Crypto Frontline

Bitcoin Taxation – Is This A Real Issue?

Bitcoin Taxation – Is This A Real Issue?

Bitcoin Taxation – Is This A Real Issue?
February 13
08:16 2018

Even though Bitcoin is the most popular cryptocurrency and also the most valuable, people that invest in Bitcoin could face some problems. The Bitcoin taxation is the issue that needs to be discussed and if you want to invest in cryptocurrencies in a professional way, you need to take it into account.

Statistics show that people are avoiding taxes

Since cryptocurrencies give their users a certain degree of anonymity, it looks like the people are exploiting this feature in order to get rid of taxation. Recent statistics from the US point out that just 0.4% of all the American taxpayers had declared income related to cryptocurrency. That number is raising serious worries since it is estimated that around 7% of all the Americans are involved in one way or another in the cryptocurrency industry.

People don’t understand that even though they know some things about Bitcoin and realize that they have a certain degree of privacy using it that does not spare them from paying taxes. The year 2017 had been the best for Bitcoin since it appeared and most of the people that invested in it managed to generate returns. Despite that, the number of people that managed to declare those incomes is still reduced.

That will surely raise concerns among public officials and the need to implement some measure in order to correct that problem. People need to understand that even though Bitcoin had a good performance in the last few years, they should pay their taxes.

The IRS had been successfully sued Coinbase, one of the leading cryptocurrency exchanges in the world, after just 802 people had reported gains/losses for Bitcoin in the year 2015. The court decision forced Coinbase to release information about 14,000 customers that had an account.

People need to understand that paying taxes is the right way to do things. They need to treat cryptocurrency investments like an ordinary business and that means Bitcoin taxation is a must and it should be considered by all of the people that invest in it. No matter what you are investing in, you need to respect the law.