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A student's tax encryption fight
November 2018 saw a post Reddit of a university student in difficulty on the subject of taxation related to encryption. The student invested $ 5,000 in the encrypted markets in early 2017. Through exchange and investment, the student turned $ 5,000 into $ 880,000 by the end of 2017.
In our simple world, money buys money and power gains power. And for many of us this was changing, this was questioned by the advent of the criptos because blockchain is right. It's easy to stack even on the blockchain, you're free to stack your wealth here. But the currency really does for everyone that for everyone with money.
Due to the 2018 crypto bear market, the student's portfolio only valued $ 125,000 at the time of his post on Reddit. He said he still has $ 400,000 in taxes for his taxable crypto-encryption events in 2017, although he said he never sold his fiat wallet. Tax regulators must pay serious attention to this drama. It's much more than a case study and it's a problem of the future, these things are holding back this technology. The reforms are behind the corner, but who knows if they will be enough and too much or too little, too late.
This means that people struggle when they are losing and people struggle when they are not. Does this also mean that people are all at a loss with or without cryptos, perhaps with them perhaps? The system is slow and inadequate to deal with these tragedies and the laws must be changed, perhaps it will take a long time, who knows how many are rubbed in the wrong way up to then.
Why are cryptographic taxes so confusing?
Monitoring and recording these events is difficult. The ups and downs of the crypto are difficult but it is a new market and the rules are not yet clear.
Coinbase records large amounts of transactions and transactions for each customer, but most bags do not. Complications escalate when encrypted users store their funds in wallets or wallets like Exodus that can exchange cryptographic resources for users. Escapism is possible, but nobody would go so far from the increasing complication and technicality of things legally.
Furthermore, most cryptocurrencies can only be purchased with bitcoins. If someone wanted to buy any other cryptocurrency, he would need to buy bitcoins with fiat, send bitcoins from Coinbase to an exchange that exchanges the desired cryptocurrency and then buy that good with bitcoins there. It should therefore record all amounts, prices and other data applicable during the process of such exchanges.
Kind exchanges for crypts would mean allowing taxable events to be carried out only when they are sold encrypted for fiat. This means that the purchase of ethereum with bitcoin would not trigger a taxable event until the ethereum is sold in fiat. In other words, the taxation would have occurred in the face of any gain or loss deriving from the acquisition of the asset for fiat, based on how much USD had originally been invested. This is very simple and would allow people to be taxed more equitably. As for escapism, well, nothing is more feasible in our world.
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