A recent study conducted by the online credit cleaning agency Creditkarma revealed that only around .04% of crypto traders decided to file their earnings with the IRS. The reasons for this lackluster response to the IRS's new crypto tax scheme is obvious but to put it in easy to understand terms...... it boils down to a mix of not knowing and really not caring.
*Now here I will put a disclaimer I like to call the booty save clause: I do not recommend you avoid paying taxes. I love the IRS and I have long contemplated getting a tattoo on my arm with their initials to always make me feel like they are close. That being said….
Ofcourse, no one is paying their crypto taxes.....duhhhh. Most people are looking at the shambled economy and they are seeing a Soviet-style collapse in the winds (probably will sound like a fart). The decentralized economy is the results of this obvious and unavoidable collapse of the US dollar and her fiat friends. It will undoubtedly take the IRS a couple more years to figure the current crypto technology and by that time more privacy features will develop.
That’s the beauty of cryptocurrency. It is simply a code that is extremely difficult to hack due to its use of Hashs and redundancy on the blockchain. The more difficult the code, the less prying eyes will be able to monitor the contents of the information. Be that a value store, currency, digital representation of a physical object, or a smart contract.
Math Always Wins
Much like Pythagoras of ancient times, math is the king of our new culture. New and better coins and protocols will develop as the older ones become less efficient. Cryptography is enjoying the added investment revenue into research and development and through constant improvements, cryptos can provide more anonymous transactions.
Coinbase Selling Your Ass
Coinbase has lost the rights to thousands of their customers private crypto trading information in a court case with the IRS. The results stated that anyone who had purchased more than $20,000 in cryptocurrency between 2013 and 2015 were to be handed over like some dirty dogs. The resulting 140,000 Coinbase users can expect a hefty fine from the IRS if they didn't file their earnings.
It probably wont be long until Coinbase opens its books completely to the IRS. They are well past the point of surprise failure and the IRS has been turning up the heat on these guys for months. Im just saying you shouldn't expect Coinbase to burn your information if they are raided in the coming months.
Move to Puerto Rico
The best advice I can give someone looking to trade serious crypto is to move to Puerto Rico. You do not need a passport and the island is already showing growing support for BTC and other cryptocurrencies. While all of this is still in the early stages, the favorable tax laws will help you to follow your crypto trading aspirations without interruption from three letter organizations.
What Do You Think Steemaneers….Are You Going to Send Uncle Same Some of Those Satoshis or Not?
It's complete BS how Uncle Sam wants to take over 30% of our earnings which the IRS has NO involvements of our earnings to begin with. One of the main reasons cryptocurrencies exist is to take the middle man now and deal with money out of the government's control. I still wouldn't recommend anyone to evade paying taxes tho... cause if you don't, the IRS will murder you financially to the point that the rest of your life if ruined and unless you have Bill Gates money, you won't be able to get out of their insane fines :P Great article! Upvoted!
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So true brother. Hands in our pockets
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