Study calls for US taxation of cryptocurrency

[I Shrugged]

I know the Fed wonks issue all kinds of studies. And that a lot of it is just brainstorming which might not amount to anything actually being done. This one is interesting. The actual report is way too deep for me, but what I get out of it is that they are saying, "here's how we can have permanent deficits, and it will require taxing bitcoin".
I think it is really saying any alternative money, which to my way of thinking could include gold.

Here is the abstract with a link to the full report. The full report has a conclusion section which is not the same as the abstract.

https://www.minneapolisfed.org/research ... ebtholders.

[boglerdude]

Ah, jargon. Where would law and econ be without it. I think they're saying crypto (alternative currencies) limits the ability to inflate. Gov has a solid grip on the offramps at the moment so political unrest is still the limitation. I dunno whats happening outside the US. Are people using bitcoin for coffee in other countries?

[yankees60]

I listened to an interview with Andrew Tobias.

He pointed out that under current U.S. tax law anything you pay for anything using bitcoin, e'.g., a coffee, that is a capital gains event that should be reported on your tax return!

[gaddyslapper007]

yup....gov deficits are reaching their threshold it seems. Historically US was able to export its inflation throughout the globe....but the world woke up and realized they were selling their 1st principles assets (food, energy (O&G), and labor/goods for a currency that has no cost to create. (US dollar).

Because of this awaking, inflation is being felt domestically, and with slowing economy gov deficits are in trouble. They have to print....Bitcoin is the fastest horse in the race will benefit the most. Therefore they are eyeing the cap gains as tax revenue.

This however will end badly if executed, as bitcoin has borderless rails. Remember these words: "Money / Wealth flows to where it is treated best". IF the US decides to punish hodlers they will leave with 12-words in their head to a country with Amercian values. Other countries will compete with Bitcoin friendly tax laws and attract that wealth.

Who knows how it will play out....but keeping wealth in this country should be a matter of national security. The best play is for the US to use its abundant resources and infrastructure to get ahead of the game against BRICS. We must incentive Bitcoin mining to suck up every last drop of excess / otherwise wasted power and build more energy plants. The wealthiest countries per capita all have low energy costs to the people. (AKA the producers.)

[I Shrugged]

I wonder what percentage of crypto, or bitcoin specifically, is held in "accounts" versus directly by the owner. I would think the accounts would be easily subject to taxation.