Is Tax On Cryptocurrency Actually A Good Thing?steemCreated with Sketch.

in money •  last month  (edited)

Hey JessTaxpayers

As I continue to talk about cryptocurrency no coiners will ask me questions I don't often consider and one of them was about tax on cryptocurrency. I'm not too sure about how it works in various parts of the world but in South Africa tax on cryptocurrency is only applicable once you cash out into poisonous fiat. While this can be avoided by selling your BTC peer to peer, most of us would sell via your local exchange with KYC so you will be liable for tax on capital gains.

The only other way to avoid paying tax is to keep your holdings within the blockchain and never selling. You can still get fiat from it by taking out a loan backed by your crypto holdings or protecting your purchasing power from volatile by converting into a stable coin like USDT or a range of others.

Image source: - reddit.com

The penality for cashing out

The way I see it now is having a tax on cryptocurrency is the price you pay for wanting fiat and an incentive to keep your crypto. It's also an incentive to start accepting goods and services in cryptocurrency and avoid the tax implications of paying in fiat in your local currency.

I think that regulation is a good thing because it sets the precedent for those who want to work between fiat and crypto that they will have to give up purchasing power and certain freedoms when they cash out and think twice about taking gains.

Image source: - masterthecrypto.com

A future where you don't need to cash out

I think as cryptocurrency users we can't rest on the idea of one-day taking gains its an indifferent system. We should be increasing the velocity of crypto by allowing more people to trade goods and services directly in cryptocurrency. The more ways people can spend, earn, sell, buy and get things they want, the more legitimacy these coins will get and people can see the practical use of a coin.

Have your say

What do you good people of steem think? Have you paid tax on your gains? How painful was it?

Holla at me in the comments! All my commenters I will now refer to as Jessie. Jessie is a good friend of mine, but Jessies got a girl, and I want to make her mine.

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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I sell Bitcoin in person for cash - finding a buyer is not a problem

Posted via Steemleo

Now we talking, that's sort of how it should be instead of using exchanges, we should have DEX online and in the real world

So it will be - we are rushing things too much - mass adoption will happen in 5 years - by this time all the tools should be ready. There is still much to come up with and do.

Posted via Steemleo

Lol I totally agree with you! Those of us who are already in the space and see the potential are naturally excited so for us it feels like it’s taking long but for most of the world it will feel like an over night change

Lol is human psychology - we know a lot and therefore the time is slow for us - it took 100 years for people to accept the truth “the earth revolves around the sun” I think you yourself understand that for mass adoption there are very few tools and a lot of artificial “brakes” but it's good - the crypto industry is not ready yet / we are on the train and this is the most important thing 😁

Totally I'm learning that slowly but surely, humans can't understand exponential growth until it happens. They like to compare something with something they already know so when its new and they don't have a measuring stick it freaks them out.

On your second part such a good point, we don't want to sink the titanic to prove lifeboat works, we have time, but not much to keep building and improving the tech and have it ready for the adoption curve we have that I think as it compounds each year we still won't be ready for even when we think at this rate its slow

Yep, it seems like the trick is to never go back to FIAT again. 😂

That's what i'm thinking, HODL until we have the ablity to use it directly and continue to enjoy the benefits of missing out in inflation

They lock us out expecting us to beat ourselves bloody trying to get back in.
#goodluckwiththat #byefelicia

Lol little do they know its making us more resourceful and pretty soon we'll be able to work without them, their regulations and all those conditions that come with using fiat

Would love to be able to things I need with crypto not having to go trough the fiat system.

Posted using Partiko Android

Me too, I'm still waiting for the day I can purchase a beer directly from funds in my steem account and then post about it and earn the beer money back lol

You're serious aren't you?

Posted via Steemleo

Lol yes, I am, I feel like every day I become more radicalised in crypto and disillusioned by the current system. Not sure where this ends but I'll keep going down the rabbit hole

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