Id like to just to put this out there, since no one seems to be talking about it. I don't believe a lot of people who participate in the CRYPTO markets factor in this tax into their profit margin. ITS A HUGE CHUNK OF CHANGE. What are some ways, besides holding on to profits in cryptos, everyone out there would theoretically use to avoid this tax? I know noone out there would ever do this since its against the law, but if you are like me, your are MAKING MONEY HAND OVER FIST, and now you have the first world problem of how to theoretically protect your wealth from the vampire government.
1.Would you just cash out low and slow so there is no huge increase in income that would be labled suspicious?
- What is the highest dollar amount you can cash into your bank account at a time while remaining under the radar?
- Buy gold and silver with cryptocurrencies in states that do not tax precious metals (real money)?
- Buy gift cards with cryptos to then purchase hard assets?
Also, if for whatever reason the government found out that you had Bitcoins that had gone up in value 2000% and demanded capital gains tax for them, what would you do?
Can they prove that you even have them if they aren't on an exchange? (Coinbase transaction records that are released to the IRS which I believe eventually will happen)
Would you just say that you forgot your keys and they are all gone?
Do you think they would still charge you even though they couldn't prove it?
What if you live in a nice house and have a nice lifestyle, yet when they come to collect you have no cryptos?
How far do you believe they (government/tax enforcement/money laundering police) will go when they get desperate from losing all of the tax revenue?
THEY WILL BE FIGHTING TO COLLECT FOR THEIR VERY JOB/EXISTENCE! When it comes to feeding their families, I believe drastic measures will be put into place.
How long do you estimate it will take for retailers to start accepting multiple cryptos?
Businesses will save tremendously on transaction fees. As the world falls into the coming economic rough spot, only the best and most innovative will survive. Do you believe they will begin relatively soon out of necessity just to weather the storm?
If the government cannot prove that you have cryptos to tax, maybe they will pressure businesses to not accept privacy coins such as DASH,BYTECOIN, AND MONERO, making all of their customer's transactions traceable! OR, will they flag you and and demand all transactions/ bill payments are transparent to make sure that you aren't a domestic terrorist/ money launder?
I may just be paranoid, but this technology literally EFFECTS THE GOVERNMENT AS WE KNOW IT AT AN EXISTENTIAL LEVEL! Governments cannot create profit/value, they can only take it from you and give it to others (mostly themselves). If the money/transaction system they use to track and enslave their populations goes away, who provides their paychecks? NOT US, NOT ANYMORE! Besides, how much will their fiat paychecks even be worth in the near future?
Bottom line, this will affect everyone's life tremendously whether you are in cryptos or not . WILL IT BE FOR THE BETTER? WHAT WILL THE TRANSITION PERIOD LOOK LIKE? I may be paranoid ( I am), but I would like other people's thoughts and opinions for the questions above. Lets really think in depth of what this would look like in the near term.
Thanks,
R