Bitcoin

Bitcoin Tax Payments May Happen Sooner Than Investors Think

Published

7 months ago

30 June, 2024

SatoshiTimes Staff

Bitcoin Tax Payments May Happen Sooner Than Investors Think

Crypto Payments, Even for Taxes, Could Occur Sooner Than Investors Think

Getty Images

As the institutional and regulatory pivot towards more pro-crypto, or at least less anti-crypto, stances and positions continues, there remains one specific area where progress has remained very limited; taxes and tax treatment. While crypto investors and advocates have had some success vis-à-vis the SEC, both in court and in terms of public perception, the IRS has been less open to change. In all fairness, it is the IRS’s prerogative to enforce current tax laws and interpret those laws; It is up to Congress to change existing tax laws before the IRS can change enforcement mechanisms. That said, the IRS has been active in issuing cryptocurrency tax announcements, responding to frequently asked questions, and providing public comments on these topics; conversations that are often helpful but have not resulted in any changes in tax treatment.

Building on the momentum that has recently gripped Congress in the form of 1) rebuke of SAB 121, 2) House passage of FIT21, and 3) influence of Crypto SuperPACs, Florida Representative Matthew Gaetz has introduced a account that would allow U.S. taxpayers to pay federal taxes using bitcoin. Two of the major changes this bill, if passed, would bring about are a change to the IRS tax code to allow for such a payment option, as well as enlisting the U.S. Treasury to develop and implement a system to allow for bitcoin tax payments to be processed.

The likelihood of this bill becoming law is low, especially since cryptocurrencies were a late addition to the list of key issues for the 2024 presidential race, but there are a few factors worth considering.

It wouldn’t be the first in the US

One piece of information that may surprise some crypto investors is that this proposed legislation is not the first time this has been suggested, but it is also not the first time that paying taxes with bitcoin has happened in the US. Ohio was the first state to launch a pilot program allowing residents to pay certain state taxes and other fees using bitcoin before postponing the program in 2019 due to technical issues. Following this pilot, several others States including Colorado and Florida, both of which allow residents to pay certain taxes and fees using bitcoin.

Regardless of whether or not Representative Gaetz’s proposed legislation moves forward in any material capacity, the fact is that there is, and has been, an appetite at the state level to allow taxpayers to pay certain expenses using bitcoin. Government mandates and incentives, however, are only one part of the broader story of cryptocurrency, or the economic appeal of any asset class, and these efforts ignore a fundamental issue.

Do Bitcoin Investors Really Want to Pay Taxes Using Bitcoin?

Who would pay using Bitcoin

Tax policy aside, it’s important to remember that most bitcoin is not likely to be traded, despite retail discussions on social media and recent institutional buying. Even taking into account recent profit-taking amid the 2024 bull market, the percentage of bitcoin that has not moved in the past 18 months remains at more than 60%. Long-term holders are not a new phenomenon in the cryptocurrency market, but the fact that such a large percentage remains unchanged despite recent market rallies is indicative of bitcoin investors’ apparent low interest in spending their assets.

In addition to the long-term belief that investors have in these assets, and remembering that for many bitcoin is an asset class and investment like any other, the tax treatment and accounting requirements for such transactions represent a significant obstacle. For example, being able to pay federal income taxes using bitcoin is nice, but if any other transaction generates a tax liability, tax reporting obligation, and potential data collection and preparation headaches, this will continue to deter the use of bitcoin as a means of communication. exchange.

Integrating crypto payments is good policy

As it remains unlikely that any bill causing substantial changes to US cryptocurrency policy will become law in the short or medium term, analysis of any specific piece of proposed legislation may seem like a moot point. This ignores the larger importance of these proposed changes, as the popularization of the idea of cryptocurrency payments across industries is a sign of how far the conversation has quickly advanced. Gone are the days when the SEC had undisputed influence over the regulatory conversation, facing several setbacks and a recent lawsuit filed against it by Coinbase. In its place is an environment where, while still controversial and viewed with suspicion by some policymakers, crypto and tokenized applications are finally emerging from the shadow cast over the sector by the collapse and criminal activity at FTX.

Cryptographic and other tax payments continue to move from concept to reality; This is good news for crypto and US innovation in general.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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