Last year most people became millionaires when the market for cryptocurrency spiked. The bitcoin price increased up to 1,500 percent more as compared to its cost when it dived. Recently, Ted Bauman published an article at Banyan Hill concerning a big issue for the users of cryptocurrency. Ted has been writing for Banyan Hill Publishing since 2013. Ted has extensive experience as well as knowledge in low-risk investments as well as asset protection. In addition to this, he is also an editor of other threes newsletters dealing with investments. He is an expert in asset protection and securities, and so his advice about cryptocurrencies is highly valued.
In a meeting that took place recently in New York, Ted Bauman claims that most users of cryptocurrencies are worried because they are now aware of the tax implication of transactions and sales of cryptocurrencies. Those who had vast balances of cryptocurrencies and were able to sell them in December made robust profits because the value of bitcoin was very high. However, other new cryptocurrencies have suffered a significant drop since the start of 2018. Coindesk claims that this suffering has been brought up by the negative news as well as buyer fatigue. Moreover, China’s restriction on products from overseas for local buyers also contributed to the decline of cryptocurrency value. From its highest point in 2018, the cost of bitcoin has dropped by 50% and more.
Ted Bauman and Ian King discussed calling them crypto assets instead of cryptocurrencies. Ian King is a contributor to Banyan Hill Publishing who has more knowledge when it comes to cryptocurrencies. According to the duo, investors should treat cryptocurrencies as assets because that is how IRS treats them. When an individual trades or sells a digital currency for services, goods or other currencies, that person creates a taxable gain or loss.
Ted Bauman claims in his article that many investors of bitcoin confessed that they have never paid taxes for their transactions. Moreover, some argued that they are not ready to pay taxes even soon. Bitcoin came into existence as a government-free currency by Satoshi Nakamoto. With blockchain technology, Nakamoto was able to strengthen the currency anonymously. However, blockchain technology does not allow it to be hidden from IRS. The agency came up with a team to evaluate the use of cryptocurrency in connection to tax avoidance. The agency realized that out of the 6 million people who bought cryptocurrencies, only 1,000 reported investment gains on their taxes.