[dtube] Earning Bitcoin Can Be DANGEROUS - Here's Why

in cryptocurrency •  7 years ago  (edited)


Since I speak so often about the positive aspects of using cryptocurrencies, I thought I'd touch on one of the negatives today - taxes.

The volatility of cryptocurrency prices can potentially lead you into trouble with paying income tax on cryptcurrencies that you've earned if prices crash afterwards.

If you can't pay your taxes directly in cryptocurrencies, then it's essential to make sure you have some fiat cash saved to ensure that you can pay whatever income taxes you're liable for.

DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.


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thanks for sharing!

Hey @louisthomas, great topic! This is extremely important, especially due to the public blockchain we have with Steemit. My good buddy @lpfaust speaks to these points here in the US. It's actually one of the ongoing topics of our new radio show on MSP-WAVES, Voices from the Mountains.

Sounds cool. I'll have to check it out some time :)

We actually just started the show, but yeah it'd be great to have you there. We have an ongoing satire element that's being written that speaks specifically to cryptocurrency advice, such as tax and other things.

Great blog, by the way. Just found you today on @dtube. Glad to know how it's been going well for you, too. I've been loving it here.

paying taxes on crypto gains is going to be difficult, because my balance can drop by 30% from day to day

Yea it sucks we have to pay capital gains after each trade now. Important to record all your activity for tax time.

To your point, it can be a significant event if you for example make a ton of money on one trade, sell and buy another stable coin like ETH right now, then have to pay a big hunk of change in taxes. You may not have that fiat to cover the tax!

Good topic and an important thing to consider when handling your trading and portfolio.

This would suck .... purchased Bitcoin early 2017 for $1,000 the sold in November at $15,000 🤑🤑🤑 bought back in (FUD) in December at $16,000 and held back down to $10,000. You Would owe taxes for profits in 2017 but do you sell at a loss for 2018 ? Could be a good problem to have....

Hi, Louis,

Would you like to host a virtual crytocurrency competetion event? I just came out idea, which you may interested.

See details in my post:

https://steemit.com/cryptocurrency/@let-it-fly/virtual-cryptocurrency-trading-competition-a-proposal-to-share-the-best-trading-skills

Nice post i like your post

Hmmm, this does seem to be a big problem... I agree the best way would be to pay taxes in cryptocurrencies. I'm sure in the next 1-3 years governments will start accepting cryptocurrency for taxes.

Taxation is theft

Hi, great post, worth a follow.

if they placed taxes for having btc or cryptocurrencies it would be impossible to calculate by the volatility of the market!!

Interesting content as always. Can you elaborate on how you're earning Bitcoin, is this solely through producing content? Cheers

This is very informative writing .and basically it very important for me.I become very helpful from your blog.Thanks a lot,keep it up

Can you maybe avoid paying taxes if you keep your wallet ID hidden and make payments in BitCoin whenever possible.
So then the government doesn't know about those transactions to and from that wallet and they won't bother you with taxes.

Why would governments help out the biggest threat to their power?