Tax day in America… yes the thought that day for anyone who actually makes money in the country will put a shiver down your spine. This year April 17th is the deadline for self-assessed tax payments to be made by, to the IRS.
The IRS is defiantly going to want their cut of the action in the form of capital gains taxes. Some people feel that a lot of people who made money on crypto this year will not have the cash on hand to pay their taxes and will force them to sell current holdings to come up with that capital.
I for one, disagree with that logic. I believe there are two groups.
Group 1: Responsible investors who knew this ahead of time and are prepared. They will not be selling any current holdings.
Group 2: They will not bow down to the IRS tax lords and will not pay. Hell they probably will not report it anyways. They won’t be selling their holdings either.
I don’t look for a giant price drop after April 17th, 2018, instead I see a price jump as more savvy investors get into the market after the tax deadline AKA Group 1.
With the SEC looking into Bitcoin ETF’s, the Stock Market seemingly being led by Bitcoin, companies like Circle buying Poloniex, guys like George Soros entering the market, Blockchain tech entering mainstream application….. I could go on and on but I digress.
I believe we are on the verge of a huge breakout unlike anything we have ever seen. Keep your hats on folks, it’s going to be a very very interesting summer.
Of coarse, nobody knows the future. What are your thoughts on the subject ?
It's an interesting take on it.
I think the wast majority of people (around the world even) are not going to declare their cryptos. Because it would take away a lot of the promised anonymity of them.
But do you think group 1 is large enough to affect anything? Of course if it means institutional investors are finally jumping on board big time, then I definitely see your point.
I believe the institutional investors fall into group 1 and yes, they will affect a lot because of the amount of money that's going to come into the market. Once the SEC makes Goldman Sach's backed Circle the first fully regulated exchange in the U.S. watch out because the money is coming.
I see most of the average investors going the route of decentralized exchanges.
The decentralized exchanges had better have top notch security to draw any large investors in my humble opinion.
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