Just after the Christmas, Trump has become the Santa for the Bitcoin Investors by indirectly accepting Bitcoin by levying a tax on the same. The indirect tax of US Govt. named “labyrinthine tax” had been off-late introduced with a good amount of positive changes for the American Bitcoin Investors.
Here is the excerpt from the decision, and how it is going to affect the Native American investor
After 31 years such big decision was expected to give market a boost, though none of the American has ever expected such type of bill which can slice seven income bracket to four and taking them on the down in respect to the tax structure.
For bitcoiners( a term used for Bitcoin investors), it can be considered as An Act to accommodate compromise compliant with titles II and V of the simultaneous determination on the financial plan for monetary year 2018 duty enactment, marked into law by President Trump, shuts a potential significant provision.
Since this tax will help the bitcoiners in the following way
- Tax should be paid on Bitcoin trading
Whereas changing bitcoin into fiat was taxable, buying physical things with crypto was taxable, now even crypto-to-crypto is taxable, effectively making all bitcoin transactions, well, and taxable. And the change is implemented start of calendar year 2018, mere days away.
- One can pay tax on Bitcoin in Bitcoin Cash
Anyone who will be taxed for trading in Bitcoin needs to pay the tax on it. Since Bitcoin does not have a real value or identity, accordingly the new rules shared by Mr. Trump calls for paying taxes via Bitcoin Cash. This decision had actually recommended Bitcoin as a financial instrument in which trading can be done and taxes can be paid. In his support, the Treil team of Trump says that it was necessary as the American investors in Bitcoin were increasing every day.
- Will increase its acceptance as global currency
If a country which drives the economy is accepting Bitcoin, then definitely it will boost the market of Bitcoin and other Crypto-currencies. It promises a strong legit currency finding in the form of Bitcoin.
As per the New York Times every day, a total of 2.5K American investors were increasing who are willing to invest in Bitcoin.
What can be the possible reason of Bitcoin’s win during Trump’s Presidency?
It is definitely a victory of Bitcoin founders who are indirectly getting support from the world’s strongest economy. The best possible reason for this support could be:
“Blockchain technology has the potential to revolutionize the financial services industry, the U.S. economy and the delivery of government services, and i am proud to be involved with this initiative”
This statement was declared by the most important person in Trump’s presidency; who is designated as Director of Office of Management and Budget under Trump. This simply means that he himself trusts the future of crypto-currencies. He is considered to be most inspiring and outspoken person, he has cleared his views way back in June 2017 that Bitcoin is a revolution and countries that will not accept or legalize the trend shortly will lose its hold on global economy.
Mulvaney is amongst one of the founders for bipartisan Blockchain Caucus, the main job of this foundation is to educate people about Blockchain space, Crypto-currencies, Bitcoin etc. The above statement was taken from one of the meetings he hosted for the BBC.
If still you have doubt why Bitcoin will grow under Uncle Trump’s presidency, here is a quick recap
- The Strongest Economy of the world is willingly accepting it as the trading financial instrument.
- Easiest way to make transactions, hence hassle free banking system which Americans usually support.
- Increased Adoption rate of Bitcoin as people follow the brave.
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The presented content may include personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for you personal financial loss.
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com